Allocation of tracking of Expenses and Income
cost centers and cost categories are. Cost centers are divisions or departments within a business where costs are incurred, while cost categories are used to group similar cost centers together.
Here are the steps to allocate expenses and income in cost centers and cost categories in Tally:
- Create cost centers and cost categories: To create cost centers and cost categories in Tally, go to Gateway of Tally > Accounts Info > Cost Centers/Cost Categories > Create. Enter the name of the cost center or cost category, and any additional details as required.
- Record transactions: Record all transactions in Tally as you normally would. For expenses, use the relevant expense account, and for income, use the relevant income account.
- Allocate expenses and income to cost centers and cost categories: To allocate expenses and income to cost centers and cost categories, go to Gateway of Tally > Accounting Vouchers > F7: Journal. Select the expense or income ledger you wish to allocate, and enter the amount.
- Select cost center or cost category: After entering the amount, press Ctrl+C to open the cost center/cost category allocation screen. Select the relevant cost center or cost category from the list, and enter the amount to be allocated to that center/category.
- Complete the transaction: Once you have allocated the expense or income to the relevant cost center or cost category, complete the transaction by saving it.
- View cost center and cost category reports: To view reports based on cost centers and cost categories, go to Gateway of Tally > Display > Statements of Accounts > Cost Centers/Cost Categories. Select the relevant report, and view the data as required.
That’s it! These are the steps to allocate expenses and income to cost centers and cost categories in Tally. With these steps, you can easily track the expenses and income of different divisions or departments within your business.