> ## Documentation Index
> Fetch the complete documentation index at: https://razorpay-60c89f9a-mintlify-audit-missing-sections-1778528421.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Cost Centers

> A Cost Center can be a specific group, or a Business Unit within an organisation. Organisations create Cost Centers for streamlining expenses. Cost centers are typically used to monitor and control the costs associated with various functions or activities within the organisation.

Cost centers can be used to tag expenses while creating a Purchase Order. An approval workflow can be triggered based on the Cost Center selected, using [Purchase Order Approval Workflow](/x/vendor-payments/purchase-order#purchase-order-approval-workflow).

You can also set up a separate [Invoices Approval Workflow](/x/vendor-payments/invoices/approval-workflow).

<Warning>
  **Watch Out!**

  * Only 1 Cost Center can be linked to a Purchase Order or Invoice.
  * Only the owner or admin can create a Cost Center.
</Warning>

## Create a Cost Center

To create a cost center:

<Steps>
  <Step title="Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).">
    Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).
  </Step>

  <Step title="Navigate to **Cost Centers** and click **+ Cost Center**.">
    Navigate to **Cost Centers** and click **+ Cost Center**.
  </Step>

  <Step title="Enter a unique **Name** and **Description** of the cost center and...">
    Enter a unique **Name** and **Description** of the cost center and click **Create**.
  </Step>
</Steps>

Your cost center is created and ready to use. You can view the **Name**, **Description** and by whom the cost center was **Created By** on the Cost Center Dashboard.

## Edit a Cost Center

To edit a cost center:

<Steps>
  <Step title="Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).">
    Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).
  </Step>

  <Step title="Navigate to **Cost Centers** and hover over the cost center you wan...">
    Navigate to **Cost Centers** and hover over the cost center you want to edit.
  </Step>

  <Step title="Click on the pencil icon that appears.">
    Click on the pencil icon that appears.
  </Step>

  <Step title="You can enter **New name** or **New description** and click **Save...">
    You can enter **New name** or **New description** and click **Save Changes**.
  </Step>

  <Step title="Review and click **Confirm** and your changes are saved.">
    Review and click **Confirm** and your changes are saved.
  </Step>
</Steps>

## Deactivate a Cost Center

You can deactivate a cost center if you do not want to tag any purchase order or invoice to it anymore. To deactivate a cost center:

<Steps>
  <Step title="Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).">
    Log in to the [RazorpayX Dashboard](http://x.razorpay.com/auth).
  </Step>

  <Step title="Navigate to **Cost Centers** and hover over the cost center you wan...">
    Navigate to **Cost Centers** and hover over the cost center you want to deactivate.
  </Step>

  <Step title="Click on the trash bin icon that appears.">
    Click on the trash bin icon that appears.
  </Step>

  <Step title="Click **Deactivate** to confirm your action.">
    Click **Deactivate** to confirm your action.
  </Step>

  <Step title="Review and click **Got it**. Your cost center is deactivated.">
    Review and click **Got it**. Your cost center is deactivated.
  </Step>
</Steps>

The cost center continues to appear on the list as deactivated. This action cannot be reversed.

## Related Information

* [Purchase Orders](/x/vendor-payments/purchase-order)
* [Invoices Approval Workflow](/x/vendor-payments/invoices/approval-workflow)