Cost Codes vs Cost Types — What’s the Difference?

Overview

In Jobpac, cost codes and cost types are used together to organise project costs. They represent two different dimensions of cost tracking — what work is being done and what kind of cost is being incurred.

When combined, they form a cost centre , which is the core unit used to manage project budgets and costs.

These concepts form the foundation of Jobpac’s costing structure. For a broader overview, see Job costing fundamentals in Jobpac .

Cost codes and cost types

Cost codes

• Represent sections of work within a project
• Follow a structured coding format
• Allow reporting by activity or stage of the project

Cost codes help you understand how different parts of the project are performing.

Cost types

• Defined at company level and reused across jobs
• Represent categories such as labour, materials, subcontract or plant
• Allow comparison of cost behaviour across multiple projects

Cost types help you understand what is driving project costs.

How they work together

When a cost code and cost type are combined, they form a cost centre. This links the project’s work structure with the type of cost incurred.

For example, one cost centre may represent subcontract costs for demolition, while another represents materials for the same demolition work.

When to use each

• Cost codes help you understand performance by part of the project
• Cost types help you analyse costs by resource type across projects

Using both together provides a clear and complete view of where costs are occurring and what is driving them.