Creating and maintaining cost centers

Cost centre

Type a unique code for the cost center. You can type up to eight alphanumeric characters for the code. Once the code is saved, it cannot be edited. This information is mandatory.

Active

Select this check box to activate the cost center. By default, the check box is selected when you create a cost center. If a cost center is activated, the cost center will be displayed in the cost center browser list when you create a person, project, budget, journal, or asset entry. To deactivate a cost center, clear the check box. If a cost center is inactive, it will not be listed in the cost center browser list when you create a person, project, budget, or asset entry. However, you can still use the inactive cost center to record journal entries.

Note: If you have cleared the check box for a cost center which has entries linked to it and saved the changes, the Replacement Cost centre screen is displayed with a list of all the entries linked to the cost center that you want to deactivate. Click Continue to proceed with the deactivation. Next, select a new active cost center to replace the deactivated cost center. A confirmation message “Confirm: Change of cost centre?” is displayed. Click Yes to continue with the replacement.

Description

Type a description for the new cost center.

Click the Language icon to type the description for the cost center in other foreign language(s). The foreign languages available are based on the defined languages under the Description in list boxes section in General settings. For more information, see General settings.

Note: This icon is available only if you have defined the foreign languages under the Descriptions in list boxes section at General settings.

Categories tab

In this tab, you can classify the cost center into different categories by selecting the appropriate subcategories for each category. For example, you can categorize the cost center by the region, organization structure, location, or job function of the cost center. In order to do so, you have to define the categories and subcategories first at System ➔ Finance ➔ Cost centers / Units ? Categories. For more information, see Creating and maintaining cost center categories.

People tab

Person

Type or select a person to link this person to the cost center as the direct manager of the cost center.

Note: You can link the same person to more than one cost center as the direct manager.

Edit icon

Click this to view or edit the details of the selected person who has been linked to the cost center.

Note: This icon is enabled only if a person displayed in the overview is selected.

Add icon

Click this to select and link a person as an employee to the cost center. Upon linking, the full name and job title of the selected person will be displayed in the overview. You can only select one person at a time to be linked to the cost center. When a person is linked to the cost center, the cost center setting defined at the Maintain: People screen (go to HR ➔ People ➔ Maintain, select the relevant person and click Open) of the selected person is updated automatically with the linked cost center.

Note: This icon is enabled only if you have clicked the Save button.

G/L Accounts tab

Edit icon

Click this to view or edit the selected general ledger account that has been linked to the cost center.

Note: This icon is enabled only if a general ledger account displayed in the overview is selected.

Add icon

Click this to select and link a general ledger account to the cost center. Upon linking, details of the selected general ledger account will be displayed in the overview.

Note: This icon is enabled only if you have clicked the Save button.

Update icon

Click this to change the units of cost allocation for the selected general ledger account. The newly defined units will be automatically updated under the Cost centers/cost units tab at the general ledger maintenance screen (go to Finance ➔ General ledger ➔ Chart of G/L’s, select the relevant general ledger and click Open) for the selected general ledger account. The units will be used for cost allocation based on the general ledger allocation method.

Note: This icon is enabled only if a general ledger account displayed in the overview is selected.

Delete icon

Click this to delete the selected general ledger account.

Note: This icon is enabled only if a general ledger account displayed in the overview is selected.

Sales orders tab

From/to

Type or select a date range to display the sales orders created within the specified date range that are linked to the cost center. By default, the date range will show the current month.

Open/All

Select Open to display only the open sales orders that are linked to the cost center or All to display the open and completed sales orders that are linked to the cost center.

Sales orders section

Details icon

Click this to view the details of the selected sales order that is linked to the cost center.

Note: This icon is enabled only if a sales order is selected.

Purchase orders tab

From/to

Type or select a date range to display the purchase orders created within the specified date range that are linked to the cost center. By default, the date range will show the current month.

Open/All

Select Open to display only the open purchase orders that are linked to the cost center or All to display the open and completed purchase orders that are linked to the cost center.

Purchase orders section

Details icon

Click this to view the details of the selected purchase order that is linked to the cost center.

Note: This icon is enabled only if a purchase order is selected.

Cost allocation tab

Allocation level

Type the allocation level from “1” to “99” for the cost center. By default, “1” is displayed when creating a cost center. This is mandatory. For more information, see Defining cost allocation.

Reallocated expense account

Type or select a general ledger account to be used as the reallocated expense account for cost allocation of the cost center. This is mandatory. In a cost allocation transaction, the reallocated cost will be debited in this account.

Note: You can only select a Profit & Loss type of general ledger account that allows cost center allocation. By default, the browser will list only the general ledger accounts that meet these criteria when you select the reallocated expense account.

Coverage account

Type or select a general ledger account to be used as the coverage account for cost allocation of the cost center. This is mandatory. In a cost allocation transaction, the total allocated cost is credited in this account.

Note: You can only select a Profit & Loss type of general ledger account that allows cost center allocation. By default, the browser will list only the general ledger accounts that meet these criteria when you select the coverage account.

Use transaction account

Select this check box to specify whether you want to allocate the costs using general ledger accounts from the original entry or reallocated expense and coverage accounts. This setting is available only if you have selected Allocate using general ledger accounts from lower level cost centre at Cost centre allocation method under the Default section in General ledger settings.

Note:

• When this check box is selected and the general ledger account linked to the cost center is not of the type debtor, creditor, bank, or cash account, then the general ledger accounts from the original entry will be used for the cost center allocation.
• If this check box is cleared, the reallocated expense and coverage G/L accounts will be used for the cost center allocation.
• If the general ledger account linked to the cost center is of the type debtor, creditor, bank, or cash account, then the reallocated expense and coverage G/L accounts will be used for the cost center allocation, regardless of the settings at Use transaction account.

Extra tab

Type any additional information for the cost center at the available free fields.

Save

Click this to save the changes.

New

Click this to create a cost center.

Close

Click this to exit.