Create Disbursements
General Availability in Select Markets (United States)
Procore Pay 
with payments powered by Goldman Sachs Transaction Banking (TxB)* is available in the United States. It is designed for General Contractors and Owner-Builders who act as their own General Contractors on a job. Procore Pay extends the Invoice Management functionality in the Procore web application to handle the payment process between general and specialty contractors.Objective
To create a new disbursement in the Company level Payments tool to pay invoices.
Background
A Payments Admin or a Payments Disburser creates a disbursement to request a drawdown from your funding account to pay your company's project invoices. In the Payments tool, a disbursement consists of one or more invoice payments. The drawdown request is the aggregate disbursement amount, which is the sum of all the invoice payments in the disbursement. Each invoice payment in a disbursement is assigned a Procore check number. Each check represents the amount that will be paid to the named beneficiary for the invoice.
Things to Consider
- Required User Permissions
- Additional Information:
- You can include payments for up to 100 subcontractor invoices.
- You can only include subcontractor invoices for a positive amount.
- You can set an invoice payment requirement to limit subcontractor invoices that can be included in a disbursement to 'Approved,' 'Approved as Noted,' and 'Pending Owner Approval.' See Configure Payment Requirements as a Payor.
- To successfully create a disbursement, your company's invoice beneficiaries must:
- Set up a free Procore account (if they do not already have a free or paid Procore account).
- Add a verified bank account in the payee environment to receive payments.
- To remove subcontractor invoices from a disbursement before authorization, see Remove Subcontrator Invoices from Disbursements as a Payor.
- To cancel a disbursement before authorization, see Cancel Disbursements Before Authorization as a Payor.
- The steps below summarize the authorization and MFA challenge. To learn more about the steps, see these tutorials:
Prerequisites
- Complete these tasks in the payor environment:
- Optional. To create a custom Payments workflow to approve disbursements, complete the steps in:
- To get paid, beneficiaries receiving payments on a disbursement must complete these tasks in the payee environment:
- Create a Free Procore Account if they do not already have an account for their own company.
- Add a Bank Account as a Payee
Steps
Create a Disbursement
- Navigate to the Company level Payments tool.
- Click the Subcontractor Invoices tab.
- Mark one (1) or more checkboxes to select the unpaid invoices to pay with your disbursement. You can add up to 150 invoice payouts to a disbursement.
Tip
Not sure if an invoice is ready to pay? Use these tips to find out:
- Use the Search, Filter, and Group By options to narrow the items in the list. See Manage Rows & Columns on the Subcontractor Invoices Tab and Search for and Apply Filters on the Subcontractor Invoices Tab.
- Under Payment Requirements, a unit fraction in the Requirements column shows when an invoice has met your company's payment requirements and an icon appears in the Manual Holds column if a hold has been applied. Payments Admins define your company's Payment Requirements (see Manage Payment Requirements as a Payor) and invoice administrators can apply manual holds (see Create and Apply a Manual Hold on an Invoice). Only authorized users can View Payment Requirements.
- Click Create Disbursement.
This opens the New Disbursement panel on the right side of the page. - Confirm the invoices and amounts in the Review Invoices list.
Tips
- Want to remove an invoice from the disbursement? To learn how, see Remove Subcontrator Invoices from Disbursements as a Payor.
- Has the invoice met the payment requirements? To see if your company's payment requirements have been met, review the Requirements and Manual Holds under Payment Requirements.
- Where is the #3 Authorize step in my new disbursement? If your Procore Pay environment is configured to use a Payments Workflow, the New Disbursement page does not include the #3 Authorize step or a Next button pictured below. To learn about the difference when authorizing disbursements with and without the Workflows tool, see Authorize Disbursements.
- If you are ready to proceed, click Next.
The Select Funding Account page appears. - Under Select Funding Account, select the funding account from the drop-down list.
Caution
Before clicking the Next or Create Disbursement button to proceed, review the information about authorizing a disbursement. Once authorized, the drawdown request and the payment orders cannot be canceled.
Authorize a Disbursement
The steps you follow depend on whether the Workflows tool is enabled or disabled in your environment. For instructions, see:
- Workflow Enabled: Start the Payments Workflow & Authorize the Disbursement
- Workflows Disabled: Authorize the Disbursement
Workflows Enabled: Start the Payments Workflow & Authorize The Disbursement
If the Workflows tool is enabled, the default Payments Workflow configured for your environment starts automatically. An email notification is sent to the workflow step's assignee who must review the disbursement and all associated payments.
Important
Payment processing for a disbursement cannot be canceled after a disbursement is authorized. To learn how to cancel a disbursement before authorization, see Cancel Disbursements Before Authorization as a Payor.Complete the Payments Workflow
Assignee(s) must complete all steps in your Payments Workflow before a Payments Admin or Payments Disburser can authorize the disbursement.
Tips
- Need to remove a subcontractor invoice before authorizing the disbursement? To learn how, see Remove Subcontrator Invoices from Disbursements as a Payor.
- How do assignees on a Payments Workflow step respond to a workflow step? See Approve or Reject a Disbursement with a Custom Payments Workflow.
- Want to set up a Payments Workflow to use on your disbursements? See Best Practices for Creating a Payments Workflow
Authorize the Disbursement
Once the custom workflow steps are approved, you can continue the authorization as follows.
- In the General tab of the disbursement, the Authorize Payment Order banner if a Payments Workflow has been configured.
- Optional. Depending on your role, start the authorization process as follows:
- If you are the assignee on the last custom workflow step, the authorization step opens automatically.
OR - If you are not the assignee on the last custom workflow step, you must click Authorize.
This opens the Authorize page.Tip
Don't see the Authorize button? If your company's custom Payments Workflow has not been configured, users with the appropriate permissions will see a banner with an option to configure it. See Best Practices for Creating a Payments Workflow and Configure the Settings for a Payments Workflow Template.
- If you are the assignee on the last custom workflow step, the authorization step opens automatically.
- Under Drawdown, mark the checkbox to authorize the drawdown instructions.
- Under Payments, mark the checkbox to authorize the payment orders.
- Click Authorize.
Procore Pay issues a required Multi-Factor Authentication challenge to verify the identity of the Payment Disburser authorizing the disbursement. See How does MFA work with Procore Pay and why is it required?
Workflows Disabled: Authorize the Disbursement
If the Workflows tool is disabled, a third 'Authorize' step appears on the New Disbursement page. Only a Payments Admin or Payments Disburser can acknowledge the Drawdown and Payments for the disbursement.
Important
Payment processing for a disbursement cannot be canceled after a disbursement is authorized. To learn how to cancel a disbursement before authorization, see Cancel Disbursements Before Authorization as a Payor.- Under Drawdown, mark the checkbox to authorize the drawdown instructions.
- Under Payments, mark the checkbox to authorize the payment orders.
- Click Authorize.
Procore Pay issues a required Multi-Factor Authentication challenge to verify the identity of the Payment Disburser authorizing the disbursement. See How does MFA work with Procore Pay and why is it required?