Tags (Cost Centers) in Frienton

Tags (also referred to as cost centers) are an optional tool in Frienton for targeted reporting and ongoing business steering. They complement categories with a second dimension and enable analyses where categories alone are not sufficient.

Important upfront:

In Frienton, cost centers are deliberately implemented as tags. The term is broader, as tags can be used not only for costs but also for revenues. Cost centers and tags are used synonymously in this article.

Quick Start

If you want to get started with tags quickly:

1. Activate the feature under Settings > Tags
2. Create the tags relevant for your business (e.g. projects, departments, or products)
3. Assign one or more tags to transactions or documents
4. Optionally split amounts across multiple tags
5. Use tag-based views for reporting, planning, and steering

Why and when tags (cost centers) make sense

Tags do not solve a pure reporting problem.

They solve a day-to-day steering problem.

Without tags, many insights only become visible at month-end:

• Project costs are recognized too late
• Marketing and platform fees can only be allocated roughly
• Product or channel profitability is analyzed retrospectively

With tags, costs and revenues are assigned where they occur – directly at the transaction or document level.

This is particularly relevant for:

• Project-based businesses
• E-commerce
• Companies with multiple products, teams, or sales channels

Typical questions tags help answer:

• Which projects are currently profitable?
• Which marketing channels actually pay off?
• Which products or services contribute to results?
• Where are costs getting out of control – now, not four weeks later?

Tags are optional. They provide the most value when specific reporting or continuous steering is required. For simple setups, categories are often sufficient.

What tags in Frienton provide

Tags extend categories with a second, freely definable dimension.

Current functionality includes:

• Tags can be assigned to expenses and revenues
• Multiple tags per transaction or document are supported
• Amounts can be split proportionally across multiple tags
• Tags can be structured by projects, departments, products, or other logic
• Tags can be color-coded for better overview
• Dedicated tag-based views and analyses
• Planning, budgeting, and plan/actual comparisons on tag level
• Transfer of tags to the DATEV export (KOST1 field)

(if multiple tags are used, the tag with the highest share is exported)

Recommendation:

Choose one primary second dimension (e.g. projects or departments or products). Mixing multiple dimensions is usually not advisable from a controlling perspective.

How tags are used in Frienton

Activating tags

The tag feature is activated under Settings > Tags. Once activated, tags are available system-wide.

Creating and configuring tags

Any company can define its own tags:

• Name
• Identifier (alphanumeric, functionally equivalent to a cost center)
• Color for visual orientation

Tagging transactions and documents

Tags can be assigned directly to transactions or documents.

• A transaction or document can have zero, one, or multiple tags
• Tags can be changed or removed at any time

Multiple tags and proportional splits

If a transaction needs to be allocated to multiple areas, the amount can be split proportionally.

Example:

• 80% Project A
• 20% Project B

The total allocation must always equal 100%.

Overhead costs and ongoing allocation

Costs that cannot be clearly assigned (e.g. platform or marketing fees) can be systematically distributed using tags.

Allocation happens as part of day-to-day operations and forms the basis for meaningful analyses.

Reporting, planning, and analysis

Tags are available across multiple views:

• Cashflow
• Live P&L
• Dashboard
• Budget planning
• Plan/actual comparisons and liquidity planning

This enables project-, product-, or team-based steering of revenues, costs, and margins.

Coming soon

The following enhancements are already planned:

• Matrix views

Combined analysis of categories and tags

• Auto-tagging

Automatic assignment of tags based on user-defined rules

Summary

• Tags (cost centers) are an optional tool for targeted reporting
• They enable ongoing steering instead of delayed month-end analysis
• Tags work for both expenses and revenues
• Multiple tags and proportional splits are supported
• Reporting, planning, and tax export are fully integrated

Tags are not mandatory – they are a precise instrument when transparency and steering matter.

Updated on: 27/01/2026