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Setting up cost codes involves the following, in the order displayed:

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Dividing a Job into Segments

Large projects, activities, and organizations are often divided into smaller parts to facilitate their management. The following diagram shows how a job can be broken into cost elements and cost code segments (phases, steps, details, and components).

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Setting up

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Cost Element Names

Cost elements are categories of costs on a typical job and are used to group similar costs or cost codes. Labor, Material, Equipment, Subcontractor, and Other serve as default cost elements. Four user-defined cost elements are also available.

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If you want to change the cost code format after saving, you must contact Key2Act WennSoft Support. We do not recommend or support changing the cost code format after costs post in Job Cost.

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• 1 - Non-billable
  Billing amount = 0.00
  Use this profit type when the cost amounts posted to the cost code for the job should not be billed to the customer, or if you want to track costs but not bill for costs.
• 2 - None
  Billing amount = cost amount
  Use this profit type when the cost amount charged to the cost code for the job will become the billable amount. This is the default profit type for all cost codes on Fixed Amount contract jobs.
• 3 - Percent margin
  Billing amount = cost / (1 - percent margin)
  Use this profit type when the billing amount is based on a desired profit margin for the cost code. This margin is assigned as the profit amount for the cost code. For example, if a unit's actual cost is $100, and you select a percent margin of 24 percent, the billing amount is $131.58. (The calculation is: 100 / (1 - 0.24) = 131.58).
• 4 - Percent of cost
  Billing amount = cost + (cost x percent of cost)
  Use this profit type when the markup amount is calculated as a percentage of the actual cost for the cost code assigned to the job. This markup percent is assigned as the profit amount to the cost code. For example, if the actual cost for the cost code is $100, and you select a percent of cost of 10 percent, the billing amount is $110.
• 5 - Per unit amount
  Billing amount = cost + (number of units x profit per unit)
  Use this profit type when the profit amount is calculated as a dollar amount per unit for the cost code. For example, if the cost of each unit is $10, and 10 units are used with a profit amount of $5 per unit, the billing amount is $150. (Cost is 10 x $10 = $100 and billing amount is $100 + ($10 x $5) = $150.)
• 6 - Total dollar amount
  Billing amount = cost + profit amount
  Use this profit type when the profit amount for the cost code equals a total dollar amount, regardless of the cost or number of units used. For example, enter a profit amount of $100 for the cost code. The amount billed for the cost code is cost plus $100.
• 7 - Flat rate per cost code
  Use this profit type when the billing amount for the cost code equals a total dollar amount, regardless of the cost or number of units used. The total amount billed for the cost code is entered as the profit amount for the cost code. For example, enter $10 as the total amount billed for the cost code. If your cost is $7, your profit is $3. If your cost is $8.50, your profit is $1.50.
• 8 - Flat rate per unit
  Use this profit type when the cost code is billed as a flat amount per unit regardless of the cost of the unit. The amount billed per unit for the cost code is entered as the profit amount for the cost code. For example, if you enter a billable amount of $25 for a labor cost code, you bill $25 per unit. If your cost per unit is $10, your profit per unit is $15. If your cost per unit is $22.50, your profit per unit is $2.50.
• 9 - Service labor rate group
  If you are also using Service Management, use this profit type to bill job customers for labor-only cost codes and establish billing amounts for labor transactions. Labor rates can be set up to reflect different rates for different pay codes. You can create labor rates by position or by department. This profit type is unavailable if you do not have the Service Management Labor Rates module. Contact Key2Act WennSoft Sales if you would like to purchase this module.

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