Cost Center Management

The Cost Center Management module is used to create and manage financial units within the organization. It allows users to define cost centers, allocate budgets, assign ownership, and track financial accountability across business units and departments.

Cost centers are created using a structured workflow and progress through lifecycle stages such as Draft, Pending Approval, Active, and Closed. The module also supports hierarchy management, inline updates, and activity tracking to maintain visibility and control over financial data.

You can perform:

• Create cost centers with the required basic and financial details

• Define and manage budget allocation (CapEx and OpEx)

• Assign manager and budget authority

• View and manage cost centers in grid view

• Edit cost center details with inline auto-save

• Track changes through activity logs

• Use search and filters to refine results

• Manage parent-child cost center hierarchy

• Approve or reject cost centers

• Monitor lifecycle status (Draft, Pending Approval, Active, Closed)

How it works

The following table outlines how a cost center progresses through different scenarios, including creation, approval, and budget updates, along with the corresponding system behavior.

Scenario	Action	Outcome
Cost Center Creation	A new cost center is created	Saved in Draft status
Submission / Budget Update	Cost center is submitted, or the budget is modified	Status changes to Pending Approval
Approval	The owner / Budget Authority approves the cost center	Status becomes Active
Rejection	Owner / Budget Authority rejects the cost center	Status reverts to Draft with remarks
Budget Increase (Active)	The budget is increased after approval	Workflow is re-triggered, and status moves to Pending Approval
Budget Decrease (Active)	The budget is reduced after approval	Status remains Active, no approval triggered
Activity Tracking	Any action is performed on the cost center	Logged in Activity Logs

Workflow

The Cost Center workflow defines the lifecycle of a cost center from creation to approval and usage. It ensures that all budget allocations are reviewed and authorized before becoming active.

Workflow Stages | Cost Center

Status	Description
Draft	Initial state when a cost center is created.
Pending Approval	Triggered when the cost center is submitted or when budget values are updated.
Active	Indicates that the cost center is approved and available for use.
Closed	Marks the cost center as no longer active or in use.

What do you see on the screen

Cost Center | Basic Details

Label	Action	Description / Example
Search	Search cost centers	Allows users to search cost centers by name or code (minimum character validation applies).
Filter	Apply filters	Opens advanced filter options to filter based on fields such as Type, Status, and Business Unit.
Type	Filter by type	Filters cost centers based on type (e.g., Project).
Status	Filter by status	Filters cost centers based on lifecycle status (e.g., Draft, Active, Pending Approval, Closed).
Business Unit	Filter by business unit	Filters cost centers based on selected business unit (e.g., Cloud Services, Consulting).
+ Create Cost Center	Add cost center	Opens a wizard to create a new cost center.
Column Details
Cost Center ID	View details	Clickable link to open the cost center details in a slide-out panel.
Cost Center Code	View code	Displays the cost center's unique code.
Cost Center Name	View name	Displays the name of the cost center (e.g., IT Operations).
Cost Center Type	View type	Displays the cost center type (e.g., Project).
Business Unit	View business unit	Displays the associated business unit.
Department	View department	Displays the associated department.
Manager	View manager	Displays the assigned cost center manager.
Owner / Budget Authority	View owner	Displays the user responsible for budget approval.
Total Budget Allocation	View budget	Displays the total allocated budget (CapEx + OpEx).
Status	View lifecycle status	Displays the current status of the cost center (e.g., Active, Pending Approval).
Actions	Perform actions	Allows actions such as delete (and approval actions based on role and status).