Cost centre
In Arabic مركز التكلفة
A part of a business, such as a branch, warehouse or van route, whose costs are tracked separately so its results can be reported on their own.
In plain words
The income statement shows what the whole business spent; cost centres show where. A distributor can see what each warehouse or route costs to run, and which ones earn their keep.
Each journal line carries a cost-centre code beside its account, so fuel stays in one fuel account but is split by route. Reports then filter or group by the code.
The common mistake is opening a separate ledger account for every cost centre. The chart grows by multiples, and the company-wide figures have to be added back up by hand.
- Route north
- SAR 4,200
- Route south
- SAR 3,600
- Warehouse forklifts
- SAR 1,200
- Fuel account total
- SAR 9,000
In Axon Suite
How Axon Suite handles it
Axon Suite carries dimensions on journal lines for cost-centre reporting.