How do I set the accounting method for a contract or funding?
Background
In Procore, the accounting method on a client contract, funding, prime contract, purchase order, or subcontract can be set to one of the following:
- Amount Based
Choose this method to enter a lump sum amount for a line item on a Schedule of Values (SOV). - Unit/Quantity Based
Choose this method when ordering materials in quantity. With this method, users enter a quantity and unit price for the line item on your SOV and Procore automatically calculates the total for the line item for you.
Important
- Admins can also set the accounting method for bids in a project's Bidding tool. See How do I set the accounting method for bids?
Answers
When setting the accounting method for a contract, there are several things to consider:
- When can I configure the accounting method?
- Who can configure the accounting method?
- How do I configure the accounting method?
- How does a contract's accounting method affect change orders?
- What do I need to consider with the Unit/Qty Based accounting method?
When can I configure the accounting method?
Always configure the accounting method before you add line items to a Schedule of Values. Once line items are added, you cannot change the accounting method.
Who can configure the accounting method?
Depending on the contract type, users with 'Admin' level permissions on the tool can configure the accounting method.
How do I configure the accounting method?
You can configure the default accounting method for these Procore tools:
| Tool Name | To configure the default accounting method for a tool |
|---|---|
| Client Contracts | Configure Settings: Client Contracts |
| Commitments | Configure Settings: Commitments |
| Funding | Configure Settings: Funding |
| Prime Contracts | Configure Settings: Prime Contracts |
You can also configure the default accounting method on an individual contract
| Contract Type | To configure the accounting method for a contract |
|---|---|
| Client Contract | Edit the Advanced Settings on a Client Contract |
| Funding | Edit the Advanced Settings on a Funding |
| Prime Contract | Edit the Advanced Settings on a Prime Contract |
| Purchase Order | Edit the Advanced Settings on a Commitment |
| Subcontract | Edit the Advanced Settings on a Commitment |
How does a contract's accounting method affect change orders?
A change order always uses the same accounting method configured in the funding, prime contract, purchase order, or subcontract. Contracts, fundings, and change orders cannot use different accounting methods:
- If a purchase or subcontract is set to Unit/Quantity Based, all Commitment Change Orders for that purchase order must be Unit/Quantity Based. You cannot have an Amount Based CCO when a contract is Unit/Quantity Based.
- If a prime contract is Unit/Quantity Based, all Prime Contract Change Orders for that contract must be Unit/Quantity Based. You cannot have an Amount Based PCCO when a contract is Unit/Quantity Based.
How does a contract's accounting method affect data exports?
When you export an individual client contract, funding, prime contract, purchase order, subcontract, or change order, Procore exports only the fields that are relevant to the accounting method set on the contract. For example, if you have an Amount Based contract, the unit- and quantity-related fields cannot be exported. This is also true for change orders and invoices related to that contract.
What do I need to consider with Unit/Quantity Based accounting method?
If you decide you want to use the Unit/Quantity Based accounting method, keep the following in mind:
- The Subcontractor SOV tab is NOT available.
- The 'Materials Presently Stored' column is NOT included on the contract's invoice.
- You can use the 'Subtotal Override' option on a line item to use the Amount Based accounting method on that line item.
- When the override option is ON, the invoices for the contract will bill for the dollar amount.
- When the override option is OFF, the invoices for the contract will bill for quantities.