ERPNext Accounting
What is Cost Center?
- Cost Center
- A Cost Center in ERPNext is a dimension used to track income and expenses against specific departments, projects, or business units.
Setting Up Cost Centers
Go to Accounting → Cost Centers. Build a tree reflecting your org structure — e.g., Company → Sales → North Zone. Assign a Cost Center on every transaction (invoices, journal entries, stock entries) for granular P&L reporting.
Cost Centre vs Profit Centre
In ERPNext, a Cost Centre can be marked as a Profit Centre, enabling revenue and expense allocation per unit. Combined with Accounting Dimensions, this gives multi-axis reporting without separate company accounts.
Need help with Cost Center?
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
Related Terms
Chart of Accounts
The Chart of Accounts (CoA) in ERPNext is a hierarchical tree of all ledger acco…
Budget
ERPNext Budgets let you set spending limits per Cost Centre or Project and autom…
Accounting Dimension
Accounting Dimensions in ERPNext let you tag transactions with custom attributes…
General Ledger
The General Ledger in ERPNext is the master record of all accounting entries acr…
Implement ERPNext for Your Business
Expert ERPNext implementation, customisation, and support for Indian businesses.