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What is a budget code?


In Procore, a Budget Code is applied to line items in Procore's Financial Management tools to give you the ability to categorise your financial line items as costs in your budget. A budget code in Procore consists of two (2) default segments (i.e., cost code, cost type) and an optional sub job segment. Depending on the company or project level budget code structure in Procore's Work Breakdown Structure, a budget code may also include an unlimited number of custom segments. 

To learn more, see one of these topics below:

What are the components of a budget code?

In Procore, a budget code can consist of the following components:

    Cost Code
    Cost codes identify the type of work being done on a project and are typically assigned to a specific division in a specification. Many construction teams in the United States choose to base their project's cost code structure on the CSI Master Format. Other teams might design a unique cost code structure to suit their company's specific business requirements. To help get you started, the Procore web application includes a default list of cost codes that can be used on projects. To learn about those default cost codes, see What are Procore's default cost codes?
    • Division: 03 00 00 Concrete
      • Cost Code: 03 01 00 Maintenance of Concrete 
        • Cost Code: 03 01 10 Maintenance of Concrete Forming and Accessories
        • Cost Code: 03 01 20 Maintenance of Reinforcing
  • Cost Type
    cost type is a set of uniquely identified costs represented by an abbreviation and label. In Procore, several cost types are defined for use by default: 
    • L=Labour
    • E=Equipment
    • M=Materials
    • C=Commitment
    • OC=Owner Cost
    • SVC=Professional Services
    • O=Other
  • The cost types for your project can be customised, so they may look different from the ones listed above. See Set Default Cost Types.
  • If your company has enabled the ERP Integrations tool to work with an integrated ERP system where the 'Cost Type' concept is supported, your accounting team might classify their cost codes into different classes. 'Classes' are equivalent to 'Cost Types' in Procore

Want to track and report on your financial data with additional granularity?

For organizations that perform job cost accounting, your company can also choose to Enable Sub Jobs on your Procore project(s). A sub job is best described as a portion of a Procore project that allows users to compartmentalise job costs within the project. In Procore's Project Financials tools, a 'Sub Job' is represented in a separate 'Sub Job' column. Although a 'Sub Job' is NOT a segment in the budget code, it allows Procore users to track and report on their financial data with an additional level of granularity.

Some reasons for creating a sub job in Procore include: 

  • To track buildings, floors, areas (and so on) as separate line items within the project budget. 
  • To track variations as separate line items within the project budget.
  • To track follow-up or finishing work for the project.  

What does a budget code look like?

The example in the following table provides you with an example of a budget code. In this example, the project's cost codes are using the Procore default cost codes, which are based on the CSI Master Format. The cost codes in your specific environment may look different. As you can see in the illustration below, the cost code description appears below the code, to make selecting the correct code from the list simpler. 

Example Budget Code Division-Cost Code Cost Type
budget-code.png 01-904 S=Subcontract

 The example below shows you the corresponding line item in the budget for the example budget code above:


How do I create a budget code?

Procore users have two (2) ways to create budget codes in Procore:

  • Using the Create Budget Code Button
    The 'Create New Budget Code' button that comes with the line item experience allows users to create new, un-budgeted combinations of cost code, cost type and sub job. To use this button, click the Budget Code cell on a line item. Finally, click the new Create Budget Code button at the bottom of the drop-down list.  This capability is available in the following Project level tools:
    • Change Events
    • Variations
    • Commitments (Purchase Orders and Subcontracts)
    • Direct Costs
    • Head Contracts
  • Adding a New a Budget Line Item
    Procore also automatically creates budget codes when you add a new line item to your project's budget. See Add a Budget Line Item.  

Do I need additional permissions to create a budget code? 

No. To create a budget code, you only need permission to create or edit an item with the corresponding Project Financials tool. For example, to create a budget code while adding a line item to a direct cost, you would need permission to create a direct cost. See Create a Direct Cost.

It is important to note that the budget code feature does NOT allow you to create new budget codes on the fly. Instead, it was designed to simplify the process of selecting the three components that comprise an unbudgeted cost code, cost type, sub job combination. An unbudgeted combination simply means that while the separate components (for example, sub job, division, cost code and cost type) exist on the Procore project, they have NOT been added to the project's original budget. 

As in previous versions of Procore, sub jobs, divisions, cost codes and cost types will continue to be created with the Company and Project Admin tools. For instructions, see one of the links below:

Does the presence of a 'budget code' change any existing data import processes?

No. The budget code feature has no effect on the existing processes for importing data into Procore. This is because the components of a budget code continue to be comprised of a combination of a cost codecost type, and sub job (if enabled). Users who want to import Project Financials data into one of Procore Project Financials tools must continue to use the existing import template, template structure and steps detailed for each tool's import process. To learn more, see Procore Import Templates.

See Also