Cost category is used to categorize the various costs incurred by the organization. Having a cost category can be helpful when there is a need to monitor and track costs in a broad accessible way. Linking the account group to handle the cost category is possible through this screen.

Fields & its description:

• Code, Name & Short Name

Enter a unique code, name and short name of the cost category that you want to save.

• Cost Center Type

Select the cost center type under which this cost category is present.

There is a table below that allows you to link the cost category to its account group. Even the nature of the group can be specified.

• Type

Under Type column select one of the options to perform that operation. Choose Group Include to include an account group to the cost category. Group Exclude excludes the specified account group.

Account nature include should be selected to include nature to cost category. For excluding the nature, select Account nature exclude.

• Group

Specify the account group where the operations will be performed based on the Type you have selected.

• Nature

The nature of the account for cost category should be selected. This may be Liability or Asset in broader terms. If it has a direct effect in the form of expense or income, specify as such by choosing Direct Income  or Direct Expense. 

If the effect is indirect then choose Indirect Income or Indirect Expense.