What is COST CENTER CLASSES in Tally Prime ?

Cost center classes feature automatically loads cost center and cost category allocations during voucher entry. For example, Let’s say our company has three branch offices. Let’s say one is Rajam branch, the other is srikakulam branch and third is vijayanagaram branch. But let’s say our company makes payments of some amount to branch offices for maintenance expenses every month. Let’s say the payment made by the company not the same amount every month. Once there may be ten thousand rupees. Once again there may be twenty thousand rupees. No matter how much amount payment is made, 60% of it has been allocated to Rajam branch and 20% to srikakulam branch and the remaining 20% to VIjayanagaram branch . I mean, the percentages making the payment here are fixed. The amount is not fixed.

Therefore, percentage can be allocated for those maintenance expenses in advance using the cost center feature, without entering cost center and cost category details every time. Then, when entering the voucher, cost classes feature automatically select details of cost centers and cost cost categories, and the amount automatically distributed due to the percentage allocated earlier.

ASSIGNMENT

Create the following Cost Categories

  • Advertisement
  • Vehicles

Create the following Cost Centers

  • Under ADVERTISEMENT category
    • Digital Advertisement
    • Offline Advertisement
  • Under VEHICLES category
    • Lorry
    • Car
    • Bike

Create the following vouchers with Cost centers, Cost categories and Cost Classes

  1. Company paid amount for advertisement in cash – Rs. 50,000/- on 01-05-2021
    • For Advertisement
      • Digital Advertisement 75%
      • Offline Advertisement 25%
  2. Company paid amount in cheque of SBI for petrol expenses – Rs. 30,000/-. on 02-05-2021
    • For Vehicles
      • Lorry – 40%
      • Car – 30%
      • Bike – 30%

SOLUTION

SETTING UP FEATURES

  • Press F11 for company features
    • Accounting :
    • Enable Cost centers : Yes
    • <press enter > Accept _ Yes

CREATION OF COST CATEGORIES

  • Gateway of Tally
    • Masters
      • Create
        <click on show more >
        • Accounting Masters
          • Cost Category
  • Name : Advertisement
    Allocate Revenue items : Yes
    Allocate non-revenue items : Yes
    <Press Enter> Accept_Yes
  • Name : Vehicles
    Allocate Revenue items : Yes
    Allocate non-revenue items : Yes
    <Press enter > Accept _ Yes

CREATION OF COST CENTERS

  • Gateway of Tally
    • Masters
      • Create
        • Cost Centers
  • Category : Advertisements <Select from the list> < Press enter >
    Name : Digital Advertisement
    Under : Primary
    Press Enter
    Accept_ Yes
  • Category : Advertisements
    Name : Offline Advertisement
    Under : Primary
    Press Enter
    Accept_ Yes

    Press BACKSPACE to change category
  • Category : Vehicles
    Name : Lorry
    Under : Primary
    Accept _ Yes
  • Category : Vehicles
    Name : Car
    Under : Primary
    Accept_ Yes
  • Category : Vehicles
    Name : Bike
    Under : Primary
    Accept _ Yes

CREATION OF COST CLASSES

  • Gateway of Tally
    • Create
      Click on “Show more”
      • Accounting Masters
        • Cost Center Class
  • Class Name:
    Advertisement
    <press enter>
    Select “cost category” Advertisement from the list < Press enter>
    Name of Cost center :
    Digital advertisement
    %age:
    75%
    Offline advertisement
    %age
    25%
    Select “end of list” Press enter
  • Class Name :
    Petrol Expenses
    <press enter>
    Select “Cost category'” Vehicles from the list < Press enter>
    Name of Cost Center :
    Lorry
    %age:
    40
    Car
    %age:
    30
    %age
    30%
    Select “end of list” press enter

ALTERING COST CENTERS & COST CATEGORIES & COST CLASSES

  • Gateway of Tally
    • Masters
      • Alter
        • Select Cost Category (or) Cost Center < Press enter >
          • Select from list < Press enter >
            • now you can alter / delete cost centers (or) cost categories

VOUCHERS ENTERING WITH COST CENTER CLASSES

  • Gateway of Tally
    • Transactions
      • Vouchers
  • Press F5 for payment voucher
  • Press ALT + F2 to change period
    From : 01-04-2021
    To : 31-03-2022
  • Press F2 to change date
    01-05-2021
  • Press F12 for configuration : And activate the following feature
    Show cost center / class : Yes
  • Cost Center Classes:
    Advertisement <select from the list >
  • Account : Cash
  • Particulars : <Select “Create” option> Press enter (or) Press ALT + C
    Name : Advertisement Expenses
    Under : Indirect Expenses
    Cost Centers are applicable : Yes
    Press enter
    Accept_ Yes
  • Amount : 50,000
    Press enter
  • Accept _ Yes
  • To view the cost center details, press Page up for previous voucher, then press F12 for configuration and activate the option “Show list of cost centers “

similarly, enter the remaining vouchers also.

EXAMPLE VOUCHER WITH COST CENTERS AND COST CATEGORIES

REPORTS

  • Press ALT + G for go to report
  • Cost category summary
  • Cost Center reports

SEE MORE

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