# Cost Center

### **Module Guide: Cost Center**

#### **Module Location**

#### General Ledger > Cost Center

#### **Module Objective**

#### The **Cost Center** module serves as the master data hub for creating and managing the company's cost center structure. A Cost Center is a department, location, or even an asset (like a machine) where costs can be allocated for the purpose of tracking, budgeting, and analysis. The structure built here becomes the foundation for all departmental cost reporting.

### **1. Main View (Cost Center Structure)**

#### The main page of this module displays all the Cost Centers that have been created in a hierarchical **tree view** format.

![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/Dhjimage.png)

#### **View Explanation**

- #### **Hierarchical Structure**: This view shows the parent-child relationship between Cost Centers. You can see two main groups: **DEPARTMENTAL COST CENTERS** (for functional units like Finance, Marketing, Sales) and **ASSET COST CENTERS** (for physical assets like a Building or Machine).
- #### **Navigation**:
    
    
    - #### You can click the **\[+\]** or **\[-\]** icons to expand or collapse the structure's branches.
    - #### To edit a Cost Center, **double-click** on its name to enter the Edit form.

### **2. Steps to Manage a Cost Center**

#### **Step 1: Create a New Cost Center**

#### To create a new Cost Center (for example, a new department under CLUSTER SUPPORT), you must first enter the edit mode of its parent.

1. #### **Double-click** on **CLUSTER SUPPORT** to open the Edit form. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/CVQimage.png)
2. #### On the Edit form, click the **Add Child** button. This will open the form to create a new Cost Center. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/8THimage.png)

#### **Step 2: Fill in Cost Center Details (Add Form)**

#### On the form that appears, fill in the required details:

- #### **Cost Center Code**: Enter a unique code for the cost center (mandatory `*`).   
    ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/NPsimage.png)
- #### **Cost Center Name**: Enter a descriptive name for the cost center (mandatory `*`).   
    ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/ic3image.png)
- #### **Type**: Select the appropriate type from the dropdown.   
    ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/VNIimage.png)
- #### Click **Save** to create the new Cost Center. 
    
    #### ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/QM7image.png)

#### **Step 3: Modify or Deactivate a Cost Center**

#### You can change existing Cost Center data via the Edit form.

- #### Change the **Cost Center Name** or **Type** if needed.
- #### Use the **Delete** button to remove it (if no transactions have ever been linked to it) or the **Disable** button to deactivate the Cost Center so it can no longer be used in new transactions. ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/KImimage.png) ![image.png](https://manual.kokola.co/uploads/images/gallery/2025-08/scaled-1680-/Jxbimage.png)

### **Tips & Important Notes**

- #### The Cost Center structure you build here will become the options available when allocating costs in all transaction modules (e.g., General Journal, Purchase Invoice, etc.).
- #### This is a crucial master data setup and should be well-designed according to the company's organizational structure. Coordinate with the **Accounting and Cost Planning Control** teams.
- #### Grouping **ASSET COST CENTERS** down to the individual machine level (like B01, WS1) allows for very detailed tracking of maintenance or operational costs per machine.