Cost Centres

Introduction to Cost Centres

Cost Centres allows you to allocate and report on costs allocated to a specific cost centre or cost group which may be recoverable from a specific department, contract, job, task, etc.

The use of Cost Centres in TurboCASH5 is optional. By default cost centres are not activated.

The processes for Cost Centres are as follows:

1. Create Cost Centres (Cost Group 1 and / or Cost Group 2)
2. Activate Cost Centres
3. Add Budget for Cost Centres
4. Create Documents for Cost Centres
5. Create Invoices for Hours
6. Use Cost Centres in Batches (Journals)
7. Activate Cost Centres in Batches (Journals)
8. Process Transactions in Batches
9. Reports for Cost Centres
10. Editing / Changing Cost Centre Transactions

Setup Cost Centres

Before you may use this option in TurboCASH, you first need to create cost codes (cost groups, or cost centres).

Once this is done; you may activate these in specific batches (journals) and documents. Processing transactions in batches and / or documents, allows you to select specific cost Centres for each transaction.

You may then print various reports for these cost centres (Cost Centre 1 and / or Cost Centre 2).

Create Cost Groups

You may create up to Reporting Groups 2 for Cost Centres. These Cost Centres may be activated in batches (journals) and / or documents. If you only create Reporting Group 1 for Cost Centres, only one (1) Cost Centre will be available in batches and / or documents.

Once the batches and / or documents are posted (updated to the ledger), you may print reports for each cost Centres from the Reports ribbon.

To create Cost Centres:

1. Click on the Setup Groups menu.
2. Click on the Cost Group 1 button.
3. Select the REPORTING GROUP ROOT and click on the New button.
4. Enter the name of your Cost Centre (e.g. Cost Centre A, Job Cost name, etc.).
5. Repeat the process until you have entered all the Cost Centres for Cost Group 1, etc.
6. You may also repeat the process to add Cost Centres for Cost Group 2, if applicable.
7. Click on the OK button to save your changes.

Activate Cost Centres

Activate Cost Centres in Batches (Journals)

Once you have created the Cost Group 1 and / or 2, Cost Centres needs to be activated in each batch type (required to process transactions). If activated for a specific Batch Type, the Cost Group 1 and / or 2 column will be displayed after the Account column; and (before the Tax column, if the No Tax option is not selected on the Standard tab of the Options for this batch screen) before the Debit column.

To Activate Cost Centres for a Batch:

1. Click on the Action → Batch Entry icon (F2).
2. Select the specific Batch Type in which you need to activate Cost Centres.
3. Click on the F10: Setup icon to set the Options for the selected batch.

   You may also:- Click on the Setup → Batch Types menu. Select the Batch Type and click on the Edit button to access the Options for this batch screen.

4. Click on the Advanced tab.
5. To activate the Cost Group, tick the Cost Centres tick box.
6. In the Cost Centre field, you may select the default Cost Centre. This will auto-complete (auto-select) the cost centre column with the default cost centre for this batch. You may select a different cost centre, if necessary.
7. Click on the OK button. The selected batch entry screen will be opened and the Cost Group 1 and / or 2 column will be inserted in the batch.

Activate Cost Centres in Documents

If Cost Group 1 and / or Cost Group 2 have been created, these Cost Groups need to be activated to process documents for Cost Centres. This will insert an additional lookup list when entering the transactions.

To Activate Cost Centres for Documents:

1. Click on the Setup → Access Control menu.
2. Click on the Documents tab. 
3. Select (tick) the Cost Centre in documents (Costcenter in doc) field.
4. Click on the Apply button.
5. Click on the Close button.

Default Cost Centre Setting for Stock Items

If Cost Group 1 and / or Cost Group 2 have been created, these Cost Groups may be set for each of your Stock Items.

To Set Default Cost Centres for Stock Items:

1. Click on the Action → Stock Items menu.
2. Select a Stock Item.
3. Click on the Ledger tab.
4. In the Cost Centre field, you may select the default Cost Centre. This will auto-complete (auto-select) the cost centre column with the default cost centre, when selecting the stock item, while processing documents. You may select a different cost centre, if necessary.
5. Click on the Save button.

Add / Edit Budgets for Cost Centres

Once the Cost Centres are activated, you may add (enter / edit) your budget figures for Cost Centres.

To Add / Edit Budgets for Cost Centres:

1. Click on the Action → Accounts menu.
2. Select the Account (or sub-account).
3. Click on the Budget tab (if not already displayed).
4. Select the period and enter the budget figure.
5. Click on the Save (record button).
6. Click on the Save button.
7. Repeat the process for all accounts you need to enter budgets for.

Processing Transactions

Processing Transactions for Cost Centres in Batches

Once the Cost Centres are activated for a specific batch type, you may select the cost centre after selecting the account List the Transactions in the Batch Cost Centres have been added to the Batch Listing report.

Transactions in Documents

Reports for Cost Centres

Financial Reports

1. Budget vs Actual (Realization 3 Periods)
2. T-Ledger Analyzer
1. Trial Balance
2. Income Statement
3. Balance Sheet
4. Standard Column Balances
5. Budget vs Actual
6. This Year vs Last Year

Transaction Reports 

1. Ledger - Transactions - Standard
2. Ledger - Transactions - Extra Details
3. Debtor - Transactions - Standard
4. Debtor - Transactions - Extra Details
5. Creditor - Transactions - Standard
6. Creditor - Transactions - Extra Details

Batch Reports

Editing / Changing Cost Centre Transactions

Once transactions have been posted and an incorrect cost centre has been selected, you may change that.

It is not necessary to reverse or cancel a posted batch to change the cost centre, if:

• Transaction(s) is not allocated to a cost centre
• Transaction(s) is allocated to an incorrect cost centre.

You may change it in the T-Account Viewer.

To Change a Cost Centre: