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Basmtak Books
Accounting and journals

Cost centres: which branch makes money?

Split income and cost across branches, projects or departments, and see where you actually make or lose money.

3 min read 4 steps Open this screen in Books
This feature comes with certain plans. If it is not in your menu, it is not in your business's plan.

Create the centres

In the side menu choose Cost centres, then New centre (1). Enter the Code and name, and choose a Kind: Project, Branch, Department or Other.

Under places it beneath another centre. Budget is optional; if you enter one, what is left of it appears in the report.

Create the centres

Choose the centre when recording

Once the first centre exists, a Cost centre field appears on journals and invoices. Pick it with each transaction. In a manual journal a new line inherits the centre of the line above. A fixed asset can be tied to a centre, so its depreciation lands there every month by itself.

Read the profit by centre

Press Profit by cost centre (2 in the picture above), or open it from Reports. Each centre shows revenue, direct cost, gross profit, margin and net profit. Press a centre for its detail.

Watch the Unassigned row: it holds every posting not coded to a centre. The bigger it is, the less the branch figures can be trusted.

Read the profit by centre

Close a centre that has ended

When a project ends or a branch shuts, open the centre with Edit and press Close centre. It leaves the list and returns with Show closed. A centre with anything posted to it cannot be deleted. Centres marked From Basmtak HR were created automatically from a branch or department in HR.
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