Step 9: Creating Cost Centres

This is an optional step at this stage of the company creation process. You can choose to complete this step at a later stage by opening the Cost Centres node.

In this step of the Company Creation Wizard you create the Cost Centres for this company.

A cost centre is one of the costing levels in payroll. It can be a physical location such as a manufacturing plant, or it can be an employee grouping, such as administration or sales. In the payroll costing structure, each cost centre must have at least one linked department, and must be linked with at least one state.

Adding a Cost Centre:

  1. Click on the Add New button to begin creating a cost centre
    The Cost Centres screen will open with the Details tab showing.
  2. Complete the following information as required:
Field Explanation
Code Enter a unique code for this cost centre. The code can include up to 10 alpha-numeric characters.
Description Enter a description of your cost centre. It can be up to 35 characters long.
State Select the state to which the cost centre belongs.
  1. Click Apply to save your changes
  2. Click the General Ledger tab so that you can define this cost centre in your general ledger.

Adding General Ledger specifications

In the General Ledger tab, if you assigned a cost centre prefix during Step 4 of the Company Creation Wizard, the G/L prefix will show up blue and with the assigned code. If you did not define the prefix at step 4, go through the steps below

You can post General Ledger codes by two methods:

  • Post a fixed code, e.g. all net pay, regardless of its origin, is posted to a fixed code.
  • Post a code which will reflect the costing structure, e.g. the code for ordinary time must reflect the department/cost centre from which it originated.
  • If you did not define your General Ledger Structure at Step 4, click on the Define Structure button to do it now.

  1. Click Apply as you go to see the structure reflected in the Example at the bottom of the screen.
  2. Any unwanted segments should be entered as 0 (zero).
  1. Click OK to save your changes