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Enable Retainage on a Purchase Order or Subcontract

Objective

To enable retainage on a purchase order or subcontract using the project's Commitments tool. 

Background

Depending upon the accounting method set on a purchase order or subcontract, you can enable one or both retainage settings on the contract. To learn about setting the accounting method, see How do I set the accounting method for a contract?

    Accounting Method
Retainage Type Definition Amount Based Unit/Quantity Based
Completed Work Retainage An agreed-upon percentage amount on a contract is withheld from a subcontractor to ensure the work is satisfactorily complete on the project.  green-check.png green-check.png
Stored Material Retainage An agreed-upon percentage amount allocated on a contract for stored materials to ensure sufficient materials are available to complete work. green-check.png red-x.png

Things to Consider

Prerequisites

Steps

  1. Navigate to the project's Commitments tool.
  2. Click the Contracts tab. 
  3. Locate the purchase order or subcontract that you want to enable retainage setting(s) on. 
  4. Click that contract's Number link to open it. 
    commitments-link-number.png
  5. Click the Advanced Settings tab.
  6. Click the Edit button.
    subcontract-advanced-settings-edit-button.png
  7. Scroll to the Invoice section. Then:
    • For contracts using the Unit/Quantity Based accounting method
      Place a checkmark in the Enable Completed Work Retainage box. Contracts using the Unit/Quantity Based accounting method can only be used to bill for completed work. This method cannot be used to bill for stored materials.
      unit-qty-work-retainage.png
      OR 
    • For contracts using the Amount Based accounting method:
      Place a checkmark in one or both boxes:
      amount-based-invoice-retainage.png
  8. Click Save.

 

If you would like to learn more about Procore's commitments software and how it can help your business, please visit our construction financials tool product page .