In project-driven businesses, cost control and granular financial reporting are essential. The integration between Procore (for project management / construction operations) and Xero (for accounting / financial oversight) provides automated flow of cost codes, enabling consistent classification of project expenditures. This reduces manual effort, improves financial visibility, and supports better decision-making across stakeholders (project managers, finance, procurement).

This article describes how to set up, configure, and maintain the Cost Codes sync from Procore → Xero via Calance’s integration, with technical detail and service orientation for B2B operations.

Integration Scope & Value Proposition

What “Cost Codes” Integration Covers

• All standard cost codes defined in Procore are transmitted to Xero.
• In Xero, these cost codes become Tracking Category Options under a specified “Cost Codes” tracking category.
• The integration leverages the “Dimension Cloud” interface (Calance’s integration platform) to send the chart of cost codes.

Business Value

• Consistent financial classification: Cost codes ensure that project expenses are coded uniformly across Procore and accounting.
• Reduced manual reconciliation: No need to manually recreate cost codes in Xero, or manually map them later when doing financial reporting.
• Scalability and speed: When you add or modify cost codes in Procore, they can be replicated efficiently into Xero.
• Better reporting: With cost codes in place in Xero, you can filter, roll up, and analyze project cost data more accurately.

Preconditions & Configuration Requirements

Before enabling the cost code sync, certain setup and configuration prerequisites must be verified. Failing to meet them can lead to mapping errors or incomplete data in Xero.

Step 1 – Create “Cost Codes” Tracking Category in Xero

This first technical configuration enables Xero to receive cost code options from Procore in a logical place.

Procedure:

1. Log into your Xero account with administrative permissions.
2. Navigate to Settings → Tracking.
3. Click Add Tracking Category.
4. Give the new tracking category the exact name “Cost Codes”. (Consistency in naming is critical for mapping.)
5. Save the tracking category.

Once this is in place, Xero is ready to accept cost codes as tracking category options under that category.

Step 2 – Mapping & Sending Cost Codes from Procore to Xero

After the category exists in Xero, the process of sending cost codes can be executed.

Technical Steps:

• Access the Dimension Cloud integration module (or interface) provided by Calance.
• In that interface, locate the function or control labeled “Send Chart of Accounts” (or equivalent—sometimes phrased as “Send Cost Codes / Cost Code Chart”) that triggers the export of cost codes from Procore.
• Execute that action. The system will read all standard cost codes defined in Procore and push them to Xero, where they will be created as Options under the “Cost Codes” tracking category.
• Validate that after the sync, Xero shows these cost code options properly, with correct names, codes, and if applicable descriptions or parent-child hierarchies (if Procore uses hierarchies).

Data Governance, Mapping Rules & Customization

Because enterprises often have custom cost code structures or unique requirements, it’s important to consider how mapping and customization will work.

Mapping Rules & Considerations

• Naming consistency: Procore cost code names should adhere to your organizational standard so that when reflected in Xero, reports are coherent.
• Uniqueness: Each cost code in Procore should have a unique identifier/name so duplicates or ambiguous codes do not translate into confusing options in Xero.
• Hierarchical structure: If Procore uses cost code hierarchies (e.g. divisions, sub-cost codes), understand whether the integration supports hierarchy mapping into Xero (e.g. parent/child options) or whether everything becomes flat options.

Customization & Exception Handling

• If your organization needs only a subset of cost codes to sync (e.g. active codes, or only certain cost code groups), check whether the integration allows filtering or disabling specific cost code sets.
• For deprecated or inactive cost codes, consider whether these should be retired (removed or hidden) in Xero; the sync may or may not automatically retire old ones.
• Document which user or role is responsible for maintaining cost codes in Procore (naming, activation/deactivation) and ensure any change triggers communication to finance / accounting teams.

Operational Best Practices & Maintenance

In order for the cost code sync to operate reliably over time, especially in a B2B environment, consistent operational practices are needed.

Best Practices

• Initial audit before enabling sync: Review all existing Procore cost codes, ensure correctness, remove unused or duplicate ones.
• Change control: Establish a process (change request) for adding or modifying cost codes in Procore—including checks for naming, description, activation status.
• Periodic reconciliation: Once cost codes are synced, periodically check that the options in Xero still match Procore’s cost code set. If there are drift or discrepancies, reconcile and resync.
• Logging & monitoring: Use the integration platform’s logging mechanisms to track successful syncs, errors, and failed attempts. Set alerts for failures.

Maintenance Considerations

• If the Procore cost code list grows large, performance or listing UI in Xero may slow; consider pruning or archiving old/inactive codes.
• When cost codes change in Procore (e.g., rename, retire), verify how the integration handles these changes—whether Xero tracking category options are updated, deprecated, or left orphaned.
• Ensure user permissions align: only authorized users should be able to change cost codes or trigger syncs, to avoid unintended modifications.

Conclusion

For B2B organizations that depend on precise cost tracking across operations and financial systems, automating cost code synchronization between Procore and Xero is a foundational capability. When properly configured, this sync enables:

• Unified cost classification across systems
• Better financial reporting and forecasting
• Less manual effort and fewer errors

Implementing this with technical rigor—in ensuring prerequisites are met, mapping rules are clear, governance is in place, and the operational practices are disciplined—makes the difference between a maintained, reliable integration vs. one that falters over time.