How Stored Materials move into Work Complete - AIA invoicing

'Stored Materials' is a term used to describe materials or costs that have been invested into a job/ line item, but are not actively being used yet. The most common example of stored materials are purchasing materials such as cement, piping, or sod for a job, and storing them in a warehouse until they are ready to be used.

In the example below there is a line item for Wire run/ Concealment.  On the first invoice, we are billing for $50 in stored materials we had to purchase (wire, wall plates, etc.) There is nothing in the column for completed work, as no work was done on this first invoice, we only bought the materials. 

When we create the invoice, there will be a payment due of $50. Even though no work has been done, we are still billing the client for the materials we purchased on their behalf. These materials will be used on the job before it's completion.

On our second pay app, we performed $100 worth of work on this project. We also used up the $50 worth of materials we already purchased.  Because we are now using the materials we had stored, our stored materials column gets reduced to zero, and $50 is added to Completed Work, along with the new work done. This is to denote everything that was done in this billing cycle:

Even though the Stored Materials are shown under Completed Work for this period, you will find that they do not increase the current payment due, as they have already been billed for. In our example we are only charging $100 for the new work done. The other $50 for stored materials has already been billed:

On the third pay app, before we have entered or changed any information, we can see there is now $150 in the "Previously Billed" section, as this includes both the stored materials from invoice 1, and the work from invoice 2. 

From this point, we continue invoicing the remainder of the job as needed, increasing the value in Stored Material and Completed Work as needed

Tip

Some users and GCs prefer for stored materials to move directly into Previously Billed once invoiced for, without first appearing under the 'Completed Work' column of an AIA invoice. While Knowify does not have an automated way to do this, you can accomplish the same result using the following method:    

• Create your invoice with stored materials normally. Finalize and send to client as needed
• Create a buffer invoice by moving only Stored Materials into Completed Work, finalize but do not send to Client/ GC.
• Create your next invoice normally using the desired values for Work complete and Stored Materials. The stored materials from the first invoice will have now fully processed over into 'Previously billed'. This invoice can be finalized and sent to client/GC as needed