How to: Set Up Cost Centers

Cost centers are departments that are responsible for costs and income. The chart of cost centers is similar to the dimension information for the general ledger. You can set up the chart of cost centers in the following ways:

• Transfer dimension values in the general ledger to the chart of cost centers. You can make any necessary adjustments after the transfer.
• Create a new chart of cost center that is independent of the general ledger or add a new cost center to an existing chart of cost center. You must create each cost center individually.

To transfer dimension values in the general ledger to the chart of cost centers

1. Set up a dimension to be the cost center dimension in the Update Cost Acctg. Dimensions window. Only the values from this dimension are transferred.

2. Choose the icon, enter Chart of Cost Centers, and then choose the related link.

3. On the Actions tab, in the Functions group, choose Get Cost Centers from Dimension to transfer dimension values to the chart of cost centers. The function transfers the dimension values that you defined in step 1.

   Note

   You can set up the Align Cost Center Dimension field to define a one-way synchronization of dimension values from the general ledger to the chart of cost centers. You cannot define a synchronization of the chart of cost centers to dimension values from the general ledger.

The chart of cost centers now contains all specified dimension values from the general ledger and includes titles and subtotals.

To create new cost centers in the Chart of Cost Centers window

You can set up and maintain cost centers in either the Cost Center Card card or in the Chart of Cost Centers window. In this procedure, you set up cost centers in the Chart of Cost Centers window.

1. Open the Chart of Cost Centers window in edit mode.

2. In the Code field, enter the cost center code. All cost centers must have a code.

3. In the Name field, enter the cost center name.

4. Choose the drop-down arrow in the Line Type field to specify the purpose of the cost center.

   • For cost centers of the Total type, you must fill in the Totaling field. Use the or operator, which is a vertical line (|) to set ranges of cost centers.
   • For cost centers of the End-Total line type, this field is filled in automatically when you use the indent function.

5. Fill in the Sorting Order and Cost Subtype fields.

6. Choose the next empty line to create a new cost center, and then repeat steps 2 through 5.

7. After you have set up all the cost centers, choose the Indent Cost Centers action. Choose the Yes button.

See Also

Dynamics 365 Business Central
Accounting for Costs
Setting Up Cost Accounting
Terminology in Cost Accounting
About Cost Accounting
Working with Dynamics NAV