Cost Center / Profit Center Master

This master maintains all the Cost Centers / Profit Centers within an organization.

By assigning cost centers to organizational objects, you determine where the costs incurred by the objects are to be charged. The inheritance principle applies, i.e., If an organizational object is not assigned a Cost Center, the Cost Center assigned to the superior object applies.

Cost Center Accounting can be used for controlling purposes within your organization. The costs incurred by your organization should be transparent. This enables you to check the profitability of individual functional areas and provide decision-making data for management. This requires that all costs be assigned according to their source. However, source-related assignment is especially difficult for overhead costs. Cost Center Accounting lets you analyze the overhead costs depending on where they were incurred within the organization.

Dividing an organization into Cost Centers allows you to follow several goals, depending on the cost accounting method. Assigning costs to Cost Centers lets you determine areas where costs are incurred within the organization. If you plan costs at cost center level, you can check cost efficiency at the point where costs are incurred. If you want to assign overhead costs accurately to individual products, services, or market segments, you need to further allocate the costs to those Cost Centers directly involved in the creation of the products or services. From these cost centers you can then use different methods to assign the activities and costs to the relevant products, services, and market segments.

Search:

Enter any text you want to search in the list below. The search is applicable to all columns of the list. Once the text is entered, press <ENTER> key. As a result, the list will be refreshed with all those records that contain the entered text fully or partially. In order to go back to the original list, remove the text from the box and press <ENTER> key again.

Cost/Profit Centres can be added, edited, deleted and viewed provided the Role associated with the currently logged-in user through User Management has the respective rights to do so.

To 'Add' a Cost/Profit Centre, click on the

button and to 'Edit', click on the

icon on its corresponding record. Click on the

icon to 'Delete' a particular Cost/Profit Centre. To view details of a particular Cost/Profit Centre, <DoubleClick> on that record. As a result, following screen will be displayed -

Screen Layout of Cost Center / Profit Center Master

Field Description of Cost Center / Profit Center Master

Code:

Denotes the Code of the Cost/Profit Center. This is the Code by which the Cost/Profit Center will be referred to throughout IMMS.

In case of 'Edit', and 'View', Code will be displayed automatically for the selected record. You can NOT change it.

Description:

Specifies the Name of the Cost/Profit Code. This is the Name by which the Cost/Profit Center will be referred to throughout IMMS.

In case of 'Edit', and 'View', Name will be displayed automatically for the selected Code. You can change it in 'Edit' mode.

Level:

While 'Adding', select the Level of Cost Center / Profit Center. IMMS provides five levels for the same. Select either 'Level I', ' Level 2', 'Level 3', 'Level 4' or 'Level 5' from the given popup.

In case of 'Edit', and 'View', Level will be displayed automatically for the selected Code. You can change it in 'Edit' mode.

Cost centre with level-1, 2 & 3 can be created with Vehicle Expenses at Level I, Car at level 2 and GJ-1AG 750 at level 3. As a result a report for selected Cost center can be obtained.

Using the 1st Level, one can know total expense of all vehicles that an organization owns. Using 2nd level, one can know total expenses of all cars of an organization. Using the 3rd level, one can know the total expense of the particular vehicle.

Type:

Specify whether its a Cost Center or a Profit Center. Select either 'Cost Center' or 'Profit Center' from the given popup. You can change it in 'Edit' mode.

Status:

While 'Adding', specify whether the Code is Active or not by selecting the appropriate option from the popup. Select 'Active' if its in use otherwise select 'Deactivated' if its no more in use.

In case of 'Edit', and 'View', Status will be displayed automatically for the selected Code. You can change it in 'Edit' mode.

Once you have entered all the information, click on 'Save' button to finally save the Cost/Profit Center or 'Cancel' button to discard. The control will go back to the list.