Procore Pay's Glossary of Terms is an alphabetized list of the terms you'll encounter in your Procore Pay journey. It is also a community effort—If you don't see the term and definition you are looking for, click the Feedback button on the right side of the page and ask us to add it.
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An authorized signer is a person who has the right to sign legal documents on behalf of the authorizing entity. For example, an authorized signer for a payor in Procore Pay is the person (or people) who signed your company's transaction banking agreement.
A bank account is an account held by a financial institution where the account owner can deposit, transfer, and withdraw funds. To provide users with informational clarity, Procore Pay uses distinct names when referring to bank accounts. See What are the different types of bank accounts in Procore Pay? In the Procore Pay user interface, the bank account label refers to the account that a specialty contractor links to Procore Pay to receive payments. From the perspective of a general contractor, this bank account is called a beneficiary account.
A basis point (bps) is used to measure interest rates and other percentages. One (1) basis point is equal to 1/100 of a percentage point (0.01%).
In Procore Pay, a beneficiary is a specialty contractor who receives invoice payments. Also called a payee.
In Procore Pay, a beneficiary account is a bank account where money is held by a financial institution and controlled by the payee. This is the 'Pay To' bank account.
In Procore Pay, a beneficiary approver is a designated Procore user who has been granted the authority to approve a payee's bank account. In the Beneficiaries tab of the Company level Payments tool, a payee's bank account is called a beneficiary account.
In Procore Pay, a business entity is an organization recognized as separate from its owner(s). Some construction companies operate as a single business entity, while others operate as multiple business entities, with each entity, subsidiary, or division focusing on overseeing a different market or sector.
A compliance manager ensures that a company conducts its business in compliance with applicable local, state, national, and international laws. In construction, a compliance manager is responsible for reviewing, auditing, and monitoring contracts to ensure team's comply with the applicable statutory, regulatory, and ethical standards specific to the project's environment.
With Procore Pay, a Company Admin can create compliance template and assign a template to a Procore project to guide your teams(s) to upload the required insurance and contract compliance documents in project commitments. This helps your compliance managers ensure that a project's commitments comply with relevant laws and regulations.
A conditional lien waiver discharges a claimant's rights to file a lien only after the claimant is paid.
A Demand Deposit Account (DDA) is a banking term for a bank account that allows a customer to withdraw funds from it without advance notice. In Procore Pay, this is referred to as the payor's deposit account.
In Procore Pay, a deposit account is a bank account where money is held by a financial institution to process the payor's authorized transactions. This is the transaction banking account.
A disbursement is the action of paying out money from a fund. In Procore Pay, a disbursement withdraws funds from a general contractor's funding account and transmits them to the general contractor's deposit account. Payment orders are then issued to withdraw funds from the deposit account to pay invoices.
In Procore Pay, a drawdown refers to the disbursement of funds from a payor's funding account to the payor's deposit account held by a financial institution.
In Procore Pay, a drawdown request refers to the request to process the drawdown of funds from a payor's funding account, to transmit the funds to the payor's deposit account.
An Early Pay Program (EPP) is a financial strategy where a payor, typically a large general contractor, agrees to make early subcontractor invoice payments, in return for a discount.
In Procore Pay, a fee charge refers to an amount charged as a fee for a transaction. Depending on the transaction, it may or may not include a fee charge.
In Procore, the term first-tier subcontractor refers to any subcontractor or specialty contractor who enters into a commitment with a general contractor. This is the 'Contract Company' on a commitment.
In Procore Pay, a funding account is a bank account where money is held by a financial institution and controlled by the payor. This is the 'Pay From' account.
In Procore Pay, a funding request refers to the request to process the drawdown of funds from a payor's funding account, to transmit the funds to the payor's deposit account.
A lien is a legal claim filed by a contractor or supplier against a property. The property is used as collateral to satisfy the debt(s). A lien protects a contractor or supplier from not getting paid.
A lien waiver is a legal document signed in exchange for payment that waives the signer's right to file a lien against a property for the amount specified in the waiver. It protects the property owner from a lien.
In Procore, a manual hold refers to a payment hold created on an invoice. You create holds to alert your team to resolve issues before sending invoice payments. After it's created, you can edit the details of a hold. Once the conditions are satisfied, you can also release a hold.
In Procore Pay, the term pay is used to specifically refer to paying an invoice.
In Procore Pay, a payee is a specialty contractor who receives invoice payments from a general contractor. Also called a beneficiary.
A payment is an amount of money that is either payable or paid to a beneficiary. In Procore Pay, the term payment is used to specifically refer to invoice payments.
In Procore Pay, the term payment order refers to an authorized request to push funds from a deposit account to a beneficiary account.
In Procore Pay, a Payments Admin is a designated Procore user who administers the Company level Payments tool for that company's Procore account. Typically, one (1) or a small number of trusted users are designated to perform the tasks associated with this role.
In Procore Pay, a Payments Beneficiary Approver is a user who has been granted permission to approve and manage beneficiary accounts in the Company level Payments tool. Approving a beneficiary account provides payees with the ability to receive payments.
In Procore Pay, a Payments Disburser is a Procore user granted permission to create and view disbursements in the Company level Payments tool. Because of the sensitive nature of payments, only a Payments Admin can add/remove disbursers.
In Procore Pay, the term payment readiness refers to the state of having the necessary rules, conditions, and documentation in place to process and fulfill a subcontractor invoice payment.
In Procore Pay, the term payment requirements refers to a set of rules, conditions, and documentation needed to process and fulfill an invoice requirement. In Procore Pay, a Payments Admin configures the payment requirements in the Company level Payments tool to help Payment Disbursers and invoice administrators determine if an invoice is in a ready-to-pay state before they process a payment.
In Procore Pay, a payor is a general contractor who sends invoice payments to specialty contractors
In Procore Pay, a payout is an individual payment in a disbursement.
A Procore Pay Agreement sets the terms for the charges that a payee agrees to cover when receiving payments in Procore Pay. The Agreement clearly explains the expected total fee the payee must pay Procore to use the Procore Pay service.
A split payment divides a single and full amount due into multiple parts. To settle the amount due, one or more payment methods are typically used (i.e., cash, check, wire transfer, credit card).
A sub-tier is any subcontractor (for example, a subcontractor, supplier, or vendor) who furnishes materials, supplies, or services connected to the first-tier subcontractor's obligations on a commitment. In Procore Pay, a first-tier subcontractor is the 'Contract Company' who enters into a commitment contract with a General Contractor. Both first-tier and sub-tier contractors might hire additional sub-tiers (for example, third-tier, fourth-tier, and so on).
In Procore Pay, the term sub-tier subcontractor refers to any subcontractor or specialty contractor who performs work for a first-tier subcontractor. For example, if a first-tier subcontractor hires a supplier, that supplier is considered a sub-tier subcontractor. If the sub-tier supplier also hires a supplier, the third-tier supplier is also considered a sub-tier subcontractor. Also called a sub-tier.
In Procore Pay, a system administrator for a free Procore account is an employee or authorized representative of a first-tier subcontractor who has been invited to join a Procore Pay project as a beneficiary. The system administrator is granted the authority to perform specific payment-related tasks.
In Procore Pay, a trade partner refers to all of the subcontracting company types hired by a first-tier subcontractor. It represents the collective of sub-tier subcontractors that provide services, labor, or materials to a first-tier subcontractor on a construction project.
In Procore Pay, the term transaction refers to an invoice payment.
In Procore Pay, the term transactions history refers to a general contractor's list of invoice payments. This is not to be confused with a specialty contractor's billing history.
An unconditional lien waiver discharges a claimant's rights to file a lien after receiving the final payment.