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Procore

How do I set the accounting method for a contract?

Answer

In Procore, the accounting method on a 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.

Where do I configure the accounting method?

Users with the appropriate permissions on the project's Commitments or Prime Contracts tool can set the accounting method on the 'Advanced Settings' tab of the contract. See Edit the Advanced Settings Tab on a Commitment or Edit the Advanced Settings Tab on a Prime Contract.

 Important
  • Always set the accounting method before adding line items to the SOV. You cannot change the accounting method after line items are created. 

If you are using the project's Bidding tool,  you can also set the accounting method of a bid package. See Configure Advanced Settings: Bidding

Things to Consider

  • If a change order needs to use a Unit/Quantity Based accounting method, the commitment's or prime contract's accounting method must be Unit/Quantity Based. It is not possible to have an Amount Based commitment or prime contract with Unit/Quantity Based commitment change orders or prime contract change orders.
  • If a contract is using the Unit/Quantity Based accounting method, individual line items in the original SOV or a change order SOV can utilize the Subtotal Override option to use an Amount Based accounting method.
  • Line items that are Unit/Quantity Based on the default calculated method will be billed for in terms of quantity in invoices.
  • Line items that are Unit/Quantity Based with the subtotal override method will be billed for in terms of dollar value/amount in invoices.
  • If a contract is using a Unit/Quantity Based accounting method, the Materials Presently Stored column will not be available in the invoices.
  • If a contract is using a Unit/Quantity Based accounting method, the Subcontractor Schedule of Values (Subcontractor SOV) is NOT available. 
  • The SOV line items on change orders use the Unit/Quantity Based accounting method. However, the settings for invoices and the settings for exporting change orders to PDF are determined by the settings in the parent contract. For example, a prime contract set to Amount Based will NOT display unit fields/columns in the PDF export file for a change order and the invoices will also be Amount Based.