Cost Centers

Cost centers (also called classes or departments) let you categorize transactions by business segment for more detailed reporting. Navigate to Settings > Cost Centers.

Setting Up Cost Centers

1. Click New Cost Center
2. Enter a name (e.g., "Marketing," "Engineering," "Sales")
3. Optionally set a parent cost center for hierarchical tracking

Using Cost Centers

Cost centers can be assigned to:

• Journal entries
• Invoice and bill line items
• Expenses
• Payroll entries

Reporting

When cost centers are assigned, reports can be filtered or grouped by cost center:

• Profit & Loss by Cost Center - See revenue and expenses per department
• Budget vs Actual - Compare budgets at the cost center level
• Expense Analytics - Break down spending by department

Tips

• Keep your cost center list focused on meaningful business segments
• Assign cost centers consistently across all transaction types
• Use hierarchical cost centers for multi-level reporting (e.g., "Marketing > Digital" and "Marketing > Events")