B2W Flipbooks

Choosing a Character Scheme Contractors can use virtually any combinations of numbers or letters in their cost codes, depending on individual preferences and requirements. However, there are some proven best practices that can make structures more effective and prevent unforeseen problems related to sharing codes across systems or expanding the list of codes to add detail in the future. Making sure the numerical or alphanumerical concept is compatible with the accounting and ERP systems as well as any reporting systems is also a critical first step. This means being conscious of things like character count limits and the use of dashes, periods or other special characters. Organizing by Category Organizing cost codes into logical categories makes a lot more sense than assigning them arbitrarily or in a random numerical succession. Categories make it easier to recognize quickly where an activity or item belongs without having to remember or look up dozens or even hundreds of codes. The basic structure illustrated below presents a good example. All items in the "10000" category are related to General Conditions, all items in the "20000" category involve Land Clearing/Demo, and so on. This is also a flexible concept, making it easy to increase the level of detail in a parent-child relationship under each category. In example 2, Electricity and Internet have been added to provide more specific detail for coding Temporary Utilities. BEST PRACTICES: Five digits tends to be a good minimum length for numeric cost codes This provides room to add items under a main category or sub-category signified by the first one or two digits. Avoid '0' as the first number It may be dropped if data is imported to or exported from Excel spreadsheets. Alphanumeric codes This may be a good option, as long as they are accepted by the accounting systems. A code like EXC470, for example, makes it easy to identify that the item is related to excavating. 6 Example 1 Example 2

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