How do I bill for stored materials in a subcontractor payment application?
Answer
Billing for stored materials is a way to payment application a buyer for part of a contract's value before completing the work. Allowing your subcontractors to bill you for stored materials gives your subcontractors the ability to purchase the materials they need, so it will be on hand when they start doing the working on your project. As work on the project progresses, the payment application contact can then reduce the amount in the 'Stored Materials' column until it reaches zero ($0.00) when the project is complete.
In order to bill for stored materials in a subcontractor payment application, there are two prerequisites that must be completed by the payment application administrator at the contract-level:
- Ensure the accounting method on the commitment contract is set to 'Amount Based'. See How do I set the accounting method for a commitment or main contract?
- Enable one of the stored materials settings in the 'Advanced Settings' tab of each commitment contract. See How do I enable billing separately for stored materials on an payment application?
How do I enable billing separately for stored materials on an payment application?
Before creating a subcontractor payment application in Procore, an payment application administrator has the option to turn an 'Enable Billing Separately for Stored Materials' check box at the contract level. This setting resides on the contract's 'Advanced Settings' tab and provides the payment application administrator with a way to control how the 'New Materials' column behaves from payment application to payment application. Payment Application contacts do not have the ability to change this setting in Procore.
What are my configuration options when billing separately for stored materials?
If you are an payment application administrator and have an payment application contact who will be billing your project team separately for stored materials, you will have the option to enable separate billing for stored materials. To enable the setting, place a checkmark in this box. To disable the setting, remove the checkmark. By default, this setting is turned OFF.
When you mark the new checkbox, the Invoicing tool automatically sets the value of the entry in the 'New Materials' column to zero (0) on the first payment application so that the payment application contact can update the entry to the appropriate value. It also adds a 'Materials Stored' column to the right of the 'New Materials' column. When a subsequent payment application is created, the value entered in the 'New Materials' column is reset to zero (0), and the value previously entered in the 'New Materials' column is automatically moved to the 'Materials Stored' column.
Example: New Materials Move to a Materials Stored Column
January Payment Application. An payment application contact creates a new subcontractor payment application. On this payment application, the 'New Materials' value on BOQ line items will start at $0.00. An payment application contact enters $1,000.00 in the 'New Materials' column on the first BOQ line item, as shown below.
February Payment Application. When the payment application contact creates a new payment application in February, note how the $1,000.00 entered in the 'New Materials' column on the January payment application is moved to the 'Materials Stored' column in the February payment application.
