Associating employees with cost centres

Cost centres are organizational units (OUs) that add costs to your financial calculations and thereby indirectly increase the overall profit of your company. An organization can have different cost centres for each business unit, location, or based on any other parameter.

Cost centres play an important role in employee management, accounting, payroll, expense reimbursement, and other aspects of managing an organization's finances.

You can associate employees with one or multiple cost centres either at the time of adding them to the platform or at any other time from their profile.

To assign a cost centre to an employee from their profile, do the following:

1. If it doesn't already exist, create the cost centre to which you want associate the employee.

   For more information, see Creating cost centres.

2. Open the employee's profile. Do the following:

   1. In the sidebar, in the Employees section, click View.

      

   2. On the View employees page, click the name of the employee to whom you want to assign the new cost centre.

3. In the upper-right corner of the profile, click Edit profile.

   

4. Go to the Salary > Cost center tab.

   This tab displays the current cost centre assignment available for the employee.

   

5. Click + Add Cost Center.

   A new row is displayed.

6. Configure the following details:

   1. In the Cost Center column, select the new cost centre in the Select Cost Center drop-down menu.

   2. In the Effective From column, select the start date of assigning the cost centre to the employee in Effective from....

   3. (Optional) In the Effective To column, select the end date of assigning the cost centre to the employee in Effective to....

   4. In the Percentage column, enter an assignment percentage.

      When assigning employees to multiple cost centres, you must enter an assignment percentage to determine how to distribute the assignment across cost centres.

      For example, if you have added two cost centres and want to distribute the assignment equally, enter 50 in the Percentage column for each cost centre.

      You can distribute the assignment in any ratio. However, the sum of the percentages assigned to the different cost centres must be 100.

      If you are associating an employee with only one cost centre, you must configure 100% as its assignment percentage.

   

7. Click Save.