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How to do Predefined Cost Centres in Tally

How to do Predefined Cost Centres in Tally

Introduction of Predefined Cost Centres

Predefined Cost Centre/Cost Centre Class is used to calculate Cost Centres amount percentage wise, you can fix different percentage to all Cost Centres or to facilitate predetermined allocation of Cost Centres to Ledger accounts (like expenses and incomes) during Voucher entry. The automation of Cost Centre allocation involves the creation of classes and predefining percentage for Cost Centres.

Cost Centre classes affect all Voucher types. In voucher entry, depending upon the Cost Centre Class, the allocation will be carried out in the background without the allocation screen being displayed at all.


Let’s have to look how to use this facility with the following example.

02-11-2013 Company Paid Salary expenses of Rs. 40000/- by Cheque for the Month of Oct 2013. The list of Employees is as follows. (Ch. No. 12010)
  Employee Name                                        Monthly Salary
Shreya Rai                                                           8800
Rajiv Mishra                                                        8000
Nitin Shah                                                            6000
Chirag Shroff                                                        5200
Bhavesh Sonawane                                             8000
Vrushali Bhat                                                        4000


Go to Gateway of Tally > F11 Accounting Features

Set “Maintain Cost Centres” to “Yes”

Set “More than One Payroll /Cost Category” to “Yes”

Create Ledger > Salary expenses (under Indirect expenses)

Set “ Cost Centre are applicable?” to “Yes”

  • Alter Cost Category as mentioned below.

Go to Gateway of Tally > Accounts Info. > Cost Categories >Alter (Single)

Enter Employees on the place of Primary Cost Category.

& Set “Allocate Revenue Item” to “Yes” “Allocate Non –Revenue” to “Yes”

Press Enter to Accept the screen.

  • Create Cost Centres & Sub- Cost Centres with Cost Category Employee.

Go to Gateway of Tally > Accounts Info. > Cost Centres > Create (Single)

 Cost Centres Cost Category         under
Packing Department Expenses Employees Primary
Selling Department Expenses Employees Primary
Management Department Expenses Employees Primary
Shreya Rai Employees Packing Department Expenses
Rajiv Mishra Employees Packing Department Expenses
Nitin Shah Employees Selling Department Expenses
Chirag Shroff Employees Selling Department Expenses
Bhavesh Sonawane Employees Management Department Expenses
Vrushali Bhat  Employees Management Department Expenses


To Activate Predefined Cost Centre / To Maintain Percentage wise Cost Centre

Go to Gateway of Tally > Press F11 Features > Select Accounting Features > Set “Use Predefined Cost Centre Allocations during Entry” to “Yes”. & press Enter to view the Cost Centre Classes screen.

Set the Configuration as explained below.

  • Class Name: Salary
  • Cost Category: Employees
  • Cost Centre: Shreya Rai
  • Percent: 22%
  • Cost Centre: Rajiv Mishra
  • Percent: 20%
  • Cost Centre: Nitin Shah
  • Percent: 15%
  • Cost Centre: Chirag Shroff
  • Percent: 13%
  • Cost Centre: Bhavesh Sonewane
  • Percent: 20%
  • Cost Centre: Vrushali Bhat
  • Percent: 10%


The complete Predefine Cost Centre screen appears as shown below.

cost category in predefined cost center

cost category in predefined cost center


Accept the screen by pressing enter.

Note: Predefined Voucher Class for Cost Centres is used to allocate only Salary expenses on the basis

Of Decided salary of employees.


The completed Cost Centre Class screen appears as shown below.

Cost center classes

  • Make an entry of the transaction in F5 Payment Voucher

Go to Gateway of Tally > Accounting Voucher > F5 Payment Voucher.

  • Date: 02-11-2013
  • Cost Centre Class: Salary
  • Salary Expenses > 40000
  • HDFC Bank > 40000

Press Enter to Accept the screen.

To view Cost Centre Class affected screen Press Page Up key. On the Accounting Voucher screen.

The complete Payment Voucher screen with Cost Centre Details appears as shown below.

payment voucher detail in predefined cost center

Press Y or Enter to Accept the screen.


See also: How to make cost center and profit center in tally with example

Updated: October 31, 2018 — 6:50 pm

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