How to Create Cost Categories in Tally ERP 9

On enabling cost categories, the option Cost Category is available in the Accounts Info. menu. By default all cost centres are grouped under Primary Cost Category. You can create cost categories and group cost centres under cost centres, as required.  Multiple cost categories can be created in one go in multiple mode.

To create a single Cost Category

1.    Go to Gateway of Tally > Accounts Info. > Cost Categories > Create (under Single Cost Category).

2.    Enter the Name.

3.    Set the option Allocate Revenue Items to Yes to allocate all sales, purchase, expenses and income-related transactions to cost centres created under this cost category.

4.    Set the option Allocate No-Revenue Items to Yes to allocate transactions related to capital account and other non-revenue accounts to cost centres  created under this category.

The Cost Category Creation screen appears as shown below:

create cost categories

(Note: At least one of the options Allocate Revenue Items or Allocate Non-Revenue Items must be enabled.)

To create multiple cost categories

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

2.    Enter the Name of Category.

3.    Enable Revenue Items  to allocate all sales, purchase, expenses and income-related transactions to cost centres created under this cost category.

4.    Enable Non-Revenue Items to allocate transactions related to capital account and other non-revenue accounts to cost centres created under this category.

5.    Press Enter.

6.    Enter Name of Category and select Allocations for the Category as required.

The Multi Cost Category Creation screen appears as shown below:

create cost categories

7.    Press Enter to save the Cost Categories.

Note: At least one of the options Allocate Revenue Items or Allocate Non-Revenue Items must be enabled for a cost category.


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