A cost centre is any unit of an organisation to which transactions (generally, revenue) can be allocated. When only costs or expenses are allocated to these units, they are referred to as Cost Centres. When profits are also allocated to these units, they become Profit Centres.
To enable cost centres
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? to maintain cost categories.
4. Press Ctrl+A to save the Company Operations Alteration screen.
By default, Tally.ERP 9 activates the Cost Centre feature for Ledger accounts under Sales Accounts, Purchase Accounts, Expense and Income groups.