How to Add, Edit, and Use Cost Centers in FalconPro Real Estate Software

How to Add, Edit, and Use Cost Centers in FalconPro Real Estate Software

Introduction

In FalconPro Real Estate Software, cost centers are used to categorize expenses and revenues for accurate financial tracking. Cost centers are structured in a tree format, where a parent cost center can have multiple child cost centers.

This guide explains:
✅ How to create new cost centers
✅ How to add subcategories (child cost centers)
✅ How to assign cost centers to transactions and properties

1. Understanding Cost Center Structure in FalconPro

FalconPro follows a hierarchical cost center structure:

  • Parent Cost Center → The main category (e.g., “Vehicles”).
  • Child Cost Center Level 1 → A subcategory under the parent (e.g., “Dubai Cars”).
  • Child Cost Center Level 2 → A further breakdown (e.g., “Dubai Car 1”).

Each cost center must have at least one child before it can be used in transactions.

2. Creating a New Cost Center

To add a new cost center, follow these steps:

Steps to Create a Parent Cost Center:

  1. Go to “Accounting” → “Cost Center Management”.
  2. Click on “New” to Create a New Cost Center.
  3. Enter the Cost Center Name (e.g., “Vehicles”).
  4. Save the Cost Center.

✅ Now, the parent cost center is created, and you can add child cost centers.

3. Adding Child Cost Centers (Subcategories)

Once a parent cost center is created, child cost centers can be added under it.

Steps to Add a Child Cost Center:

  1. Select the Parent Cost Center from the List (e.g., “Vehicles”).
  2. Click on “Add Child”.
  3. Enter the Child Cost Center Name (e.g., “Dubai Cars”).
  4. Save the New Cost Center.

✅ Now, the cost center hierarchy includes a parent (“Vehicles”) and a child (“Dubai Cars”).

If further subcategories are needed, repeat the process to create Level 2 child cost centers (e.g., “Dubai Car 1”, “Dubai Car 2”).

4. Assigning Cost Centers to Transactions and Properties

Cost centers can be assigned to expenses, revenues, and properties to track financial data accurately.

Steps to Assign a Cost Center to a Property:

  1. Go to “Property Management”.
  2. Open the Property Details Page.
  3. Click on the “Cost Center” Tab.
  4. Select the Relevant Cost Center from the List.
  5. Click “Save”.

Now, all transactions linked to this property will be categorized under the selected cost center.

Steps to Use a Cost Center in Accounting Transactions:

  1. Open an Accounting Transaction (e.g., Expense, Revenue, or Journal Voucher).
  2. Look for the Cost Center Field.
  3. Double-click and Select the Relevant Cost Center.
  4. Save the Transaction.

✅ Now, the transaction is linked to the selected cost center for reporting purposes.

5. Editing an Existing Cost Center

If a cost center needs modification (e.g., renaming or adding more child cost centers), follow these steps:

Steps to Edit a Cost Center:

  1. Go to “Cost Center Management”.
  2. Find the Cost Center in the List.
  3. Click on “Edit”.
  4. Modify the Name or Add New Child Cost Centers.
  5. Click “Save”.

✅ Now, the changes will apply to all linked transactions.

6. Best Practices for Cost Center Management

✅ Use a hierarchical structure (Parent → Child → Sub-child) to improve financial tracking.
✅ Ensure every parent cost center has at least one child cost center before using it.
✅ Regularly update cost centers to reflect business needs.
✅ Assign cost centers to properties and transactions for better reporting.
✅ Use cost centers in reports to analyze revenues and expenses by category.

Conclusion

FalconPro Real Estate Software provides a structured approach to managing cost centers. By setting up and using cost centers effectively, businesses can:
✅ Track expenses and revenues more efficiently.
✅ Categorize financial data by property, department, or business unit.
✅ Ensure accurate accounting and financial reporting.

FAQs

  1. Why do I need cost centers?
    Cost centers help businesses track income and expenses by category, making financial reporting more detailed and accurate.
  2. Can I create a cost center without a child cost center?
    No, every cost center must have at least one child cost center before it can be used in transactions.
  3. How can I remove a cost center?
    A cost center cannot be deleted if it has linked transactions. Instead, it can be disabled to prevent future use.
  4. Can I assign multiple cost centers to one transaction?
    Yes, FalconPro allows splitting costs between multiple cost centers in certain transactions.
  5. How can I generate reports by cost center?
    Go to Reports → Cost Center Reports, select the desired cost center, and generate financial summaries.

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