Tally Payroll (Cost Category & Center)

PAYROLL IN TALLY
COST CATEGORY

Cost categories are the group for cost center object.

For Example ...
Salesman
Employee
Conveyance, etc.

COST  CENTER

Cost center is a single entity that related with a particular "Cost category"

For Example ...
Salesman A, Salesman B, and Salesman C are related to 'Salesman' Category.

STEPS TO ENABLE COST CENTER & CATEGORY

1. Open an already existing company.

2. Go to “Gateway of Tally”

3. Press “F11” key

4. Select “Accounting Features”

5. Set the following options to 'Yes'
* Main Cost Category
* Maintain more than one payroll or cost category

STEPS TO CREATE COST CENTER AND CATEGORY

After enabling the "Cost Category and Centers" follow the below steps to create Cost categories and Cost centers.

1. Go to “Accounts info.”

2. Create Cost Categories.

3. Create Cost Centers under selected Cost categories.

LEDGERS FOR COST CENTRE

The cost centers ledgers are helping to enter cost centers transactions in the accounting vouchers.

After creating Cost category and Cost centers, follow the steps to create cost centers ledgers.

1. Click on "Account Info."

2. Click on "Ledgers"

3. Click on "Create"

4. Enter ledger name and group.

5. Make yes to "Cost centers are applicable"

VOUCHER ENTRY

1. Click on "Accounting Voucher"

2. Choose the type of voucher (Payment or Receipt)

3. Enter Expense ledger in payment voucher an Income ledger in receipt voucher.

4. Enter the cost centers with cost category.

5. Enter Cash/Bank in credit side (Payment voucher) or debit side (Receipt voucher).

6. Now save the voucher.

PRACTICE QUESTION

Company name: Amit & Sons

Ledger Entries

Cash a/c Rs. 17,00,000

Cash at bank Rs. 25,000

Bad debts. Rs. 65,000

Cost category: Salesman

Ledger: Conveyance A/c (Amount Rs. 33,500)
Voucher: Payment

Cost Centers	Amount Rs.
Salesman A	5,500
Salesman B	6,000
Salesman C	7,500
Salesman D	8,000
Salesman E	6,500

Cost Category: Bad Debts
Ledger: Bad Debts Recover A/c (Amount Rs. 1,05,000)
Voucher: Receipt

Cost Center	Amount Rs.
A	40,000
B	65,000

Cost Category: Employee   
Ledger: Salary A/c (Amount Rs. 1,12,000)
Voucher: Payment

Cost Center	Amount Rs.
Umesh	25,000
Rajeev	27,000
Priyanka	32,000
Preeti	28,000

Cost Category: Watchman
Ledger: Bonus A/c (Amount Rs. 26,000)
Voucher: Payment

Cost Center	Amount Rs.
Sunil	5,000
Ramesh	7,000
Raghu	6,000
Akash	8,000

Cost Category: Agent
Ledger: Commission Rec.  A/c (Amount Rs. 34,500) 

Voucher: Receipt

Cost Center	Amount Rs.
Amit	12,000
Vijay	10,000
Krishna	12,500

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