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Procore (en-CA)

Set or Release Retainage on a Subcontractor Invoice

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 Legacy Content

This tutorial details Procore's legacy experience for setting or releasing retainage on a subcontractor invoice. The information on this page will be replaced with updated content when the redesigned subcontrator invoice beta experience is generally available. To learn about this release and its timeline, see Financial Management: New Admin View for Subcontractor Invoices.

Important! If you are using the subcontractor invoice beta experience, please see the Set or Release Retainage on a Subcontractor Invoice tutorial under the Invoicing tool instead of the information below.

Objective

To set or release retainage for line items on a subcontractor invoice with the Commitments tool. 

Background

In Procore, the term Retainage refers to the practice of withholding of a portion of a contract amount until the work is deemed satisfactorily complete. The withheld amount is specified in an agreement between the contracting party (the party paying for the work) and a contracted party (the person or company performing the work).  A common practice is to withhold 5-10% of a contract's total value until a milestone is reached. Then, the withheld amount can be released as a progress payment. When work is substantially complete, the withheld amount can be released as a final payment. 

Things to Consider

  • Required User Permissions:
    • To set and release retainage when editing an invoice before, during, or after the current billing period, 'Admin' level permissions on the project's Commitments tool.
    • To release retainage when editing an invoice during the current billing period only, 'Standard' level permissions on the project's Commitments tool and you must be the designated 'Invoice Contact' on the contract. Invoice contacts are automatically added to the 'Private' drop-down list on the contract.
       Note
      To learn more about releasing retainage on a subcontractor invoice, see Create a Subcontractor Invoice for the Release of Retainage.
  • Additional Information:
    • To set the same percentage of retainage on all line items in the invoice, enter a value to apply to all line items in the invoice.
    • To release retainage on all line items, enter a value to apply to all line items. This moves the desired percentage from the 'Currently Retained' column to the 'Released This Period' column.
    • You can also manage withholding using Procore's sliding scale retention feature. See What is sliding scale retention?

Prerequisites

Steps

  1. Navigate to the project's Commitments tool.
  2. Under the Contracts tab, locate the purchase order or subcontract. Then click Edit.
  3. Click the Invoices tab. 
  4. Locate the subcontractor invoice that you want to work with.
  5. Click the Detail tab.
  6. Click the Edit button. 
  7. Choose the next steps:

Set Retainage on All Line Items

To set retainage, you must have 'Admin' level permissions on the project's Commitments tool. 

  1. Under Set Retainage on All Line Items, do the following:
    set-retainage.png
  2. Enter the percentage to withhold in the Work Completed box. 
  3. Click Set.
  4. Enter the percentage to withhold in the Materials Stored box. To learn more, see How do I bill for stored materials in Procore?
  5. Click Set.

Release Retainage on All Line Items

  1. Under Release Retainage on All Line Items,  do the following:
    release-retainage.png
  2. Enter the percentage to release in the Work Completed box. 
  3. Click Release.
    A GREEN banner appears to confirm the retainage was released.