Cost Center

A Cost Center is a division, branch or activity whose income and expenses you want to see separately, arranged as a tree under the company. Every GL Entry on an income or expense account carries one, taken from the document or the company default, so the Profit and Loss can be filtered to a single cost center with no extra postings. The demo has Main - YFF and Marketing - YFF under the root Yatra For Fun Pvt Ltd - YFF. Cost centers do not post anything themselves and are invisible on the Balance Sheet. A document left on the default cost center when it belongs to Marketing hides marketing spend in Main.

Cost center profit = Income entries tagged with it - Expense entries tagged with it, for the chosen dates

1. 01Go to Accounts Setup > Cost Center > New.
2. 02Type the name, pick the parent (the company root) and leave Is Group off for a posting cost center.
3. 03Save. The name appears with the abbreviation, for example Marketing - YFF.
4. 04Set the company default under Accounts Setup > Company > Default Cost Center.
5. 05Pick the cost center on each invoice or expense row where it differs from the default.
6. 06Run Profit and Loss Statement with the Cost Center filter to read its result.

Create under Accounts > Cost Center; set a default on the Company and pick one on documents.

Main - YFF and Marketing - YFF under Yatra For Fun Pvt Ltd - YFF.