Master Cost Codes - Frequently Asked Questions (FAQ)

Do I need to establish a master cost code structure prior to setting up the first project in Sage Construction Management?

No


You can run a few jobs with any cost code structure to get a handle on the project management business process. However, afterwards estimating, project management, and accounting staff should agree on a structure so that information flows smoothly from one department to the next especially when it comes to the AccountingLink (ie. accounting integration).

How can a master cost code structure be utilized in Sage Construction Management?

  • Subs and Suppliers in the Contact Management module can be categorized by cost code division or major.
  • Estimating Cost Database Items can be categorized by any cost code or level. This makes it easier to filter the list when adding items to an estimate.
  • Cost codes can be imported into an Estimate to create the Sections (aka Work Breakdown Structure).
  • Cost codes can be imported into the Project Job Cost Code table if an Estimate or Spreadsheet was not used to setup the codes and budgets.

Should cost codes reflect resource type: material (M), labor (L), equipment (E), sub (S), and other (O)?

Sage Construction Management tracks expenses and timecards inherently by resource type as shown below so cost codes only need to reflect the activity (ex. framing, concrete, electrical, roofing etc.).


Cost or Timecard Transaction Resource Type
POs and Bills M | L | E | S | O
Subcontracts, SCOs, Sub Invoices S
Employee Misc. Expenses M | L | E | S | O
Labor Timecards L
Equipment Timecards E

How many tiers can a cost code structure have?

Maximum four (4) tiers or levels.

  • Tier 1: Division
    • Tier 2: Major
      • Tier 3: Minor
        • Tier 4: Sub-Minor

Examples:
1 Level: Division
2 Levels: Division | Major
3 Levels: Division | Major | Minor
4 Levels: Division | Major | Minor | SubMinor

How are Cost Codes created/linked in Estimating, Project Management and Accounting?

  1. Cost Codes in an Estimate are used to group cost line items. To streamline data entry and maintain consistency, Master Cost Codes in Settings can be imported into the Estimate.
  2. Cost line items and markups are added to the Estimate.
  3. The Estimate proposal is printed and sent to the prospect or customer.
  4. If the job is awarded, the Lead to Project Wizard creates the awarded Project and moves all related information over: Drawings, Specs, Estimates, Correspondence.
  5. The Contract Admin Setup Wizard in the Contract Admin module creates the Project Job Cost Codes, Client Contract, and Budgets. The Estimate's Cost Codes will become the Project Job Cost Codes and Client Budgets are established using the Estimate Line Items and Markups.
  6. When exporting project transactions from Sage Construction Management (eg. Bills, Sub Invoice, Prime Invoices, Timecards) to an accounting system such as Intuit QuickBooks, the AccountingLink utility will typically replace the Job Cost Code reference with a matching Service Item. However, this is all dependent on the AccountingLink Sync Preferences.

Is there an industry standard master cost code system for the construction industry?