Add a Subcontractor SOV to a Commitment
Objective
To add a Subcontractor Schedule of Values (SSOV) to a purchase order or subcontract.
Background
In Procore, the 'Subcontractor SOV' tab is enabled on the Commitments tool by default. This tab provides your downstream contractors with a way to provide a detailed breakdown of specific work items on a commitment. This breakdown is entered by your contractors on a separate tab—to ensure the committed amounts on each line item on the subcontract's general 'Schedule of Values' tab remains consistent with the approved agreement.
Example
Let's assume you are a general contractor and have a subcontract with 'ABC Concrete'. Before your company will approve payment for work items on that subcontract, you want the subcontractor to provide a line item breakdown of each cost code/cost type combination to describe their costs in more detail.
To do this, you can have Procore send an email notification to the designated 'Invoice Contact' on the commitment. This email asks their company to complete the Subcontractor SOV. After the subcontractor adds their detailed line item breakdown to demonstrate their labour costs, materials or other costs associated with the work items, they can then submit the completed data entry back for your review.
Things to Consider
- Required User Permissions:
- To add a line item to the Subcontractor SOV tab of any contract, 'Admin' level permissions on the project's Commitments tool.
- To add a line item to the Subcontractor SOV tab of a specific contract, 'Read Only' level permissions or higher if the user is also the designated invoice contact on the purchase order or subcontract. To learn more, see What is an invoice contact?
- To add a line item to the Subcontractor SOV tab when a contract is not marked 'Private,' 'Read Only' or 'Standard' level permissions on the project's Commitments tool with the 'Create Purchase Order' granular permission and/or 'Create Subcontract' granular permission enabled on your permissions template.
- To add a line item to the Subcontractor SOV tab when a contract is marked 'Private,' 'Standard' level permissions on the project's Commitments tool and added as an 'Invoice Contact' and as member 'Private' drop-down list with the 'Allow Users to See SOV Items' check box enabled on the purchase order or subcontract. For details, see Create a Purchase Order or Create a Subcontract.
- Limitations:
- The Subcontractor SOV tab is only supported by the Amount Based accounting method. It is not supported by the Unit-Quantity based accounting method. See How do I set the accounting method for a commitment or prime contract?
- Only the detail line items added on the Subcontractor SOV tab will carry over to the invoice.
- Additional Information:
- You must add line items to the Subcontractor SOV before you create subcontractor invoices for the purchase order or subcontract.
- For companies using the
ERP Integrations tool: Show/Hide
- The Subcontractor SOV in Procore detailed below does NOT sync with the integrated ERP system.
- Only the general SOV on the commitment in Procore is synced with the integrated ERP system. See Add a Line Item to a Commitment's Schedule of Values.
Prerequisites
- The purchase order or subcontract must be configured for the Amount Based accounting method See How do I set the accounting method for a commitment or prime contract?
- The Subcontractor SOV tab must be enabled. See Enable or Disable the Subcontractor SOV Tab on a Commitment.
- The Subcontractor SOV must be in 'Draft' or 'Revise & Resubmit' status.
Steps
- Create a Purchase Order or Create a Subcontract
- Update the Schedule of Values (SOV)
- Update the Subcontractor SOV
Create a Purchase Order or Subcontract
Complete the steps in Create a Purchase Order or Create a Subcontract. Then continue by updating the SOV as described in the next step.
Update the Schedule of Values (SOV)
These steps show you how to update the general Schedule of Values tab.
- Navigate to the project's Commitments tool.
- Under the Contracts tab, locate the purchase order or subcontract.
- Click the Number link of the contract that you want to update.
- Complete the data entry in the General tab.
Important
To update the Schedule of Values, a user must be designated as an invoice contact. See Add Invoice Contacts to a Purchase Order or Subcontract
- Under Schedule of Values, add line items by clicking the click here to add a link.
These are the line items that your subcontractor will break down into more detail on the Subcontractor SOV. - Add all of the line items associated with the commitment:
- Change Event Line Item
If the Change Events tool has been added to the project, select a related change event line item to link it to your commitment. If the Change Events tool has NOT been added, this column will NOT display in the Schedule of Values tab. - Prime Line Item
If the Change Events tool is disabled on the project, the Prime Line Item column appears in place of the 'Change Event Line Item' column. Select a related prime contract line item from the drop-down list.Note
If you are adding a line item to to Subcontractor SOV that is NOT accounted for in the prime contract, select the Non-Budgeted option. - Budget Code
Select a budget code from the list or click Create Budget Code to create a new one. See What is a budget code? - Description
Enter a description of the line item. - Tax Code
Select a tax code associated with the line item. This field is only visible when the tax codes feature is enabled. See How can I use tax codes on a project? - Amount
Enter the cost associated with the scope of work for the line item.
- Change Event Line Item
- Click Add Line Item to add additional line items, as necessary.
- Once you are done adding line items, do one of the following:
- To add subcontractor SOV line items on behalf of the invoice contact, click Create. Then continue with the steps in Update the Subcontractor SOV as an Invoice Contact.
OR - To invite your invoice contact(s) (see Add Invoice Contacts to a Purchase Order or Subcontract) to add line items to the Subcontractor SOV tab on their invoice, click Create an Email.
Notes
Clicking the Create and Email button sends an email message to notify the invoice contact to add line items to the Subcontractor SOV.
- If you are an invoice contact, you can now update the Subcontractor SOV. Continue with the steps below or for more information, see Update the Subcontractor SOV on a Commitment.
- After the invoice contact submits the updated Subcontractor SOV, you can then review it as described in Review a Commitment's Subcontractor Schedule of Values.
- To add subcontractor SOV line items on behalf of the invoice contact, click Create. Then continue with the steps in Update the Subcontractor SOV as an Invoice Contact.