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About Stored Materials on Progress Claims (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 worksite. 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, progress claims 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 a progress claim 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 head contract are clear about how to bill for stored materials. 

Teams using the Procore Progress Claim Management solution can manage stored materials manually or enable a configuration option that moves balances from the 'Materials Presently Stored' column on a previous progress claim to the 'Work Completed from Previous Application' column on the next progress claim. 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:

You also need to:

Step On head contract progress claim... On subcontractor progress claims...
Opt into the modernised progress claim experience About Head Contract Progress Claim About Subcontractor Progress Claims
Create a contract Create Head Contracts Create a Commitment 1
Create a progress claim Create Head Contract Progress Claim Create a Subcontractor Progress Claim

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

When your team creates owner or subcontractor progress claims, 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 progress claim. 

Limitations

Please be aware of the following limitations: 

  • Procore always uses the same accounting method for a contract and its progress claims. If you choose an Amount-based contract, Procore generates Amount-based progress claims. Similarly, a Unit/Quantity-based contract generates Unit/Quantity-based progress claims.
  • Once line items are added to a head contract's Schedule of Values, the accounting method for the head contract and its progress claims cannot be modified. See Create Head 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 head contract to bill for stored materials on a progress claim. You can also configure the accounting method for purchase orders and subcontracts created with the Project-level Commitments tool. Procore applies the setting you choose to the contract and any progress claims 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 progress claims. 
  • Unit/Quantity-Based. Enter a quantity and unit price for line items on the contract's Schedule of Values and the contract's progress claims. 
 Tip
Managing tenders in Procore? You can set the accounting method for the Project-level Tendering tool. To learn more, see How do I set the accounting method for tenders?
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 head 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

Head Contracts

A user creating a head 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 head contract's Schedule of Values. To learn more, see Create Head Contracts.

prime-contracts-default-acctg-method.png

Configure the Stored Materials Settings for a Commitment

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

Example

This is an example of the 'Stored Materials' setting on a contract. This setting is available on the Commitments tool. To enable the option, mark the 'Enable Progress Claims' check box and then the 'Enable Billing Separately for Stored Materials' check box.

If your progress claims must account for retention, your team also has the option to mark the 'Enable Stored Material Retention' check box. To configure subcontractor progress claims to enter retention, see Enable Retention on a Purchase Order or Subcontract. 

enable-stored-materials.png

Configure Stored Materials Settings for the Invoicing Tool

A team member with 'Admin' level permissions on the Commitments tool can update the Stored Materials settings on the Project-level Invoicing tool.  When toggled ON, Procore automatically moves the amount entered in the 'Materials Presently Stored' column on the previous progress claim's Schedule of Values to the 'Work Completed from Previous Application' column on the next progress claim. 

 Note
For best results, Procore recommends configuring this setting before your team creates progress claims on a project. However, you can change this setting mid-project as shown in this example. 
Example

This is an example of the 'Stored Materials' setting on the Project level Invoicing tool. 

invoicing-stored-materials-setting.png

If you 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.

update-stored-materials-message.png

 

Amount-Based Data Entry

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

Data entry on the first Amount-Based progress claim

For the contract's first progress claim, 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 progress claim 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 progress claim administrator(s). Procore takes the Programd Value amount and subtracts the New Materials Stored amount to calculate the balance to finish). Note: In subsequent progress claims, 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 progress claim

For the next billing period, the progress claim contact prepares their second progress claim. In all new progress claims, 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 progress claim to the Previous Materials Stored column on the current progress claim (see 1 to 2). Before making additional data entry, note that the highlighted values (see 3) match the first progress claim (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 worksite (or in a storage facility). The progress claim 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 progress claim were installed on the worksite during the current billing period. To address this, the progress claim 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 Retention This Period ($) column. This occurs if the progress claim administrator enables the retention setting on the commitment. To keep to the purpose of billing for stored materials, retention data entry is not included in this example. However, documentation about retention 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 progress claim

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

On the third progress claim:

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

    third-invoice-previous-materials.png
     
  • The progress claim contact takes $3,000.00 from the Previous Materials Stored column on the second progress claim 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 progress claim 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 progress claims 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 progress claims when a contract is configured to use the 'Unit/Quantity-Based' accounting method.  

Data Entry on the First Unit/Quantity-Based Progress Claim

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

In this billing period, the subcontractor installed 100 units. A progress claim 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 Programd 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 progress claim. In this billing period, 50 units were stored on the worksite. A progress claim 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 Programd Value ($62,500.00) amount. $43,750.00 shows the cumulative decline of the contract amount. 
Data Entry on the Second Unit/Quantity-Based Progress Claim

For the next billing period, the progress claim contact prepares their second progress claim. In all new progress claims, the New Quantity is 0 by default (see 1). The Previous Quantity shows the 'New Quantity' submitted on the first progress claim (see 2) and the Previous Materials Stored (Qty) shows the 'New Materials Stored (Qty)' from the previous progress claim (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 progress claim. The progress claim 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 progress claim 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 progress claim. 
  • 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 progress claim, subtracts the Previous Materials Stored  ($6,250.00) from the previous progress claim 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 Programd Value ($62,500.00) amount. $31,250.00 shows the cumulative decline of the contract amount. 
Data Entry on the Third Unit/Quantity-Based Progress Claim

For the next billing period, the progress claim contact prepares their second progress claim. In all new progress claims, the New Quantity is 0 by default (see 1). The Previous Quantity shows the 'New Quantity' submitted on the previous progress claim (see 2) and the Previous Materials Stored (Qty) shows the 'New Materials Stored (Qty)' from the previous progress claim (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 progress claim. The progress claim 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 progress claim 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 progress claim. 
  • 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 ($6,250.00) from the new progress claim, subtracts the Previous Materials Stored ($) ($6,250.00) from the previous progress claim 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 Programd 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 modernised progress claim experiences?

Yes. To bill for stored materials using the methods described, you must opt-in to the modernised experience for head contract progress claim and subcontractor progress claims. To learn more, see About Head Contract Progress Claim and About Subcontractor Progress Claims.

More

To learn more about head contract progress claim, see these links: