Available in Sage 50 Premium Accounting and higher.

Cost Code Example

Related topics

Cost type example

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

Using job reports

Set up a job

Set up job cost codes

Set up job phases

Perform other job costing tasks

Read the job costing overview

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.