To create a Cost Category, set the option Maintain cost centres to Yes in F11: Accounting Features and then set the option Maintain more than one payroll or cost category to Yes.
This option is by default, set to No. When this option is set to Yes, Tally.ERP 9 creates a single Cost Category called Primary Cost Category automatically and allows creation of Cost Centres under the Primary Cost Category. However, you may also create new Cost Categories or alter existing Cost Categories.
To create a Cost Category
Go to Gateway of Tally > Accounts Info. > Cost Categories > Create (under Single Cost Category)
The Cost Category Creation screen is displayed as shown.
A brief description on each of the fields in the Cost Category Creation screen follows.
Enter the name of the Cost Category.