Master cost codes FAQ

No. You can start by running a few jobs using any cost code structure to familiarize yourself with the project management process. However, when you're ready to proceed further, it's essential for the estimating, project management, and accounting teams to align on a standardized cost code structure. This ensures that information flows smoothly between departments, which is also important when integrating with an accounting system using the AccountingLink.

• You can categorize subcontractors and suppliers in the Contact Management module by cost code division or major.
• You can categorize estimating cost database items by any cost code or level. This makes it easier to filter the list when adding items to an estimate.
• You can import cost codes into an estimate to create the sections, also known as the work breakdown structure.
• If an estimate or spreadsheet is not used to set up the codes and budgets, you can import cost codes into the project job cost code table.

Sage Construction Management tracks expenses and timecards by resource type as shown in the table below. Therefore, cost codes only need to reflect the activity, such as framing, concrete, electrical, roofing, and so on.

A cost code structure can have up to four (4) tiers or levels, as follows:

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

For example:

• 1 Level: Division
• 2 Levels: Division and major
• 3 Levels: Division, major, and minor
• 4 Levels: Division, major, minor, and sub-minor.

1. Estimate setup

   Cost codes in an estimate are used to group cost line items. To streamline data entry and ensure consistency, master cost codes from Settings can be imported directly into the estimate.

2. Adding costs and markups

   Cost line items and markups are added to the estimate as needed.

3. Proposal generation

   When the estimate proposal is complete, it's printed and sent to the prospect or customer.

4. Project award and creation

   If the job is awarded, the Lead to Project wizard converts the opportunity to a project that includes all key information, such as drawings, specs, estimates, and correspondence.

5. Contract administration setup

   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 become the project job cost codes and the client budget is established based on estimate line items and markups.

6. Integration with accounting

   When exporting project transactions from Sage Construction Management to an external accounting system like Intuit QuickBooks, the AccountingLink utility typically maps the job cost code to corresponding service items. However, this behavior depends on the configuration set in the AccountingLink preferences.

Learn more about the construction industry standard classification systems here.

1. Export the master cost code list as follows:

   1. Go to Settings () > Company Settings > Cost Codes.

   2. Select the cost code type from the list.
   3. Select Export To Excel.

      The cost code list is downloaded to your local drive in .xlsx format.

2. Update the cost code list as follows:

   1. Open the downloaded file using Microsoft Excel.

   2. Add the new cost codes in the appropriate line.

      Ensure that the estimating, project management, and accounting teams are aligned on the updates to maintain consistency and follow your company’s standard format.

   3. Save your updates.

3. Import the updated cost code list as follows:

   1. Go to Settings () > Company Settings > Cost Codes.

   2. Select Import Classifications from Excel.

   3. In the Classification Type field, enter the exact label of the cost code list that you want to update.

      The label must match the existing list name exactly to ensure that the correct list is modified.

   4. Select Choose File to upload the file with the updated cost code list from your local drive.

      After the file is uploaded, Sage Construction Management will automatically update the cost code list.

Learn more about importing classification systems here.