Headline: Trailing-12 operating expense is $3,376,268 against consolidated revenue of $16,812,655 (20.1%). Every category total below reconciles to the NetSuite Income Statement (report id -200) for the identical period window to within $0.07.
Data caveat: many recurring accounts (Salaries 6210, Commissions 6070, most telecom) stop posting after Apr 2026, so May–Jun totals are almost certainly incomplete. The H1→H2 "improvement" in opex % of revenue is therefore overstated; trend flags below rely on the fuller Jul 2025–Apr 2026 span wherever possible.
| Category (parent account basis) | T12 $ | % of Rev | H1 $ | H2 $ | H2 vs H1 | % Rev drift (pp) | Trend |
|---|---|---|---|---|---|---|---|
| People — Salaries & Payroll (6210, 6230) | $1,201,111 | 7.14% | $827,667 | $373,445 | −54.9% | −5.23 | ▼ (Apr–Jun under-posted) |
| Selling & Marketing (6050: 6060/6070/6080) | $576,124 | 3.43% | $366,164 | $209,960 | −42.7% | −1.77 | ▼ |
| Facilities (6600: rent, utilities, R&M, equip rental) | $456,717 | 2.72% | $167,164 | $289,552 | +73.2% | +1.52 | ▲ 🔴 |
| Depreciation & Amortization (6800 family) | $327,938 | 1.95% | $260,875 | $67,063 | −74.3% | −2.26 | Dec catch-up posting |
| G&A Other (prof. fees, training, outside svcs, supplies…) | $280,154 | 1.67% | $161,971 | $118,182 | −27.0% | −0.48 | ▼ |
| Insurance (6310/6311/6312) | $195,673 | 1.16% | $45,892 | $149,781 | +226.4% | +1.26 | ▲▲ 🔴 |
| Travel & Entertainment (6400 family) | $157,234 | 0.94% | $107,981 | $49,254 | −54.4% | −0.68 | ▼ |
| IT & Telecom (6650: computer, telephone family) | $153,097 | 0.91% | $107,981 | $45,116 | −58.2% | −0.73 | ▼ |
| Management Fees (6150) | $14,737 | 0.09% | $0 | $14,737 | new | +0.18 | new in H2 🟡 |
| Leases (6901/6902) | $9,784 | 0.06% | $0 | $9,784 | new | +0.12 | new in H2 🟡 |
| Other / FX & Interest (8010, realized/unrealized G/L) | $2,979 | 0.02% | $0 | $2,979 | — | +0.04 | — |
| Total operating expense | $3,376,268 | 20.08% | $2,045,695 | $1,330,573 | −35.0% | −8.02 |
Roll-up follows the live account hierarchy (account.parent): 6050→146, 6600→149→146, 6650→149, 6400→153→149, 6310→149, 6800→146, top-level 6150/6901/6902 kept separate as they have no parent. Consolidated to USD via consolidatedexchangerate.averagerate per posting period — identical method to the NS Income Statement, which is why totals tie exactly.
| Flag | Category | Evidence (account-level actuals) | Trailing exposure |
|---|---|---|---|
| 🔴 RED | Insurance | 6312 Workers' Comp: ~$2K/mo baseline → $50,000/mo in May & Jun 2026; 6310 direct postings $6.6K/$5.6K/$20K in Apr/May/Jun. Vendor: Barker Insurance (id 3622), 2×$50K bills. % of revenue 0.54%→1.80% H1→H2. | $600K/yr if May–Jun rate persists |
| 🔴 RED | Facilities | 6610 Rent: $16.4K/mo (Jul–Nov) → $34–44K/mo (Dec–Mar) → $130,294 single May posting (ACME Industries bill, id 3755). Slope +$3.2K/mo; grew faster than revenue in consecutive-month bursts through H2. | $410K/yr rent line |
| 🟡 AMBER | Management Fees | 6150 appears Mar 2026 onward, $12.2K in Jun alone. New intercompany charge structure — confirm transfer-pricing intent. (Local-currency postings on this account are ¥/₫-denominated; USD impact shown.) | ~$15K in 4 months |
| 🟡 AMBER | Leases | 6901/6902 new from Mar 2026 ($9.8K in 3 months) — new lease accounting adoption; expect this to become a steady ~$2.4K+/mo line. | ~$29K/yr implied |
| 🟡 AMBER | Professional Fees (within G&A Other) | 6470: ~$5–8K/mo baseline → $12.6K/$10K/$10K Apr–Jun (HQ Consulting $34K + Adam Smith CPA $10K bills land here) — only G&A Other line rising while its siblings fall. | $90.9K T12 |
Consecutive-growth screen: no category shows 3+ months of uninterrupted faster-than-revenue growth across the full window (longest run = 2 months) — the red flags above are step-changes, not gradual creep, which makes them more actionable: each traces to specific postings/vendors.
| Account | T12 $ |
|---|---|
| 6674 Online Fees (id 93) | $29,846 |
| 6340 Postage & Delivery (id 79) | $24,623 |
| 6330 Bank Service Charges (id 64) | $11,192 |
| 6080 Freight-out (id 166) | $300 |
| 6270 Freight In Expense (id 326) | −$598 |
| Total processing costs | $65,364 |
0.39% of revenue · $46.29 per customer invoice (1,412 invoices T12). No dedicated merchant-fee account exists in this chart; card/online charges post to 6674/6330.
Per-invoice cost fell from ~$74 (Jul 2025, 54 invoices) to ~$12–16 (Jan–Mar 2026, 171–185 invoices) — these costs are largely fixed, so volume dilutes them. The Apr–Jun drop-off mirrors the account-posting gap, not a genuine fee reduction.
| # | Vendor (id) | T12 Spend | Bills | Avg/Bill | Note |
|---|---|---|---|---|---|
| 1 | Custom Products (1067) | $2,126,862 | 84 | $25,320 | Largest supplier — direct/COGS heavy |
| 2 | Brocade Communications Systems (720) | $627,969 | 32 | $19,624 | Network hardware |
| 3 | Core4Solutions (628) | $472,775 | 99 | $4,776 | 99 bills; $292K in Jun alone — review |
| 4 | ACME Industries (3755) | $360,588 | 8 | $45,074 | Incl. $130,294 May rent spike |
| 5 | Equity Office (633) | $304,877 | 2 | $152,438 | Landlord — single $304,848 Dec bill |
| 6 | Crown Metal Works (629) | $292,483 | 42 | $6,964 | |
| 7 | Grainger (723) | $285,135 | 39 | $7,311 | MRO supplies |
| 8 | Wesco Supplies (646) | $263,891 | 35 | $7,540 | MRO supplies — overlap w/ Grainger |
| 9 | Adriondack Networking (722) | $252,903 | 34 | $7,438 | Networking — overlap w/ Brocade/CDW |
| 10 | FrisCo (637) | $155,171 | 16 | $9,698 | |
| 11 | Predict Factors Gamma (2298) | $134,685 | 901 | $149 | Near-daily micro-billing 🔴 |
| 12 | Lancome (642) | $125,717 | 4 | $31,429 | Single $125K Dec bill |
| 13 | Davidson Leasing (630) | $122,000 | 7 | $17,429 | Leasing — 3rd property/lease vendor |
| 14 | ACOM Business Solutions (622) | $118,822 | 37 | $3,211 | Business services |
| 15 | PR100 Expedited Services (2301) | $114,075 | 9 | $12,675 | Monthly subscription pattern 🟡 |
| 16 | Contract Manufacturer (643) | $109,250 | 34 | $3,213 | |
| 17 | Forex Vendor UK (2503) | $101,949 | 2 | $50,975 | FX test vendor — likely excludable |
| 18 | Barker Insurance (3622) | $100,000 | 2 | $50,000 | Drives the Insurance red flag 🔴 |
| 19 | Predict Factors Alpha (2296) | $89,730 | 534 | $168 | Near-daily micro-billing 🔴 |
| 20 | Predict Factors Beta (2297) | $84,735 | 532 | $159 | Near-daily micro-billing 🔴 |
Intercompany vendors (Vietnam Sells to US: $9.77M/2 bills; US Sells to Canada/UK; HQ Sells to US) excluded from ranking — they are transfer transactions, not third-party spend.
| Pattern | Vendors | Combined T12 |
|---|---|---|
| Micro-billing (avg <$200/bill, 100+ bills) | Predict Factors Alpha / Beta / Gamma — 1,967 bills | $309,150 |
| 3 property/lease vendors | Equity Office, Davidson Leasing, Landlord Ltd. (+ACME rent charge) | $470,877 (+$130K) |
| 2 MRO suppliers | Grainger, Wesco Supplies | $549,026 |
| 3+ networking/IT resellers | Brocade, Adriondack Networking, CDW, TigerDirect, Tech Vendor | $984,835 |
| 5 professional-services firms | HQ Consulting, AAA Consulting, ACOM, Adam Smith CPA, Witt & Anderson | $175,635 |
| Vendor | Avg $/mo | Annualized | Consecutive mo. | Amount CV |
|---|---|---|---|---|
| PR100 Expedited Services (2301) | $12,675 | $152,100 | 9 | 0.06 |
| Landlord Ltd. (3734) | $4,000 | $48,000 | 10 | 0.28 |
Probe criteria: ≥6 consecutive months billed, ≤2.5 bills/month, coefficient of variation of monthly spend <0.35. Landlord Ltd. is a legitimate rent contract; PR100 is a flat-rate expedited-freight retainer worth renegotiating against actual usage.
Status: no credible external figure quoted. Damodaran's NYU Stern industry margin dataset (pages.stern.nyu.edu/~adamodar/.../margin.html) was fetched live on 2026-07-24; the page exposes gross/operating/net-margin ratios but not a cleanly extractable "SG&A as % of revenue" figure for diversified manufacturing, so per the analysis rules no number is blended or quoted.
Internal trend is the benchmark: total opex ran 18–22% of revenue for most of Jul 2025–Mar 2026 (min 17.7% Nov, max 23.8% Sep, excluding the Dec depreciation catch-up month at 36.1%). That 18–22% band is the reference range against which the Insurance and Facilities step-changes are judged anomalous.
| # | Opportunity | Evidence (accounts / vendors) | Trailing annual cost | Est. savings /yr | Ease | First action |
|---|---|---|---|---|---|---|
| 1 | Verify & re-market workers' comp / insurance step-change | 6312 (id 72): $50K/mo May+Jun vs ~$2K/mo baseline; 6310 $32.3K in Q2 · Barker Insurance (3622) 2×$50K | $600K/yr at new run-rate ($195.7K T12) | $50K–$100K | High | Pull the two $50K Barker bills; confirm whether audit true-up (one-time) or new premium; if premium, competitive re-market + payroll-classification review |
| 2 | Consolidate landlords / audit rent step-up | 6610 (id 81) $410K T12; Equity Office (633) $304.8K single bill, Davidson Leasing (630) $122K, Landlord Ltd. (3734) $48K/yr, ACME (3755) $130.3K May spike | $470.9K vendor spend / $410K rent line | $38K–$77K (5–10% via renegotiation + spike recovery) | Medium | Investigate the $130,294 ACME May posting (3.2× any prior month) — misposting or one-time charge; then consolidate the 3-landlord footprint at renewal |
| 3 | Consolidate Predict Factors micro-billing | Vendors 2296/2297/2298 — 1,967 bills T12, avg $157, and volume is accelerating (92–133 bills/mo in 2026 vs ~30 in 2025) | $309.2K spend + ~1,950 excess AP touches | $15K–$31K (5–10% consolidated-pricing) + AP labor equal to ~1.5 bills/business-day eliminated | Medium | Request monthly summary billing from the Predict Factors family; merge to single vendor master; set $250 minimum-bill policy |
| 4 | Renegotiate PR100 expedited-freight retainer | Subscription probe: $12,675/mo × 9 straight months, CV 0.06 (flat fee regardless of volume) | $152.1K annualized | $15K–$30K (10–20% or per-use conversion) | High | Compare retainer vs actual expedited shipment count; convert to per-shipment pricing if utilization <80% |
| 5 | Telecom & online-fees consolidation | 6670 family (ids 90/177/92/93): Regular $37.3K + Online Fees $29.8K + Internet $22.4K + Cellular $15.0K = $104.6K T12 across 4 services | $104.6K | $16K–$26K (15–25% single-carrier bundle) | High | Inventory lines/circuits; issue single-carrier RFP for voice+data+mobile |
| 6 | MRO supplier consolidation | Grainger (723) $285.1K + Wesco (646) $263.9K — duplicate category, 74 bills | $549.0K | $16K–$33K (3–6% volume-tier pricing) | Medium | Run item-overlap analysis on the two vendors' bill lines; award primary-supplier agreement |
| 7 | Professional-services panel rationalization | 6470 (id 80) $90.9K T12 and rising while siblings fall; 5 firms: HQ Consulting $34K, ACOM $118.8K (partly ops), AAA $4.5K, Adam Smith CPA $11K, Witt & Anderson $7.3K | $175.6K vendor spend | $9K–$18K (5–10%) | Medium | Require SOW + rate card per engagement; consolidate tax/audit work to one firm |
| 8 | T&E advance-purchase policy | 6430 Airfare $63.2K + 6420 Accommodations $37.7K (ids 155/154) | $100.8K | $10K–$15K (10–15% on air/hotel via 14-day booking rule) | High | Enable booking-window policy in expense tool; monthly exception report |
All trailing costs from posted GL actuals (queries in appendix). Savings ranges are internal-scenario estimates (percentage haircuts on actual trailing spend), not external benchmarks. Items below the $5K/yr floor (e.g., bank service charges optimization at $11.2K spend, freight-out $300) were evaluated and dropped.
| P&L line | Report | SuiteQL rebuild | Diff |
|---|---|---|---|
| Selling Expenses (6050) | $576,123.74 | $576,123.76 | $0.02 |
| G&A Expenses (6100) | $2,444,705.97 | $2,444,705.90 | −$0.07 |
| Depreciation & Amortization (6800) | $327,938.41 | $327,938.41 | $0.00 |
| Total 6000 — Expenses | $3,348,768.12 | $3,348,768.07 | −$0.05 |
| Management Fee Expenses (6150) | $14,737.49 | $14,737.49 | $0.00 |
| Lease Interest + Rental (6901/6902) | $9,783.94 | $9,783.94 | $0.00 |
| Total Income (revenue denominator) | $16,812,655.20 | $16,812,655.21 | $0.01 |
✅ Reconciled. Rounding-level differences only (per-line ROUND at 2dp).
-- Monthly expense by account, consolidated USD (primary dataset)
SELECT a.id, TO_CHAR(t.trandate,'YYYY-MM') AS month,
ROUND(SUM(tal.amount * cer.averagerate),2) AS amt
FROM transactionaccountingline tal
JOIN transaction t ON tal.transaction = t.id
JOIN transactionline tl ON tl.transaction = tal.transaction AND tl.id = tal.transactionline
JOIN account a ON tal.account = a.id
JOIN consolidatedexchangerate cer ON cer.postingperiod = t.postingperiod
AND cer.fromsubsidiary = tl.subsidiary AND cer.tosubsidiary = 1
WHERE t.posting='T' AND a.accttype IN ('Expense','OthExpense')
AND t.trandate >= ADD_MONTHS(TRUNC(SYSDATE,'MM'),-12)
GROUP BY a.id, TO_CHAR(t.trandate,'YYYY-MM')
-- Revenue denominator: same shape, a.accttype='Income', SUM(-tal.amount * cer.averagerate)
-- Vendor spend: transaction type='VendBill', ABS(t.foreigntotal) * t.exchangerate * cer.averagerate,
-- grouped by vendor; monthly variant adds TO_CHAR(t.trandate,'YYYY-MM') + MIN/MAX for cadence probe
-- Hierarchy: SELECT id, acctnumber, fullname, parent FROM account
-- WHERE accttype IN ('Expense','OthExpense') (acctname is NOT_EXPOSED; fullname used)
-- Invoice counts: COUNT(*) FROM transaction WHERE type='CustInvc' grouped by month
Roll-up mapping: categories derived by walking account.parent chains to real parent accounts — 165 (6050 Selling), 167 (6600 Facilities), 168 (6650 IT), 153 (6400 T&E), 70 (6310 Insurance), 66 (6800 D&A), 63 (6690 Bad Debt), 85 (6710 Licenses); ids 95/84 grouped as People; parentless 401/365/372 kept as their own lines; OthExpense + FX accounts → Other.
FX note: raw member-currency sums are meaningless in this OneWorld account (Vietnam ₫ inflates raw totals ~28×). All figures use consolidatedexchangerate.averagerate to subsidiary 1 (Headquarters) — validated by the penny-level tie to the NS report. Vendor spend uses ABS() per the sign-mix rule.
Processing-account identification: name-pattern scan of live chart confirmed ids 64 (6330 Bank Service Charges), 93 (6674 Online Fees), 79 (6340 Postage & Delivery), 166 (6080 Freight-out), 326 (6270 Freight In). No merchant-fee account exists.
Benchmark sources: Damodaran/NYU Stern margin dataset fetched 2026-07-24 — no extractable SG&A% figure; no external number quoted (Section 6).
Known limitations: (1) Apr–Jun 2026 postings are sparse for payroll/commissions/telecom — H2 ratios understate true run-rate; (2) department attribution on expense lines was too partial to add a reliable department cut; (3) vendor spend includes COGS-type purchases (bills are not split by account here) — the top-20 is a spend-management lens, not a P&L category.
Generated by Sonar AI · Data as of 2026-07-24 · Account: Headquarters (Consolidated) · All figures USD