cost centre and cost category is very helpful to maintain detail about the employee like employee name, employee salary (basic, daily allowances, HRA (house rent allowances) etc. Before starting the cost category &cost center is very necessary for every accountant to know about cost category & why need arises to activate it?
For example: data related to salary including bonus, HRA (house rent), basic pay etc. total 100% is necessary.
Basic pay 50%
Scooter allowances 20%
Medical facility 20%
House facility 10%
Total 100%
So, for this purpose to maintain the detail need arises for activate the cost center and cost category.
Note: Then you have prepared the ledger creation then cost center activate at that time when need arises. But you must take care that only some of the items where need arise for activation of cost centers and cost category. Like: salary, wages various branches name to be required is written at the time of sale and purchases only.
Cost category & cost centers
How to use cost category and cost center?
- Gateway -->pressF11
- pressF11 -->accounting features
Then in accounting features shows cost/profit center’s management. Then only three changes.
- Maintain cost center -->yes
- pre-defined cost centre allocation during entry
- Cost category -->yes
when cost centre classes are maintained the ALT+C use for the list of cost center classes.
After changes then go to:
Account info. -->Cost category
Cost category -->create
In cost category, main heading is written which you want to maintain the data. (E.G. --> employees name, staff name, teacher name, salary detail etc.
In cost category, main heading is written which you want to maintain the data. (E.G. --> employees name, staff name, teacher name, salary detail etc.
In cost center, name is written under category. Like: when you have choose the employee name category then various name is written e.g. ram, sham, etc.
To maintain the salary in detail:
After all the creation goes to:
- Gateway of tally -->accounting voucher
- accounting voucher -->F5 for payment
And then make entry in payment voucher.
For example:
For salary
Salary a/c Dr.
To cash a/c.
Then all the detail related to salary displayed on the screen in accounting voucher.
HOW TO SEE COST CENTER DETAIL:
- DISPLAY -->STATEMENT OF ACCOUNT
- STATEMENT OF ACCOUNT -->COST CENTER
- COST CENTERS -->CATEGORY SUMMARY.