How do I set the accounting method for a contract or funding?

In Procore, the accounting method on a client contract, funding, prime contract, purchase order, or subcontract can be set to one of the following:

• Amount Based
  Choose this method to enter a lump sum amount for a line item on a Schedule of Values (SOV).

• Unit/Quantity Based
  Choose this method when ordering materials in quantity. With this method, users enter a quantity and unit price for the line item on your SOV and Procore automatically calculates the total for the line item for you.

When setting the accounting method for a contract, there are several things to consider:

When can I configure the accounting method?

Always configure the accounting method before you add line items to a Schedule of Values. Once line items are added, you cannot change the accounting method.

Who can configure the accounting method?

Depending on the contract type, users with 'Admin' level permissions on the tool can configure the accounting method.

How do I configure the accounting method?

You can configure the default accounting method for these Procore tools:

You can also configure the default accounting method on an individual contract

How does a contract's accounting method affect change orders?

A change order always uses the same accounting method configured in the funding, prime contract, purchase order, or subcontract. Contracts, fundings, and change orders cannot use different accounting methods:

• If a purchase or subcontract is set to Unit/Quantity Based, all Commitment Change Orders for that purchase order must be Unit/Quantity Based. You cannot have an Amount Based CCO when a contract is Unit/Quantity Based.

• If a prime contract is Unit/Quantity Based, all Prime Contract Change Orders for that contract must be Unit/Quantity Based. You cannot have an Amount Based PCCO when a contract is Unit/Quantity Based.

How does a contract's accounting method affect data exports?

When you export an individual client contract, funding, prime contract, purchase order, subcontract, or change order, Procore exports only the fields that are relevant to the accounting method set on the contract. For example, if you have an Amount Based contract, the unit- and quantity-related fields cannot be exported. This is also true for change orders and invoices related to that contract.

What do I need to consider with Unit/Quantity Based accounting method?

If you decide you want to use the Unit/Quantity Based accounting method, keep the following in mind:

• The Subcontractor SOV tab is NOT available.

• The 'Materials Presently Stored' column is NOT included on the contract's invoice.

• You can use the 'Subtotal Override' option on a line item to use the Amount Based accounting method on that line item.

  • When the override option is ON, the invoices for the contract will bill for the dollar amount.

  • When the override option is OFF, the invoices for the contract will bill for quantities.