Authorization For Expenditure (AFE) is a document which authorizes a company to go ahead with activities that will incur costs. It is a contract between a company and other entities, such as a vendor, and is used to control the spending of resources and money. AFE is used to track and manage financial commitments, and to ensure that only approved activities are carried out. There are three main types of Authorization For Expenditure: Capital Expenditure (CAPEX) AFE, Operating Expenditure (OPEX) AFE, and Discretionary Expenditure (Discretionary AFE). Capital Expenditure (CAPEX) AFE is used to approve and authorize spending for long-term investments in assets such as buildings, equipment, and land. Operating Expenditure (OPEX) AFE is used to approve and authorize spending for day-to-day operational activities such as salaries and supplies. Discretionary Expenditure (Discretionary AFE) is used to approve and authorize spending for non-essential activities such as advertising and promotions. In all cases, Authorization For Expenditure is used to ensure that only approved activities are carried out and that the company's resources are managed in a responsible and efficient manner.
Authorization For Expenditure
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How to fill out Authorization For Expenditure?
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