OPEX — Operations

On this page

• Overview — OPEX vs CAPEX
• Spoke-Level Running Costs
• Petty Cash System
• Utilities
• Consumables & Supplies
• Professional Services
• Monthly OPEX Review

Overview — OPEX vs CAPEX

OPEX (Operating Expenditure) is every recurring cost required to keep the farm running day to day — labour, feed, fuel, utilities, consumables, and professional services. If the farm stops paying it, the farm stops working.

CAPEX (Capital Expenditure) is one-off spending on builds, infrastructure, and equipment — things that create long-term value. CAPEX is tracked separately in the Construction and CAPEX Equipment tabs on Finance.

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Spoke-Level Running Costs

Monthly operating costs broken down by spoke and category. All targets to be confirmed once baseline data is collected.

Petty Cash System

Each spoke receives a petty cash float of ₱2,000 – ₱5,000 depending on daily spend volume. Petty cash is the front-line expense tool — small, tracked, and controlled.

Rules

• Receipts required for every transaction — no exceptions.
• Replenished weekly on a fixed day.
• Float must be fully reconciled before any refill is issued.
• Discrepancies reported immediately to finance lead.

Petty Cash Allocation

SOPs

• Spoke lead is custodian of their float.
• All receipts stored in a dated envelope per day.
• End-of-week: count cash, attach receipts, submit reconciliation form.
• Finance lead verifies before releasing next week's float.
• Any shortage over ₱50 triggers a written explanation.

Utilities

Shared utility costs allocated across spokes based on usage or floor area. Bills filed monthly, spikes investigated promptly.

SOPs

• All bills filed in the finance folder on receipt.
• Any spike over 15% from the previous month is investigated within 48 hours.
• Shared costs allocated to spokes proportionally (by meter reading or agreed split).
• LPG tracked per refill — date, kg, cost, spoke.

Consumables & Supplies

Recurring supplies that are consumed in operations. Procured centrally where possible to capture volume pricing.

SOPs

• Consumables requisitioned through a central request form.
• Bulk purchases reviewed monthly — compare unit cost vs retail.
• Stock levels checked weekly; reorder points set for critical items (ice, packaging).
• PPE replacement tracked per person — issue log maintained.

Professional Services

External professional services retained or called as needed. Costs budgeted annually and tracked monthly.

SOPs

• All professional engagements approved by owner before commitment.
• Invoices filed and cross-referenced to service delivered.
• Vet visits logged with animal ID, treatment, and outcome.
• Annual review of all retained services — value for money check.

Monthly OPEX Review

Every month, actual OPEX is compared to target — spoke by spoke. Overspends are flagged, explained, and corrected. This is how the farm stays solvent.

Review Checklist