Cost Centers
Last updated
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Cost centers are functions within an organization that incur expenses but don't directly generate profit. Main use of a cost center is to track actual expenses for comparison to budget.
This tutorial explains how Logic ERP software helps you track incomes and expenses within your business's cost centers. Now lets see how this amazing feature works👇
Go to the Main Menu🏠.
Select Setup.
Click on Setup Account.
Lastly open Setup Cost Centers🧾window.
Right-click on Cost Elements 🗂️
Select "Add Cost Element ➕"
Enter details like:
📝Name
🧑💼 Salary
📢 Advertisement
🏢 Office Rent
Click Save 💾 to create the cost element.
Right-click on Cost Centers 🏬
Select "Add Cost Center ➕"
Enter a name for the cost center like:
📈 Marketing
👩💼 HR
⚙️ Operations
Click Save 💾to finalize the cost center.
🔄Allocating Cost Elements to Cost Centers
Assign cost elements (such as Advertisement Expenses📢) to the relevant Cost Centers (e.g., Marketing📈).
Similarly, allocate Salary Expenses🧑💼 to the HR cost center.
📊This helps in expense tracking and financial reporting.
📋Voucher Processing Steps
Open the Voucher🧾: Navigate to the Accounts Module and then choose Bank Payment💳or any other option as per your requirement.
Identify and Enable the Cost Center Column🔍:
Locate and enable the cost center column via settings "if not visible".
Assign the Cost Center🎯:
Select the desired cost center using the space bar to activate the menu.
Create the Payment Voucher📝:
Fill in all fields including date📅, amount💰, and payee details🧍.
Finalize and Save✅:
Review for accuracy.
Open Reports Queries📑
Navigate to Reports Queries in the main menu.
This section allows you to retrieve customized datasets and gain insights into cost center performance.
Select Financial Analysis💼
Click on Financial Analysis to access key financial metrics and reports.
This section provides a comprehensive view of cost allocations and expenditures.
This section gives you a full view of how funds are allocated and spent!
Choose Cost Center Wise Analysis Report📉 from the available options.
To customize the report Use filters like:
🧩 Cost Element
🏬 Cost Center
This shows the incomes and expenses allocated to various cost centers.
🧠 This report gives a detailed breakdown of all incomes & expenses linked to each cost center!
With Logic ERP’s cost center features:
You can track incomes & expenses 💸.
Ensure better budget control 📏.
Gain insights into financial performance 📊.
💡 Keep your business finances smart & organized with Logic ERP!