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Defining Cost Centers and Cost Objects for Chart of Accounts

  • Article

You can automatically transfer the expense and income entries from the general ledger to cost accounting either for each general ledger posting or with a batch job. When you do the transfer, Microsoft Dynamics NAV 2016 only transfers the entries that are already linked to a cost center or a cost object. To establish a meaningful transfer, you must ensure that the cost centers and cost objects are correctly defined.

Defining Default Dimension Values for General Ledger Accounts

For each general ledger account, you can define default dimension values in the Default Dimension table. The following example shows how to define that there should always be a DEPARTMENT cost center, but never be a PROJECT cost object when posting to a general ledger account.

Dimension Code Value Posting

Department

Code Mandatory

Project

No Code

Defining Dimension Values for Overhead Costs and Direct Costs

You can transfer overhead costs to a cost center and direct costs to a cost object. The following table shows the optimal combination of the dimension setup values.

Transfer To Cost Center Posting Cost Object Posting

Cost Center

Code Mandatory

No Code

Cost Object

No Code

Code Mandatory

Note

To make sure that the predefined cost center and cost object that you set up in the general ledger are automatically carried over to cost accounting, select the Check G/L Postings check box in the Cost Accounting Setup window.

See Also

Tasks

How to: Set Up Cost Centers
How to: Set Up Cost Objects

Reference

Cost Accounting Setup
Dimension