Costing codes

 

WizCount can be used for costing management. To do this, for each expense or income transaction, the costing code that the transaction belongs to should be specified. There are two types of Costing Codes: Costing centers and Indirect expenses.

In the Costing Report, WizCount calculates the direct income and expenses of each Profit Center and burdens the indirect expenses and income on the various Profit Centers according to predetermined Burden Coefficients. Example: A business includes several departments, located in the same structure. Each department is a Profit Center. When recording income and expenses, the department code should be specified in the journal entry. Rent, electricity and advertising expenses are indirect expenses. These expenses are burdened on each of the departments. For example: rent and electricity expenses can be distributed between the departments by the area in square meters of each department, and advertising expenses by the total income of each department.

In the main menu, choose whether to open Costing centers or Indirect expenses.

 

Costing Center

On the Costing Center page, you can open new costing centers and update data of previously opened costing centers.

Code: the profit center code. On the left side of the page there is a list of Costing Codes. To open a new costing center, select New Costing Code. To update data in a previously opened costing center, select the corresponding code from the list.

Name: Full name, for example: Department no.1

Filtering: The Filtering functions the same way it does in Account Cards and Item Cards. It allows you to issue reports where the Costing Codes are limited to a specific filtering.

Cost Center Data: The bottom of the page shows a spreadsheet where you can record the profit center burden coefficients. WizCount lists all the burden coefficients. Select the relevant coefficients in the Select column, and enter the value in the Value column. In the example above, the value should be the department area in square meters. To set the burden coefficient names, go to:  Account Cards > Field names > Burden coefficient names.

 

Indirect expenses

On the Indirect expenses page, you can open new indirect expenses and update data of previously opened indirect expenses.

Note: Although this section is titled indirect expense, you can also use it for indirect income.

Code: the indirect expenses code. On the left side of the page there is a list of Costing Codes. To open a new indirect expense, select New Code To update data in a previously opened indirect expense, select the corresponding code from the list.

Name: Full name, for example: rent expenses.

Filtering: The Filtering functions the same way it does in Account Cards and Item Cards. It allows you to issue reports where the Costing Codes are limited to a specific filtering.

Indirect Cost/Income Data: The bottom of the page contains a spreadsheet where you can select the burden coefficient for distributing the indirect expense among the Profit Centers. For example: If the indirect expense is rent, in this section, you can choose that the burden coefficient (i.e. distribution) is determined by the area in square meters (of each department). You can also choose from the following distribution methods:

Distribute Evenly: The Overhead Cost will be distributed evenly between the departments.

Expenses Total: The Overhead Cost will be distributed between departments based on the total amount of expenses (or income). For example: Distribute advertising expenses by the total sales of each department.

Number Of Transactions: The Overhead Cost will be distributed according to the number of Journal Entries recorded for each department. For example: Accounting Expenses will be distributed according to the number of journal entries recorded for each department.

To set the burden coefficient names, open Account Cards > Field names > Burden coefficient names

 

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