Exercise - Use cost accounting in Business Central

  • 15 minutes

This exercise is written to use the Cronus sample company from the US version of Business Central. You might need to make adjustments to the steps if you use the sample company from your country or region.

Set up the chart of cost types

Scenario

Your company wants to start working with cost accounting in Business Central and it's your responsibility to set up the cost accounting application area.

You now need to set up the chart of cost types, which should have the same structure as the chart of accounts.

Task

Set up the chart of cost types.

Steps

  1. Select the Search for Page icon in the top-right corner of the page, enter chart of cost types, and then select the related link.

  2. Select Process > Get Cost Types from Chart of Accounts.

  3. Select Yes.

Create a new cost type

Scenario

Now that the chart of cost types is set up, you need to create a cost type that can be used for allocations. The cost type should receive the following number and name:

  • No. - 9901

  • Name - Alloc. of Main Cost Center

Task

Manually set up the new cost types.

Steps

  1. Select the Search for Page icon in the top-right corner of the page, enter chart of cost types, and select the related link.

  2. Select New.

  3. In the No. field, enter 9901.

  4. In the Name field, enter Alloc. of Main Cost Center.

  5. In the Type field, select Cost Type.

  6. Close the Cost Type Card page.

Set up cost centers

Scenario

Your next task is to set up cost centers. First, you must set up DEPARTMENT as the cost center dimension in the cost accounting setup. Then, you need to create cost centers for each DEPARTMENT dimension value. Finally, you should create a new cost center for the warehouse department.

Tasks

  • Set up DEPARTMENT as the cost center dimension.

  • Create cost centers for the DEPARTMENT dimension values.

  • Manually create a cost center for the warehouse department.

Steps

Set up DEPARTMENT as the cost center dimension

  1. Select the Search for Page icon in the top-right corner of the page, enter cost accounting setup, and then select the related link.

  2. Select Actions > Functions > Update Cost Acctg. Dimensions.

  3. In the Cost Center Dimension field, enter DEPARTMENT.

  4. Select Yes.

  5. Select Yes.

Create cost centers for the DEPARTMENT dimension values

  1. Select the Search for Page icon in the top-right corner of the page, enter chart of cost centers, and then select the related link.

  2. Select Get Cost Centers from Dimensions.

  3. Select Yes.

  4. Select OK.

Manually create a cost center for the warehouse department

  1. Select the Search for Page icon in the top-right corner of the page, enter chart of cost centers, and then select the related link.

  2. Select New.

  3. In the Code field, enter WH.

  4. In the Name field, enter Warehouse.

  5. In the Line Type field, select Cost Center.

  6. Close the Cost Center Card page.