Cost Center and Cost Category in Tally.ERP9

If you responding “YES” , in Features F11 ( Maintain Cost Centers and more than one Cost Category) The relationship between Features and Accounts Menu is shown below… Maintain Cost Center                       Yes    (more than ONE Cost Category)    Yes    Cost Center :    Cost Center are the units where you can classify the amount into different ledgers. Options : “YES” for the allocation of amounts into different ledgers.

Examples of cost centres: Departments of an Organisation, e.g., Finance, Manufacturing, Marketing, etc. Products of a company, e.g., Tally ess 4.5, Tally eis 5.4,Tally 6.3, Tally ies 7.2 , Tally 9.0, Tally.ERP 9 etc. Even individuals like, Salesman A, Salesman B, etc. Cost Category :            Cost Categories have been introduced for organization requiring allocation of resources to parallel sets of  cost centers. Option “ ‘Yes’ when you want to allocate the amount to more than one sets of cost centers. Matrix is as shown below : Cost Category Ø Branch Department Manager Telephone Cost Center Ø Kolkata Research Regional 06782-252525 Mumbai Administration Area 0671-266666 Delhi Accounts BDM 011-2555555 Support Marketing Example : Allocate the Expenditure.   Expenditure                 Branch Deptt.               Manager           Tel. Ph             Amt.   Telephone                     Kolkata Marketing                                   252525             2500 Traveling                       Mumbai                          Regional                                   5400   Step-1  :           Activate the following features thus : Gateway of Tally.ERP Ø Features (F11) Step-2 :             Create Cost Category and Cost Centers. Cost Category :            Gateway of Tally.ERP Ø Accounts Info Ø Cost Category Ø Create (Multiple)

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Revenue Item : Items appears in Profit & Loss Accounts Non-revenue item : Item appears in the Balance Sheet. Cost Center :    Gateway of Tally.ERP Ø Accounts Info Ø Cost Center Ø Create (Multiple)

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Step-3  :           Create Ledgers thus : Gateway of Tally.ERP Ø Accounts Info Ø Ledger Ø Create ( Single)

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Step-4  :           Enter the transaction thus :  Gateway of Tally.ERP Ø Transactions/Vouchers Ø Accounting Vouchers Ø Payment Voucher