Steps to Add a Cost CenterCost Centers are used to define a distinct geographical area, machine, person, or department to whom direct and indirect costs are allocated for cost analysis or budget adherence. Examples of costs centers used at a school district include specific buses, classrooms, departments, or teachers.
When entering invoices, purchase orders, and/or requisitions in Accounts Payable, a cost center can be assigned to each detail line item as desired. Also, a cost center can be assigned to manual journal entries in General Ledger, if needed. Reports including the cost centers can then be printed, or custom reports can be built in the Report Writer module to view all expenses (costs) related to specific cost centers.
Note: Cost centers print on the Invoice Listing, Purchase Order Listing, Requisition Listing, and Account Inquiry reports, and can also be included on board reports if designated in the Board Report Setup option; Report Writer is required to print reports for specific cost centers as custom reports would need to be created.