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Add cost centres and cost units
If you want to work with cost centres you must first enable certain settings.
Activate the cost centres feature
- Select Settings - Payroll settings, and the Accounting tab.
- Check the Company is using cost centres box if it is not already checked.
- Select Save.
In the menu to the left, you will now see Cost centres under Accounting.
Add cost centres and cost units
- Select Accounting - Cost centres. Three groups are now shown, of which two are inactive.
- Click on the gear of the relevant group to give it a name.
- Select Save.
- Select New cost unit to add a cost unit.
- Choose which cost centre the cost unit belongs to if you are working with more than one cost centre.
- Fill in the fields Short name and Name.
- Select Save.
The cost unit is now saved under the selected cost centre.
Enable chart of accounts settings to post transactions with cost centres to the ledger
In order to be able to use cost centres in your accounting, the accounts must allow cost centres being used.
The accounts for costs and revenue are pre-activated for cost centres, while the accounts for assets and liabilities are not. If you want to be able to enter cost centres on the accounts for assets and liabilities, you must specify this on the respective account.
- Select Settings - Chart of accounts.
- Select the account you want to be able to enter cost centres on from the chart of accounts.
- Select Edit.
- Check the Allows using cost centre box.
- Select Save.