This video will show you how to setup Cost Codes in LMN. Cost Codes make sure that revenue and costs are organized by division/account/or profit center in accounting. Cost Codes are what link to Quick Books service items to ensure estimates/invoices/timesheet costs are booked to the correct expense or revenue accounts.
Prefer to learn by reading our quick written guide? Scroll down!
In this video you will learn:
- How to add/edit Cost Codes in LMN
- How cost codes sync with Quickbooks
- How cost codes ensure your revenue and expenses get added to the correct accounts in Quickbooks
- How cost codes sync with Quickbooks service items
- Why cost codes are so important for job costing
Cost Codes Information
The purpose of this article is just to give you a quick overview of the setup for your Cost Codes. For a complete tutorial, we strongly recommend you watch our cost code video above:
- Cost codes will be set up in LMN to link revenue to your Service Items in Quickbooks.
Please note: Most contractors have a lot of service items, or they use them incorrectly. We strongly recommend you check out our help desk for videos that guide you through setting up Quickbooks. If you want to revamp your Quickbooks file prior to creating Cost Codes, please see a sample Quickbooks File HERE!
- Once your estimates are pushed to Quickbooks, Service Items will help to show you how much revenue you earned in different areas of your business vs. how much you spent on COGS (Labor, Equipment, Materials, Subs) to earn that revenue. For more information on the relationship between Quickbooks and LMN, please click HERE!
Adding Cost Codes to LMN
- Click on Estimate and Cost Codes.
- Click the +NEW button
- Add Cost Code Name and External ID. External ID can be used as a field to add your Quickbooks Account ID (if applicable).