How to create cost centre in tally prime | Cost centre wise report in Tally

 

Cost Category & Cost Center in Tally Prime

 

Cost Category & Cost Cent: - Cost Category & Cost Center is an Advance Accounting feature of Tally Prime. Cost categories are useful for organizations that require allocation of revenue (Ex: Indirect & Direct Expense and Direct & Indirect Income) and non-revenue (Ex: Capital) items to parallel sets of cost centers.

The cost centre in Tally Prime refers to an organizational unit to which costs or expenses can be allocated during transactions while the cost category is used to accumulate costs or profits for parallel sets of cost centers. For example, you can use cost centre to track expenses of each employee or Expenses while cost category can be used to see the effectiveness of each Group of Employee or a Project. Cost Category made by different type wise like region-wise or geography-wise, Grade-wise, Department-wise etc.

Ex: “Sales Department” is a Cost Category. ‘Mahesh Gupta’, ‘Dinesh Sharma’ & ‘Rajesh Varma’ are Cost Center of Sales Department (Cost Category).

 

*How to Activate Cost Category & Cost Center in Tally Prime?

Step: GOT > F11

Activate the Option Enable Cost Centers, Like that Following Screen shot

 

 

v  Press ‘Ctrl+A’ for Save this Changes

 

*How to Create Single Cost Category in Tally Prime?

Step: GOT > Create > Click on ‘Show More’ > Cost Category > Create New > Enter

v  After reaching the Above step Screen will shown like this following screenshot:

v  Fill Details like,

·         Name – Type Name of Cost Category

·         Alias – Type Another Name as Alias for Cost Category otherwise leave it Empty.

·         Allocate Revenue Items – This option is Useful when allocate all type of indirect & direct Expense and Direct & Indirect Income - related transactions to cost centers created under this cost category.

·         Allocate Non-Revenue Items – This option is Useful when allocate all type of Capital, Gift Cards & Deposits related transactions to cost centers created under this cost category.

 

v  Example:  Fill Details like that

·         Name – Sales Department

·         Allocate Revenue Items –  Yes

·         Allocate Non-Revenue Items –No

v  Entry of Above Example in Cost Category creation Screen as following Screen show

 

 

*How to Create Multiple Cost Categories in Tally Prime?

Step: GOT > Click on ‘Chart of Accounts’ > Cost Categories > Multi-Master (Alt+H) > Multi Create > Enter

v  After reaching the Above step Screen will shown like this following screenshot:

 

 

 

 

v  Fill details as Above Single Cost Categories Screen like Name & Revenue Items.

 

*How to Alter Multiple Cost Categories in Tally Prime?

Step: GOT > Click on ‘Chart of Accounts’ > Cost Categories > Multi-Master (Alt+H) > Multi Alter > Enter > make Changes in Category screen > Press ‘Ctrl+A’ for Save changes

v  For Delete Cost Category Press ‘Alt+D’ on Selected one

Note: You will not be able to delete a Cost Category in multiple modes.

 

v  Practice Exercise for Cost Categories Creation in Tally Prime, for You

 

Name	Allocate Revenue Items	Allocate Non-Revenue Items
Marketing Department	Yes	No
Finance Department	Yes	No
Accounts Department	Yes	No

 

 

*How to Create Single Cost Center in Tally Prime?

Step: GOT > Create > Click on ‘Show More’ > Cost Center > Create New > Enter

v  After reaching the Above step Screen will shown like this following screenshot:

v  Fill Details like,

·         Category – Select Category for Cost Center

·         Name – Type Name of Cost Center

·         Alias – Type Another Name as Alias for Cost Center otherwise leave it Empty.

·         Under – It is by Default ‘Primary’ leave it as Primary

 

v  Example:  Fill Details like that

·         Category – Sales Department

·          Name – Rajesh Kumar

·         Under –Primary

v  Entry of Above Example in Cost Category creation Screen as following Screen shot:

*How to Create Multiple Cost Centers in Tally Prime?

Step: GOT > Click on ‘Chart of Accounts’ > Cost Centers > Multi-Master (Alt+H) > Multi Create > Enter

v  After reaching the Above step Screen will shown like this following screenshot:

 

 

 

 

v  Fill details as Above Single Cost Categories Screen like Category, Name & Under.

Note: Under Cost Centre Select to ‘All Items’

 

*How to Alter Multiple Cost Centers in Tally Prime?

Step: GOT > Click on ‘Chart of Accounts’ > Cost Centers > Multi-Master (Alt+H) > Multi Alter > Enter > make Changes in Cost Center screen > Press ‘Ctrl+A’ for Save changes

 

v  For Delete Cost Category Press ‘Alt+D’ on Selected one

Note: You will not be able to delete a Cost Centers in multiple modes

 

v  Practice Exercise for Cost Centers Creation in Tally Prime, for You

 

Category	Name	Under
Marketing Department	Suresh Sharma	Primary
	Dinesh Gupta
	Mahesh Singh
Finance Department	Rohan Gupta	Primary
	Rajesh Prasad
	Kamal Singh
Accounts Department	Naman Prasad	Primary
	Rajat Kapoor
	Harish Gupta

  

v  Application of  Cost Center & Cost Category in Tally Prime that means Allocation of Cost center

Process 1: Create Salary ledger for Payment of Salary to Department

Step: GOT > Create > Ledger

In Ledger Screen Enable Cost Center like that following screenshot

 

·         Process 2: Make Payment of Salary of Department by using Cost center

·         Step : GOT > Voucher > F₅ > Ctrl+H > Single Entry Mode > Enter

In Payment Screen fill following option like,

Account: Select Mode of Payment ‘Cash/Bank’

Particulars: Select ‘Salary A/c’ Ledger

v  After Selection of Salary A/c Ledger Type Amount of Salary & Select Department (Cost Category) then select Cost Center & Divide Amount for Each Cost Center.

v  Fill All Option like this Following Screenshot

*How to Show/Display Cost Centers Reports in Tally Prime?

Step: GOT > Display More Reports > Statements of Accounts > Cost Centers > Category Summary > Enter

v  Reports Show Like this Following Screenshot:

 

 

 Multiple Cost Center and Cost Category Video in Tally Prime

Predefined Cost Center and Cost Category Video in Tally Prime