Cost center
A cost center is a financial reporting building block. It is used in financial analysis to allocate expenses to one or more projects and/or business activities (or overhead functions like general administration).
Every invoice or expense, or part of it, can be allocated to a project, that is supported by the expenses.
If a resource is shared amongst projects, a pro-rata split can be made, as agreed by the organisation.
Legal requirements
[edit]It is required for the jaarrekening, because we must legally aggregate the expenses by type:
- "Goederen en diensten": invoices related to the achievement of the social objective (project and activity related)
- "Bezoldigingen": employee pay slips
- "Diensten en diverse goederen": invoices due to general administration (non project related invoices; except bank costs)
- "Andere uitgaven": expense claims (all types), settled provisions, other costs (like bank costs)