Branch-wise Cost Center Assignment
Track and manage financial activity by assigning cost centers to specific branches.
For multi-branch organizations, it’s essential to understand where costs originate. PrismERP’s Branch-wise Cost Center Assignment feature enables businesses to assign specific cost centers to individual branches, ensuring accurate tracking, reporting, and financial control across geographic or operational locations.
This feature empowers finance teams to:
- Monitor branch-level performance
- Allocate budgets effectively
- Maintain transparency across all business units
Branch-wise Cost Center
Branch-wise Cost Center Assignment allows organizations to link cost centers directly to branches, ensuring every transaction is automatically tagged and reported based on its originating branch. This leads to accurate branch-wise income and expense reporting and drives more meaningful financial analysis.
- Assign Sales – North Region cost center to the Dhaka Branch
- Assign Marketing – South cost center to the Chattogram Branch
This allows distinct performance tracking for each region.
Key Features in PrismERP
- Direct Assignment of Cost Centers to Branches: Link one or more cost centers to a specific branch or location.
- Improved Expense Categorization: Track expenses incurred at each branch using predefined cost centers.
- Simplified Transaction Entry: System auto-suggests relevant cost centers based on branch selection.
- Multi-Branch Scalability: Supports unlimited combinations of branches and cost centers.
- Branch-Level Reporting: Generate detailed reports showing expenses, income, and profitability per branch.
- Access Control & User Role Segmentation: Restrict users to specific branches and cost centers for data accuracy and security.
Cost Centers & Cost Categories by Branch
Various Cost Centers
- Production / Operational Cost Centers
- Service Cost Centers
- Administrative Cost Centers
- Sales & Marketing Cost Centers
- Distribution & Logistics Cost Centers
Cost Categories
- Direct Cost
- Indirect Cost
- Administrative Cost
- Sales Cost
- Distribution Cost
Cost Allocation Process for Production Costs
| Cost Category | Total Cost |
|---|
| Factory Overheads | $50,000/month |
| Equipment Depreciation | $20,000/month |
| Utilities (Electricity, Gas, Water) | $30,000/month |
| Repair & Maintenance | $15,000/month |
Allocation Bases
| Cost Category | Allocation Basis | Example Calculation |
|---|
| Factory Overheads | Production Volume | $50,000 ÷ 10,000 tons = $5 per ton |
| Equipment Depreciation | Machine Hours | $20,000 ÷ 10,000 hours = $2/hr |
| Utilities | Usage (kWh) | Allocated based on machine usage |
| Repair & Maintenance | Historical Repair Costs | Based on past maintenance costs |
Sales Cost Allocation
| Sales Cost Category | Total Cost |
|---|
| Advertising & Promotions | $50,000 |
| Sales Commissions (Direct) | $30,000 |
| Sales Commissions (Indirect) | $20,000 |
| Trade Shows & Sponsorships | $15,000 |
| Customer Acquisition Costs | $25,000 |
| Total Sales Costs | $140,000 |
Allocation Bases
| Sales Cost Category | Allocation Basis | Basis Details |
|---|
| Advertising & Promotions | Sales Revenue | Allocate based on sales revenue |
| Sales Commissions (Direct) | Sales Volume | Based on sales volume by reps |
| Sales Commissions (Indirect) | Headcount or Sales Revenue | Based on indirect commissions |
| Trade Shows & Sponsorships | Sales Volume or Product Focus | Based on sales volume or promoted products |
| Customer Acquisition Costs | New Customers or Revenue | Based on new customers acquired |
Sales Cost Allocation Summary
| Department | Advertising & Promotions | Direct Sales Commissions | Indirect Sales Commissions | Trade Shows & Sponsorships | Customer Acquisition Costs | Total Sales Costs |
|---|
| Dept A | $12,500 | $7,500 | $5,000 | $3,750 | $6,250 | $35,000 |
| Dept B | $20,000 | $11,250 | $8,000 | $6,000 | $9,375 | $54,625 |
| Dept C | $17,500 | $11,250 | $7,000 | $5,250 | $9,375 | $50,375 |
Distribution Cost Allocation
| Distribution Cost Category | Total Cost |
|---|
| Rent & Warehousing | $40,000 |
| Inventory Handling | $25,000 |
| Fuel & Vehicle Maintenance | $15,000 |
| Third-Party Logistics Fees | $20,000 |
| Total Distribution Costs | $100,000 |
Allocation Bases
| Distribution Cost Category | Allocation Basis | Basis Details |
|---|
| Rent & Warehousing | Warehouse Space | Based on warehouse space used |
| Inventory Handling | Units Handled | Based on units handled by department |
| Fuel & Vehicle Maintenance | Distribution Volume | Based on miles/volume traveled |
| Third-Party Logistics Fees | Units Shipped | Based on volume of goods shipped |
Distribution Cost Allocation Summary
| Department | Rent & Warehousing | Inventory Handling | Fuel & Vehicle Maintenance | Third-Party Logistics Fees | Total Distribution Costs |
|---|
| Dept A | $10,000 | $6,250 | $3,750 | $5,000 | $25,000 |
| Dept B | $15,000 | $9,375 | $5,625 | $7,500 | $37,500 |
| Dept C | $15,000 | $9,375 | $5,625 | $7,500 | $37,500 |
Integration
- Cost Center Master
- Branch Management
- General Ledger
- Budgeting & Forecasting
- Project & Departmental Reporting
Conclusion
Make every branch financially accountable with PrismERP’s Branch-wise Cost Center Assignment. Decentralized operations become financially centralized, offering clear cost driver visibility, compliance assurance, and smarter, data-informed decisions across your entire organization.