Cost Centre in Tally

Cost Centre in Tally

Cost Center -
An introduction is to classify accounts according to work and cost by the cost center. And the Cost Center is created to view the accounts with a special report. It has no effect on the accounting function of accounts. To Maintain the Cost Center, in the F11 Feature under the Accounting Feature, select the option named Cost / Profit Center Management. If you pay more (Payroll / Cost Category).

Creating a cost category
To create a cost category, you must press 0 (O) key to use the option named Cost Category in the menu called Account Info for accounting in Tally ERP 9. With this, its option box will appear in front of you as pictured.

Like the laser, here too you will get the creation display and alteration options of single and multiple cost categories. If you want to create a single cost category here, use the create option given here. For this, press the C key. Its option box will appear in front of you as pictured.

Cost Centre in Tally

In this, select the options related to the name of the category and the type of item to be used with it. After this, pressing the Enter key and saving it will create a single cost category. By adopting the same method, you can determine the cost category you want to determine. After this, if you want to display them on the screen as listed, then use the display option for this. If there is any kind of change in them, then the change can be made by clicking the alter button.

Creating Multiple Cost Categories
You can prepare it using the option given by the same name in the menu of the cost category. And in this section, there are also options related to displaying and altering the cost category, which is respectively R. LT key Can be used by pressing. If you want to create multiple cost categories, after pressing the R key, its option menu will appear on the screen as shown. Here, after opening the multiple cost category, press the Enter key. With which you will get an option box to save these cost categories. Save it by pressing the Y key here. Display to see them on screen and make changes to them. Use the alter option.

Creating a Cost Center
To create a cost center, in Tally ERP 9, you will find an option called Cost Center in the submenu named Account Info, when we select this option, a sub-menu will appear on the screen like the picture given. In this option, you will get options to create single and multiple cost centers. For example, if you select the Create option given in it, the following option box will open in front of you.

In this option box, first select the cost category in the option box called Catagory and after selecting it, come in the 'Nam Vidy' and type its name. Then when you reach the Under option, the option to select a group for the cost center on the screen will open as shown in the picture.

Cost Centre in Tally

After this, you can select the primary from here or any option already open below it. this work. After doing this, save it by pressing the Enter key. If you want to see their list on the screen, use the display option and if you want to make any changes, use the alter option.

If you want to open multiple cost centers, then you have to choose the option given by the same name. Its picture will come like this. Now we can open multiple cost centers using the option box.

If you want to see their list on screen, use the display option and if you want to make any changes in them. Then use the alter option. Press Q key to exit its sub-menu.

Working in Cost Center by an Example
Suppose a company applies cost center on two types of expenses and one type of income. The details of these expenses and A are as follows.

1. Commission Received (Income)
2. Traveling Expenses (Expense)
3. Salary (Khach).

A. Commission type A
A. Traveling Expenses (By Bus)
A. Rahul Sharma

B. Commission type B
B. Traveling Expenses (By Train)
B. Ram

To implement Cost Center on all these, one has to go through the following procedure.

1. Activating Cost Center
Steps: Gateway of Tally - F11 → Accounting Features → Cost / Profit Centers Management

You give the options named Maintain Cost Center & Use Cost Center for Job Costing to Y key. Press and activate.

2. Creating Ledger
A. Creating a Ledger of Commission Received
Steps: Gateway of Tally - Account Info. → Ledger → Create

After this, fill in the following details and exit by pressing Enter.


Cost Centre in Tally


1. Name - Commission Received
2. Under - Indirect Income
3. Inventory Values ​​are affected - No
4. Cost centers are applicable - Yes

B. Making a Ledger of Salary
Steps: Gateway of Tally → Account Info. → Ledger → Create

After that fill the following details in these and exit by pressing Enter.

1. Name - Salary A / C
2. Under - Indirect Expences
3. Inventory Values ​​are affected - No
4. Cost centers are applicable - Yes |

C. Creating Ledger of Traveling Expenses
Steps: Gateway of Tally → Account Info. → Ledger → Create

After that fill the following details in these and exit by pressing Enter.

1. Name - Traveling Expense Ac
2. Under - Indirect Expences
3. Inventory Values ​​are affected - No
4. Cost centers are applicable - Yes

3. Creating a Cost Center
I. Creating a Cost Center for the Commission

Steps: Gateway of Tally → Account Info. → Ledger → Create

After that fill the following details in these and exit by pressing Enter.

1. Name - Commission Type
2. Under - Commission A / c
3. Use of Job Costing - No

Similarly, the Cost Center of Commission Type (B) will be made.

II. Creating a Cost Center for Traveling Expenses
Steps: Gateway of Tally → Account Info. → Cost Center → Create

After that fill the following details in these and exit by pressing Enter.

1. Name - Traveling Exp. A / c
2. Under - Primary
3. Use of Job Costing - No

Similarly Traveling Exp. Types of cost centers will be built.

A. Creating a Cost Center for Traveling Expenses (By Bus) Steps: Gateway of Tally → Account Info. - Cost Center → Create

After that fill the following details in these and exit by pressing Enter.

1. Name - Traveling Exp. A / c (Bus)
2. Under - Primary
3. Use of Job Costing - No

Similarly Traveling Exp. (Train) cost center will be made. And similarly the primary cost center of Salary will be made. And then cost centers of Salary's types (Rahul Sharma and Ram) will be made.

B. Voucher Entry
1. Entry of Voucher for Commission Receipt

Steps: Gateway of Tally → Accounting Voucher

After that fill the following details in these and exit by pressing Enter.
1. Date - Fill the date with F2.
2. Cr. - Received the Commission Received, and Amount, after this, you will fill the Type (A & B) and Amount of the Cost Center from the list of Cost Center displayed.

3. Select Cash / Bank and fill the Amount. Finally, insert the required narration. After this, you will enter Traveling Expenses & Salary in Payment Voucher.

4. Cost Center Display Steps: Gateway of Tally Display - Statement of Account -> Display Cost Center After this, you can analyze Cost Center according to the details given in it according to the picture. And if you want, you can print it out according to the need.

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