20 May 2017

How to allocate ledger amount in pre defined cost centre (with video demostration)

In my previous post I have discussed on cost center. Now this post is about how to use those cost centers in such a manner that they will be assigned automatically as per a designed proportion.
Well, to do the same, you need some cost center classes, created in a pre defined formula. So, I will guide the process definitely but at first, for the sake of simplicity, take an example.

Example: Suppose you have a building with two floor, and you want to track the floor wise electricity expenses for the entire building. In this situation you can simply use two cost center namely 1. "Ground floor" & 2. "First floor", and manually allocate the amount of electricity expenses into these two cost centers. Now, in addition to this situation, consider that in each month you spend a flat 30% of the total electricity expenses for "Ground floor" and 70% for the "First floor". Now that's the situation when you can use pre defined cost allocation to automatically allocate the aggregate amount of electricity expenses into "Ground floor" (70%) and "First floor" (30%).
To use this feature follow the steps mentioned below:

  1. Create the required cost centers. (How to create cost centers?)
  2. Press F11 and then F1. Set Yes for "Pre defined cost center allocation during entry?"  Press enter.
  3. On pressing enter you will see a new screen for the cost centre classes. Enter the name of class here. Press enter.
  4. Now, again a new screen for allocation of cost centre will be appear, select the appropriate Cost category(if needed), Cost centers and put the percentage of allocation for each cost centre. Save the screen.
  5. Now again type name of another Cost centre class and repeat the same process if you want to create more cost centre classes. (Always remember to save all windows and don't press "Esc" button during this process)
Your cost centre classes is now ready for allocating automatically in the defined percentage.

1 comment:

  1. That is very interesting; you are a very skilled blogger. I have shared your website in my social networks! A very nice guide. I will definitely follow these tips. Thank you for sharing such detailed article.

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