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Create a Direct Cost


To create a direct cost (an invoice, expense, or payroll).


Direct Costs are the costs your business incurs that are not associated with commitments; for example, general conditions and self-performed work. The different types of direct costs that users can create in Procore are invoices, expenses, and payroll. Invoices are received from a vendor and are costs that are not tied to a commitment with that vendor. Expenses are used to track costs that are allocated from the company to the project, for things such as computers, phones, internal equipment rentals, etc. You can also track monthly payroll costs and classify them by cost code, so that the payroll amounts reflect each month on the budget. Users will see the direct costs they create in the "Direct Costs" column in the budget for that line item (as long as the status is not 'Draft'). If you choose to pre-fill payment application data, the Direct Costs with a received date that falls within the billing period of the payment application will pull into their matching division and/or cost code and cost type matching line items on the payment application SOV. 

Things to Consider

  • Required User Permission:
    • 'Admin' on the projects Direct Costs tool
    • 'Standard' on the project's Direct Costs tool and the permission template assigned to the user must be granted the 'Create Direct Cost' granular permission. See "Grant Granular Permissions in a Permission Template" in the See Also section below. 


  1. Navigate to the project's Direct Costs tool.
  2. Click the + Add New Direct Costs button.

  3. Complete following fields:
    • Type. Select Payroll, Invoice, or Expense from the drop-down menu.
    • Date. Select a date from the calendar picker.
    • Status. Select Draft, Pending, Revise and Resubmit, or Approved. If the status is set to anything other than Draft, the value of the cost will be visible in the "Direct Cost" column on the Budget. 
    • Vendor. Select a vendor from the drop-down that the direct cost was received from. This field is required if you have selected "Invoice" as your direct cost type. You can attribute a direct cost to a vendor in the company directory without the need to add them to the project directory.
    • Employee. Select an employee from the drop-down that the direct cost was received from.
    • Terms. Enter any terms for the seller. You can either select one of the options from the drop-down or create your own by entering text into the Terms text box.
      Note: The drop-down menu will not appear for users on older browsers such as Internet Explore 9 and Safari browsers. 
    • Description. Enter in a more detailed description of the direct cost.
    • Received Date. Enter a date the direct cost was received.
      Note: This date will need to fall within the beginning and end date of the billing period of the payment application you want to see the direct cost pre-fill on. 
    • Paid Date. Enter a date the direct cost was paid.
    • Attachments. Add an attachment, such as a copy of the direct cost. 

  4. Add a line item to the direct cost by selecting one of the following:
    1. Sub Jobs: If you have sub jobs on your project, select a sub job. 
    2. Cost Code: Select the appropriate cost code for the item.
    3. Type: Select the appropriate item type from the drop-down menu.
    4. Quantity: Enter in the quantity of units.
    5. Units: Enter in the number of units of the item.
    6. Unit Cost: Enter in each unit cost. 
    7. Subtotal: The subtotal will be calculated automatically. 

    8. Click +Add. If the combination of the sub job, cost code, and cost type are non-budgeted, a pop-up will appear asking to confirm you want to add these line items to the budget. If OK is selected, these line items will be added directly to the Budget with a "?" next to each line item. See "Add a Partial Budget Line Item" in the See Also section below. 
    9. Click Create to create the direct cost.

See Also

If you would like to learn more about Procore’s cost management software and how it can help your business, please visit our construction cost management software product page here.


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