![]() On the income statement, these expenses are generally classified as operating expenses. Think desks, phones, headsets, and office snacks. Indirect Spend: This is money spent on items or services to keep your business running.On a company’s income statement, direct spend is called cost of goods sold (COGS). Without these materials, there’d be no revenue. Direct Spend: This is money spent on materials that will eventually be sold to customers.Indirect Spendīefore we go any farther, let’s get some definitions out of the way to make sure we all speak the same language. The driving force behind SourceDay’s partnership with Coupa was a desire among manufacturing companies to see their total spend in one place, for their indirect and direct spend systems to talk. The more integrated their information, the better equipped a business is to harness their data-and actually use it. Second, they look to make sure it connects to as many of their existing systems as possible. (They’re not going to dip into their margins if it’s not absolutely necessary.) First, they look to make sure that the technology solves a real problem in their organization. Manufacturing companies on the leading edge of their industries look for a few things when evaluating new technology. Here’s why we’re so excited about the partnership-and what our customers can expect. This integration allows manufacturing companies, or any company with complex direct spend requirements, to manage both their direct and indirect spend in one place. In August, SourceDay announced an exciting integration partnership with Coupa, the leading provider of procurement software.
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