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HomeProducts >  Tally.ERP 9 > Costing Accounting & Budfeting
Costing Accounting & Budgeting Software Tally ERP 9

Control & Optimise Your Costs Using Tally.ERP 9...!

Costing involves the recording, classifying and summarising of expenditures/charges as applied to products or services.
The function of costing involves the planning and control of such costs and the enabling of decision-making by management.

Businesses can benefit from essential Costing facilities in Tally.ERP 9:

Optimise Costs Using Cost Centre & Categories

For best results, a business assigns its controllable costs to cost centres like Branches, Departments, Projects, Products, Persons and so on and this is fully supported by Tally.ERP 9. For example, besides the ledger-wise accounting allocation, a transaction may be allocated amongst different Branches. Tally.ERP 9 allows the comparison of Cost Centres to arrive at true performance.

Cost Categories—a cluster of related Cost Centres—allows parallel allocation of the same transaction in multiple dimensions.

Cost Centre Reports

Category Summary:
This report displays the summary of all the Cost Centres under a cost category.

Cost Centre Break-up:
This report displays Ledger and Group summary information for the selected Cost Centre.

Ledger Break-up:
This report displays the summary information of all Cost Centres for the selected Ledger.

Group Break-up:
This report displays the summary information of all Cost Centres for the selected Group.

Automatic Cost Allocation & Control
Cost Centre Classes are used to automate Cost Centre allocations in transactions. You can use Cost Centre classes if you do not wish to manually allocate amounts to Cost Centres in each entry.

Cost Estimation & Control
Cost estimation is the process of pre-determining the cost of a certain product, job or order. Such pre-determination may be required for several purposes, including:

• Budgets & Variance
• Preparation of financial statements (valuation of stocks)
• Job Costing

Budgets & Variance:
Budget-the detailed plan of income and expenses expected over a certain period of time - can provide guidelines for managing future investments and expenses.

To provide crucial managerial control, Tally.ERP 9 provides a flexible system of Budgets for Group, Ledger or Cost Centres. Tally.ERP 9 allows the creating of multiple Budgets for different purposes such as Sales budget, Expenses budget, etc. You can compare the actual performance against the budget and also get a variance report.

Stock Valuation:
Tally.ERP 9 allows you to view the effects of different stock valuation methods on the closing stock value, in a columnar display.

Each stock item can be set up to have a different stock valuation method (e.g. Average Cost, Average price, Last Purchase cost, Last Sales price, FIFO). Tally.ERP 9 displays stocks in any or all the valuation methods dynamically and simultaneously, without any complicated procedure.

Job Costing:
Job Costing is a form of specific order costing which applies to a job undertaken to customer specifications. It applies to industries which produce definite products against individual orders: construction, manufacturing, printing, automobile, etc.

Tally.ERP 9 offers comprehensive Job Costing functionality that helps businesses to estimate costs and track them.

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