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 or enable a configuration option that moves balances from the 'Materials Presently Stored' column on a previous invoice to the 'Work Completed from Previous Application' column on the next invoice. 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?