Cost Center Directory

What are the cost centers?
Does it differ from one company to another or from one activity to another?
Is there an ideal way to code and create a directory of cost centers for any company?
Would these methods be different if you were using the integrated ERP accounting program in your company?
Through this article, we will get acquainted with the concept of cost centers from a financial perspective and not from a cost or manufacturing perspective, as it is applied in the practical reality of companies with various activities working on the integrated accounting Afaky ERP system, and we will also review with some important group of reports that cover cost centers in a way Full .
First, let us know what cost centers mean and why do they operate as tree guides?
The cost centers are a business unit, or an economic unit, by adding a certain set of cost elements to it, because in the end I can know what this unit cost me to do, and design it in the form of a guide because it is better that it be in the form of main and subsidiary cost centers because After that, it will be in more detail in the reports on cost centers; And Hanshov by examples in the next paragraph.
Examples of cost centers

• We can consider each department of the company as an independent cost center, the aim of which is that I can know the cost of each department of the company from the elements of expenses or costs. What are the rewards and incentives, and very easily, I can determine the feasibility of having this department within the company or not.
• One of the most famous examples of cost centers is the various projects implemented by the company
  “Especially if a contracting company” has many projects that extend over more than one financial year, and the nature of this activity requires that it have quick and current information about the costs of each project, including materials, raw materials, workmanship and other elements of various costs, and not only that I am an accountant inside Contracting companies, I need to know the revenues of the extracts of each project, what are the different projects that the company is implementing.
• We can consider the company’s assets as cost centers, especially cars and production equipment. It will be very different with you if you have ready information that each of the company’s cars costs you a lot of maintenance, oil, grease, fuel and other costs, and in the end you give me very important information regarding the feasibility of having this car Or this equipment is inside the company, and it is better that it is rented from abroad. One of the advantages of the cost centers guide in the integrated accounting Afakys ERP system is that it is a flexible and open levels guide that provides an unlimited number of cost centers and an unlimited number of levels of cost centers
  One of the most important reports on cost centers in Afaky's integrated accounting system ERP
  1- Cost center transactions report
  2- A report on the levels of cost centers
  3- A report on the accounts of cost centers ……etc