The Department is allowed by the “COST CENTRES” to group, maintain and organize the accounts associated with them in order to depict and manifest the Set-ups as well as Activities affiliated to these Departments. For instance, there are numerous reasons are associated with the requirement of a “Cost Centre” for each Department and these reasons or objectives of “Cost Centre” include;
- “LABORATORY” Managers.
- Conferences and seminars.
- Administration and Management agendas.
- Cafeterias and Canteens.
- Courses of peculiar types.
The Income Monies, as well as the Expense Amounts, will then be assigned to the correct and suitable “COST CENTRES”. The Departments will be enabled in this manner to allocate “BUDGETS” manually for the sake of every activity which is taking place and then for the subsequent monitoring of the performance of these Departments.
DISTINCT AND UNIQUE FEATURES OF THE “COST CENTRES” AND THEIR DETAILED DESCRIPTION:
- “COST CENTRES” are grouped and assembled collectively as these are the rationally linked Accounts so that the purpose of the collection of “Cost Information” and its simplification will be executed.
- “COST CENTRES” will be manifesting the Expenditures as well as Resources that are being applied to the overall Organization.
- “COST CENTRES” will be holding INSURANCE except liability related to profession, Properties and Facilities, LICENCES, Taxes that Non-Payroll, Services regarding Charity Work as well as Fees linked to the profession (such as LEGAL services, AUDITING services and much more).
- “COST CENTRES” will be depicting numerous times the “SERVICES” that can be utilized indirectly in the Marketable Services structuring as well as Marketable Products manufacturing related to the organization.
- “ADMINISTRATION” related services will also be included in “Cost Centre” in some of the Organizational Set-up concerning the work of Charity.
- “COST CENTRES” are provided with the responsibility of the Expense Control Mechanism.
- This is an imperative action that all sorts of “COST CENTRES” will be represented “STANDARD HIERARCHY” of the areas related to Controlling Methodology.
- Every “COST CENTER” should be allocated with an AREA of Business in all cases if the “BUSINESS AREAS” are in “FI” as well as the inactive state.
- The Prices and Activities will be planned via making a connection of a “COST CENTRE” with all kinds of “WORK CENTRES”.
- “COST CENTRES” will also benefit when Key Figures that are being statistically calculated, are required to be posted and these figures will then be utilized in Allocations as well as Reporting.
- The comparison between the Actual or real Expenses with the Budget related Tasks will be made in Accounting “COST CENTRES”, the monies from the Receipts or Invoices that are paid will be charged to the suitable account and will then be posted in Reports that will be substantial for you to understand the Expenditures that are created every month VERSUS the assigned each month Budget and the TOTALS that are calculated as Year-To-Date.