Many organisations use Cost Centres (also known as Cost Pool or Expense Centres) to keep track of business/department expenses
A Cost Centre typically refers to a unit/units within a larger system, responsible for a particular set of activities that benefit the organisation
While not directly producing any revenues, Cost Centres indirectly contribute to a business’ profit by boosting operational efficiency, product value or customer service
Common Cost Centres may include your Accounting Department, IT Department, Human Resources Department, Legal Department, Research & Development, Maintenance Department etc.
While these company units don't directly help produce products or increase sales in any way, they are still vital for business success – and can play an important role in helping a business to save money in the long-term
Maintaining and tracking the expenses of operating Cost Centres enables you to better control the total costs, allocate business resources more strategically and calculate profitability on a department basis
Typically, the performance of a Cost Centre is evaluated by comparing Budgeted to Actual Costs
Easily insert, modify and maintain your Cost Centres using the Win Accounting General Ledger Maintenance Tab
Maintaining Your Cost Centres:
Default Cost Centre
If no New Cost Centres are inserted, the default "catch-all" Unallocated Centre will be used, when necessary
From this window, you can easily Insert a New Cost Centre, Change an existing Cost Centre or Delete a selected Centre
Inserting New Cost Centre
When Inserting a new Cost Centre, you'll be required to enter a Cost Centre Code
(this will automatically be done based on your existing Cost Centres - Although this default code can be modified if necessary)
Add a Cost Centre Description and a Cost Centre Short Name to help make it easier to manage and analyse using the Win Acc General Ledger Reports
Ordering Your Cost Centres
To help make managing your Cost Centres quicker and easier, choose to either Sort by Cost Centre Code or by Short Name Order
