A cost centre is nothing but a separate department within a business to which costs can be allocated. This also includes departments which do not produce directly but incur costs to the business. For example, the manager and employees of the cost centre are not accountable for the profitability and investment decisions of the business but they are responsible for some of its costs.
In Tally.ERP 9, the cost centre could refer 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 centres.
For example, we can use cost centre to track expenses of each employee while cost category can be used to see the effectiveness of each project.
For speedy identification and detailed analysis of how costs are allocated to your business units, Tally ERP 9 provides reports to show complete details of all the cost centres and their related transactions in different ways. These reports are:
Default cost centre master does not have option to add opening balance with bi furcation of ledgers. We have Made Module which will provide feature to Ledger wise add Opening balance for cost centres with effect of all cost centre reports.