Cost Centres and Profitability

Cost centres let you measure profit by branch, project, department, or any segment of your business — not just for the company as a whole. If you want to know which outlet, site, or product line actually makes money, cost centres are the answer.

Before you begin

Turn on Cost centres in Company Settings, then create your cost centres under Masters → Cost Centres. They can be hierarchical (for example, a region containing several branches).

Tagging transactions to a cost centre

When you record a Sales, Purchase, Payment, or Receipt voucher, choose a cost centre. Udyot tags every line of that voucher — revenue, cost, and VAT — to the same cost centre, so the segment’s profit is complete.

The Cost Centre Profitability report

Open Reports → Cost Centre Profitability for a BS-dated view of revenue, expense, and profit per cost centre. Anything you did not tag appears in an “Unallocated” row, so the report always reconciles back to your company P&L — you can see exactly how much is still untagged.

Tips & common questions

Do I have to tag every voucher? No — tagging is optional. Untagged activity simply shows as Unallocated.

Is this the same as a separate company? No. Cost centres slice one company’s books into segments; you do not need a separate company per branch.

Related: Budgets & Variance, Financial Reports.