A budget is a plan prepared for the flow of funds in an organisation. It contains financial guidelines for the future plan of action for a selected period of time.

A budget helps to refine goals and use funds efficiently. It provides accurate information for evaluation of financial activities, aids in decision making and provides a reference for future planning.

Go to Gateway of Tally> Accounts Info.> Cost Centres> Create (under Multiple Cost Centres)

This is a quick way to create a number of Cost Centres at a time.

You can create multiple Cost Categories at a time using the multiple mode.

Go to Gateway of Tally > Accounts Info. > Cost Categories > Create (under Multiple Cost categories)

The Multi Cost Category Creation screen displays.

An explanation on each of the fields in Multi Cost Category Creation screen follows.

S. No.

This is an auto-generated serial number.

Name of Category

Enter the name of the Cost Category.

Cost Categories are useful for organisations that require allocation of resources to parallel sets of Cost Centres. Such organisations would usually be project oriented.

Most organisations would not need Cost Categories. The proper use of Cost Centres itself would offer the same benefits. Cost Categories could increase data entry work and make it more complicated. Hence, before opting for Cost Categories, evaluate whether you actually need this option. Always attempt to first use Cost Centres.

You can alter multiple Cost Centres at a time in this mode.

Go to Gateway of Tally > Accounts Info.> Cost Centres > Alter (under Multiple Cost Centres)

Use <backspace> to move back to the field Under Cost Centre or use the button F4: Parent to change parent. Make the necessary changes in the respective fields and Accept to save.

Note: You cannot delete a Cost Centre in multiple mode

Explanation on Buttons in Multiple Mode

F4: Parent

It is used to move the cursor to the field Under Cost Centre.

To alter an existing Cost Centre

Go to Gateway of Tally> Accounts Info.> Cost Centres> Alter (under Single Cost Centre)

The Cost Centre Alteration screen appears. Make the necessary changes and Accept to save.

Deleting a Cost Centre

You can delete a Cost Centre from the Cost Centre Alteration screen by pressing ALT+D.

You can delete a Cost Centre only if

• It does not have any Cost Centres created under it.

• It is not used in any transactions.

To create a Cost Centre, set Maintain Cost Centres to Yes in F11: Features. It is advisable not to set More than ONE Payroll/Cost Category to Yes, unless required.

By default, Tally activates the Cost Centre feature for Ledger accounts under Sales Accounts, Purchase Accounts, Expense and Income groups.

Go to Gateway of Tally> Accounts Info.> Cost Centres> Create (Single Cost Centre)

The Cost Centre Creation screen displays.

A brief explanation on each of the fields in the Cost Centre Creation screen follows.

A Cost Centre is any unit of an organisation to which transactions (generally, revenue) can be allocated. When only costs or expenses are allocated to these units, they are referred to as Cost Centres. When profits are also allocated to these units, they become Profit Centres. You can now obtain a Profit and Loss account of each such Profit Centre.

During invoice or order entry, if the credit amount limit is exceeded, the voucher entry does not proceed further. You have two choices at this stage:

1. Enter a lower value so that the entry can be completed.

2. Abandon the current entry and obtain authorization to increase the credit amount limit in the Multi Ledger Limit Alteration screen.

This is a controlled activity and will depend on the security permissions for altering credit limits.

The effect of setting credit limits is that during voucher entry (also invoice entry), the credit terms are filled up by the pre-set figures. If the voucher configuration (through F12: Configure) is set to disallow modifications of all fields during voucher entry, the cursor skips these fields and modification is not permitted. However, the configuration is set to permit modifications to all fields - alteration of the pre-filled fields is allowed.