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Why costs sit inside deliverables on a progress claim

Why billable costs allocate into deliverable claim items on a progress claim, and how invoice extract or a T&M reimbursements deliverable gives separate lines.

Written by Ben Walker

On a progress claim, each line is a claim item for a deliverable or task from the project budget. Billable costs do not get their own claim line. When you allocate a cost onto the claim, it sits against the claim item for the deliverable (or task) that cost belongs to through inclusions. That is why reimbursements look scooped into the related fee line when you have not set up a separate deliverable for them.

On the claim

Claim lines come from the budget. You cannot add a free-standing cost-only line on the claim screen. Costs are allocated into existing claim items so the claim still tracks progress against each deliverable or task.

If costs are coded to tasks under a fixed-fee deliverable, their claimed value feeds that deliverable’s claim item. The claim document will not show a separate reimbursements row unless those costs sit under a different claimable item.

On the invoice

When you convert an approved claim, invoice layout is separate from claim layout. With Create one line item per claim item, you can tick Extract T&M expenses as their own line items for time-and-materials claim items that have allocated costs. Cost shares then appear as indented invoice lines under their claim item. Fixed-fee claim items stay as a single line; extract does not pull costs off them. You can still restructure a draft invoice before you push it to finance.

Some accounts also offer a Time and costs invoice structure (one line for time, one for costs). That is a different consolidation from per-cost extract under each claim item.

When you want a separate reimbursements line on the claim

Add a dedicated Disbursements or Reimbursements deliverable in the project budget, set its billing method to Time And Materials, and allocate those billable costs to a task under that deliverable. You can do this on a job that is already running by editing that project’s current budget (you do not start a new job). The next progress claim then includes that deliverable as its own claim item. Step-by-step: How to show costs or reimbursements as a separate line on a progress claim.

Why Drum works this way

Progress claims are built around contractual claim items (deliverables or tasks), not around every cost record. Keeping costs attached to those items preserves claim history and percent complete. Invoice conversion is where Drum offers line-level cost breakout for T&M work, without inventing extra claim rows that are not in the budget.

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