28 March 2017

Revenue Item and Non Revenue Item.

Many beginners often get stacked while allocating a ledger balance under one or more cost centre(s) because of not showing cost Category even if the ledger is properly configured.
Actually this is not problem with the ledger, but the cost Category is not configured correctly. To do this at first you have to identify what are revenue and non revenue items.


Cost Centre and Cost Category Creation in Tally ERP 9

You can allocate the total amount of a ledger into different segment by creating cost centres. You can farther categorize those cost centres by creating cost category.

You can also assign a cost centre under another parent cost centre but remember, the parent cost centre should be assigned with the same cost category where the child cost centre is assigned. Now lets see how to use this feature in Tally ERP 9.

1. Press F11 > go to "Accounting features" (F1) 
2. Say "yes" for "Maintain cost centre?". If you 
also want cost categories, then again say "yes" for "More than ONE payroll / cost categories?"



To create cost category: Back to Gateway of Tally > Accounts Info > Cost Categories > Create > Enter the name of the Cost Category>

There are two option under cost category creation screen called "Allocate for revenue items" and "Allocate for non-revenue items".

If you want to allocate revenue items like Electricity Expenses, Office expenses etc... Then say "yes" to the option "Allocate for revenue items" and if you want to allocate non revenue items such as Furniture & fittings, motor vehicles etc... Then say "yes" to the option "Allocate for non-revenue items" or you can say "yes" to both of the option to show the cost category while allocating both revenue and non revenue items. > Save.


To create Cost Centre: Back to Gateway of Tally > Accounts Info > Cost Centres > Create > > Select the Cost Category from the list or create a new category by pressing ALT+C > Enter the name of the Cost Centre > Save.