Cost/profit centers help the head of a company have control and obtain an overview of projects, persons and objects of the company. Cost/profit centers can be created based on categories or individually. Once cost/profit centers are created, all costs and profits can be distributed among the centers.
Cost/Profit Centers module can be activated at: General settings > Program settings > Change > Activate cost/profit centers module.
Cost and profit centers can be added to purchase and sales invoices when these have been added to the Cost/Profit Centers module first. In addition, cost/profit centers can be added to outgoing payments, provided that the cost/profit centers have been added in the Cost/Profit Centers module first.
Cost/profit centers can be sorted, filtered and searched. Filtering is possible based on status. In order to see the results, click on ‘Show’; in order to clear the filter, click on ‘Clear filter’.
Sorting is possible based on types. Search is possible based on names. In order to cancel search parameters, click on the ‘Clear filter’ button.
A new cost/profit center can be added by selecting Billing -> Cost/profit centers -> Add a new entry in the program menu.
A window opens that contains:
• Type – required field. You must select whether it is a project, location or a person. Default setting is a project.
• Name of the profit center – required field. In this field, the name of the profit center should be as short and as precise as possible.
• Parent profit center – can be selected from the drop-down menu after at least one profit center is added.
• Description and notes – additional information can be added about a profit center.
The added profit centers can be opened by clicking on their names, as well as deleted by clicking on ‘Delete’ at the end of the row.
Profit centers can be made inactive; for this, open a profit center and mark ‘Inactivate profit center’.
Profit centers can be added to purchase and sales invoices by selecting the Cost/Profit Centers tab and entering profit centers one row at a time when adding an invoice.
Profit centers can be added to payments when they are in a confirmed status by using the ‘Manage profit centers’ button.
An example of using profit centers.
A company is operating in the area of catering and has three restaurants in Tallinn: on Narva road, Pärnu road and Viru Street. Each restaurant has a name and is added to the Cost/Profit Centers module as an individual profit center. All purchase invoices issued to the company are divided between those centers. The same applies to all sales invoices and payments. If all documents are entered in a correct and timely manner and a profit center is added to these, then it is extremely easy to extract the results of each restaurant at any point in time.