Cost Centers

Cost Centers

The Cost Centers register enables you to merge lines of revenue, expenses, cost, invoices received and issued, sales and purchase 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 analysis and subsequent analysis. In production of related 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, companies 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 overview 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:

• General (settings required fields in cost center register, generate cost center ID)
• Set Cost Centers
  • General Information
  • Invoices Issued
  • Invoices Received
  • Customs Warehouse
  • Sales Orders
  • Purchase Orders
  • Trips
  • Salaries
  • Direct Costs
  • Analyzes
  • Posts
  • Custom Fields
• Cost Center Groups
• Statuses
• Report

For subsequent distributing of expenses and revenue by cost centers see also the topic on Distribution Keys.