Setup Cost Centers

YouTube: Cost Centers in Logic ERP

Cost Centers in Logic ERP

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.

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Setting Up 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.

This picture illustrates the process of creating a Cost Element in Logic ERP.

• 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.

This picture illustrates the process of creating a Cost Center in Logic ERP.

• Allocate the relevant cost elements (e.g., Advertisement expenses assigned to Marketing Cost Center).

This picture illustrates how you can allocate a Cost Element in Cost Center.

Applying Cost Centers in Transactions

• Create a Payment Voucher

  • Open the Payment Voucher window.

  • In the Cost Center column, press the spacebar to select the appropriate cost center.

This picture illustrates how you can make a Cost Center-wise Payment Entry in Logic ERP.

• Create a Cash Payment Voucher

  • Follow the same process as above to allocate costs in Cash Payment Voucher.

Viewing Cost Center Reports

• 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.

Here, you can see that the software has generated a Cost Center-wise Payment Entry Report.

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Conclusion

Logic ERP's cost center feature helps businesses efficiently track expenses, allocate costs, and analyze financial performance for better decision-making.