Defining Cost Centre
Date : 16.04.2018
Setting > Cost Centre
- A Cost Centre is a department within an organization that does not directly add to profit, but which still costs an organization’s money to operate. Cost centre only contributes to a company’s profitability indirectly, unlike a profit centre which contributes to profitability directly through its actions.
- With each cost centre, you can also setup corresponding codes that tie into your accounting system.
- Such codes will ensure that your expenses are put into the correct cost centre, which makes it easier for expenses tracking and reporting purpose.
To Add A New Cost Centre
- 1. Choose Settings > Cost Centre.
- 2. Select the specific company that you wish to add new cost centre.
- 3. Click Add.
- 4. Enter the Code and Name of the cost centre.
- 5. Click Save.
Note: You can click Add button on a Parent Cost Centre to create more or unlimited Child Cost Centre.
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