You may allocate expenditure incurred on sales by the salesmen, as well as the sales generated by them, directly to their cost centres.

Hence, you would have the following cost centre structure (shown only for Marketing Department): This would be so, if you need to keep track of a sales executive's performance - cost and revenue generated. Under Marketing, you may wish to create the company's sales executives as cost centres. Primary cost centres = Finance, Manufacturing, Marketing Hence, you may have Primary Cost Centres and several layers of cost centres under each Quite like the Groups/Ledger classification of accounts, you can classify your cost centres too. Products of a company, e.g., Tally dss 4.5, Tally ees 6.3etc.Įven individuals like, Salesman A, Salesman B, etc. For your purposes, the terms Cost Centre and Profit Centre are interchangeable.ĭepartments of an organisation, e.g., Finance, Manufacturing, Marketing, etc. You can now obtain a Profit and Loss account of each such Profit Centre.

When you also allocate income to the units, they become Profit Centres. Tally gives you the cost centre break-up of each transaction as well as details of transactions for each cost centre. When only costs or expenses are allocated to these units, they are referred to as cost centres. Hence, a cost centre can be said to be any unit of an organisation to which transactions (generally revenue) can be allocated.

By providing cost centres, a transaction can be allocated to it which would then enable extraction of all transactions for a cost centre. While a ledger account would indicate the nature of a transaction, it would not readily disclose, except in the narration, which part of an organisation was involved. Tally's concept of Cost Centres allows an additional dimension to a transaction.

How to paste in tally 7.2