d How to create cost center in Tally
  •  How to create cost center in Tally
  •  How to create cost center in Tally
  •  How to create cost center in Tally

How to Create Cost Center in Tally ?

Cost Centre

F-11 >> Cost centre >> yes
Cost categories >> no

In Tally ERP a cost centre is a part of organisation to which the financial transactions (revenue nature) can be allocated. For example.

  1. Salary paid to employees can be allocated to different departments.
  2. Petrol expenses can be allocated among different cars.

 In Tally ERP Cost centre gives you another dimension to get analysis of accounts for the management information system (MIS).

Creating cost centre in Tally

Once created, cost centre can be displayed by selecting Display for single or multiple cost centres. You cannot alter any information while creating Cost centres.

Altering cost centre in Tally

Existing cost center can be altered by selecting alter. The procedure is the same as creating a cost centre, you can simply type the changes. We may alter the parent by selecting another cost centre from the list.

Deleting cost centre in Tally

We can delete a cost centre via the cost centre Alteration screen by pressing [alt]+[D]. However, we cannot delete a cost centre that contains another cost centre or has vouchers allocated to it. The lowest level must be deleted first.

Cost allocable ledger accounts in Tally

At ledger account creation screen select the cost centre “Yes”. All revenue, expenses, related transactions can be allocated to ledger accounts.

Cost centre break-up report in Tally

This report display Ledger and Group summarized information for the selected cost centre. You can drill down to the list of vouchers.

Ledger break-up report in Tally

This report displays the summarised information of all cost centres for the selected Ledger. You can drill down to the list of vouchers.

Group break-up in Tally

This report displays the summarised information of all cost centres for the selected Group. You can drill down to the list of vouchers.

Cost categories

Parallel classification of cost center can be done with the help of cost categories.

By default tally gives primary cost category.

How to use enter cost center detail in different categories

Category Summary

We can see the different cost categories break up to analyse any accounting ledger.