How to Allocate Costs to Projects in TallyPrime: 4 Steps + Example

In TallyPrime, you can allocate costs to projects using Cost Centers and Cost Categories.

Here’s a detailed guide:

Table of Contents

1. Step-by-Step Process to Allocate Costs to Projects in TallyPrime:

1. Enable Cost Centers and Categories:

Go to Gateway of Tally > F11: Features > Accounting Features.
Enable Cost Centers and Cost Categories.

2. Create Cost Centers for Projects:

Go to Accounts Info > Cost Centers > Create.
Create a cost center for each project, e.g., Project A, Project B.

3. Create Cost Categories (Optional):

Navigate to Cost Categories if you want to allocate costs across multiple projects/departments.

4. Create a Ledger:

Create income/expense ledgers, and assign relevant cost centers or categories to each ledger.

5. Record Transactions with Cost Allocations:

While recording transactions (sales, purchases, payments), allocate costs to specific projects via cost centers.

2. Example of Allocating Costs to Projects in TallyPrime:

ABC Constructions manages multiple projects and wants to allocate material costs to each.

They create cost centers like Project A and Project B, then allocate material purchase costs accordingly.

When entering a purchase voucher, they select the respective cost center for each project.

This way, they can later view reports to see the costs incurred for each project.

Conclusion:

Allocating costs to projects in TallyPrime enables efficient project cost tracking, helping businesses analyse profitability, control expenses, and monitor project financial performance accurately.