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Create & group cost centres: Like other Masters, such as Stock Group, Stock Category, Godown, and
Ledger Group, you can create individual cost centres or multiple cost centres in a hierarchy.
Note: You can use cost centres to create a hierarchy of different business units, and
continue to see details of the expenses at the top level as well as at each individual
level.
Create cost category: If an expense or income is allocated to one cost centre or profit centre in
your business and the same is also allocated to a different cost centre for reporting purposes, you
can use the Cost Category feature in TallyPrime. This help for parallel allocation of the same
amount across different cost centres or profit centres and view them accordingly – cost category-
wise.
Reports: The Cost Centre Breakup report gives you the view of incomes and expenses incurred for a
particular cost or profit centre in your business. You can also explore other cost centre reports and
view allocations cost centre-wise, month-wise, and so on. As in any other report, you can explode
and drill down to view the details. At the last level of drill-down, you can alter the contributing
transactions, if needed.
In this section
1. Gateway of Tally > Create > Cost Centres > press Enter.
Alternatively, press Alt+G (Go To) > Create Master > Cost Centres > press Enter.
In case the feature is inactive, you will be prompted to activate the Cost Centres feature.
Select Yes or press Y to proceed.
2. Name & alias: Provide a name. As in other masters, you can specify multiple aliases.
What you see on the screen can vary based on your choices. Press F12 (Configure) to change the
options. Alternatively, press Ctrl + I (More Details) to enter any of the values without activating the
F12 options.
4. Accept the Cost Centre master. As always, you can use Ctrl+A to save.
Click here to see the possible F12 Configurations.
While you are creating a cost centre or profit centre, if there is a need to create another Master, say
a Stock Item or a Bank Ledger, press F10 (Other Masters) and switch to the desired master screen.
After creating the other Master, you can continue from the same place on the Cost Centre screen
where you had left last.
1. Gateway of Tally > Chart of Accounts > Cost Centres > press Enter.
2. Press Alt+H (Multi-Masters) > select Multi Create > and press Enter.
In case the feature is inactive, you will be prompted to activate the Cost Centres feature.
Select Yes or press Y to proceed.
3. Enter the Name of Cost Centre and select the cost centre under which it is being created. You
can also select Primary cost centre.
4. Accept the Cost Centre master. As always, you can use Ctrl+A to save.
1. Gateway of Tally > Chart of Accounts > Cost Centres > press Enter.
2. Press Alt+H (Multi-Masters) > select Multi Alter > select the cost centre or Primary > and
press Enter.
3. Update the details as needed.
4. Accept the Cost Centre master. As always, you can use Ctrl+A to save.
Before recording a transaction, ensure that the option Cost Centres are applicable is set to Yes in
the corresponding ledgers. By default, this option is set to Yes in the income and expense ledgers,
whereas it is set to No in the asset and liability ledgers.
Once you create a cost centre, TallyPrime will prompt you to allocate your incomes or expenses to
the relevant cost centres or profit centres when recording transactions. You will need to allocate
the total expenses or incomes against one or more cost centres or profit centres. You can also
allocate cost centres or profit centres to party ledger, sales account, and so on. The payment
voucher with cost centre or profit centre allocation, appears as shown below:
What you see on the screen can vary based on your choices. Press F12 (Configure) to change the
options. Alternatively, press Ctrl + I (More Details) to enter any of the values without activating the F12
options.
The receipt voucher with cost centre or profit centre allocation, appears as shown below:
To get a hierarchy of cost centres as in the sample for Staff A and Staff B:
In the cost centre alteration screen, select Staff in the Under field for Staff A and Staff B.
Similarly, if you need to create cost centres next time under Staff B, in the field Under, select
Staff B.
In the section
The Cost Centre Breakup report, gives you the ledger-group-wise view of incomes and expenses
incurred and allocated to the selected cost centre or profit centre.
What you see on the screen can vary based on your choices. Press F12 (Configure) to change the
options and F11 (Features) to enable or disable features.
Explode/Collapse
You can press Shift+Enter to see the next level of data for the selected line on the same
screen. You can also move to any of the lines in the next level and further explode the
selected line using Shift+Enter.
To view the details of all the groups in one-go, press Alt+F5 (Detailed). Further, use F12
(Configure) > Expand all levels in Detailed format to see all levels of data for the same cost
centres. You can toggle between the Detailed and Condensed formats of the reports using
Alt+F5 (Detailed).
What you see on the screen can vary based on your choices. Press F12 (Configure) to change the
options and F11 (Features) to enable or disable features.
Press Enter on the selected line to show the next level of data on a new screen.
What you see on the screen can vary based on your choices. Press F12 (Configure) to change the
options and F11 (Features) to enable or disable features.
With further drill-down, you can press Enter to open the monthly summary report.
TallyPrime enables you to compare incomes and expenses incurred in a particular cost centre or
profit centre to the others. You can compare the cost centre details by adding columns. For
example, if you want to compare the ledger-wise details of Staff A and Staff B, open the Cost Centre
Breakup report for Staff A, press Alt+C (New Column) and select Staff B.
What you see on the screen can vary based on your choices. Press F12 (Configure) to change the
options and F11 (Features) to enable or disable features.
Press Alt+N (Auto Column) to repeat the columns of the current report based on the selected
option.
If you want to compare data of more than one company using auto column button, select
Company as the type. The Company option is available when more than one company is open.
Additionally, you can alter the columns using Alt+A (Alter Column) and delete columns using
Alt+D (Delete Column).
Alternatively, Gateway of Tally > Display More Reports > Statements of Accounts > Cost Centres >
Cost Centre Summary.
This report displays the summary of incomes and expenses allocated to different cost centres or
profit centres.
If you have been using cost centres without creating any cost category, TallyPrime considers all
cost centres under an internal category called Primary Cost Category.
Alternatively, you can drill-down from the Cost Centre Summary report.
You can view the monthly breakup of income and expense details along with the closing balance for
the selected cost centre.
What you see on the screen can vary based on your choices. Press F12 (Configure) to change the
options and F11 (Features) to enable or disable features.
Select the required month and press Enter, to view the Cost Centre Vouchers report.
TallyPrime considers all cost centres under an internal category called Primary Cost Category.
When you create another cost category, all your earlier transactions will reflect under it.
You can rename the Primary Cost Category any time. As in the case of other masters, if you alter
anything in Cost Category Masters, the changes will reflect in corresponding transactions and
reports. You can delete a cost category if no cost centre or profit centre has been grouped under it.
Note that after you have created another cost category, you can group the cost centres under the
cost category of your choice, including the default Primary Cost Category.
1. Gateway of Tally >Create > type or select Cost Category > press Enter. You can also create
Cost Category from Gateway of Tally > Chart of Accounts.
Alternatively, press Alt+G (Go To) > Create Master > type or select Cost Category > press
Enter.
When only the Primary Cost Category is available, you will be prompted to create new Cost
Category or alter the existing Primary Cost Category. Select Create or press C to create a new
cost category.
2. Name & alias: As in other masters, you can specify multiple aliases.
3. Allocate Revenue Items & Allocate Non-revenue items – Ensure that one of these options is
set to Yes.
Note: Revenue items are all your expenses and incomes and non-revenue items are
assets and liabilities. TallyPrime provides the flexibility to group cost centres or
profit centres for non-revenue items under cost category, if needed.
What you see on the screen can vary based on your choices. Press F12 (Configure) to change the
options. Alternatively, press Ctrl + I (More Details) to enter any of the values without activating the
F12 options.
Fields on the Cost Category master will appear or disappear based on the changes you make
using F12 (Configure). You can try different F12 (Configure) options to suit your business
needs. Disabling an option will not impact your business data in any way.
4. Accept the Cost Category screen. As always, you can use Ctrl+A to save.
1. Gateway of Tally > Chart of Accounts > Cost Categories > press Enter.
In case the feature is inactive, you will be prompted to activate the Cost Category feature.
Select Yes or press Y to proceed.
2. Press Alt+H (Multi-Masters) > select Multi Create > and press Enter.
3. Enter the Name of Cost Category and allocate it to Revenue Items or Non-Revenue Items as
needed.
4. Accept the Cost Category master. As always, you can use Ctrl+A to save.
1. Gateway of Tally > Chart of Accounts > Cost Categories > press Enter.
2. Press Alt+H (Multi-Masters) > select Multi Alter > and press Enter.
4. Accept the Cost Category master. As always, you can use Ctrl+A to save.
In the cost centre creation/alteration screen, under Category, select the cost category of your
choice.
Press Backspace on the Name field to place your cursor on the Category field.
What you see on the screen can vary based on your choices. Press F12 (Configure) to change the
options. Alternatively, press Ctrl + I (More Details) to enter any of the values without activating the
F12 options.
Parallel Allocation of Cost Centres or Profit
Centres in Transactions
Before recording a transaction, in the corresponding ledgers, ensure that the option Cost centres
are applicable is set to Yes. By default, this option is set to Yes in the income and expense ledgers,
whereas it is set to No in the asset and liability ledgers. In the transaction, the total amount entered
for the ledger, for example Travel, must be allocated to the selected cost centres.
When you create more than one cost category and have cost centres or profit centres under it, the
cost categories along with their respective cost centres will appear for selection during parallel
allocation of incomes and expenses. A sample Cost Centre Allocations screen appears as shown
below:
What you see on the screen can vary based on your choices. Press F12 (Configure) to change the
options and F11 (Features) to enable or disable features. Alternatively, press Ctrl + I (More Details) to
enter any of the values without activating the F12 options.
Alternatively, Gateway of Tally > Display More Reports > Statements of Account > Cost Centres >
Category Summary.
This report displays the summary of incomes and expenses allocated to parallel set of cost centres
or profit centres in your business.
What you see on the screen can vary based on your choices. Press F12 (Configure) to change the
options and F11 (Features) to enable or disable features.
In this section
1. Press F11 (Features) > Ctrl+I (More Details) > type or select Cost Centre Class.
In case the feature is inactive, you will be prompted to activate the Cost Centres Class
2. Type the Class Name, and select the Categories and the respective cost centres created for
your business’s cost centres or profit centres. Specify the percentage of allocation.
In the above example, the cost centres (Export, Retail, Finance and Marketing) are allocated at
predefined percentages for:
Cost categories – Divisions (with cost centres Export, and Retail) and Departments (with cost
2. Press F12 (Configure) > set Select Cost Centre/Class and to Yes.
. Press Page Up > Ctrl+H (Change Mode) > select As Voucher. The cost centre allocation
appears.
4. Press Page Up to open the voucher in alteration mode. The cost centre allocation will be
displayed.
To sum it up, TallyPrime enables you to track incomes and expenses incurred in the cost centres or
profit centres of your business. Furthermore, you can create multiple cost categories for parallel
allocation of cost centres or profit centres. You can use Cost Centre report capability in the product
in order to view all the incomes and expenses incurred in a particular cost centre or profit centre.
You may want to disable cost centres for ledgers in the following scenarios:
As a result, while recording transactions containing the ledger, you will need to specify cost
centre.
In all the scenarios mentioned above, you have an option to disable cost centres.
To disable cost centre for a specific ledger, follow the steps given below.
1. Press Alt+G (Go To) > Alter Master > Ledger > type or select the ledger and press Enter.
Henceforth, cost centres will not be applicable for this ledger, and you will not have to select
cost centre for this ledger which recording transactions.
1. Press Alt+G (Go To) > Alter Master > Ledger > type or select any ledger and press Enter.
If you do not see this option, then set Show more configurations and Show all
configurations to Yes.
Henceforth, the Cost centres are applicable field will stop appearing in the ledger
alteration and creation screens. Moreover, you will not need to assign a cost centre to
If you want to apply cost centres for specific ledgers, then you will need to configure
them afresh. You will need to set:
Apply Cost Centres for Ledger: Yes, in the ledger configuration screen.
Cost Centres are applicable: Yes, in the ledger alteration for those specific ledgers.