Cost Centers
Cost Centers
Cost Centers |
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The Cost Centers register enables you to merge lines of revenue, expenses,
cost, invoices received and issued, sales and purchae orders, salaries and
travel expenses in a straight-forward easy-to-use way, according to the data
on cost center ID that can be found in previously mentioned documents and their
lines. So you can easily create an analysis of how successful the
specific sales item, own production item or project actually is. That is
depending what importance you put to cost centers. The very definition of the
cost center depends on operations your company carries out.
- For manufacturing companies the cost center represents an
individual item marketed by the company. Mostly this holds goods for order
production. You can merge individual items by using the ID of a cost centers
group when creating different cost analyses and subsequent analyses. In
production of rečated articles it is recommended that you use one cost
center for a batch of finished products.
- For services providing companies the cost center usually represents
a certain project with restricted life-cycle, where you are interested in
analysis of assets used and acquired in verification of quantities consumed
and costs. Furthermore, comapnies which carry out multiple services can
group them by using cost centers and thus enable overview of how successful
individual sector in company operations and subsequent comparisons.
You can link a document with the cost center in the following two ways:
- by selecting the appropriate cost center in the document. If in the sales
order you relate the customer to the selected cost center ID, the order is
automatically included in the overveiw of cost center.
- by selecting the document which have not yet been linked to the cost
center from the section for setting up cost centers.If you select a line in
sales order among open (unlinked) lines, the document is linked to the cost
center and its number is entered in the line of order for further processing.
Related topics:
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For subsequent distributing of expenses and revenue by cost
centers see also the topic on
Distribution Keys.
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