Skip to main content
Procore

How do I bill for stored materials in Procore?

 Note

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.  

Answer

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 the entity performing the work and stored on a job site prior to use. Typically, materials quantities are tracked on a line item in a contract's or funding's Schedule of Values (SOV), so an invoice can be submitted to the proper party for payment.

Example
Examples of stored materials include Bricks, Roofing Tiles, Drainage Pipes, Sheet Materials, Cement, and Aggregates. 

How do I bill for stored materials?

To bill for stored materials, the contract or funding must be configured to use the 'Amount Based' accounting method. See How do I set the accounting method for a contract or funding? When a contract or funding is 'Amount Based', the invoice works as follows:

  • Column F - Material Stored. Enter a value for the payment sought in the 'Materials Presently Stored' column. 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. Note that payment 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 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 users to enter different retainage percentages in the 'Work Completed' and 'Materials Stored' columns. In the event that you do apply a different retainage percent to each, it's important to note that Procore will recalculate the retainage value when you move an amount from the 'Materials Stored' column to the 'Work Completed' column. Below is an example showing what happens when the 'Work Completed Retainage' is set to 10% and 'Materials Stored Retainage' is set to 5%:
    Example

    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.

    FIRST INVOICE
    • $50,000 Work Completed    
    • $5,000 Work Completed Retainage withheld
    • $10,000 Materials Stored
    • $500 Materials Stored Retainage withheld
    SECOND INVOICE (MATERIALS GET INCORPORATED AND AN ADDITIONAL $10,000 OF WORK IS COMPLETED)
    • $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.