Cost Center Allocation is a functionality that enables the division of a general ledger entry among multiple cost centers. Within the Cost Center Allocation document, you can specify the allocation percentages for the subordinate cost centers.

As businesses expand, there arises a need to analyze income and expenses pertaining to each operational unit. To achieve this, it’s essential to treat each unit as a cost center and record income and expenses accordingly. However, manually splitting transactions at the transaction level can be arduous. This is where the Cost Center Allocation feature proves invaluable.

In BizCentric, you simply define the allocation among various cost centers (business units) relative to a designated master or primary cost center. Subsequently, when invoicing or recording expenses against the primary cost center, the system automatically distributes the amounts based on the defined allocation, posting entries to each associated child cost center.