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Topics: Information Technology
capex/opex calculator for a portfolio
Hi,

I have recently joined as chief of staff for a telecommunications company. I have been tasked to identify all the Capex and Opex projects and also calculate the Capex and Opex number for all the projects and report for the portfolio.

- What should be the approach/questions that I should ask
- Is there a template that anyone can share

Kindly guide.

Thanks!
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Pushkar,

though there is regulation around the distinction between Capex and Opex, it is much up to interpretation of the company accountants and how they report the assets.

I have seen some who labeled a whole project Capex or Opex and some who even distinguished parts of projects.

So I think the source of your data has to be the accountants, who decide based on their interpretation of data from the projects.

Thomas
Hello
the data should come from accountants. Or from, product managers, owners, while building the business at the pre-project stage.
Capital and operational expenses are usually attached to an organizational unit. It has very little to do with projects. Even when you have a project to stand up capital equipment, it will ultimately be transferred to and owned by an operational manager.

Your financial planning and management unit should already be tracking and reporting those expenses by unit.
Hello Pushkar

Adding to Mr. Thomas, Capex is maintained at organization level which are long term expenses.

Opex are maintained at project level, expenses directly related to project, from thereon you derive the project P&L.

As regards template, once you start identifying the expenses how and when it occurs, you will be able to put your own template.

There may be several templates available, you would eventually try to fit around the template which may differ to your organisation/project and accounting standards.
If, as it sounds, your company is just now starting to deal with distinguishing and reporting on capex and opex projects, you should also be prepared for the possible need for the following:

- guidelines for determining whether a project is capex or opex (current and future projects), and making sure PMs and other leaders involved with projects understand why this is important and how this will affect them going forward
- standards for managing projects and retaining project information - primarily for capex projects, assuming that they will be audited sometime in the year following their completion
- procedures and guidelines for preparing for and dealing with internal audits of capex projects and their findings

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