Cost Centers

The cost centers must be configured prior to the creation of farms or other facilities. Multiple farms can be assigned to a single cost center, however other facilities such as warehouse and feed mills are assigned one cost center to one facility. The cost center structure should be based on a similar structure as the financial system. It is important to note that all cost centers, with the exception of Admin cost centers, must be assigned to a farm or facility or the period end process will not run.

The following concepts should also be considered when establishing cost centers:

• Permissions - cost centers are used to control permissions. If many farms are assigned to a cost center, permissions cannot be defined for a single farm. The user will have permissions to access all farms within a cost center.
• Internal Prices - internal prices are established by cost center. All farms within the same cost center will be assigned to the internal price table. Internal prices cannot be assigned by farm unless the cost center is defined by farm.

Table Name: ProteinCostCenters

Prior to creating a cost center, the following item must be created.

• Divisions

Cost centers are used on virtually every transaction in the system, however only assigned in the following:

• Farms
• Feed Mills
• Hatcheries
• Plants
• Warehouses

Create Cost Center

1. In Admin>Business>General>Definitions, select Cost Centers.
2. Select to create a new Cost Center.

3. In the Cost Center No field, enter a unique identifier to use as a code for the cost center (alphanumeric, max 20 characters).
4. In the Cost Center Name field, enter an alphanumeric character code name for the cost center (alphanumeric, max 50 characters).
5. From Division No, use the drop-down menu to select the division to assign to the cost center for reporting purposes. Options are: 1 (Poultry Division), 2 (Layer Division), and 3 (Swine Division)..
6. Division Name defaults from Division No and displays a description of the selected division.
7. Division Species Type displays a description of the species type associated with the selected division.
8. Select the Cost Center Type to indicate the type of cost center for farm. Options are: Cost Center, Profit Center or External.
1. Admin – cost centers that are used to record administration costs. Admin cost centers are not assigned to farms or facilities. Examples are service costs, cleanout or livehaul costs that are expenses allocated to production cost centers at the end of the period.
2. External – farm is an external operation which does not get included in costing throughout the system.
3. Internal – a farm or facility that is part of the organization and transfers either at cost (belongs to same company) or using intercompany transactions (belong to different companies).
9. Select the Facility Type to establish the type of facility. Options are: Admin, Farm, Feed Mill, Plant or Warehouse.
10. Select the Farm Type.  When creating cost centers where Facility Type = Farm, ,the Farm Type must be defined. The options available are defined by the species associated with the Division. All other facility types do not require this field to be completed.
11. Save and close the record.