The  Job Cost System tracks activity by using Cost  Codes,  or Cost  Centers. Further, these Cost Codes are grouped into  larger units referred to as "Cost Categories". On many reports, the  Job Activity  is subtotaled by Category. The following example  shows the relationship of Categories and Cost Codes:
 
             0100  SUPERVISION (Cost Code)
             0100- 0010 DIRECT LABOR                 $100.00 (Cost Code)
             0100-0020 DIRECT MATERIALS          $200.00  (Cost Code)
             0100-0030 EQUIPMENT RENTAL        $150.00 (Cost Code)
             -----------------------------------------------------------------
             0100 SUPERVISION TOTAL                    $450.00
 
    Notice that a Category may have several cost codes. Also, note that a Cost Code must have a Category assigned to it.
 
      The Cost Codes are used for tracking all Job Activity. Whenever  Job  Activity is being entered, a Code is a  required  entry.  Please Note that a Cost Code has two components. The first component  is  a Cost Category. You can not define a  Cost  Code  that doesn't  have  a Cost Category. Therefore, you must  define  your Categories prior to entering Cost Codes.
 
    It is very important that you build your codes before  attempting to use the Job Cost System. Without codes, no entries can  be made to the Job Cost System.