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Solution of problem relating to cost center

Question by Student

The rent is 1000 and I have two categories production dept and service dept. the cost centre for prod dept is A,B & C and the cost center for service dept is D. now i want to allocate the rent as follows A-325, B-225 C-125 & D- 325 for two cost categories (production and service ).

Answer by Accounting Teacher

Dear, you know first we write the yes of feature and configuration for specific setting of maintain cost center. After this you will find two new button of cost category and cost centers in account info. In cost category, you have to make two cost categories, one is for production department and other is service department. Write allocate revenue and non revenue items = yes and accepts cost category form. After this return by esc button to account info and choose cost centers by clicking it and create cost centers of A , B , C under Production department . In Category box choose production department and write A cost center in name and save it under primary and accept it . Same procedure will apply on B and C cost center creation but in D cost center creation, you have to choose service department in cost category box . and write the name D and accept the form .

After this you have to create ledger of rent account under indirect expenses and in this ledger creation, you have to write yes in the front of option of “cost center are applicable and accept this .

Important Reading

After this return to gateway of tally and then click Accounting Voucher and in accounting voucher, you have passed the voucher entry in payment voucher. If it is in single entry mode then first write Account cash and then choose Rent account and in the front of Rent account you have write just 325 Rupees



and after clicking a new pop up box of cost category open and then here you write just S , you will see another pop up box , select service department and then write A and write 325 and accept this pop up box and after this you will again write Rent account and then write P and select production department in pop up box and then write A , b , c cost center with money 325 , 225 , and 125 = 675



and then accept the pop up box after this you will pass this voucher enter in four cost center in two cost category and total will be 325 + 675 = 1000
And accept the payment voucher

Comments

: 1
  1. plz guide how to use multiple cost center while single purchase invoice. For eg. if i have purchase 2 different material from single supplier and want to allocate the cost under two cost center . how to do the same.

    ReplyDelete
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Accounting Education: Solution of problem relating to cost center
Solution of problem relating to cost center
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Accounting Education
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