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In Tally what do you mean by cost centre?
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Answer Posted / rajat saha
Would it not be easier to make the decision for your
business if you have the option to view the
costs incurred on each of your business unit and how much
profit each unit made? This is exactly what the
‘Cost Center and Cost Category’ in Tally.ERP 9 can do for
your business.
The cost center in Tally.ERP 9 refers to an organizational
unit to which costs or expenses can be
allocated during transactions while the cost category is
used to accumulate costs or profits for parallel sets
of cost centers. For example, you can use cost center to
track expenses of each employee while cost
category can be used to see the effectiveness of each project.
To use cost center in Tally.ERP 9, let’s consider a ‘Sales
department’ in an organization which has
4 different Salesmen. To record their expenses and
incomes.......
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In Pricing the gallons of petrol sold,service station 'A' follows the first-in-first-out method,while service station'B'follows last-in-first-out method.On 1st January both has the same quantity in stock viz.6,000 gallons at Rs.26 per gallon.During the month,each station recieved additional supplies of 6,000 gallons at Rs.27.50 per gallon.Sales for each of these two stations,during the month,were 8,800 gallons at Rs.29 per gallon. Determine for each service station,profit earned during the month and value of the petrol in stock at close of the month.
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