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Set Retainage on a Subcontractor Invoice as an Invoice Administrator in the Progress Billings Tool

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 Limited Release
flag-us.png The Progress Billings tool is only available to Procore customers in the United States who have implemented the Procore for Specialty Contractors point-of-view dictionary. To learn more, see (Limited Release) Owners & Specialty Contractors Point-of-View Dictionary Options. 

Objective

To set retainage on a subcontractor invoice as an invoice administrator from the Progress Billings 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:
    • 'Admin' level permissions on the project's Commitments tool.
       Note
      If you are the 'Invoice Contact' who works for the 'Contract Company' (the person or company performing the work), you do NOT have the ability to set retainage on a contract. However, you can request to release retainage on an invoice. For instructions, see Request to Release Retainage on an Invoice as an Invoice Contact.
  • Additional Information:
    • To set retainage on a subcontractor invoice, the invoice must be in the 'Draft' status. 
    • 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. 
    • For customers in Australia flag-australia.png, you can also manage withholding using the sliding scale retention feature. To learn more, see What is sliding scale retention?

Prerequisites

Steps

  1. Navigate to the project's Progress Billings tool. 
  2. Click the Subcontractor tab. 
  3. Locate the invoice that you want to work with. Then click the Invoice # link to open it.  
     Note
    To set retainage on a subcontractor invoice, the invoice must be in the 'Draft' status. 
  4. Choose between these options:

Set Retainage on All Line Items

To set the same retainage percentage on all of the invoice's line items, do the following in the 'Set Retainage on All Line Items' boxes in the sidebar. 

Set Retainage for Work Completed

  1. In the invoice click the Detail tab.
  2. Click the Edit button. 
  3. In the invoice's sidebar, enter a percentage value in the Work Completed box.

    set-retainage-work-completed.png
     
  4. Click the Set button. 
  5. In the confirmation dialog box that appears, click OK. 
    In a few moments, the 'Line Items' table refreshes to show the updated percentage in the 'Work Retainage' column.
  6. Repeat the steps above for any other line items. 
  7. Save your updates using one of these options:
    • To save the invoice, click  Save. 
    • To save the invoice and place it in the 'Under Review' status, click Submit for Review.  
Example

After you update the percentage, Procore updates the 'Work Retainage' columns in the 'Line Items' table of the invoice: 

  • The '%' column updates to show the 5% entered in the steps above. 
  • The '$' column automatically calculates the amount to be withheld on each line item. The amount in this column is 5% of the amount entered in the 'Work Completed - This Period' column of the invoice. 

The illustration below shows you how the column data is updated in the 'Line Items' table. 

line-items-work-retainage-set.png

Set Retainage for Materials Stored

  1. In the invoice click the Detail tab.
  2. Click the Edit button. 
  3. In the invoice's sidebar, enter a percentage value in the Materials Stored box.

    set-retainage-materials-stored-percent.png
     
  4. Click the Set button. 
  5. In the confirmation dialog box that appears, click OK. 
    In a few moments, the 'Line Items' table refreshes to show the updated percentage in the 'Work Retainage' column.
  6. Repeat the steps above for any other line items. 
  7. Save your updates using one of these options:
    • To save the invoice, click  Save. 
    • To save the invoice and place it in the 'Under Review' status, click Submit for Review.  
Example

After you update the percentage, Procore updates the 'Materials Retainage' columns in the 'Line Items' table of the invoice: 

  • The '%' column updates to show the 5% entered in the steps above.
  • The '$' column automatically calculates the amount to be withheld on each line item. The amount in this column is 5% of the amount entered in the 'Materials Presently Stored' column of the invoice. 

The illustration below shows you how the column data is updated in the 'Line Items' table. 

line-items-work-retainage-columns.png

Set Retainage on Specific Line Items

If you want to set different retainage amounts on specific line items, choose from these options:

Set Work Retainage on Specific Line Items

  1. In the invoice, click the Detail tab. 
  2. Click the Edit button. 
  3. In the 'Line Items' table, locate the line item to update. 
  4. Scroll to the 'Retainage' columns.
  5. Under the 'Work Retainage' section in the % column on the line item, enter the percentage value. 
    Procore automatically updates the dollar amount that appears in the $ column.
  6. Repeat the steps above for any other line items. 
  7. Save your updates using one (1) of these options:
    • To save the invoice, click  Save. 
    • To save the invoice and place it in the 'Under Review' status, click Submit for Review.  
      Example

      In this example, we changed the entry in the % column from 5% to 10% in a single line item. Note how Procore automatically updated the withholding amount from the previous 'Work Retainage' example above from $25.00 to $50.00.

      work-retainage-single-line-item.png

Set Materials Retainage on Specific Line Items

  1. In the invoice, click the Detail tab. 
  2. Click the Edit button. 
  3. In the 'Line Items' table, locate the line item to update. 
  4. Scroll to the 'Retainage' columns.
  5. Under the 'Materials Retainage' section in the % column on the line item, enter the percentage value. 
    Procore automatically updates the dollar amount that appears in the $ column.
  6. Repeat the steps above for any other line items. 
  7. Save your updates using one (1) of these options:
    • To save the invoice, click  Save. 
    • To save the invoice and place it in the 'Under Review' status, click Submit for Review.
Example

In this example, we changed the entry in the '%' column from 5% to 10% in a single line item. Note how Procore automatically updated the withholding amount in the '$' column from the previous 'Materials Retainage' example above from $25.00 to $50.00.

materials-retainage-single-line-item.png