> For the complete documentation index, see [llms.txt](https://docs.coreway.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.coreway.com/coreway-hr/cost-center.md).

# Cost Center

Compensation management adds cost centers to accurately break down labor costs.

Cost centers are used to allocate indirect expenses to various organizational activities based on usage in relevant areas, allowing for differentiated management of costs incurred by the organization. This enables refined accounting and management of payroll costs.

Cost allocation refers to distributing total costs according to certain rules (such as department, project, team, etc.).

Cost details display the composition of each specific cost. Cost management includes \[Cost Centers, Cost Allocation, Cost Details].

**Process:**

1. Set up cost centers.
2. Maintain cost allocation ratios.
3. Define labor cost statistical rules.
4. View cost details and summaries.

**Operational Steps:**\
First, add cost centers (for example, multiple projects can establish multiple cost centers), then import cost details based on the payroll sheet, and finally allocate costs to employees' salaries according to the ratios, determining how much each employee's salary contributes to different cost centers.


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