How do I bill for stored materials in Procore?
On Friday, December 18, 2020, Procore begins the first phase of a gradual rollout of the new collaborator view for the Project level Invoicing tool. On this date, this feature will be released to a limited number of Procore customer accounts. Then, over the following several weeks, the feature will continue to be rolled out to additional Procore customers until the rollout process is complete. To learn more, see Financial Management: (Coming Soon!) New Collaborator View for the Invoicing Tool.
If you are an invoice contact who needs instructions from the limited release version, please see Submit a New invoice as an Invoice Contact and How do I bill for stored materials in a subcontractor invoice? instead of the instructions on this page.
Important! If you are a Procore customer who has purchased a custom workflow (see Procore Custom Solutions), your company account will NOT be receiving this update. This is because your project's Invoicing tool requires a customized approval path for processing your subcontractor invoices. If you have any questions about invoicing and your custom workflow, please reach out to your company's Procore point of contact.
The term stored materials refer to materials that have been purchased prior to their planned use on a construction project. These are materials that are purchased by a general contractor and stored on the job site before they are used. Typically, each item or material is tracked on a line item in a prime contract's Schedule of Values (SOV) and is submitted to the owner for payment.
ExampleExamples of stored materials include: Bricks, Roofing Tiles, Drainage Pipes, Sheet Materials, Cement and Aggregates.
How do I Bill for Stored Materials?
In Procore, the process of billing for stored materials on owner invoices as follows:
- If a commitment or prime contract is using a Unit/Quantity Based accounting method, the Materials Presently Stored column will not be available in owner invoices. See How do I set the accounting method for a commitment or prime contract?
- Column F: Enter the value of Materials Presently Stored for which payment is sought. The total of the column must be recalculated at the end of each pay period. This value covers both materials newly stored for which payment is sought and 'Materials Previously Stored' which are not yet incorporated into the Project. Mere payment by the Owner for stored materials does not result in a deduction from this column. Only as materials are incorporated into the Project is their value deducted from this column and incorporated into Column E (Work Completed—This Period).
- Every time you create a new invoice in Procore, any value currently in Column F - Materials Stored will still be in Column F in the new owner invoice. If you are incorporating those materials into the project this month, you will need to manually move the proper amount from Column F to Column E - Work Completed this Period.
- Procore allows for there to be different retainage percents on Work Completed vs. Materials Stored. In the event that you do use a different retainage percent on each, it's important to note that the retainage value will be recalculated when you move an amount from Materials Stored to Work Completed. Here is an example where Work Completed Retainage is set at 10% and Materials Stored Retainage is set at 5%:
In this example, a lower retainage amount was withheld on the materials while they were stored and then the full retainage was taken once they were incorporated into the project.OWNER INVOICE 1
- $50,000 Work Completed
- $5,000 Work Completed Retainage withheld
- $10,000 Materials Stored
- $500 Materials Stored Retainage withheld
- $70,000 Work Completed ($50,000 from Previous + $10,000 Work this Period + $10,000 Materials Stored)
- $7,000 Work Completed Retainage withheld
- $0 Materials Stored
- $0 Materials Stored Retainage withheld
- Looking at the Summary Page, note that line 5B for Materials Stored Retainage will only show a value if there are current materials being stored. All retainage moves into Work Completed retainage as the materials are incorporated into the project.