Using Category to Track Costing

Key Concepts

• Category vs. Project Costing:

  • Category Costing includes the balance sheet and is used for filtering in reports.
  • Project Costing (job costing) does not allow filtering by projects in reports.

• Usage:

  • Commonly used in branch costing, consulting, or similar projects.
  • Allows filtering on balance sheet reports and certain sales reports.

Setup

1. Turn on Category Tracking:
   • Set preferences to make it required or optional for all transactions.
2. Create Categories:
   • Go to list categories and create new categories (e.g., different branches).

Transaction Entry

• When entering a new transaction (e.g., sales), you can tag it by the created category.
• This allows for sorting and filtering by category in customer reports.

Reporting

• Balance Sheet Reports:
  • Can be filtered by specific categories such as departments, branches, or projects.
• Sales Reports:
  • Can be filtered by category for better analysis.

Benefits

• Provides detailed financial tracking and reporting based on different segments of the business.
• Enhances insight into specific areas, allowing for better decision-making.