Setup Cost Centers
Last updated
Last updated
YouTube:
A cost center is a unit within an organization that incurs costs but does not directly contribute to profits. It helps in tracking actual expenses and comparing them with the budget. This tutorial will guide you through the process of setting up and using cost centers in Logic ERP.
Navigate to the Setup\Setup Accounts and then click on "Setup Cost Centers".
Create Cost Elements (Nature of Cost)
Right-click on Cost Element and select Add Cost Element.
Define the nature of cost, such as Salary or Advertisement.
Repeat the process to create additional cost elements as needed.
Create Cost Centers and Allocate Cost Elements
Right-click on Cost Centers and select Add Cost Center.
Allocate the relevant cost elements (e.g., Advertisement expenses assigned to Marketing Cost Center).
Create a Payment Voucher
Open the Payment Voucher window.
In the Cost Center column, press the spacebar to select the appropriate cost center.
Create a Cash Payment Voucher
Follow the same process as above to allocate costs in Cash Payment Voucher.
Navigate to the Reports/Queries/Financial Analysis and then click on "Cost Centre Wise Analysis"
Filter and Analyze Data
Use Cost Element and Cost Center filters to view specific reports.
The report provides a clear breakdown of income and expenses across different cost centers.
Logic ERP's cost center feature helps businesses efficiently track expenses, allocate costs, and analyze financial performance for better decision-making.
