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Cost Category Setup

Organize and control business expenses through systematic cost categorization. Efficient financial tracking starts with clear and consistent classification. PrismERP’s Cost Category Setup enables organizations to define and manage cost categories that serve as the foundation for accurate budgeting, reporting, and expense control across departments, projects, and business units. This setup ensures that every transaction is linked to a meaningful category—turning raw financial data into actionable insight. The Cost Category module in PrismERP allows users to create a structured list of cost categories—such as Salaries, Utilities, Raw Materials, Advertising, or Logistics. These categories serve as high-level groupings that organize related cost centers and expenses for streamlined reporting and analysis.

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Example: Create a cost category named “Operational Expenses” and assign cost centers like “Factory Utilities,” “Maintenance,” and “Warehouse Rent” under it to track operational costs effectively.

Key Features​

  • Customizable Cost Categories Define unlimited categories tailored to your organizational and financial reporting structure.

  • Hierarchical Grouping Organize categories and sub-categories to support both summarized and detailed financial views.

  • Integration with Cost Centers Link cost centers under their relevant categories for structured expense tracking and analysis.

  • Cross-Module Compatibility Apply cost categories in General Ledger, Budgeting, Procurement, Payroll, Project Accounting, and more.

  • Easy Setup & Maintenance Add, edit, or deactivate cost categories through an intuitive interface.

  • Role-Based Access Control Ensure only authorized users can create, modify, or deactivate cost category structures.

Integrated With​

  • Cost Center Master
  • General Ledger (Chart of Accounts)
  • Budgeting & Forecasting
  • Sales Distribution
  • Procurement & Inventory
  • Payroll & HR

Conclusion​

Take control of your expenses from the top down. With PrismERP’s Cost Category Setup, your finance team can group, classify, and analyze every cost in your business—turning data into insight, and insight into action.