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https://help.tallysolutions.com/docs/te9rel66/Advanced_Features/Advanced_Accounting_Features/C_Catg.htm

Cost Categories

Cost categories are useful for organisations that require allocation of revenue and non-revenue items to parallel sets of cost centres. Cost categories facilitate third-dimensional reporting of expenditure and revenue. For example, region-wise or geography-wise, Grade-wise, Department-wise, cost categories.

You can use cost categories you can allocate, in parallel, a transaction to more than one set of cost centres. For example, Cost Centres such as Marketing, Finance and Manufacturing can now belong to a category - Departments.

The Salesmen A, B, and C can be Cost Centres under a Category - Executives.

Similarly, you can create a new Cost Category Projects under which Cost Centres such as airport construction, road construction and buildings may be created. The classification appears as following:

Cost Categories

Departments

Executives

Projects

Cost Centres

Marketing

Salesman A

Airport Construction

Manufacturing

Salesman B

Road Construction

Finance

Salesman C

Buildings

You can specify a Cost Category to allow allocation of only revenue items or items of both revenue and capital (Non-Revenue) nature.

By allocating expenses to parallel Cost Centres under different categories, you are simply assigning the amounts to them; the amount does not increase. Tally.ERP 9 performs an automatic reconciliation on real-time basis, saving you the effort of reconciling Ledgers and Cost Centres.

Note: Transactions are not allocated to Cost Categories but to Cost Centres only.

On this page

Enable Cost Category

Alter a cost category

Delete a cost category

Enable Cost Category

Cost categories are useful for organisations that require allocation of revenue and non-revenue items to parallel sets of cost centres. Enable cost categories in F11 features to create and use cost categories.

1. From Gateway of Tally > Click F11: Features > Accounting Features .

2. Enable the option Maintain Cost Centres?

3. Enable the option Maintain more than one payroll or cost category?

The Company Operations Alterations screen appears as shown below:

4. Press Ctrl+A to save the Company Operations Alteration screen.

Cost Categories are now enabled for the company.

Create a Cost Category

On enabling cost categories, the option Cost Category is available in the Accounts Info. menu. By default all cost centres are grouped under Primary Cost Category. You can create cost categories and group cost centres under cost centres, as required. Multiple cost categories can be created in one go in multiple mode.

In this section

Single cost category

Multiple cost categories

Single Cost Category

1. Go to Gateway of Tally > Accounts Info. > Cost Categories > Create (under Single Cost Category ).

2. Enter the Name .

3. S et the option Allocate Revenue Items to Yes to allocate all sales, purchase, expenses and income-related transactions to cost centres created under this cost category.

4. Set the option Allocate No-Revenue Items to Yes to allocate transactions related to capital account and other non-revenue accounts to cost centres  created under this category.

The Cost Category Creation screen appears as shown below:

Note: At least one of the options Allocate Revenue Items or Allocate Non-Revenue Items must be enabled.

Create multiple cost categories

1. Go to Gateway of Tally > Accounts Info. > Cost Categories > Create (under Multiple Cost categories ).

2. Enter the Name of Category .

3. Enable Revenue Items to allocate all sales, purchase, expenses and income-related transactions to cost centres created under this cost category.

4. Enable Non-Revenue Items to allocate transactions related to capital account and other non-revenue accounts to cost centres created under this category.

5. Press Enter .

6. Enter Name of Category and select Allocations for the Category as required. The Multi Cost Category Creation screen appears as shown below:

7. Press Enter to save the Cost Categories.

Note: At least one of the options Allocate Revenue Items or Allocate Non-Revenue Items must be enabled for a cost category.

Alter a Cost Category

You can alter an existing cost category in the single mode. Alternatively, multiple cost categories can be altered in the multiple mode, if required. Cost categories can also be deleted in the alteration mode, if there are no cost centres tagged to the cost category.

In this section

Alter a single cost category

Alter multiple cost categories in one-go

Alter a single cost category

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

Note: You can alter many cost categories in one go by selecting Alter under Multiple Cost Categories in the Cost Categories menu.

2. Select the Cost Category from the List of Categories . The Cost Category Alteration screen appears.

3. Make the changes in the required fields.

4. Press Ctrl+A to accept.

Alter multiple cost categories in one-go

You can alter multiple Cost Categories at a time in this mode.

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

The Multi Cost Category Alteration screen displays. Make the necessary changes and accept to save.

Note : You will not be able to delete a Cost Category in multiple mode.

The following buttons are provided in the multi cost centre mode.

F6: Skip names : It is used for quicker data entry when you need to alter only the Allocation details and not the names of the Cost Categories.

F8: Skip Details : It is used for faster data entry when you do not need to alter the Allocation (Revenue and Non- revenue) details. You need to give only the names and the default allocations of Yes for Revenue and No for Non-revenue display automatically when you are creating Cost Categories. If you are in Alter mode, the allocations that you opted for when creating the Categories are retained.

Groups, Ledgers, Cst Ctr : It enables you to switch to these areas, without having to quit from the current screen.

F11: Features : It is used to change company features. For more information refer F11: Features in Tally.ERP 9.

Note : F12: Configuration changes affect all companies, whereas F11: Features changes affect only the current company.

Delete a Cost category

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

2. Select the Cost Category from the List of Categories . The Cost Category Alteration screen appears.

3. Click D : Delete .

4. Click Enter to confirm deletion of the cost category.

Note: A cost category tagged to a cost centre can't be deleted.