Last Updated on: 5th July 2024, 01:47 pm

Cost Accounts in Tally

Cost Centre in Tally

Cost Centre is used to analyse Ledger Accounts in another dimension. For example, to get Branchwise  analysis of expenses (like Conveyance Expenses, Car Expense etc), Cost Centres (for each Branch) may be created to allocate the respective Expenses entered in Vouchers to the Cost Centres (i.e Branches). For example, Travelling Expenses may be allocated to the respective Cost Centres (Branches), to get Cost Centrewise (Branchwise ) analysis of Travelling Expenses at each level. Cost Centre gives another dimension for analysis of ledger accounts for management information.

The amount allocated to Upper Level Cost Centres (like Account Group) includes the amount allocated to its subordinate Cost Centres (like Sub Group / Ledgers). For example, the amount allocated to South Bengal would constitute the total of amount allocated to its subordinate Cost Centres (viz Hooghly, 24 Prgns & Howrah) and also the direct amount allocated to South Bengal.

Cost Centre somewhat behaves like a Ledger Account, as  Ledger Amount may be allocated to a Cost Centre. It also behaves somewhat like an Account Group, as a Child Cost Centre may be created under any Cos Centre..

In the voucher, allocation  to Cost Center may be done to any Cost Centre of any level . For example, amount may be allocated to lowest level Cost Centre (viz Howrah) or to upper level Cost Centres, like  South Bengal, West Bengal, etc., or a combination of some or all of them..

Cost Centre Activation in Tally

To activate Cost Centre feature, at Company Operations screen (F11: Features >Accounting Feature), set Yes at Maintain Cost Centre . Consequently, the Cost Centre option will get activated at GoT>Accounts Info to create Cost Centres for the Company .

Cost Centre Activation in Tally

Example of Multi Level Cost Centre

– West Bengal

• South Bengal
  ○ Hooghly
  ○ 24Prgns
  ○ Howrah
• North Bengal
  ○ Siliguri
  ○ Jalpaiguri

– Bihar
……
…….

Cost Centre Master in Tally

Like Ledger Accounts, you need to first create Cost Centres to which the amount of ledger accounts in the voucher are to be allocated. The Cost Centres are independent of Ledger Accounts. That means amount of any Ledger Account may be allocated to any Cost Centre. So, a Cost Centre may  contain amount allocated from various ledger accounts.

Accounts Info Menu in Tally

Like Account Groups & Stock Group, Cost Centres may be created in a multi level hierarchical structure. So, a Cost Centre may be created under another Cost Centre and so on.

Cost Centre Menu in Tally

Cost Centre Master Creation in Tally

To create Cost Centre Master, at Gateway, select Accounts Info to get Accounts Info Menu .  At Accounts Info menu, select Cost Centre to get Cost Centre Menu . At Cost Centre Menu , select Create (under Single Cost Centre) to get Cost Centre Creation screen . Now enter as follows:

• Cost Center Name:At Name, enter Cost Centre Name.
• Parent Cost Centre:At Under, select the parent Cost Centre (or select Primary) under which you like to place the Cost Centre (for the first Cost Centre created, you must select Primary only).

If Alias is activated, you may enter Cost Centre Alias Names also, as explained for other Masters.

Cost Centre Master Alteration : To Alter a Cost Centre Master, at Cost Centre Menu, select Alter (under  Single Cost Centre) and then select the Cost Centre to be Altered, from the List, to get The Cost Centre Alteration screen, displaying the Cost Center, similar to Cost Centre creation screen (F-3A). Place the cursor to the desired field and make necessary alteration in the same way as Creation of Cost Centre, explained above.

Cost Centre Master Display : To Display a Cost Centre Master, at Cost Centre Menu, select Display (under  Single Cost Centre) and then select the Cost Centre to be Displayed, from the List, to get the Cost Centre Display screen, displaying the Cost Center, similar to Cost Centre creation screen (F-3A). You may view the details but you cannot change any data from Display screen.

Parent Cost Centre Creation during Cost Centre entry : If the Parent Cost Centre is not existing, during Cost Centre creation, at Under , press Alt+C to get Cost Centre Creation (Secondary) screen. Create the new Cost Centre and select it as Parent Cost Centre at Under field.

Cost Centre Creation in Tally

Multiple Cost Centre creation in Tally

As explained for Ledger Accounts, you may create Multiple Cost Centres through Multi Mode.  The Multi Mode is more convenient  to create / alter / display a number of Cost Centres at a time, in one screen.

Cost Centre Creation in Tally

Cost Centre Master Creation in Multiple Mode : To create Cost Centre Master, At Cost Centre Menu , select Create (under Multiple Cost Centre) to get Multi Mode Cost Centre Creation screen . Now enter following:

• Parent Cost Centre: At Under Cost Centre :
• To create a Cost Centre under any Cost Centre, select All Items at Under Cost Centre and then select the Parent Cost Centre at Under column, for each Cost Centre creation. 
• To Create a Cost Centre under a specified Parent Cost Centre, select the Parent Cost Cenre at Under Cost Centre. This would be carried at Under column and the Parent Cost entre  would be auto selected.
• Cost Center Name:At Name , enter Cost Centre Name.
• Parent Cost Centre : At Under, select the Cost Centre from the list.

Cost Centre Master Alteration in Multiple Mode : To Alter Cost Centre Master, at Cost Centre Menu , select Alter (under  Multiple Cost Centre) to get Cost Centre Alteration screen, displaying the Cost Center, similar to Cost Centre creation screen. Place the cursor to the desired field and make necessary alteration in the same way as Creation of Cost Centre, explained above.

Cost Centre Master Display in Multiple Mode : To Display a Cost Centre Master, at Cost Centre Menu, select Display (under  Multiple Cost Centre), to get the Cost Centre Display screen, displaying the Cost Center, similar to Cost Centre creation screen. You may view the details but you cannot change any data from Display screen.

Cost Centre List Display in Tally

Cost Centre Activation in Ledger Accounts in Tally

Ledger Creation has been explained earlier. For Cost Allocable Ledger Accounts (Ledger Accounts for which you like to enter Cost Centre allocation in Voucher), at Ledger Creation/Alter screen, set Yes at Cost Centres are Applicable. Consequently,  in Voucher Entry, you will get Cost Centre Allocation screen, to allocate the ledger account amount for in the voucher to Cost Centres, as described next.

Cost Centre activation in Ledger Accounts in Tally

Cost Centre Allocation in Accounts Voucher in Tally

During voucher entry, on entry of a Cost Allocable Ledger (Ledger Accounts for which Cost entre has been activated, and entering the Ledger amount , Cost Allocation screen appears to enter the Cost Centre Allocation for the Ledger Amount .

Voucher Entry  with Cost Allocations in Tally

At Cost Allocation screen, enter as follows:

• Cost Centre Name:At Name of Cost Centre, select the Cost Center.
• Cost Centre Amount: At Amount, Tally proposes the balance amount allocable to Cost Centre. Press <enter> to allocate the balance amount or enter the amount allocated to Cost Centre.

Cost Allocations in Voucher Entry in Tally

This way, Ledger Amount is allocated may be allocated to Cost Centre. If the amount is to be allocated to multiple cost centres, continue to enter successive Cost Centres and allocate the amount, on by one, till the ledger amount is fully allocated to the Cost Centres.

Cost Centre Reports Menu in Tally

Cost Centre Reports Menu in Tally

At GoT>Display, select Statement of Accounts to get Statement of Accounts menu.

Statement of Accounts Menu

At Statement of Accounts menu. select Cost Centres to get Cost Centres Reports menu, to Display following Reports relating to Cost Centre Analysis

• Cost Centre Break Up
• Group Break Up
• Ledger Break Up

These Reports are discussed next.

Cost Centre Break Up Statement in Tally

Cost Centre Break Up Report shows Ledger  Account wise break up of selected Cost Centre. At  Cost Centre Reports Menu , select Cost Centre Break Up and select a Cost Centre  to get Cost Centre Break Up Display .

Cost Centre Break Up Statement in Tally

Cost Centre Break Up Configuration : At Cost Centre Break Up Display, click F12:Configure to get  Cost Centre Configuration screen, to set up following options :

– Opening Balances : At Show Opening Balances :

• Set Yes to show Opening Balance of the Cost Centre
• Set No. The Opening Balance of the Cost Centre is not shown

– Transactions Break Up: At Net Transaction only:

• Net of Debit / Credit : Set Yes to show only he Net of Debit / Credit either in Debit or Credit Column (whichever is greater)
• Debit / Credit Break Up : Set No to show both Debit & Credit amount separately, in respective Debit or Credit Column (whichever is greater)

– Closing Balances : At Show Closing Balances :

• Set Yes to show Closing Balance of the Cost Centre
• Set No. The Closing Balance of the Cost Centre is not shown

– Percentage : At Show  Percentages:

• Set Yes to show the % of amount of each Cost Centre in respect of Total  for that column
• Set No. % column is shown

– All Details : Having set F1:Detailed button, at Expand all Levels in Details Format,

• Set Yes to show complete details of all lower level Cost Centres
• Set No. Lower Level details are not shown

Cost Centre Break Up Configuration in Tally

Cost Centre Break Up Statement Buttons

At Cost Centre Break Up , you get Buttons as follows :

• F1:Detailed / Condensed : Click F1:Detailed button to get next level details. F1:Condensed to get top level Cost Centre only
• F4: Group : To select the Account Group to get the Cost Centre Break Up of  the selected Group in respect of selected Cost Centre select Primary to show Break Up of all Account Groups of the selected Cost Centre)
• F5:Ledgwise / Grouped : Click F5:Ledgewise to show the Ledger Account wise Break up o the selected Cost Centre. Click F5:Grouped to show the Account Group wise Break up of the selected Cost Centre
• F7:Vouchers : To list the Vouchers containing allocations to the selected Cost Centre ro the
• Columnar Buttons : To define Columnar Reports of various Periods & Companies

Cost Centre Break Up Button Bar in Tally

Cost Centre Monthly Summary in Tally

Drill down through a Cost Centre in the Cost Centre Break Up, to get Cost Centre Monthly Summary showing the Monthly Break Up of the Cost Centre.

Cost Centre Periodic Summary in Tally

Cost Centre Monthly Summary Configuration in Tally

 At Cost Centre Periodic Summary, Click F12:Configure to get Cost Centre Periodic Monthly Configuration , to set the options as follows:

Cost Centre Periodic Summary Configuration in Tally

– Transactions Break Up: At Net Transaction only:

• Net of Debit / Credit : Set Yes to show only he Net of Debit / Credit either in Debit or Credit Column (whichever is greater)
• Debit / Credit Break Up : Set No to show both Debit & Credit amount separately, in respective Debit or Credit Column (whichever is greater)

– Closing Balances : At Show Closing Balances :

• Set Yes to show Closing Balance of the Cost Centre
• Set No. The Closing Balance of the Cost Centre is not shown

– Percentage : At Show  Percentages:

• Set Yes to show the % of amount of each Cost Centre in respect of Total  for that column
• Set No. % column is shown

– Averages : At Show Average Details :

• Set Yes to show Periodic Average figures of the respective columns, at the bottom of the Report
• Set No. The Average details line is now shown

–     Periodicity : Select the Periodicity from the list

• Graph : At Show Graph:
• Set Yes to show  Bar Graph of the Transactions of each period.
• Set No. The Graph is not shown

Cost Centre Monthly Summary Buttons in Tally

At Cost Centre Periodic Summary, you get the buttons as follows :

• F4: Ledger : To select the Ledger Account  to get the Cost Centre Monthly Summary of another Ledger Account
• F5:Quartelry / Monthly : To toggle between Monthly / Quarterly Summary
• Columnar Report Buttons : To define Columnar Reports of various Periods & Companies

Cost Centre Periodic Summary Button Bar in Tally

Cost Centre Voucher List Display in Tally

At Cost Centre Periodic Summary, drill down through a period to get Cost Centre Voucher List , showing the Vouchers related to the Cost Centre for the selected Period.

Cost Centre Voucher List Display in Tally

You may further drill down through any voucher to get the Voucher in Alteration Mode to perform various operations on the voucher.

Cost Centre Voucher List Configuration in Tally

At Cost Centre Voucher List , Click F12:Configure to get Cost Centre Voucher List Configuration.

Cost Centre Voucher List Configuration in Tally

– Transaction Type : At  Select Vouchers to show, select Transaction Type from the list to show Vouchers of the selected  Transaction Type, as follows:

• All Transactions : Select All Vouchers to show Vouchers of all types of transaction (debits & Credits)
• Debit Allocations only : Select Debit Entries only to show vouchers of allocation of Debit Transactions only
• Credit Allocations only : Select Credit Entries only to show vouchers of allocation of Credit Transactions only

– Voucher Narration : At Show Voucher Narration also:

• Set Yes to Show Voucher Narration of the listed Voucher
• Set No. Voucher Narration is not shown

– Opening Balance : At Include Opening Balances:

• Set Yes to Opening Balance of Cost Centre.
• Set No. Opening Balance of Cost Centre. is not shown

Cost Centre Voucher List Buttons in Tally

At Cost Centre Voucher List , you get the buttons as follows:

• F1:Detailed / Condensed : Click F1:Detailed toggle button to get next level details. F1:Condensed to get top level Cost Centre only
• F4: Cost Centre : To select the Cost Centre to get Voucher List of another Cost Centre
• F6: Daily Break Up : To get daily figures (transactions and balances for each day for the selected period) of the selected Cost Centre for the selected Ledger Account

Cost Centre Voucher List Button Bar in Tally

Account Group Cost Centre Break Up in Tally

Cost Centre Account Group Break Up shows Cost Centre wise break up of all vouchers in which the Ledger Accounts of the selected Account Group is transacted.

At Cost Centre Reports Menu, select Group Break up and then select the Account Group to get Cost Centrewise Break up of the selected Account Group .

Account Group Cost Centre Break Up in Tally

Account Group Cost Centre Break Up Configuration in Tally

At Cost Centre Account Group Break Up , click F12:Configure to get  Cost Centre Account Group Break Up Configuration screen, to set the options as described below (similar to Cost Centre Break Up) :  

Account Group Cost Centre Break Up Configuration in Tally

– Opening Balances : At Show Opening Balances :

• Set Yes to show Opening Balance of the Cost Centre
• Set No. The Opening Balance of the Cost Centre is not shown

– Transactions Break Up: At Net Transaction only:

• Net of Debit / Credit : Set Yes to show only he Net of Debit / Credit either in Debit or Credit Column (whichever is greater)
• Debit / Credit Break Up : Set No to show both Debit & Credit amount separately, in respective Debit or Credit Column (whichever is greater)

– Closing Balances : At Show Closing Balances :

• Set Yes to show Closing Balance of the Cost Centre
• Set No. The Closing Balance of the Cost Centre is not shown

– Percentage : At Show  Percentages:

• Set Yes to show the % of amount of each Cost Centre in respect of Total  for that column
• Set No. % column is shown

– All Details : Having set F1:Detailed button, at Expand all Levels in Details Format,

• Set Yes to show complete details of all lower level Cost Centres
• Set No. Lower Level details are not shown

Account Group Cost Centre Break Up Buttons in Tally

At Cost Centre Break Up , you get Buttons, as follows:

• F1:Detailed / Condensed : Click F1:Detailed toggle button to get next level details. F1:Condensed to get top level Cost Centre only
• Columnar Report Buttons : To define Columnar Reports of various Periods & Companies

Account GroupCost Centre Break Up statement Button Bar in Tally

Cost Center Summary in Tally

From the Higher level Cost Centre (Cost Centre having subordinate Cost Centre), you get Cost Centre Summary showing the summary figures of each Cost Centre under the selected Cost Centre / Category, for the specified period.

Cost Centre Summary in Tally

Cost Centre Summary Configuration in Tally

At Cost Centre Summary, clcik F12: Configure to get Cost Centre Summary Configuration.

Cost Centre Summary Configuration in Tally

Cost Centre Monthly Break Up Configuration in Tally

 At Cost Centre Monthly Break Up , click F12:Configure to get  Cost Centre Account Monthly Summary Configuration screen, to set the options as below :

– Opening Balances : At Show Opening Balances :

• Set Yes to show Opening Balance of the Cost Centre
• Set No. The Opening Balance of the Cost Centre is not shown

– Transactions Break Up: At Net Transaction only:

• Net of Debit / Credit : Set Yes to show only he Net of Debit / Credit either in Debit or Credit Column (whichever is greater)
• Debit / Credit Break Up : Set No to show both Debit & Credit amount separately, in respective Debit or Credit Column (whichever is greater)

– Closing Balances : At Show Closing Balances :

• Set Yes to show Closing Balance of the Cost Centre
• Set No. The Closing Balance of the Cost Centre is not shown

– Percentage : At Show  Percentages:

• Set Yes to show the % of amount of each Cost Centre in respect of Total  for that column
• Set No. % column is shown

– All Details : Having set F1:Detailed button, at Expand all Levels in Details Format,

• Set Yes to show complete details of all lower level Cost Cetres

Cost Centre Summary Buttons in Tally

At Cost Centre Summary, you get Buttons, as follows:

• F1:Detailed / Condensed : Click F1:Detailed toggle button to get next level details. F1:Condensed to get top level Cost Centre only
• F4: Cost Centre : To select the Cost Centre to get Voucher List of another Cost Centre
• Columnar Report Buttons : To define Columnar Reports of various Periods & Companies

Cost Centre Summary Button Bar in Tally

Cost Centre Periodic Summary in Tally

From the lowest level Cost Centre (Cost Centre having no subordinate Cost Centre), you get Cost Centre Monthly Summary giving the monthly figures of the selected Cost Centre, for the specified period. You may set the Period & Periodicity of the Report.

Cost Centre Periodic Summary in Tally

Cost Centre Periodic Summary Configuration

 At Cost Centre Periodic Summary , Click F12:Configure to get Cost Centre Periodic Monthly Configuration .

Cost Centre Periodic Summary Configuration in Tally

– Transactions Break Up: At Net Transaction only:

• Net of Debit / Credit : Set Yes to show only Net of Debit / Credit either in Debit or Credit Column (whichever is greater)
• Debit / Credit Break Up : Set No to show both Debit & Credit amount separately, in respective Debit or Credit Column (whichever is greater)

– Closing Balances : At Show Closing Balances :

• Set Yes to show Closing Balance of the Cost Centre
• Set No. The Closing Balance of the Cost Centre is not shown

– Percentage : At Show  Percentages:

• Set Yes to show the % of amount of each Cost Centre in respect of Total  for that column
• Set No. % column is shown

– Averages : At Show Average Details :

• Set Yes to show Periodic Average figures of the respective columns, at the bottom of the Report
• Set No. The Average details line is now shown

– Graph : At Show Graph:

• Set Yes to show  Bar Graph of the Transactions of each period.
• Set No. The Graph is not shown

Cost Centre Monthly Summary Buttons in Tally

At Cost Centre Periodic Summary , you get the buttons as follows :

• F4: Ledger : To select the Ledger Account  to get the Cost Centre Monthly Summary of another Ledger Account
• F5:Quartelry / Monthly : To toggle between Monthly / Quarterly Summary

Cost Centre Monthly Summary Button Bar

Cost Centre Voucher List in Tally

At Cost Centre Periodic Summary , drill down through a period to get Cost Centre Voucher List , showing the Vouchers related to the Cost Centre for the selected Period. You may further drill down through any voucher to get the Voucher in Alteration Mode to perform various operations on the voucher.

Ledger Account Cost Centre Break Up in Tally

Cost Centre. Ledger  Account  Break Up shows the Cost Centrewise breakup of the selected Ledger Account. At  Cost Centre Reports Menu, select Ledger Break Up and select the Ledger Account  to get Cost Centre Ledger Break Up of the selected Ledger Account .

Ledger  Account  Cost Centre Break Up in Tally

Ledger  Account  Cost Centre   Break Up Configuration in Tally

At Cost Centre Ledger  Account  Break Up , Click F12:Configure to get Cost Centre Ledger  Account  Break Up Configuration, similar to Cost Centre Account Group Configuration.

Cost Centre. Ledger  Account  Break Up  Configuration in Tally

– Opening Balances : At Show Opening Balances :

• Set Yes to show Opening Balance of the Cost Centre
• Set No. The Opening Balance of the Cost Centre is not shown

– Transactions Break Up: At Net Transaction only:

• Net of Debit / Credit : Set Yes to show only he Net of Debit / Credit either in Debit or Credit Column (whichever is greater)
• Debit / Credit Break Up : Set No to show both Debit & Credit amount separately, in respective Debit or Credit Column (whichever is greater)

– Closing Balances : At Show Closing Balances :

• Set Yes to show Closing Balance of the Cost Centre
• Set No. The Closing Balance of the Cost Centre is not shown

– Percentage : At Show  Percentages:

• Set Yes to show the % of amount of each Cost Centre in respect of Total  for that column
• Set No. % column is shown

– All Details : Having set F1:Detailed button, at Expand all Levels in Details Format,

• Set Yes to show complete details of all lower level Cost Cetres
• Set No. Lower Level details are not shown

Ledger  Account  Cost Centre Break Up Buttons in Tally

At Cost Centre Ledger  Account  Break Up , you get the buttons, similar to Cost Centre Account Group Break up, as follows:

• F1:Detailed / Condensed : Click F1:Detailed toggle button to get next level details. F1:Condensed to get top level Cost Centre only
• Columnar Report Buttons : To define Columnar Reports of various Periods & Companies

Ledger Account Cost Centre Break Up Button Bar in Tally

On drill down from various elements at Ledger Account Cost Centre  Break Up, you get reports as follows:

• Cost Center Summary : From the higher level Cost Centre (Cost Centre having subordinate Cost Centre), you get Cost Centre Summary report giving the summary figures of each subordinate Cost Centre under the selected Cost Centre, for the specified period.
• Cost Centre Monthly break up : From the lowest level Cost Centre (Cost Centre having no subordinate Cost Centre), you get Cost Centre Monthly breakup report giving the monthly  figures of the selected Cost Centre, for the specified period. You may set the Period & Periodicity of the Report.

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