An appropriation table is a tool for making decisions about national and international companies, products and services, which helps to establish control of all expenditures month by month.
This table could be an important factor when establishing a percentage analysis and distribution of expenses in companies, which in its context will support the employer in making administrative and financial decisions. Since it is presented as an innovative concept for the distribution of expenses of a company.
"In the current world situation, the internationalization of the company appears as an essential risk diversification factor in a competitive environment. This process of opening companies to international trade must be planned and carried out by people who, in addition to being entrepreneurs, are trained and possess sufficient knowledge about international scenarios ”(Manuel Cantos Encinas).
In the business world, characterized by being highly competitive and especially globalized, it is clear that one of the most significant situations is decision-making, especially when these are weighed immediately or in the short term, putting in evident risk the competitiveness of the company. Given that although it is not a last minute issue, but it is important and of which the last word has not been said, it is necessary to return to this issue and in this case emphasizing that it is a tool or instrument that makes it possible to optimize in terms of efficient and effective management of costs and expenses of the company.
In a globalized market and taking into account the international treaties signed by Colombia with countries such as Peru, Chile, Ecuador, Bolivia, Venezuela, Mexico, among others, and with economic blocs such as Merco Sur, European Community, Caricom, Merco Sur, Can, etc..; It is becoming more and more essential for the entrepreneur to have clarity about the global operation of his company in the national and international spheres and, among many other factors, costs and expenses acquire their importance since they are largely responsible for the success or failure of a business internationalization or loss of participation in the local market, because the solution based on staff cuts to control costs or business expenses lost its validity and even more so in a country eager for growth in the fixed and stable employment sector for its developing.
It is because of all the above that a proposal different from the already established management of costs and expenses can become an analysis factor for the international businessman. And if to this is added the possibility of establishing a projection of the representative exchange rate of the market not based on external macroeconomic variables that are difficult to control and visualize but based on a projection that can allow the entrepreneur to make a projection of their imports and future exports, which at least gives you a result that can be successful from the perspective of inflation and from the point of view of future cash flows, as well as a controller of future income and that provides a broad perspective for the control of your expenses in the time.
WHAT IS UNDERSTOOD BY TABLE OF APPROPRIATIONS?
Thus, then we can express that an appropriation table is a tool for making decisions about national and international companies, products and services, which helps to establish control of all expenditures month by month. This table could be an important factor when establishing a percentage and distribution analysis of expenses in companies, which in its context will support the employer. Since it is presented as an innovative concept for the distribution of expenses such as stationery, rent, public services, business endowment, transportation assistance, among others, in costs and expenses depending on the area where they occur, since all areas of the company should be responsible for part of the rent, public services, etc. within their budgets.Situation that today is only accounted for 100% in an account of the PUC (Single Accounting Plan) accounting, but the employer, when analyzing his areas independently and in light of the budgets, finds that there are areas highly charged by the accounting of these concepts 100% to the administration, when they must be covered by the entire company.
In view of the above, the TABLE OF APPROPRIATIONS is defined as a table of distributions between costs and expenses of all the concepts that are outlays of money for a company and that once expressed in percentages and distributed improve the decision-making of the entrepreneur.
ELABORATION
The preparation of the appropriations table is carried out based on the difference between the cost and the expense, and the determination of all the concepts that constitute expenditure in a classified companyas noted above: cost or expense. But it is there, in that distribution between cost and expense, where aspects of vital importance must be raised that they include in their determination, and among them, that it is not in any way an ACCOUNTING classification but an ADMINISTRATIVE aspect. So if we understand that a company has several departments, areas or sections and within each one of them each of the accounts must be determined and if their incidence is cost or expense. Cost is understood to be all value of a product or service that is recoverable at the time of its sale and expense all that value that is not implicit in the product and is not recoverable at the time of its sale.
Once it is percentage and classified between cost and expense, we proceed to find the weighting or incidence that costs and expenses have on each other on 100% of the total sum, independently for each concept.
STEPS
- The first of them is to draw up a list of all the concepts that mean the expenditure of money for the company, starting with the payroll in which the name of the position and its salary by department are listed in an orderly and descending way, that is, starting with the upper part of the organizational pyramid, writing down all the members of that department (name of the position) and from then on down in an orderly manner through the organization chart of the company.Then all social benefits and parafiscal contributions are recorded in which The company incurs (does not take into account discounts to the worker). It should be noted that in the previous process the premium, vacations, severance pay, or severance interest should not be prorated; Since the function of the table is decision making, 100% must be considered,even if the employees have not acquired the right to these benefits or are pending payment. Subsequently, the salaries plus the social benefits are totaled to find the total wages of the company. Then the expenses of the company are listed in an orderly manner. company starting with transport assistance and endowment, following, by way of example, with rent, public services, stationery and other concepts that within the accounting plan mean outlays of money for the company. proceed to write down the monthly value (remember that it is a table projected for any period, that is, it can be the most expensive month for the company)Taking these values recorded, the sum of the expenses is made and later it is totaled together with the concept of wages of the company for a consolidated total.Then all the data that must be subject to weighting or proration are taken separately and the search begins. divisor that will give the value over 100% that is charged to cost and expense; For example, the rent can be taken by number of people or by square meter depending on the decision of the person who makes it, public services by number of people, impulses, KW or cubic meters, stationery in the same way and so on with the Concepts that within a company may be subject to be distributed in cost or expense according to the area where they occur and that are included in the table.Once this distribution is made, it is returned to the table and begins with its distribution between cost and expense, according to its classification; In the order of the examples, public services could be cited if there are 10 departments within the company and five were classified as cost indicates that 50% of total public services is cost and the remaining 50% is expense and thus they are classified as the table (see attached model).Taxes are that: taxes, therefore it is recommended not to include them in this table but they are subject to analysis and decision.Once all the concepts have been distributed in the table, the totalization of the Cost and expense columns independently to establish the percentage results of each concept to proceed with the analysis and decision-making In the final determinations,When obtaining the sum of the expense and cost columns, they are divided by the number of budgeted or actual sales units - month of each weighted product; The company's products are classified by number of units - month that is budgeted or actual and weighted over 100%, this is how you can obtain a percentage of participation on the sales of each product that when divided independently The table will show the unit cost of each one and the unit cost of each one, where one more factor is obtained for analysis and decision-making. Finally, each factor is taken independently, two columns are opened where the percentage of participation will be classified of each column cost or expense over 100% of itself; for example, take the manager's salary and divide it over 100% of the cost,of the expense or of both depending on the case and divided on the consolidated of each column will show the percentage participation on the total and so on with each of the concepts.
DECISION MAKING
In the apportionment shown by the table of each of the concepts classified in cost, expense or both, it will be possible to appreciate the percentage value on which each of the concepts classified as expenditure within the company participates, it is this percentage factor that will give a broad view of their behavior and that will be a factor for further comprehensive and precise analysis according to their participation in the total costs or expenses.
The proposal is a different vision for the entrepreneur where, when he needs decision-making tools, he will be able to weigh and have a better criterion that bases his decision-making process by not establishing as a priority the old way of reducing or attacking a cost problem or expensesor raise a profit margin with "THE DISMISSAL OF PERSONNEL", which on multiple occasions is sacrificed to an employee who had no significant impact on costs or expenses, but if he urgently needed his job, knowing that it was in other concepts where the The decision had to rest, but since it did not have a broad overview of the company to determine and ensure the fidelity of its decision, it did not register the objectives pursued until long after several employees were retired, it was understood that it was not there where it was registered the problem of costs or expenses that was had or that by default when the employees were retired and the benefit burden decreased, the problem temporarily disappeared and then reappeared with larger dimensions.
The table then provides the entrepreneur with a detailed view of all their costs and expenses, their classification and their tabulation against the total of these that can later be supported in the preparation of projected budgets and future cash flows because in the information that is records the budget could be the one that feeds the APPROPRIATION CHART.
APPLICATIONS IN DIFFERENT SUBJECTS AND PROGRAMS OF THE UNIVERSITIES
The student body will be able to benefit from this cost and expense control system since it supports the learning of the Administrative and Financial subjects of the different programs of the educational Institutions, where the student body will have new tools in the application of the acquired competences.
