Keeping projects on budget is one of the toughest challenges in the construction and project-based industries. Small cost overruns can quickly add up, leaving your team with inaccurate profitability estimates and messy reports. That’s why Acumatica ERP 2025 R2 introduces a powerful enhancement for project accounting: cost code allocation in project budgets.

What Are Cost Codes and Why Do They Matter?
Cost codes allow you to group project expenses by type—labor, materials, subcontractors, or even overhead items like administrative fees and insurance. This structure gives you a clear picture of where project dollars are going and ensures your budget aligns with actual spending.

With the new allocation logic, you can now:
• Reallocate expenses between cost codes within a project budget.
• Track profitability more accurately by assigning costs to the right categories.
• Simplify reporting and gain clearer insights into your financial flows.
• Improve auditability with better visibility into how and why costs were allocated.

How It Works in Acumatica:
The new functionality lets you define cost codes directly in allocation rules:
• By default, allocation steps use the original transaction’s cost code.
• If you need to redirect costs, you can choose Replace and select a new cost code.
• Once configured, Acumatica automatically applies these rules when you run project allocations, ensuring costs land in the right place every time.

This change also simplifies the setup process: project and project task boxes were removed from the Credit Transaction section of the Allocation Rules form, since each line can only belong to one project and one task.

The Big Picture: Better Budget Control
With cost code allocation, project managers and finance teams can work together more effectively:
• Budgets stay aligned with actual costs.
• Reports reflect the true financial health of each project.
• Adjustments are easier and faster, reducing manual work.

For construction and project-driven organizations, this enhancement adds another layer of control and confidence in your financial data—helping you deliver projects on time and within budget.

Ready to see how Acumatica’s project accounting enhancements can work for your business?
Contact Polaris Business Solutions today to schedule a demo and learn how we can help you gain better control over budgets, costs, and profitability.