On a Zoom meeting with Steve, Mike, Sean, and Jen going over SG&A costs (sales, general and administrative costs). I was taking some notes while listening to the guys talk about things. Steve had me show my screen and we did some drawing and discussing of possible options. We ended up going over some small scenarios and what not. Here are some of my notes:

Load and sell – SG&A

- Hang it – relationship – what is hanging on what?

- Expense over date range – say over 30 days or whatever

- Expense by percentage – say 5% per day or whatever

- Expense on one time event – everything hits right now

- Lifecyle events – everything starts, lives (whatever that is), and then everything dies

- Variable – some items will have SG&A and some will not – this needs to be a switch and/or a manual

- Selling it and grabbing all of the hangers

- Roots and branches – backwards and forwards

- Two channels – normal inventory channel and the SG&A channel

- Making a plan and road map – beat it up on paper/presentation level first before we go to code.

- Some expenses are forward facing or rear facing (we get billed for things that will happen or things that have already happened).

- The inbound hopper will be a moving, flowing, entity – once again think lifecycle

- Allocating the SG&A – there may be some that is attached and some of that may be unattached

- Ever second the balance sheet needs to be in balance.

- What do you want... ??? we need some scenarios – bring inventory in, what are the costs, what happens over time, what are the relationships and hanger values?

- Inventory comes in through PO's. We are thinking of maybe using a special E/R (expense/receipt) to handle the SG&A as the second channel.

- Steve was proposing a possible new inbound tool to help with those costs, capitalization, and flow of the data.

- Based on Steve's idea of using the PO and inventory route – we talked about selling x (real inventory) and virtually hanging z (SG&A or other hidden costs) to the same invoice.

- Mike was talking about a possible problem with PO costs and normal E/R costs and mixing them. Steve was talking about putting multiple lines or line items on each expense. Steve was also talking about a quick tool to split things out. Being able to do PO's with inventory and then adding in other costs. We talked about being able to move the AP between the PO or on the expense side. For example: $75 in real inventory and $25 in freight = 2 lines on the expense. One tied to the $75 PO and the other will be for the freight.

Scenarios:

1. 100 items for $10 per : now we have 1,000 in inventory and we owe 1,000

2. Rent for 100 – in 30 days pull it down = 3.33 per day per item divided by 100 items = .33 per on day 1

3. Hopper = 100

4. We talked about dates, calendars, and being able to hang things on different inventory item

5. We didn't really finish... we started drawing and got pulled off on a tangent...