HR operations
Cost centre
A cost centre is a unit (department, project, location) to which employee costs are allocated, so payroll cost can be reported the way finance budgets it.
Each employee is mapped to one or more cost centres, sometimes with percentages. Payroll journals post salary, contributions and reimbursements by cost centre to the accounting system.
Changing an employee's cost centre mid-month splits the cost accordingly.
In Indian payroll
The payroll journal that Tally or the ERP can post without retyping is a cost-centre-wise journal. It is what makes the HR deck and the finance deck agree.
What is Cost centre?
A cost centre is a unit (department, project, location) to which employee costs are allocated, so payroll cost can be reported the way finance budgets it.
Why does Cost centre matter in Indian payroll?
The payroll journal that Tally or the ERP can post without retyping is a cost-centre-wise journal. It is what makes the HR deck and the finance deck agree.
Related terms
In Kuzhu
The Invoicing & Finance module in Kuzhu is where Cost centre is handled, on the same employee record as everything else.
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