Available in Sage 50 Premium Accounting and higher.
Cost Code Example
This example shows cost codes that might be used by a builder.
Let's say that "Site preparation" is one of the phases of this builder's jobs. If each cost needs to be separately tracked for this phase, the following could be the suggested cost codes:
|
Phase Code |
Cost Code |
Description |
Cost Type |
|---|---|---|---|
|
001 |
001-Equip1 |
Bulldozers |
Equipment |
|
001-Equip2 |
Ditchwitch |
Equipment |
|
|
001-LaborO |
Operator |
Labor |
|
|
001-LaborM |
Manual Labor |
Labor |
|
|
001-Mat1 |
Gravel |
Materials |
|
|
001-Mat2 |
12" Culvert |
Materials |
Note: The naming of cost codes above is indicative of the phase (001), the cost type (Equipment, Labor, Material), and number/type of the item in which cost is being tracked. You can use your own naming convention, but using numbers at the beginning helps organize items on reports.
The advantage of breaking out your jobs into cost codes is that you can track your costs at a deeper level. You can print reports that will show you, for instance, what your labor costs were for your jobs for a particular type of labor. Or you can track your equipment costs or subcontractor costs. This can help you forecast future job estimates and help you ensure that your business remains profitable.
Related topics
Setting up a job ID with phases
Setting up a job ID with phases and cost codes
Using cost types with cost codes in phases