What Is Cost Center/Cost Unit?
Cost Centers can be used to allocate costs and income more detailed than at account level. Normally they are registered on different organizational units of the company. In that way, an appropriate basis is created to follow up e.g. the costs of a department. The type and the size of the company determine how far the breakdown of Cost Centers shall be applied.
By using Cost Units you can allocate costs and income below Account or Cost Center level. Cost Units can consist of a product group or e.g. an employee in a department (=Cost Center).
What Does This Procedure Do?
In the Cost Center / Cost Unit procedure you can register, delete or change a cost center or cost unit. It is also possible to print all cost units and cost centers. When deleting a cost center/cost unit, a check is made to make sure that no balance exists on the cost center/cost unit in question.
In the Chart of Accounts procedure you specify whether or not a cost center and/or cost unit shall be used for an account. In certain procedures you will then have the possibility to allocate costs and income per cost center/cost unit. Such procedures are Register Order, Register Supplier Invoice, Register Vouchers, etc. In the Chart of Accounts you also determine whether the Cost Center/Cost Unit selection shall be mandatory or not for an account.
In this procedure it is also possible to translate the name of a cost center or cost unit. The current language must be registered in the Languages procedure in the Global Settings module.
A certain cost center/cost unit can be blocked to make coding impossible on that particular item.
Cost Center/Cost Unit Accounting follows the accounting year. This means that all income statement items are finished at the same time as the year-end closing. In project accounting, it is possible to report costs for projects running over more than one accounting year.
As an output from the system, cost and income reports can be listed and analyzed per cost center or cost unit. This is done in the Report Generator procedure.
Window Functions
Read more about the Window functions under Window Functions in the MONITOR Basics guide.