Adding a Cost Center
- Note: Before starting, make sure to activate the Chart of Accounts App in your account.
A cost center is any department on which the company spends money, and indirectly contributes to its gains, such as the research and development department, the marketing department, and the customer service department. Companies typically classify their departments into three categories: cost centers, profit centers, and investment centers.
- Click on “Accounting” from the main menu.
- Click on “Cost Centers”.
- Click on the button “Add Cost Center”.
- Fill in the cost center details:
- Name: The name of the cost center in the account.
- Code: The code of the cost center, which is automatically assigned by the system with the possibility of editing, and it must not be duplicated or matched with another cost center.
- Parent Cost Center: You can select one of the defined cost centers in the account to act as a main cost center.
- Click on the checkbox “Is Parent Cost Center?” to save the cost center as a main center. If not selected, it is saved as a subsidiary cost center.
- Note: Main cost centers cannot be assigned or linked to any of the financial accounts in the software, and they only work to contain one or more subsidiary cost centers.
- Click on the “Save” button.