# Cost Codes

Cost codes are the categories you use to organize project expenses. They let you see exactly how much you are spending on materials versus labor versus subcontractors -- and whether you are over or under budget on each category.

## How It Works

Think of cost codes as budget buckets. When you enter payroll hours, import a vendor bill, or log an expense, you assign it to a cost code. This way, every dollar on a job is tracked by category. Common cost codes include things like Rough Framing, Electrical, Concrete, Equipment Rental, and Supervision.

You maintain a master list of cost codes that can be reused across all projects. When you set up a new project, you pick which cost codes apply to that job and set a budget for each one.

## Steps

### Creating a Cost Code

1. Go to **Cost Codes** and click **New Cost Code**.
2. Enter a **Code** (a short number or abbreviation, like `310` or `EL-01`).
3. Enter a **Description** (like "Electrical" or "Site Prep").
4. Select a **Category** if you want to group related codes together (Materials, Labor, Subcontractor, Equipment, Other).
5. Click **Save**.

### Assigning Cost Codes to a Project

1. Open the **Project** you want to update.
2. In the **Cost Codes** section, click **Add Row**.
3. Select the cost code from your master list.
4. Enter the **Budgeted Amount** for that code on this project.
5. Repeat for each cost code that applies.
6. Click **Save**.

### Viewing Cost Code Performance

1. Open a project and scroll to the **Cost Codes** section.
2. You will see columns for Budgeted Amount, Spent to Date, and Remaining.
3. For a deeper look, pull the [Job Cost Report](/project-management/proforge-core/reports/job-cost-report.md).

![cost code list](/files/7TWjDru07rsZLhV8t0Ar)

![create cost code (step 1)](/files/PpU3ArZeKfTb9c9e5tDG)

## Related Pages

* [Setting Up a Project](/project-management/proforge-core/setting-up-a-project.md) -- assign cost codes when you create a job
* [Job Cost Report](/project-management/proforge-core/reports/job-cost-report.md) -- see spending by cost code across a project
* [Weekly Payroll Entry](/project-management/proforge-core/payroll/weekly-payroll-entry.md) -- assign hours to cost codes


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