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About the Compliance Tab on Subcontractor Invoices with Procore Pay

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Overview

Payors with Procore Pay can directly manage required documents on subcontractor invoices using the controls in the Compliance tab of subcontractor invoices. This helps your team ensure that every payment is contractually sound. The controls in this tab integrate with the Payment tool's compliance templates, which can be configured in the Payment Requirements. See Manage Payment Requirements as a Payor.

Here are the benefits of managing compliance documents on invoices:

  • Ensure contract and invoice compliance: Track agreements, licenses, and permits to meet all contractual obligations.
  • Reduce financial risk: Verify document status before payment, minimizing potential disputes and financial setbacks.
  • Streamline compliance workflow: Configure and manage required documents within the invoice submission process, saving time and effort.
  • Improve payment accuracy: Link compliance to payment requirements, eliminating errors and ensuring accurate payments.
  • Maintain visibility of payment readiness: Gain complete visibility of compliance status, empowering informed payment decisions.
  • Pay subcontractors with confidence​​​​​​. Know that every payment requirement is met before paying an invoice. 

Considerations

Before you get started, consider the following. 

Things to Consider

  • To configure the compliance templates feature in the Payments tool, you must be a Company Admin for the payor.
  • To complete actions in the Compliance tab of a subcontractor invoice, you must have invoice administrator permissions on the Commitments tool in the payor's Procore project. For Procore Pay payees, invoice contacts can only complete specific actions with the payor's permission. For details about specific actions, see Procore Pay Permissions.  
 

Details

The Compliance tab on a subcontractor invoice in Procore Pay includes several key features designed to streamline the management of compliance documents during the invoice process.These features collectively help ensure that all compliance-related requirements are efficiently managed, reducing the risk of payment delays due to missing or incomplete documentation.

Collect Required Compliance Documents During Invoice Submission

Payors can collect any required compliance documents from your payees during invoice submission. For example, collecting a W-9 is often contractually required for tax compliance and accurate record-keeping. Invoice administrators can perform these actions to ensure payment requirements are met and verified on project invoices from the Commitments or Invoicing tool. Payments Admins and Disbursers with invoice administrator permission can also verify the requirements before invoice approval and payment from the Payments tool. Invoice contacts may also be able to perform these actions with the payor's permission. 

To learn more, see:

Examples

This shows you the Compliance tab on a subcontractor invoice.

collect-required-documents.png

Review Submitted Compliance Documents

Once the required compliance documents have been submitted, users with invoice administrator permissions on a project can manually add or remove compliance documents as needed. Note that any manual changes do not carry over to future invoices. 

Example

This shows you the Review button on the Compliance Documents tab of a subcontractor invoice. 

review-compliance-doc-on-invoice.png

Configure the Required Compliance Documents for Project Invoices with Compliance Templates

Company Admins can create compliance templates to manage required documents on Procore projects. Once created, they can also determine which compliance documents are required for a project or invoice by adding to the template. This helps teams standardize their compliance processes across Procore projects. For details, see:

Example

This shows the Create New Requirement page in the Company level Admin tool. 

create-new-requirement-warranty.png

Configure Compliance Documents as a Soft or Hard Payment Requirement

Payments Admins for the payor can configure the 'Invoice Compliant' requirement as a soft or hard stop requirement, providing flexibility in how compliance impacts payment processing. You also have the option to waive the requirement. To learn how, see Configure Payment Requirements as a Payor.

Example

This shows you the 'Invoice Compliant' setting on the Payment Requirements page in the Payments tool. 

payment-settings-invoice-compliant.png

Know When Invoice Payment Requirements are Met

Payments Admins and Disbursers for the payor can see when compliance requirements are met in the Subcontractor Invoices tab Payments tool. Tracking requirements is crucial for informed payment decisions. To learn how other users can view payment requirements, see View Payment Requirements.

Example

This shows you the payment requirements in the Subcontractor Invoices tab of the Payments tool. 

click-payment-requirements-link.png

 

Required User Permissions

Create Templates

  1. Navigate to the Company level Admin tool. 
  2. Under Tool Settings, choose the option available in your project:
    • Click the Contracts tab.
      OR
    • If you have the Change Management tools enabled, click the Contracts and Change Orders tab.
  3. Click the Compliance Templates tab.
    create-compliance-template.png
  4. Click Create Template. 
    This opens the Create Template prompt.
  5. In the Create Template prompt enter a unique name in the Template Name box. 
    create-template-modal.png
  6. Click Create. 
    The template opens on a new page. The General tab is active.

Add Requirements

  1. Navigate to the Company level Admin tool. 
  2. Under Tool Settings, click Contracts.
  3. Click Compliance Templates.
  4. Locate the template to update and choose one of these options:
    • Manage. Click this button to open the template.
      OR
    • Template Name. Click this button to open the template. 
  5. In the General tab, scroll to the Required Compliance Documents card, click Add Requirement.
    This opens the Create New Requirement window. 
  6. In the Document Details card, do the following:
    • Document Type. Choose an option from the list: Bond, Closeout, License, Master Agreement, Other, Payroll, Permit, Project Insurance, Safety, Stored Material, or W-9.
    • Document Name. Type a name for the document. 
  7. In the Criteria card, choose the Collect At requirement to determine if Procore Pay tracks the requirement:
    • Commitment. Assign this to a Purchase Order, Subcontract, or both Subcontract & Purchase Order. To get email alerts for upcoming or past document expirations, mark the checkbox.
      OR
    • Invoice. Choose the commitment type. Then, set the billing cycle: First Billing, Every Progress Billing, or Final Billing.   
      Example

      This example requires a warranty for the subcontractor's final bill.

      create-new-requirement-warranty.png

  8. Click Create.
  9. Repeat these steps to add more requirement documents to the template.

Edit Requirements

  1. Navigate to the Company level Admin tool. 
  2. Under Tool Settings, choose the option available in your project:
    • Click the Contracts tab.
      OR
    • If you have the Change Management tools enabled, click the Contracts and Change Orders tab.
  3. Click Compliance Templates.
  4. Locate the template to update and choose one of these options:
    • Manage. Click this button to open the template.
      OR
    • Template Name. Click this button to open the template. 
  5. (Optional) In the General Information card, click Edit to change the template name. Then click Save. 
  6. In the Required Compliance Documents card, find the requirement to update and click Edit.
    This opens the Edit Requirement panel. 
  7. In the Document Details card, do the following:
    • Document Type. Choose an option from the list: Bond, Closeout, License, Master Agreement, Other, Payroll, Permit, Project Insurance, Safety, Stored Material, or W-9.
    • Document Name. Type a name for the document. 
  8. In the Criteria card, choose the Collect At requirement to determine if Procore Pay tracks the requirement:
    • Commitment. Assign this to a Purchase Order, Subcontract, or both Subcontract & Purchase Order. To get email alerts for upcoming or past document expirations, mark the checkbox.
      OR
    • Invoice. Choose the commitment type. Then, set the billing cycle: First Billing, Every Progress Billing, or Final Billing. 
  9. Click Save.
    A green success banner appears to confirm the update. 
  10. Repeat the steps above to update other requirements.
     

Delete Requirements

  1. Navigate to the Company level Admin tool. 
  2. Under Tool Settings, click Contracts.
  3. Click Compliance Templates.
  4. Locate the template to update and choose one of these options:
    • Manage. Click this button to open the template.
      OR
    • Template Name. Click this button to open the template. 
  5. In the Required Compliance Documents card, locate the document to delete and click the trash can icon-delete-trash6.png icon. 
    delete-compliance-document.png
  6. In the Delete Compliance Requirement? prompt, click Delete.
    A GREEN success banner confirms the delete action.
     Caution

    The compliance requirement cannot be restored to the template ones its deleted. This modification only affects new commitments (or invoices) on projects configured to use this compliance template.

  7. Repeat the steps above to delete any additional compliance documents from the template.
     Notes
    • Deleting a requirement from a template does NOT remove the requirement from any existing commitments or invoices.
    • As an invoice administrator, you can delete any requirement from an project commitment or invoice, whether it originated from a template or not.

Set Payment Requirements

  1. Navigate to the Company level Payments tool. 
  2. Click the Payments Settings icon-settings-gear-android.png icon. 
    This opens the Payments Settings page. 
  3. Click the Payment Requirements tab. 
  4. Click Payment Requirements. 
  5. Choose one (1) option for each requirement:
    • Not Required. Doesn't track the payment requirement. 
    • Required but Allows Payment. Alerts users about unsatisfied payment requirements but lets them send payments. 
    • Required and Prevents Payment. Alerts users about unsatisfied payment requirements and prevents them from sending payments. 
  6. Configure the options in each section as desired:

Available Payment Requirements

Option When ON... When OFF... Learn More
Holds Released Tracks the status of any payment holds applied to invoices. Holds must be released before payment.  Doesn't track invoices for payment holds.  Manage Payment Holds as a Payor
Commitment Executed Tracks the commitment associated with the invoice to ensure a check mark appears in the 'Executed' box. Doesn't track the 'Executed' state on the commitment. Create a Commitment

Edit a Commitment

Contract Compliant

 Tracks the status of the contract compliance documents for the commitment.  Doesn't track the compliance status of the insurance certificates Manage Contract Compliance Documents & Statuses for a Commitment
Change Orders Executed Tracks change orders that impact the contract associated with the invoice and require them to be in the 'Executed' state.  Doesn't track change orders.  Create a Change Order

 Insurance Compliant

 Tracks the status of the insurance certifications for the commitment.  Doesn't track the compliance status of the insurance certificates.  Manage Insurance & Compliance Statuses for a Commitment
Invoice Approved Tracks invoices to ensure they are in one of these statuses: Approved, Approved as Noted, and Pending Owner Approval. See What are the default statuses for Procore invoices?  Doesn't track invoice status.  Bulk Edit the Status of Subcontractor Invoices with the Invoicing Tool
Invoice Compliant Tracks required compliance documents on subcontractor invoices. Doesn't track invoice status.  Add Required Compliance Documents to Compliance Templates
Owner Funding Received Tracks the 'Payment Received' entries for owner invoices with the 'Current Payment Due' for the invoice billing period to ensure the owner invoice is fully paid before paying subcontractor invoices. Doesn't track 'Payment Received' entries on owner invoices or compare values on the subcontractor invoice. Create a Record for a Payment Received
Sync to ERP Tracks the invoice to ensure it is synced with an integrated ERP system.  Doesn't track invoice syncing with ERP ERP Integrations
First-Tier Conditional Lien Waiver Signed Tracks first-tier signatures on conditional lien waivers on your invoices.

Note: Only appears on an invoice when the requirement is enabled on its project. See Enable Lien Waiver Templates on a Project.		 Doesn't track signatures Create Lien Waiver Templates
First-Tier Unconditional Lien Waiver Signed Tracks first-tier signatures on unconditional lien waivers for your invoices. 

Note: Only appears on an invoice when the requirement is enabled on its project. See Enable Lien Waiver Templates on a Project.		 Doesn't track signatures Create Lien Waiver Templates

First-Tier Unconditional Unlocked for the Previous Invoice

 Tracks first-tier signatures on unlocked unconditional lien waivers for the commitment's previous invoices.

Notes: Only appears on an invoice when the requirement is enabled on its project. See Enable Lien Waiver Templates on a Project.		 Doesn't track signatures An invoice administrator can Send a Request to Unlock a Signed Unconditional Lien Waiver.

An unconditional lien waiver can only be unlocked by an invoice contact. See Unlock a Signed Unconditional Lien Waiver as an Invoice Contact.
Sub-Tier Waivers Tracks when sub-tier waivers are in the 'Approved' status. This requirement will not exist on projects that has disabled sub-tier waivers.

Note: If sub-tier waivers are disabled on a project, this requirement won't appear. See Enable the Sub-Tiers Card & Add Instructions on Project Invoices.		 Doesn't track signatures  Manage Sub-Tier Waivers

Assign Template to Project

  1. Navigate to the Company level Admin tool. 
  2. Under Tool Settings, click Contracts.
  3. Click Compliance Templates. 
  4. Under Compliance Templates, locate the template to assign to a project.
  5. Click the link for the desired template in the Assign to Projects column. 
    This opens the Assign Templates to Projects prompt. 
  6. Choose one of these options:
    • To select all projects, mark the check box in the Project column.
    • To select individual projects, mark the checkboxes that correspond to the desired projects.
      assign-templates-to-projects.png 
  7. Click Assign.
    A GREEN banner indicates a successful assignment. Once assigned, Procore generates the template's insurance and contract compliance requirements on all new commitments. 

Upload Compliance Docs

  1. Open a subcontractor invoice from the Commitments, Invoicing, or Payments tool. The tool you use depends on your permissions. 
  2. Click the Compliance tab. 
  3. Click Upload. 
  4. In the Document Details pane, do the following:
    • Attachments. Click Attach Files or drag and drop file(s) to the attachments area. 
    • Document Type. Select a document type from the list: Bond, Closeout, License, Master Agreement, Other, Payroll, Permit, Project Insurance, Safety, Stored Material, or W-9. 
    • Document Name. Type a name for the document. 
    • Effective Date. Select or enter the effective date. 
    • Expiration Date. Select or enter the expiration date. 
  5. Click Save. 
    This changes the document status from Not Submitted to Submitted. 

Add Compliance Docs

  1. Open a subcontractor invoice from the Commitments, Invoicing, or Payments tool. 
  2. Click the Compliance tab. 
  3. Click Create New. 
  4. In the Document Details pane, do the following:
    • Attachments. Click Attach Files or drag and drop file(s) to the attachments area. 
    • Document Type. Select a document type from the list: Bond, Closeout, License, Master Agreement, Other, Payroll, Permit, Project Insurance, Safety, Stored Material, or W-9. 
    • Document Name. Type a name for the document. 
    • Effective Date. Select or enter the effective date. 
    • Expiration Date. Select or enter the expiration date. 
  5. Click Save. 
    This changes the document status from Not Submitted to Submitted. 

Review Compliance Docs

  1. Open an invoice from the Commitments, Invoicing, or Payments tool. 
  2. Click the Compliance tab. 
  3. In the Compliance Documents card, locate a compliance document in the In Review status. 
  4. Click Review. 

    review-compliance-doc-on-invoice.png
    This opens a preview window for viewing the document and its details. 
  5. Click one of these buttons:
    • Request Revision. Click to request a revision. This opens a window where you can enter a reason for your request. Then click the Request button to send the request to the payee's invoice contact. 
      OR
    • Approve. Click to approve the document.

Delete Compliance Docs

Edit a Required Compliance Document

  1. Navigate to the Company level Admin tool. 
  2. Under Tool Settings, choose the option available in your project:
    • Click the Contracts tab.
      OR
    • If you have the Change Management tools enabled, click the Contracts and Change Orders tab.
  3. Click Compliance Templates.
  4. Locate the template to update and choose one of these options:
    • Manage. Click this button to open the template.
      OR
    • Template Name. Click this button to open the template. 
  5. (Optional) In the General Information card, click Edit to change the template name. Then click Save. 
  6. In the Required Compliance Documents card, find the requirement to update and click Edit.
    This opens the Edit Requirement panel. 
  7. In the Document Details card, do the following:
    • Document Type. Choose an option from the list: Bond, Closeout, License, Master Agreement, Other, Payroll, Permit, Project Insurance, Safety, Stored Material, or W-9.
    • Document Name. Type a name for the document. 
  8. In the Criteria card, choose the Collect At requirement to determine if Procore Pay tracks the requirement:
    • Commitment. Assign this to a Purchase Order, Subcontract, or both Subcontract & Purchase Order. To get email alerts for upcoming or past document expirations, mark the checkbox.
      OR
    • Invoice. Choose the commitment type. Then, set the billing cycle: First Billing, Every Progress Billing, or Final Billing. 
  9. Click Save.
    A green success banner appears to confirm the update. 
  10. Repeat the steps above to update other requirements.
     

Delete a Required Compliance Document

  1. Navigate to the Company level Admin tool. 
  2. Under Tool Settings, click Contracts.
  3. Click Compliance Templates.
  4. Locate the template to update and choose one of these options:
    • Manage. Click this button to open the template.
      OR
    • Template Name. Click this button to open the template. 
  5. In the Required Compliance Documents card, locate the document to delete and click the trash can icon-delete-trash6.png icon. 
    delete-compliance-document.png
  6. In the Delete Compliance Requirement? prompt, click Delete.
    A GREEN success banner confirms the delete action.
     Caution

    The compliance requirement cannot be restored to the template ones its deleted. This modification only affects new commitments (or invoices) on projects configured to use this compliance template.

  7. Repeat the steps above to delete any additional compliance documents from the template.
     Notes
    • Deleting a requirement from a template does NOT remove the requirement from any existing commitments or invoices.
    • As an invoice administrator, you can delete any requirement from an project commitment or invoice, whether it originated from a template or not.

Questions

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