Cost Centers

Post date: Feb 16, 2016 2:45:2 PM

We're adding 'cost centers' to the SMCP program to allow you to better query and audit cost/sales information for each separate office or department.

The introduction of the 'cost centers', as well as sweeping changes to the tax functions, is the result of redesign we've been working on as part of implementing the Accounts Payable functions in the system.

The cost centers are a way to group 'Departments' in the General Ledger - right now they are only being used for the new Tax Report, which allows you to list tax liabilities for each cost center.  But in the future these can be used to subtotal and group things like sales reports, etc.- basically any place where the inventory categories or GL accounts identify things like different cost centers or different offices.

For example: if you have separate offices in Fresno and San Francisco, say - you might have different expense and sales accounts in your GL for the two offices, and different inventory categories for each office.

In that case, you'd set up a cost center for each office, then identify which of your GL accounts are associated with which cost center.  Since categories are associated with GL accounts, this would also tie your inventory categories to the cost centers.

From that point on you can use the new Sales Tax Report (1170) to show the tax liabilities for each office, and do queries that prompt you for a selected office, etc. 

Creating a 'Cost Center' can be done from the GL Edit Cost Center (1171) function.  From here you can either edit, delete or add a new cost center.  When editing or adding, an ID number will automatically be assigned.  You then can choose to make it active or inactive.  From here you will name your cost center (this can be as simple as the location name) and will provide a description for instance "Fresno California". 

After all your appropriate GL income and expense accounts are tied to cost centers, your inventory categories will be associated with cost centers and you can query by cost centers or use current and future reports that will use these.