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About Stored Materials on Invoices (Beta)

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Table of Contents

Overview

Billing for stored materials on a construction project allows contractors to recover the costs of purchasing and storing materials on a job site. It also requires teams to ensure they accurately account for materials received. This includes documenting the trade partners, types of materials, quantities, costs, and delivery dates. Because stored materials do not represent completed work, invoices must be itemized to differentiate between what is installed on a project during a billing period and what is stored for future work. 

Once a contractor receives an invoice payment, stored materials become the client's property and the contractor is responsible for ensuring stored materials are safe. To avoid misunderstandings, ensure the requirements in a project's commitment or prime contract are clear about how to bill for stored materials. 

Teams using the Procore Invoice Management solution can manage stored materials manually. Users also bill for stored materials using the accounting method configured for the contract.

In addition, teams can configure a Procore project template, so the stored materials configuration settings are automatically copied to new Procore projects. To learn more, see What gets copied over to a new project when applying a project template?

 

Prerequisites

To bill for stored materials, your team must:

  • Track the materials you receive and document them in your inventory.
  • Track the materials installed during a billing period and those stored for the future.
     Tip
    Need help tracking materials? For tips about using different Procore tools to track materials received and installed, see How do I track the actual materials received and installed on a job site?

You also need to:

Step On owner invoices... On subcontractor invoices...
Opt into the modernized invoice experience About Owner Invoices About Subcontractor Invoices
Create a contract Create Prime Contracts Create a Commitment 1
Create an invoice Create Owner Invoices Create a Subcontractor Invoice

1 In Procore, a commitment is either a purchase order or a subcontract. 

When your team creates owner or subcontractor invoices, you bill for line items as other project costs. The only difference is that the materials installed and the materials stored are documented on the invoice. 

Limitations

Please be aware of the following limitations: 

  • Procore always uses the same accounting method for a contract and its invoices. If you choose an Amount-based contract, Procore generates Amount-based invoices. Similarly, an Unit/Quantity-based contract generates Unit/Quantity-based invoices.
  • Once line items are added to a prime contract's Schedule of Values, the accounting method for the prime contract and its invoices cannot be modified. See Create Prime Contracts.

Configure Settings

To bill for stored materials, configure these settings:

Choose the Accounting Method for the Contract

Configure the accounting method for a new prime contract to bill for stored materials on an invoice. You can also configure the accounting method to use on purchase orders and subcontracts created with the Project-level Commitments tool. Procore applies the setting you choose to the contract and any invoices related to the contract. Choices are:

  • Amount-Based. Enter the lump sum amount for line items on the contract's Schedule of Values and the contract's invoices. 
  • Unit/Quantity-Based. Enter a quantity and unit price for line items on the contract's Schedule of Values and the contract's invoices. 
 Tip
Managing bids in Procore? You can set the accounting method for the Project-level Bidding tool. To learn more, see How do I set the accounting method for bids?
Examples

These examples show you how to choose the accounting method for purchase orders and subcontracts in the project's Commitments tool and on a new prime contract for a project. To learn more, see How do I set the accounting method for a contract?

Commitments

A user with 'Admin' level permissions on the Commitments tool configures the 'Default Accounting Method for Purchase Orders' and 'Default Accounting Method for Subcontracts' settings under 'Default Contract Settings' on the 'Configure Settings' page of the tool. Once set, all of the commitments on the project use the method configured. To learn more, see Configure Advanced Settings: Commitments.

commitments-default-acctg-method.png

Prime Contracts

A user creating a prime contract must configure its default accounting method before adding any line items to its Schedule of Values. Once line items are added, you cannot change the accounting method. In Procore, the default accounting method is Amount-Based contracts. To change to the Unit/Quantity-based method, click the button in the banner at the top of a prime contract's Schedule of Values. To learn more, see Create Prime Contracts.

prime-contracts-default-acctg-method.png

Configure the Stored Materials Settings for the Contract

To enable billing for stored materials on a contract, a team member with 'Admin' level permissions on the Commitments or Prime Contracts tool can mark the 'Enable Billing Separately for Stored Materials' setting on the Advanced Settings tab of a commitment or prime contract. 

Example

This is an example of the 'Stored Materials' setting on a contract. This setting is available on both the Commitments and Prime Contracts tools. To enable the option, first mark the 'Enable Invoices' check box and then mark the 'Enable Billing Separately for Stored Materials' check box.

If your invoices must account for retainage, your team also has the option to mark the 'Enable Stored Material Retainage' check box. To learn how to enter retainage on a prime contract, see Edit Owner Invoices. To learn how to configure subcontractor invoices to enter retainage, see Enable Retainage on a Purchase Order or Subcontract. 

enable-stored-materials.png

 

 

Amount-Based Data Entry

Review this example to learn how to bill for stored materials on invoices when a contract is configured to use the 'Amount-Based' accounting method. 

Data entry on the first Amount-Based invoice

For the contract's first invoice, the value in the New Materials Stored column is always set to $0.00 by default. Since the subcontractor received materials on-site during this billing period, the invoice contact enters $2,000.00 in the New Materials Stored column (see 1). This represents the currency amount of the materials received. Once input, Procore automatically updates these values on the line item (see 2):

  • Total Completed & Stored to Date (%). Procore converts the entry to a percentage value (16%) to show total progress.
  • Materials Presently Stored. Procore updates this column with the amount in the New Materials Stored column ($2,000.00).
  • Total Completed & Stored Date ($). Procore adds the $2,000.00 entry to this column (see 2). Note: This column shows the cumulative total of the values in the Work Completed This Period, New Materials Stored, and Materials Presently Stored column. 
  • Balance to Finish. This column is only visible to invoice administrator(s). Procore takes the Scheduled Value amount and subtracts the New Materials Stored amount to calculate the balance to finish). Note: In subsequent invoices, this column shows the cumulative decline from the contracted amount for the line item. 

first-sub-invoice-sov-new-materials-stored.png

Data entry on the Second Amount-Based invoice

For the next billing period, the invoice contact prepares their second invoice. In all new invoices, the New Materials Stored column is always set to $0.00 by default (see 1). However, Procore automatically moves the value from the New Materials Stored column on the previous invoice to the Previous Materials Stored column on the current invoice (see 1 to 2). Before making additional data entry, note that the highlighted values (see 3) match the first invoice (above). 

second-invoice-previous-materials-stored.png

Next, perform some additional data entry on the line item.

For this entry, the subcontractor received an additional $2,500.00 in new materials that are now stored on the job site (or in a storage facility). The invoice contact enters $2,500.00 in the New Materials Stored column (see 1). After the entry, Procore automatically updates these values (see 2). 

  • Total Completed & Stored to Date (%). Procore updates this value from 16% to 36%. 
  • Materials Presently Stored. Procore updates this value from $2,000.00 to $4,500.00.
  • Total Completed & Stored to Date ($). Procore updates this value from $2,000.00 to $4,500.00.
  • Balance to Finish. Procore subtracts the sum of the 'New Materials Stored' value and the 'Previous Material Stored' amount from the 'Scheduled Value' amount. This shows the cumulative decline of the contracted amount. 
    Note: The Work Completed from Previous Application (%) value remains unchanged (see 3).

    second-invoice-new-materials-stored.png

Next, half of the new materials stored on the first invoice were installed on the job site during the current billing period. To address this, the invoice contact takes $1,000.00 from the Previous Materials Stored column (see 1) and moves that $1,000.00 to the Work Completed this Period column (see 2). 

 Note

After you change the entry in the Previous Materials Stored column, the system the system focus jumps to the Work Retainage This Period ($) column. This occurs if the invoice administrator enables the retainage setting on the commitment. To keep to the purpose of billing for stored materials, retainage data entry is not included in this example. However, documentation about retainage is available: 

second-invoice-new-materials-stored.png

After moving the Previous Materials Stored amount to the Work Completed This Period column, Procore considers the entries to calculate these values:

  • Total Completed & Stored to Date (%). Procore keeps the value at 36%. 
  • Materials Presently Stored. Procore keeps the value at $3,500.00.
  • Total Completed & Stored to Date ($). Procore keeps the value at $4,500.00.
  • Balance to Finish. Procore subtracts the sum of the 'New Materials Stored' value and the 'Previous Material Stored' amount from the 'Scheduled Value' amount. This shows the cumulative decline of the contracted amount. 
    Note: The Work Completed from Previous Application (%) value remains unchanged.
Data entry on the third Amount-Based invoice

For the next billing period, the subcontractor receives additional materials, the previously stored materials have been installed. The invoice contact creates their third invoice.

On the third invoice:

  • Procore moves the amount from the New Materials Stored column on the second invoice and adds it to the amount in Previous Materials Stored column (see 1). 

    third-invoice-previous-materials.png
     
  • The invoice contact takes $3,000.00 from the Previous Materials Stored column on the second invoice and moves it to the Work Completed This Period column (see 1) This leaves $500.00 in the Previous Materials Stored column (see 2). 

    third-invoice-previous-materials-to-work-completed.png
     
  • The invoice contact also enters $2,000.00 in the New Materials Stored column (see 1). This represents the new materials received during the current billing period that are now being stored. Procore adds the Materials Presently Stored value to the Previous Materials Stored value (see 2) to calculate the Materials Presently Stored value (see 3). 

    third-invoice-new-materials-plus-previous-equals-stored.png
     
  • Procore also automatically updates the following values on the line item:
    • Total Completed & Stored to Date (%).  Procore calculates the value at 52%.
    • Total Completed & Stored to Date ($). Procore calculates the value at $6,500.00
    • Balance to Finish. Procore subtracts the sum of the 'New Materials Stored' value and the 'Previous Material Stored' amount from the 'Scheduled Value' amount. This shows the cumulative decline of the contracted amount. 

You can continue creating invoices and entering new line item entries until the Balance to Finish value on a line item reaches $0.00. 

Unit/Quantity-Based Data Entry

Learn how to bill for stored materials on invoices when a contract is configured to use the 'Unit/Quantity-Based' accounting method.  

Data Entry on the First Unit/Quantity-Based Invoice

Before data entry, the quantity in the New Quantity column is set to 0 by default on the first invoice.

In this billing period, the subcontractor installed 100 units. An invoice contact enters 100 in the New Quantity column (see 1). Once input, Procore automatically updates the highlighted values on the line item (see 2):

1-unit-qty-contract-first-invoice-new-quantity-entry.png

  • New Value. Procore calculates this value by multiplying the New Quantity amount by the Unit Price. 
  • Total Completed & Stored to Date ($). Procore updates this value from $0.00% to $12,500.00. 
  • Total Completed & Stored to Date (%). Procore converts the entry to a percentage value (20%) to show total progress.
  • Balance to Finish. Procore subtracts the sum of the New Value ($12,5000.00) from the Scheduled Value ($62,500.00). The $50,000.00 balance to finish shows the cumulative decline of the contracted amount. 

Next, the quantity in the New Materials Stored (Qty) column is set to 0 by default on the first invoice. In this billing period, 50 units were stored on the job site. An invoice contact enters 50 in the New Materials Stored (Qty) column. This is the quantity of the materials received and stored on-site. Once input, Procore automatically updates the highlighted values on the line item (see 2):

2-unit-quantity-new-materials-stored.png

  • New Materials Stored ($). Procore calculates the New Materials Stored (Qty) entry by the Unit Price from the subcontract. 
  • Materials Presently Stored (Qty). Procore updates this quantity from 0 to 50. 
  • Materials Presently Stored ($). Procore converts the quantity (50) to a currency amount ($6,250.00).
  • Total Completed & Stored to Date ($). Procore adds $6,250.00 to $12,500.00 and shows $18,750.00. 
  • Total Completed & Stored to Date (%). Procore converts the entry to a percentage value (30%).
  • Balance to Finish. Procore subtracts the sum of the New Value ($12,5000.00) and the New Materials Stored ($) ($6,250.00) from the Scheduled Value ($62,500.00) amount. $43,750.00 shows the cumulative decline of the contract amount. 
Data Entry on the Second Unit/Quantity-Based Invoice

For the next billing period, the invoice contact prepares their second invoice. In all new invoices, the New Quantity is 0 by default (see 1). The Previous Quantity shows the 'New Quantity' submitted on the first invoice (see 2) and the Previous Materials Stored (Qty) shows the 'New Materials Stored (Qty)' from the previous invoice (see 3). 

unit-quantity-second-invoice-before-data-entry.png

Next, perform some additional data entry on the line item.

In this example, the subcontractor installed the 50 units previously stored on the previous invoice. The invoice contact updates the Previous Materials Stored (Qty) entry to 0 and moves that quantity (50) to the New Quantity column (see 1). The subcontractor also received 100 additional units, placing them all into storage. The invoice contact enters 100 in the New Materials Stored (Qty) column (see 2). 

Once input, Procore automatically updates the highlighted values on the line item (see 3):

4-unit-quantity-second-invoice-after-data-entry.png

  • New Value. Procore calculates this value by multiplying the New Quantity amount by the Unit Price. 
  • Previous Materials Stored ($). Procore calculates this value by multiplying the Previous Materials Stored (Qty) amount by the Unit Price. 
  • New Materials Stored ($). Procore calculates the New Materials Stored (Qty) entry by the Unit Price from the subcontract. 
  • Materials Presently Stored (Qty). Procore shows the quantity of the materials presently stored. Procore shows the New Materials Stored (Qty) because they installed all materials stored on the previous invoice. 
  • Materials Presently Stored ($). Procore converts the quantity (100) to a currency amount ($12,500.00).
  • Total Completed & Stored to Date ($). Procore adds the New Value ($6,250.00) from the new invoice, subtracts the Previous Materials Stored  ($6,250.00) from the previous invoice, and then adds the New Materials Stored (Qty)($18,750.00) to calculate the $31,250.00 total. 
  • Total Completed & Stored to Date (%). Procore converts the Total Completed & Stored to Date ($) to a percentage value (50.00%).
  • Balance to Finish. Procore subtracts the sum of the New Value ($6,250.00) and the New Materials Stored ($) ($12,500.00) from the Scheduled Value ($62,500.00) amount. $31,250.00 shows the cumulative decline of the contract amount. 
Data Entry on the Third Unit/Quantity-Based Invoice

For the next billing period, the invoice contact prepares their second invoice. In all new invoices, the New Quantity is 0 by default (see 1). The Previous Quantity shows the 'New Quantity' submitted on the previous invoice (see 2) and the Previous Materials Stored (Qty) shows the 'New Materials Stored (Qty)' from the previous invoice (see 3). 

5-unit-quantity-third-invoice-before-data-entry.png

Next, perform some additional data entry on the line item.

In this example, the subcontractor installed 50 of the units previously stored on the previous invoice. The invoice contact updates the Previous Materials Stored (Qty) entry from 100 to 50 and moves the quantity (50) to the New Quantity column (see 1). The subcontractor also received 50 additional units, placing them all into storage. The invoice contact enters 50 in the New Materials Stored (Qty) column (see 2). 

Once input, Procore automatically updates the highlighted values on the line item (see 3):

6-unit-quantity-third-invoice-after-data-entry.png

  • New Value. Procore calculates this value by multiplying the New Quantity amount by the Unit Price. 
  • Previous Materials Stored ($). Procore calculates this value by multiplying the Previous Materials Stored (Qty) amount by the Unit Price. 
  • New Materials Stored ($). Procore calculates the New Materials Stored (Qty) entry by the Unit Price from the subcontract. 
  • Materials Presently Stored (Qty). Procore shows the quantity of the materials presently stored. Procore shows the New Materials Stored (Qty) because they installed all materials stored on the previous invoice. 
  • Materials Presently Stored ($). Procore converts the quantity (100) to a currency amount ($12,500.00).
  • Total Completed & Stored to Date ($). Procore adds the New Value ($6,250.00) from the new invoice, subtracts the Previous Materials Stored ($) ($6,250.00) from the previous invoice, and then adds the New Materials Stored (Qty)($6,2500.00) to calculate the $37,500.00 total. 
  • Total Completed & Stored to Date (%). Procore converts the Total Completed & Stored to Date ($) to a percentage value (60.00%).
  • Balance to Finish. Procore subtracts the sum of the New Value ($6,250.00) and the New Materials Stored ($) ($6,250.00) from the Scheduled Value ($62,500.00) amount. $25,000.00 shows the cumulative decline of the contract amount. 

Common Questions

Do we have to opt-in to the modernized invoice experiences?

Yes. To bill for stored materials using the methods described, you must opt-in to the modernized experience for owner invoices and subcontractor invoices. To learn more, see About Owner Invoices and About Subcontractor Invoices.

Can we update the 'Stored Materials' setting for the Invoicing tool mid-project? 

Yes. A user with the required user permissions can change the setting that determines how Procore manages stored materials mid-project.

 Note
Procore recommends choosing whether to turn the setting ON or OFF on a contract before your team creates any invoices.

If you choose to turn this setting ON mid-project, an informational message informs you how changing the setting affects your existing contracts. The user making the change must click Update to acknowledge the prompt. 

Example

This is an example of the Update Stored Materials Setting? prompt. 

update-stored-materials-message.png

More

To learn more about owner invoices, see these links: