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What is a budget code in Procore's WBS?

Answer

In Procore's WBS, a budget code is used in Procore's Project Financials tools to keep track of the costs and revenue for a construction project on your financial line items. 

What are the components of a budget code in Procore's WBS?

In Procore's WBS, the components of a budget code are called segments. See What are segments and segment items? Using the Admin tool, your company's Procore Administrator can define which segments are part of a budget code by first defining a budget code structure to use at the company or project level. By default, there are two (2) required segments: cost code and cost type. These are required at both the company and project level. There is also one (1) optional project level segment: sub job. The sub job segment can only be enabled at the project level. See Enable Sub Jobs on Projects for WBS.

Example

On Procore projects, you also have the option of enabling the sub jobs feature. See Enable Sub Jobs for WBS. If you choose to use this option, then there are three (3) default segments available in Procore's default budget code structure: sub job, cost code, and cost type. 

 

 

Sub Job *
Sub Job *

 

Cost Code
Cost Code

 

Cost Type
Cost Type
[XX]
[XX]
[XXX]
[XXX]
[X]
[X]
Project Admin - Default Budget Code Structure with Optional Sub Job Segment
Project Admin - Default Budget Code Structure with Optional Sub Job Segment
Architect
Architect
LEGEND
LEGEND
Budget Code Structure
Budget Code Structure
Default Segments
Default Segments
This segment is optional. It can only be enabled on Procore projects.
This segment is optional....
*
*

What do budget codes look like?

With Procore's WBS, your budget code can be simple or complex, depending upon the number of segments required by your company or project level budget code structure. It really depends upon the type of financial information that you want your teams to capture and track for your organization and for your organization's construction projects. To learn more about segments, see What are segments and segment items?

Example

The example below shows you a budget code structure with four (4) segments. 

 

 

[X…]
[X…]

 

Budget Code
Budget Code
COM.E.11A02.L
COM.E.11A02.L
COM - Commercial
COM - Commercial
E - Execution
E - Execution
1- Site Preparation
1- Site Preparation
A02 - Removal
A02 - Removal
1 - Site Clearing
1 - Site Clearing
L - Labor
L - Labor
Budget Code Structure
Budget Code Structure

 

Cost Type
Cost Type
[X]
[X]
L - Labor
L - Labor
M - Materials
M - Materials
E - Equipment
E - Equipment

 

Phase*
Phase*
[X]
[X]
I - Initiation
I - Initiation
P - Planning
P - Planning
E - Execution
E - Execution
M - Monitoring
M - Monitoring
X - Close Out
X - Close Out

 

Market*
Market*
[XXX]
[XXX]
IND - Industrial
IND - Industrial
RES - Residential
RES - Residential
COM - Commercial
COM - Commercial
Cost Code
Cost Code
A01 - Demo
A01 - Demo
A02 - Removal
A02 - Removal
A03 - Grading
A03 - Grading
1 - Site Clearing
1 - Site Clearing
1 - Site Clearing
1 - Site Clearing
2 - Site Surveying
2 - Site Surveying
3 - Soil Testing
3 - Soil Testing
4 - Site Plan
4 - Site Plan
5 - Site Investigation
5 - Site Investigation
1 - Site Preparation
1 - Site Preparation
Architect
Architect
LEGEND
LEGEND
Default Segments in Budget Code Structure
Default Segments in Budget Code Structure
Custom Segments in Budget Code Structure
Custom Segments in Budget Code Structure
Your company can choose a custom segment name and add up to (10) custom segments. 
Your company can choose a custom segment...
*
*
Tiered Segment Item in Budget Code
Tiered Segment Item in Budget Code
Available Segment Items in Tiered Segment
Available Segment Items in Tiered Segment
Segment Items Used in Budget Code
Segment Items Used in Budget Code
Segment Items NOT Used in Budget Code
Segment Items NOT Used in Budget Code
Market*
Market*
Phase*
Phase*
Cost Type
Cost Type
Cost Code (Tier 2)
Cost Code (Tier 2)
Cost Code (Tier 3)
Cost Code (Tier 3)
Cost Code (Tier 1)
Cost Code (Tier 1)

How are segments delimited in WBS?

When creating a budget code, it is also important to note that tiered segments are delimited by a dash (-) and segments are delimited by a period (.). In the example below, a segment item's 'Description' appears below the budget code, which makes it easier for users to select the appropriate code from drop-down lists. 

Example Budget Code
In Project Financials Tools
Cost Code
Tiered Segment
Cost Type
Flat Segment
01-904 S=Subcontract

How do I create budget codes?

 Important
First, your company's Procore Administrator must define your company's budget code structure. See Create Your Company's Default Work Breakdown Structure. Next, you must define your budget code structure (you can use your company's default structure or customize one to be project-specific). This step can be performed by a user with 'Admin' level permissions on the Project level Admin tool. See Create Your Project's Work Breakdown Structure.

Once your project's WBS is created, users with the appropriate permissions can then create budget codes in Procore's Project Financials tool. For instructions, see Create Budget Codes for WBS in Procore's Project Financials Tools.

When can I start creating budget codes in Project Financials?

First, your company's Procore Administrator must define your company's budget code structure. Next, a project administrator defines the budget code structure for a project. Once your project's budget code structure is defined, you can begin using Procore's Project Financials tools to create budget codes for the financial line items on your project. See Create Budget Codes for WBS in Procore's Project Financials Tools.

Which Procore tools have a 'Create Budget Code' button? 

The 'Create Budget Code' button is supported in Procore's Project Financials tools. 

Procore Project Financials Tools Tutorials
Budget
In the Budget tool when creating or editing a budget line item. 
Add a Budget Line Item
Change Events
In the General tab when adding or editing a change event line item. 
Create a Change Event
Change Orders
In the Schedule of Values on a Commitment Change Orde, a Prime Contract Change Order,  a Commitment Potential Change Order, or a Prime Contract Change Order.
 
Create a Commitment Change Order
Create a Prime Contract Change Order
Create a Potential Change Order for a Prime Contract
Client Contracts 1
In the Schedule of Values of a client contract.
Create Client Contracts
Commitments
In the Schedule of Values and Subcontractor Schedule of Values on a purchase order or subcontract. 

Create a Purchase Order
Create a Subcontract

Direct Costs
In the Line Items section when creating or editing a direct cost. 
Create a Direct Cost
Funding 2
In the Schedule of Values of a funding.
Create Fundings
Prime Contracts 
In the Schedule of Values of a prime contract.
Create Prime Contracts

Do I need any additional permissions to create budget codes in Project Financials? 

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. To create a budget code while updating the schedule of values on a prime contract, you would need permission to create a prime contract. See Create Prime Contracts.

 Important

While you can create new budget codes on the fly, the segment items that are part of the budget code must exist in the company level budget code structure. You cannot add new segment items on the fly. Only a Procore Administrator can create a company level budget code structure and only a project administrator can create a project level budget code structure (and only if your company's Procore Administrator has enabled the 'Project Level Actions' settings. See Create Your Company's Default Work Breakdown Structure and Create Your Project's Work Breakdown Structure.

Why can't I import new budget codes into Procore?

With Work Breakdown Structure, the segment items that comprise a budget code must exist in a segment in the company level budget code structure. Instead of importing new budget codes into Procore, your company's Procore Administrator uses the Procore Imports app to import new segment items (for example, cost codes, cost types, sub jobs, and custom segments) into your company or project level Work Breakdown Structure.