Definition of Cost Center
A cost center is often a department within a company. The manager and employees of a cost center are responsible for its costs but are not directly responsible for revenues or investment decisions.
Examples of Cost Centers
A manufacturer's cost centers will often include:
- Each of its production departments.
- Each of the service departments or support departments within a production facility, such as the maintenance department and quality control department.
- A company's general, selling and administrative (SG&A) departments such as the company's human resource department, sales and marketing departments, IT department, accounting department, etc.
It is also possible for a company to have several cost centers within one department. For example, each assembly line could be a separate cost center within one production department. Even a special machine could be a separate cost center.
How to manage the Cost Centers
As a Yeeflow administrator, you can manage the cost centers from the admin center. Click the Cost Center icon to open the management page:
Cost Center is built based on the organization structure. So first select one node (Subsidiary, branch or department etc.) of the organization tree on the right panel, then click Add on the top right corner of the cost center list to add a cost center.
Fill all the required information in the popup window, then click OK. Note that the code cannot be edited once created.
You can turn on or off a cost center by switching its status icon.
To edit or delete a cost center, click the icon with three dots on the right of the list.
How to use Cost Centers
You can use Cost Centers to manage the cost related data and control the costs with business process. To link your data with Cost centers, you can add the Cost Center field to your data lists or the approval forms. For example: if you have a inventory management application, you can add the cost center field in your inventory data list to link your assets with the cost center. Or from a new assets request form, using the cost center control link the new assets with the cost centers etc.