Cost code settings

In Sage Construction Management, cost codes represent the type of work, such as concrete, framing, electrical, painting, and so on. Cost codes do not need to incorporate a resource identifier, such as Materials (M), Labor (L), Equipment (E), Sub (S), or Other (O), as Sage Construction Management tracks expenses by resource type. For example, labor timecards are categorized as L and subcontracts as S by default.

Cost code formatting

Recommended format example:

Code: 03 11 00
Description: Concrete Forming

It's not recommended to include a resource identifier, such as M or Materials, in the cost code or description.

Cost code terminology based on the department

In the construction industry, code terminology can vary depending on the department as described below.

Estimating team

Estimates are organized and comprehended easier by breaking them down into smaller sections. These sections are called cost codes, but are sometimes referred to as the work breakdown structure (WBS). In Sage Construction Management, cost codes can have optional internal grouping codes similar to the job cost code table for projects. This provides flexibility and options on how items can be grouped or summarized.

Project management team

Sage Construction Management uses job cost codes to track financial details, such as PO items, CO items, timecards, and progress invoice items. These codes are project specific and can be established in the Contract Administration section of projects. Like in estimates, job cost codes can have optional internal grouping codes which can be used to summarize financial details in the project analytics.

Accounting team

For most construction firms, service items are set up in their accounting system to mimic job cost codes. Each of these items will then be linked to a GL Expense and Income Chart of Account so that they can be referenced on both AP and AR transactions.

As mentioned above, job cost codes in Sage Construction Management are used to categorize the type of work and are project specific. When integrated with an accounting system such as Intuit QuickBooks, these codes are either mapped one-to-one with service items or grouped so multiple cost codes link to a single service item.

Master cost code structure

Import cost codes and budgets to a project

If you do not use the estimating feature in Sage Construction Management, you can import job cost codes and original contract budgets to an awarded job using a Microsoft Excel file.