How do percentage based funding rules impact contract line items?

In Procore's Funding Sources tool, percentage-based funding rules automatically calculate cost allocations across multiple capital sources, such as grants, bonds, or loans. Applying these rules directly to line items on contracts and commitments removes the need for manual spreadsheet calculations and provides clear, real-time visibility into how project capital is distributed.

Applying a percentage based funding rule to a contract or commitment line item automatically splits that line item's cost across the assigned funding sources according to the defined percentages. Balances update automatically at the point of approval, establishing an auditable record from capital origin to spend.

• Funding Contracts (Prime Contracts & PCCOs): Applying a funding rule to line items on a funding contract or change order updates the Total Appropriated balance for the referenced funds once approved.

• Commitments (Subcontracts, POs & CCOs): Applying a funding rule to commitment line items updates the Total Committed balance for those funds upon approval.

• Percentage Requirements: Rule splits can include up to 100 rules per project, support up to two decimal places, and must sum to exactly 100%.

• Penny Rounding Logic: If a percentage split results in a fractional cent, the remaining penny is automatically allocated to the funding source with the highest percentage. If percentages are tied, the penny goes to the tied source listed first in the rule.

• Rule Updates and Re-calculations: Changing a rule's percentage split updates draft objects upon approval, but existing approved contracts maintain their original calculations to preserve financial history.

• Required Permissions: Applying or updating funding rules requires appropriate project level granular permissions, such as Update funding rules on the schedule of values for prime contracts or object specific permissions on commitments.