The short list of kinds a cost center can be: Branch, Project, Department, Vehicle, and whatever else your business divides itself into. Each record is one name and nothing more.
When to use it
Once, while you set the system up and before you start adding cost centers. After that, only when the business gains a new kind of unit to report on.
Before you start
Nothing else has to exist, and there is nothing to prepare. Decide the handful of names you want before you begin, so the list stays short.
Where to find it
Masters > Cost Center Master > Cost Center Type.
The fields on this screen
| Field (on screen) | What to enter | Required |
|---|---|---|
| Cost Center Type | Groups cost centres by nature, such as Production, Service, Administrative or Selling and Distribution. | Yes |
How it works
Saving adds the name to the CC Type list on the Cost Center master. That is its whole effect: it posts nothing and changes no figure.
What you gain is a way to tell your cost centers apart. With types set, you can group and filter branches separately from projects when you look at profit and cost per unit.
Tips and common mistakes
- Keep the list short. A type is a broad kind, not a name: "Project" is a type, while "Hetauda Warehouse" is a cost center.
- If cost centers already use a type, rename it rather than delete it. Otherwise those cost centers lose their label.
- The name is required and must be unique. The screen refuses a blank name and an exact duplicate, but it accepts two names that are merely similar. Similar names confuse whoever is adding a cost center, who will pick one at random, so use one word for each type and keep them clearly different.
Related guides
- Cost Center (where the type is chosen)
- Branch, Department, Location