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Procore

Create a Payment Application (Pay App)

Objective

To create a payment application (pay app) for work completed, which can then be emailed to the owner. 

Things to Consider

  • Required User Permissions:
    • To create a payment application, 'Admin' level permission on the Prime Contract tool.
    • To view the Detail tab on a payment application, 'Read-Only' or 'Standard' level permission on the Project level Prime Contract. For details, see Grant Granular Permissions in a Permission Template.
  • Additional Information:
    • You can only create a payment application if the status of the Prime Contract is either "Approved" or "Complete."
    • When you enter a value for a payment application that is larger than the scheduled value, the payment application will be highlighted in red.
    • You can only edit the billed amounts on the most recent payment application.
    • In order to copy Requisition and Direct Cost amounts from the Commitment Billing Period to the payment application the following things must be true:
      • Prime Contract must be Amount Based. See How do I determine my accounting method?
      • Direct Cost amounts must have a status of 'Approved.'
      • The Direct Cost "Received Date" must fall within the Commitment Billing Period Start and End dates.
      • Only Direct Costs from Procore's Direct Costs tool will copy. ERP Direct Costs will not copy.
      • Requisitions must have a status of 'Approved,' 'Approved as Noted,' and 'Pending Owner Approval."
      • The Pay App should have one line item with either the cost code and cost type that matches the Requisition and/or direct Cost line item, or the Division as the cost code that the Requisition and/or Direct Cost line item cost code is tiered under. For example, if the requisition line item is 03-300, and the Pay App is line item Division 03, the 03-300 amount will copy to the Division 03 line item.
        • If the Pay App has multiple line items with the same cost code and cost type, Procore will duplicate the requisition and/or direct cost line item amount onto both Pay App lines, doubling the amount on the Pay App.
      • Once the Pay App is created, there is currently no option to copy Requisition or Direct Costs at a later time for that same Pay App (other than manually entering in the amounts).
      • Both Requisitions and Direct Costs amounts will copy only. If they are revised in the Requisition and Direct Cost after they are copied into the pay App, the Pay App will not update with the revised amounts.
      • If you choose to compile your Requisition backup (See Compile Requisition Backup), the compiled backup will be attached to your Payment Application. The compiled requisition backup will also include the DocuSign version of the PDFs if DocuSign is being used. 
      • The Prime Contract and Commitments accounting method must be Amount Based. See How do I determine my accounting method?
    • Commitment Change Order billed amounts do not copy from the Requisition to the Pay App. 

Steps

  1. Navigate to the project's Prime Contract tool.
  2. Click the Create Pay App button.
  3. Complete the form with the appropriate values.
    • Period Start: Select a start date you are creating the payment application for.
    • Period End: Select an end date you are creating the payment application for.
    • Invoice #: Specify the invoice number associated with the pay app.
    • Billing Date: Select the date you are requesting payment by.
    • Percent Complete: Denotes the percent of work completed.
    • Status: Select one of the following statuses: Draft, Under Review, Revise and Resubmit, or Approved. After creating the pay app, you can change the status to "Under Review" when it is ready for review and can update it to "Approved" or "revise and Resubmit" accordingly. 
    • Commitment Billing Period: Select the commitment billing period for the payment application. 
    • Attachments:  If Step 4 below is confirmed, the Requisition PDFs and any Requisition and Direct Cost PDF attachments from the selected commitment billing period will combine into a single PDF, which you will see here. 
  4. Click Create. You will be prompted to confirm that you want the payment application to pre-populate with amounts billed per division or cost code from our commitment requisition work complete and materials presently stored columns and direct costs. If confirmed, this pulls in Requisitions and Direct Costs amounts for the selected Commitment Billing PEriod, as well as adds attachments as referenced above. 
  5. Scroll down the page to view a preview of the pay app form under "Summary Preview."

Edit Line Items

  1. Click the Detail sub tab.
    Note: Users with 'Read-Only' or 'Standard' level permission on the Project level Prime Contract tool can only view the Detail tab if granted the 'View Payment Application Detail' granular permission. For details, see Grant Granular Permissions in a Permission Template.
  2. Click the Edit button.
  3. You can then fill out the following fields for effected line items:
    • Work Completed (This Period): Requisition amounts (From Work Completed (This Period) in Reqs) and Direct Costs amounts will be copied here if you confirmed the pre-fill option in Step 4 above.
    • Materials Presently Stored: Requisition amounts (from Materials Presently Stored in Requisitions) will be copied here if you confirmed the pre-fill option in Step 4 above. 
    • Work Retainage Retained this Period: Enter a percentage or dollar amount for work retainage retained this period. You can also set retainage on all line items by entering a value into the right sidebar and clicking Set.
    • Materials Retainage Retained this Period: Enter a percentage or dollar amount for materials retainage retained this period. You can also set retainage on all line items by entering a value into the right sidebar and clicking Set
    • Work Retainage $ Released This Period: Enter a dollar amount of work retainage released this period.
  4. (Optional) If you have any approved contract change orders, you can choose to add them to the pay app by scrolling to the bottom of the page and clicking the Add to Payment Application button. 
    The entry and editing of the change orders will always occur at the line item level of detail. You can select a different level of detail for how change orders will be displayed on the detail page of the Payment Application when being viewed or exported from Procore. See Edit Advanced Settings subtab in Prime Contract.
    No requisition values will copy to the change orders.
  5. Click the Save button at the top of the tab.
    All changes will be reflected Contract Summary Report in the General subtab.

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