Voucher Entry using Cost Centre Class

During voucher entry, select the cost centre class at the 'Cost Centre Class' field from the Auto Cost List and pass the entry as you would have done in normal circumstances without any cost allocation. Cost allocation will be made automatically based on the rate specified by you at the time of creation of that cost centre class.

Cost Centre Class

Cost Centre Class can be used to automate cost allocation of ledger amount to specified Cost Category(s)/Cost Centre(s). At the time of voucher entry, the cost is automatically allocated to the Cost Centres, specified at the time of cost centre class creation. It saves a lot of time.

In order to use the cost centre class features, press F11 then press F1. In the screen set the option 'Use pre-defined Cost Centre Allocation during entry?' to 'yes'.

Then give a name to the Cost Centre Class you are creating. Then you will get a new screen where you have to enter the following information:

Cost Category: Select the parent cost category, for which you want to use the class, from the list of categories that appears on the right side.

Name of Cost Centre: Select the cost centre from the list of cost centres falling under the cost category selected in the cost category name field.

Percentage: Enter the percentage of cost to be allocated to each cost centre, based on which, cost allocation will be made.

Cost Allocation in Voucher

The ledger for which Cost allocation i.e. cost category and cost centre is applicable, should have the option ' Cost Centres are applicable?' set to yes at the time of ledger creation or alteration.
Then at the time of passing a voucher entry when you will select that ledger and enter the amount involved against the ledger, the Cost allocations for that ledger will appear. Here you have to specify the Cost category(Department/Branches/Executives) and then name of the Cost centres(Bangalore/Mumbai/Kolkata/Dehli) from the list of Cost categories and list of Cost centres.
Type the amount for that particular cost centre in the amount column. You can allocate cost to multiple cost centres if the total amount entered for that cost centre is less than the total amount involved in the transaction.
Once you specify amount to cost centres under one cost category you can go for selection of another Cost catagory just by pressing Enter to move to the next field.

Cost Catagory and Cost Centre

A company may require analysis of Department-wise costs, Branch-wise costs and Executive-wise costs. Create each of these as a cost catagory. These Cost Catagories will have the individual cost centres under them.
Suppose there are three departments

• Marketing
• Administration
• Services

and four branches

• Bangalore
• Mumbai
• Kolkata
• Delhi

and four Executives

• Mr A
• Mr B
• Mr C
• Mr D

In this case you have to create 'Department', 'Branch' and 'Executives' in Cost Catagory.

To create cost catagory first press F11, then press F1 and specify 'yes' at the option 'Maintain Cost Centres' and 'More than ONE cost category'.

Then from Gateway of tally -> Accounts info -> Cost Catagories -> Create.

After you have created the Cost Catagories come back to Gateway of Tally by pressing ESC.

Then Create Cost Centres ( Gateway of tally -> Accounts info -> Cost Centre -> Create).

Select 'Department' in place of category and then create Marketing, administration and service, and in the same way by selecting the category as 'Branches' you can create the cities under it. If you see that it has taken the category as 'Department' and you are willing to change it then press 'SHIFT + Tab'.

For deleting any cost category and cost centre go to alter and select the cost centre or catagory and press 'ALT + D'.