Cost Center Accounting

COST CENTRE ACCOUNTING

Finance managers will use cost centers to keep track of expenses. Keeping close track of the expenses allows them to control total costs, allocate resources more strategically and calculate profitability on a subject or department basis.

Examples of cost centers for the education sector may be an individual curriculum department such as History, Geography or Social Studies or non-curriculum departments such as Sporting groups – Hockey, Water Polo, Rowing, Rugby, Netball etc

Allocating the associated costs and also school contributions or funds raised into each of these cost centers, the Finance Manager will then be able to slice and dice the data and produce accurate reporting. If required a P&L can even be created for each cost center.

Due to the flexibility of Sage 300 ERP, the transactions and financial reporting can reflect either the calendar or school year or the financial year or even to reflect a sporting season. Examples of this complex requirements are:

  • The school year will be January to December
  • The accounting year may be from April to March
  • The rowing season may be from November to March

The system can also support a fundraising project for the future.  An example would be preparing for a school trip to Spain in the next financial year. The system can manage the fund raising and students payments coming in throughout the months prior to the trip.

The team from BES are looking forward to discussing your specific requirements and creating the cost centers to meet your needs.