Account Code Management

The make-up of account codes is dictated by the specifications of your cost accounting system. Each code represents one cost account. Account Codes serve as a standardized coding system to track like operations across a company, for the purpose of global reporting and benchmarking. Multiple CBS cost items can be coded to the same account code if they fall under the same category.

Once an account code has been assigned to each cost item in a job's Cost Breakdown Structure (CBS), the software can automatically or manually summarize all like assignments into one budget line (for each account). Budgets can be captured for both primary and secondary quantities.

Account codes are often used to summarize cost items into standardized categories for use in benchmarking and estimating applications.

They are useful for large company that use multiple levels of accounting-related cost codes for their budget. They are extremely useful for benchmarking purposes. Account Codes provide a common language (set of codes) that you can use across systems.

Account codes can be used to track: quantity, budget, account code tags, unit cost.

Account Code Setup

Account Codes can be setup for a project from the Foundation Setup Data Registerunder the Account Codes tab. The columns for populating account code information are as follows:

Column	Description
Utilized	This is a checkbox denoting whether or not the account code is assigned to a cost item in the project.
Account Code	The alpha numeric sequence assigned as the code.
Description	Description detailing the account code’s scope.
Unit of Measure	The primary unit of measure for the account code.
Secondary Unit of Measure	The secondary unit of measure for the account code.
Currency	The currency assigned to the account code.
Auto-Quantity (Primary)	Automatically roll up cost item quantities if the cost items and this account code have the same primary UoMs. It can also be set on a project specific basis.
Quantity	The default quantity for the account code.
Auto-Quantity (Secondary)	Automatically roll up cost item quantities if the cost items and this account code have the same secondary UoMs. It can also be set on a project specific basis.
Secondary Quantity	The secondary quantity for the account code.
Tag 1-20	Tags that can be associated to account codes to enable them to be categorized.
User Defined Field 1-10	Optional open-text fields you can use to add information related to the account code.

Create an Account Code

Account Codes can be created for the project level within a project or for multiple projects within the Library. Account Codes should be as detailed as possible to most accurately benchmark work. Only lead estimators or estimators with a lot of experience should create new account codes.

The master set of Account Codes is created and stored in the Library on the Master Foundation Setup Data under the Account Codes tab. When a new folder is created, the master set is automatically copied from the Library to the new folder.

If you feel the current job requires new or different Account Codes to adequately organize the job's budget, you can change, create, or delete them any time you wish. Account Codes can also be created on-the-fly in the folder.

Step by Step — Create an Account Code

From the Setup tab, select the Foundation Setup Data drop down and then Account Codes.
From the Actions tab, under the Edit section, select New.
Enter a unique account code TEST – Your Initials. Enter the description Test Account Code. Select a Unit of Measure. Enter a quantity.
When you are done, click OK.
Your account code is added to the bottom of the register. The Utilized column is unchecked because your account code has not yet been utilized.

Edit an Account Code

Editing an account code is also done through the Foundation Setup Data tab and selecting Account Codes.

Step by Step — Edit an Account Code

Select your account code.
From the Actions tab, under the Edit section, select Open.
Select the Auto-Quantity Primary check box. Notice that your quantity goes to 0.

Enter some notes in the Notes field.

Click on the Tags/User Defined Fields tab. From the Tag 1 drop down arrow, select Concrete.

Enter in test in the User Defined 1 field. Once done, click OK.

Quantity Contribution

At the project level, you can manage account codes under the Account Code Utilization Register or in Foundation Setup Data. In the Account Code Utilization Register, you can see the account codes assigned to your cost items, along with account code details and quantity contributors.

Other budget information is automatically pulled into the Account Code Utilization Register including, Total Cost, Unit Cost, Unit Rates, Primary and Secondary Quantity Ratios, Man Hours, and Account Code Tags. To access this information, scroll through all of the columns in the Account Code Utilization Register.

Account Code Quantity

There are two methods for defining primary and secondary quantities for your account codes:

Manual entry in the Primary Qty and Secondary Qty fields
Using the auto-quantity feature to have them automatically inherit the quantities of any cost items that have the same unit of measure as the assigned account code

Quantity Contributors

Within your project, you can specify how primary and secondary quantities contribute to your account codes. Specifically, you can indicate how:

Cost item primary and secondary quantities contribute to assigned account code primary and secondary quantities
Child account code primary and secondary quantities contribute to parent account code primary and secondary quantities

For both cost item and account code contributions you can have quantities roll up:

Primary quantity to primary quantity
Primary quantity to secondary quantity
Secondary quantity to secondary quantity

Account codes will only automatically inherit quantities from cost items/account codes using the same unit of measure.

Contribution Options – Cost Item to Account Code

From the Account Code Utilization Register, you can specify how cost item quantities roll up to the account code that is assigned to it, by selecting the appropriate checkbox. The total of the contributing cost item(s)’s quantities will roll up to become the account code quantity.

Account Code Utilization Register

The Account Code Utilization Register keeps track of how the account codes are used for the project. It displays the mapping between CBS items and Account Codes.

The Account Code Utilization Register is accessed through the Estimate tab from either within the project (for project specific account codes and cost items) or the Library (for Master account codes and cost items).

Account code hierarchy rolls up based on your assignments (just like in the CBS). Quantity contributors (discussed above) can be employed from within the Account Code Utilization Register.

The Account Code Utilization Register is used to roll estimate line items into an account code hierarchy, with the ability to control which cost items contribute quantity to their parent, in order to benchmark against historical projects in a way that is consistent across projects.

The Account Code Utilization Register is similar to the Cost Breakdown Structure (CBS) and the Master Cost Breakdown Structure (CBS), with the following exceptions:

The rows in the Account Code Utilization Register represent Account Codes rather than individual Cost Items, so the tree structure reflects the Account Code hierarchy rather than the CBS hierarchy.
The Utilizing Items data block in the Account Code Utilization Register reflect a terminal Account Code’s assigned Cost Items.
The terminal rows in the Account Code Utilization Register represent each utilized Account Code in the CBS.

If the Account Code’s Auto-Quantity setting is checked, then the Quantity of the terminal row is equal to the Quantity (Primary or Secondary) of all the cost items in the CBS with that assigned Account Code, and the cost items in the CBS employing resources with that assigned Account Code, provided that they have the same Unit of Measure type as the Account Code.

The Account Code Utilization Register can be filtered to display only terminal items by clicking the filter icon on the “Is Terminal” column and selecting “Checked”.

The parent-child hierarchy for Account Code is based on the Account Code Hierarchy Separator. The Hierarchy Separator defines the parent-child relationship within the Account Code structure.
The Account Code Utilization Register is used primarily for analysis, and most of the columns are read-only. Most of these columns originate on the Account Codes tab in the Foundation Setup Data Register and the Master Foundation Setup Data Register. Modifying an editable column on this form has the same effect as modifying the same field on the Account Codes tab of the Foundation Setup Data Register or on the Account Record.

Step by Step — Account Code Utilization Register

From the Estimate tab under the Breakdown Structures section, select Account Code Utilization.
Select an account code. You can see the cost items that are using the account code below in the Utilizing Items data block.

Scroll to the right and find the Man Hours (w/ Maintenance) column. This shows the total number of manhours contributing to that account code.
Click the ellipses next to the Find bar. Select Unit of Measure.

In the Find field, type in Each. Then press <Enter>.
The first account code that matches that Unit of Measure is highlighted.

Press <F3> to move to the next account code that matches that UoM.

8. You can change the quantity contribution of the cost items by checking and unchecking the boxes of the cost items.

Benchmarking

Benchmarking is a way for companies to track their productivity on all of their different projects. Since projects have various cost items and pay items, a way to benchmark and track all of these job uniformly is using account codes. When an account code is assigned to a cost item, the account code tracks all benchmarking data such as total manhours, MH/unit, and quantities.

In the Account Code Utilization Register, you can scroll through the columns to find benchmarking data on each account code.

Another way projects can benchmark is by using account code tag fields. All of the account codes with the same tags can be benchmarked together.

Also in the Account Code Utilization Register, you can use the Benchmarking Data block to view benchmarked data. The Benchmarking portion of the form is similar to the Benchmarking data block on the Cost Item Record, with the following exceptions:

The Item matching criteria is always Account Code.
"Parent" account codes will include all matching data points for their "child" account codes, based on the Hierarchy Separator.
Account Code rows can be benchmarked at the terminal row level or at any superior row level in the Account Code Utilization Register, meaning that both current estimate values and benchmark values can be compared at any level since both include the values rolled up from their "children".

In the Setup tab, under Job Properties - Benchmarking tab, you can select where this project will get its historical data. You can set criteria and filters to just pull in certain account codes, certain project data, and certain cost items. You can also configure the Benchmark graph here.

Account Code Assignment

An Account Code can be mapped to multiple CBS items, but a CBS item can only be mapped to one Account Code. Assigning Account Code to cost items is done for benchmarking purposes. It is best practice to assign account codes to cost items in the estimate phase rather than after the project is awarded and work begins. This is beneficial for tracking account codes over the life of the project (from estimate to completion).

Typically every cost item should be assigned an account code whether it is a terminal cost item or parent cost item.

Account Codes can be assigned directly on the individual cost item, job overhead, or pay item forms.

Step by Step — Assign an Account Code to a Cost Item

From the Ribbon, select the Estimate tab. Then select Cost Breakdown Structure (CBS).
Change the Saved Views to Account Code View.
Double click on a cost item that has not been assigned an account code.
In the Employment Setup section, click on the Cost Item Setup icon, and find Default Properties.
Click the icon next to the Account Code field. From the Account Codes Register, select your account code. Click OK. Once done, click OK.
Find that cost item in the CBS. Notice that the Account Code field is now populated.

Estimate provides you with the ability to assign specific account codes to each pay item on the Pay Item & Proposal Register.

Step by Step — Account Code Utililzation Register

From the Price tab, select Pay Item & Proposal.
From the Pay Item & Proposal Register, select a pay item.
Find the Account Code field for that item.
Click the icon in the Account Code field.
Select an account code that you wish to assign to that pay item. Once done, click OK.
Notice how the account code you selected is now populated in that pay item’s account code field.