About Expenses

Expenses in Capital Investment Budget are expense amounts that increase or decrease the approved budget submission. These expenses can either be registered manually through the application, or are automatically picked up from leases in your Nakisa Lease Administration instance.

In order to register expenses from Nakisa Lease Administration, a valid budget submission must be assigned to the master lease agreement. This budget is then applied to the applicable expenses of the leases below the master agreement with matching company, year, and investment type.

The capital budget method used in the application is Net Present Value (NPV), which is based on the difference between the upfront costs of an asset and how much cash flow it will generate. Therefore, when a lease is activated or an event is performed, changes to the ROU Asset value are automatically registered as expenses under the applicable budget submission. If there is an insufficient amount remaining in the budget, the application blocks the operation in Nakisa Lease Administration.

Each expense item registered against the submission is listed on the submission Expenses tab. You can export these expenses or add custom tags for informational purposes, if needed. The Submission Movement tab then summarizes the submission movement amounts across years and is filtered by investment type.

See the following topics for more information:

• Adding Expenses Manually
• Budgets in Nakisa Lease Administration
• Expenses from Nakisa Lease Administration

Capital Investment Budget 2022.R2-SP © 2024

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