Term
What is cost centre? Meaning and explanation
A cost centre (kostenplaats) is a part of an organisation, such as a department, branch or activity, to which costs and income are allocated to give insight into the result per unit.
Definition
A cost centre (kostenplaats) is a part of an organisation, such as a department, branch or activity, to which costs and income are allocated to give insight into the result per unit.
Also known as: Kostenplaats, Kostenplaatsen, Cost centre, Kostendrager
Where the GL account records what type of cost it is, the cost centre records where it was incurred. A business with two branches can then see rent, staff costs or revenue per branch. Related concepts are the cost unit (kostendrager), which links costs to a product or service, and the project. In some packages these extra classifications are called dimensions.
For a firm, working with cost centres means extra coding per entry, and therefore more room for error. At the same time it is exactly the insight clients ask for when discussing profitability per branch or per project. A wrong or missing cost centre makes those reports unreliable and is hard to fix afterwards.
Besides supplier, VAT and GL account, Autoboeker also recognises the cost centre and optionally the project. Cost centres, cost units and projects are supported for all four packages. Cost centres are synchronised from Exact Online and dimensions from Twinfield. Example instructions for cost centres are in the prompt library, and if an allocation is missing, a client question can be sent.
Example
A bakery with two shops books the energy bill of its Utrecht shop to the Utrecht cost centre, so the result per shop stays visible.
FAQ
Questions about cost centre.
A cost centre is a place in the organisation where costs arise, such as a department. A cost unit is the product or service to which you allocate costs.
Yes. Autoboeker recognises the cost centre as part of the booking proposal, based on the administration's history and your rules and instructions.
Further reading
Related in the knowledge base.
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