Budgets and cost centers

Understand what budgets and cost centers are and how to manage them in the Cost Management application.

• Budgets

  Budgets allow tracking of planned and actual spending. Budgets are defined for a given time period for one or more cost centers.

• Cost centers

  Cost Centers are used to represent a business entity. All expense allocations assigned to the budget's cost center during the budget period are used to calculate the budget's actual expense allocations.

  It is also possible to assign a cost center to a budget from the cost center record. The cost center record contains a budgets related list.

• Budgets and cost centers example
  The most common business entity to associate financial information is the cost center.

• Create or update cost centers
  Define a new cost center or update the details of the existing cost centers.
• Create or update a budget
  Cost management provides budgets for you to plan expenses for a certain time period.
• Cost centers related records
  Cost centers are related to additional records, displayed as related lists on its form.
• Associate cost centers to a budget
  You create cost centers and associate budgets and expense allocations with them.

Parent Topic:Cost Management