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 are ready to proceed further, it is 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 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, making it easier to filter items when adding them to an estimate
• You can import cost codes into an estimate to create 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. Cost codes only need to reflect the activity, such as framing, concrete, electrical, or roofing.

A cost code structure can have up to four tiers, 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 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.

   Add cost line items and markups to the estimate as needed.

3. Proposal generation.

   When the estimate proposal is complete, print it and send it 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 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 cost codes become the project job cost codes, and the client budget is created from estimate line items and markups.

6. Integration with accounting.

   When exporting project transactions from Sage Construction Management to an external accounting system such as Intuit QuickBooks, AccountingLink typically maps the job cost code to service items. This behavior depends on your AccountingLink preferences.

Learn more about construction industry standard classification systems here.

1. Export the master cost code list.
   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 downloads to your local drive in .xlsx format.

2. Update the cost code list.
   1. Open the downloaded file in Microsoft Excel.
   2. Add new cost codes in the appropriate rows.

      Ensure that estimating, project management, and accounting teams align on the updates to maintain consistency.

   3. Save your changes.
3. Import the updated cost code list.
   1. Go to Settings () > Company Settings > Cost Codes.
   2. Select Import Classifications from Excel.
   3. In Classification Type, enter the exact label of the cost code list you want to update.

      The label must match the existing list name exactly.

   4. Select Choose File to upload the updated file.

      Sage Construction Management automatically updates the cost code list after upload.

Learn more about importing classification systems here.