2. Creating a Single Cost Category in Tally.ERP 9
To create a Cost Category, set Maintain Cost Centres to Yes in F11: Accounting Features and then set More than ONE Payroll/Cost Category to Yes.
This option is by default, set to No. When this option is set to Yes, Tally.ERP 9 creates a single Cost Category called Primary Cost Category automatically and allows creation of Cost Centres under the Primary Cost Category. However, you may also create new Cost Categories or alter existing Cost Categories.
To create a Cost Category
Go to Gateway of Tally > Accounts Info. > Cost Categories > Create (under Single Cost Category)
The Cost Category Creation screen is displayed as shown.
A brief description on each of the fields in the Cost Category Creation screen follows.
Enter the name of the Cost Category.
Note: There is no sub-classification of Cost Categories and hence you do not find an Under option. Though, there is a Primary Cost Category, it is not a parent of other categories.
Enter an alias, if you wish to call the Category by another name or even by a code number. This field displays only if you set Allow ADVANCED entries in Masters in Gateway of Tally >F12: Configure> Accts/Inv Info. to Yes.
Allocate Revenue Items
Set this option to Yes, to allocate all sales, purchase, expenses and income related transactions to Cost Centres created under this Cost Category. However, if you wish to allocate only capital/non-revenue items to Cost Centres created under this Cost Category, set this option to No.
Allocate Non-Revenue Items
Set this option to Yes, to allocate transactions related to capital or non-revenue nature to Cost Centres created under this Cost Category. By default, this option is set to No.
Note: Enable either Revenue or Non-Revenue items, or both. Do not disable both. Tally.ERP 9 sets Yes, by default, for Revenue items and No for Non-Revenue items.