What is Cost centre?
A cost centre is a tag on a transaction that says which part of the business it belongs to, such as an outlet, a department or a project. It lets you report profitability by unit without creating separate account trees.
A cost centre is a tag on a transaction that says which part of the business it belongs to, such as an outlet, a department or a project. It lets you report profitability by unit without creating separate account trees.
In Bangladesh
For a business with three outlets and a godown, the question is almost never "what did we earn" but "which outlet earned it". Cost centres answer that from one set of books.
An example
An owner with three outlets sees a healthy overall profit and assumes all three are fine. Tagging entries by outlet shows one branch carrying the other two, which is a decision about that branch rather than about the business.
In SORS ERP
Cost centres are available on entries in SORS ERP alongside outlet and warehouse, so profit and loss can be produced per branch as well as for the business as a whole.
Also called
- In Bangla
- ব্যয় কেন্দ্র
Questions
Answered plainly, including where the answer is no.
Do I need separate books for each branch?
No, and separate books make consolidation harder. One set of books with cost centres or outlets on the transactions gives you both the branch view and the whole business view from the same data.
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