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Set up cost codes

Cost Codes are a fundamental part of the Coreloops platform. They allow for granular tracking and reporting of project costs, income, and margins across your construction projects. This guide explains their purpose and walks through the setup process.

Written by Gabriel Makinwa
Updated this week

1. What Are Cost Codes Used For?

Cost Codes act as categories to help you allocate and monitor the financial elements of your projects. They are:

  • Assigned to line items in your Bill of Quantities (BoQ) to set expected benchmarks.

  • Automatically assigned to line items in documents (e.g. invoices, POs) and timesheets via Coreloops AI.

  • Used in reporting to break down metrics by cost category (e.g., Total Costs, Certified Value, Margin % by cost code).

  • Integrated across the platform, enabling you to:

    • View live valuations by cost code in payment applications.

    • Track cost impact from variations.

    • Analyse budget vs actuals across resources and financials.

2. Where to Set Up Cost Codes

Cost Codes are managed from the Platform Settings, accessible via the avatar menu in the top right:

  1. Click your profile/avatar icon.

  2. Select Settings.

  3. Navigate to the Cost Codes tab (under the Settings menu).

  4. Use the Cost Codes or Cost Groups subtabs to manage each type.

3. Creating Cost Codes

To create a new Cost Code:

  1. Go to Settings > Cost Codes.

  2. Click Add New Cost Code.

  3. Fill in the required fields:

    • Cost Code ID (e.g., M001)

    • Cost Code Name (e.g., First Fix)

    • Cost Group (optional but recommended)

    • Description (optional)

  4. Click Save.

Note: Cost Codes are global and apply across all projects.

To edit a cost code:

  • Click the three-dot menu next to an existing cost code.

  • Edit the fields as needed. Changes update across all instances.

To delete a cost code:

  • Deletion is only available for unused cost codes. Used codes can be edited but not removed.

4. Setting Up Cost Groups (Optional)

Cost Groups are optional containers for organizing multiple cost codes. For example, you may want a group called "Labour" that contains cost codes like "Masonry", "Electrical", etc.

To create a Cost Group:

  1. Go to Settings > Cost Codes > Cost Groups.

  2. Click Add New Group.

  3. Provide:

    • Group ID (e.g., LAB)

    • Group Name (e.g., Labour)

    • Description (optional)

Cost Groups help structure your cost reporting and analytics. You can create as many as needed.

5. Bulk Importing Cost Codes and Groups

To upload a CSV file with multiple cost codes or groups:

  1. Click the Import CSV button on either tab.

  2. Download the template provided.

  3. Populate the spreadsheet with your Cost Code IDs, Names, Groups, and Descriptions.

  4. Upload the file back into the platform.

Tip: This is ideal when onboarding or migrating from legacy systems.

6. Automatic Assignment with AI

  • Documents: When invoices, quotes or receipts are uploaded, Coreloops AI analyses line items and assigns the most appropriate cost code based on the content.

  • Timesheets: Time entries are similarly tagged based on past behaviour, line items, and job roles.

Users can override any AI-assigned code manually if needed.

7. Permissions

Only Admin users can create, edit, or delete cost codes and groups.

8. Reporting Impact

Cost codes affect analytics and reports throughout Coreloops:

  • Budget vs Actual views

  • Live cost reporting by phase/category

  • Variation and valuation breakdowns

  • Timesheet cost allocation

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