Configure Ledgers for Cost-Tracking in TallyPrime: 5 Easy Steps

Configuring ledgers for cost tracking in TallyPrime is essential for managing and analyzing expenses related to specific cost centers or projects.

Here’s how to do it:

1. Steps to Configure Ledgers for Cost Tracking in TallyPrime:

1. Open TallyPrime:

Start from the Gateway of Tally.

2. Enable Cost Tracking:

• Go to F11: Features > Accounting Features.
• Enable Maintain cost centers and, if necessary, Use cost tracking.

3. Create or Alter Ledger:

• Navigate to Accounts Info > Ledgers > Create/Alter.
• Select the ledger you want to configure for cost tracking or create a new one.

4. Assign Cost Centers:

• In the ledger creation or alteration screen, enable the option Cost Centres are applicable.
• Select the Cost Category if multiple categories are used.
• Save the ledger configuration.

5. Allocate Costs During Transactions:

• When recording a transaction, after selecting the ledger, you’ll be prompted to allocate the amount to a specific cost center or tracking number.
• You can split the amount among different cost centers if needed.

2. Example to Configure Ledgers for Cost-Tracking in TallyPrime:

Suppose a business has a Travel Expenses ledger and wants to track travel costs separately for different departments (e.g., Sales, Marketing).

By configuring the ledger for cost tracking and allocating costs to respective cost centers during transactions, the business can easily monitor and analyze travel expenses by department.

3. Conclusion:

Configuring ledgers for cost tracking in TallyPrime allows businesses to track expenses by cost centers, providing detailed insights into how money is spent across different parts of the business.

This setup is crucial for accurate cost management, financial analysis, and budgeting.