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Procore

Create Disbursements

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 General Availability in Select Markets (United States)
flag-us.png Procore Pay icon-external-link.png  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 icon-external-link.png 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 subcontractor invoices as a Payments Admin or Disburser. 

Background

With Procore Pay, only a Payments Admin or Disburser can create disbursements using the 'Subcontractor Invoice' tab in the Company-level Payments tool. A disbursement can handle up to 100 subcontractor invoice payments and saved as a 'Draft' for flexibility. Users can add or remove invoices in 'Draft' status before authorization.

With the Company level Workflows tool, payors can track invoice payment requirements and start a custom payments workflow for review and approval. Without the Workflows tool, Payments Admins or Disbursers verify and authorize payments directly. A Procore Pay disbursement initiates the drawdown request from the funding account and transfers funds to the deposit account to process and execute payment orders. 

This table details the difference between a funding account and a deposit account: 

Account Type Definition Purpose Learn More
Funding Account A bank account used as the source to withdraw funds for disbursements.  Holds the payor's funds and releases them to the Deposit Account.  What are the different types of bank accounts in Procore Pay?
Deposit Account * Procore Pay initiates a reverse wire from the deposit account to transfer the funds for a disbursement from the funding account to the deposit account.  Receives the withdrawn funds to process and execute the payment orders for a disbursement's subcontractor invoices.

* Procore is a financial technology company, not a bank. Banking services provided by Goldman Sachs Bank USA, a member of the Federal Reserve System and member FDIC. Additional Goldman Sachs Bank USA services may be accessed on its Transaction Banking online platform by visiting https://txb.gs.com/cx/login. Goldman Sachs accounts and services are subject to its terms and conditions.

 Tip
  • Need multiple deposit accounts? Need multiple deposit accounts? To avoid commingling funds and streamline reconciliation, you can open additional deposit accounts during or after Procore Pay implementation. Submit your request to Procore's Payment Operations team.

To receive payments, payees must have a free or paid Procore account and a user with administrator permissions must securely add a verified bank account. For more information, see Get Started: Payee Guides.

Things to Consider

  • Required User Permissions
    • A single disbursement can handle up to 100 subcontractor invoice payments.
    • Invoice payments must be a positive amount. Procore Pay does not support negative invoice payments. 
    • Payment Admins and Disbursers cannot authorize a disbursement if they are the last approver on any invoice within the disbursement.

Prerequisites

Video

 

Steps

Review Invoices

  1. Navigate to the Company level Payments tool. 
  2. Click the Subcontractor Invoices tab. 
     Tip

    Are invoices ready to pay? Use these tips:

  3. Select one (1) or more 'Unpaid' invoice(s) by marking the checkbox(es) and click Add to Disbursement.
     Note

    select-invoices-add-to-disbursement.png

    This opens the New Disbursement panel on the right side of the page. 
     Notes
    • For payors using a custom payments workflow, the New Disbursement page contains two sub-pages: #1 Review Invoices and #2 Select Funding Account. 
    • For payors not using a custom Payments workflow, the New Disbursement page also contains a #3 Authorize sub-page. 
  4. In the #1 Review Invoices page, confirm the invoices, beneficiaries, project, requirements, holds, and amounts due for each invoice in the disbursement. 
     Note
    The system loads the disbursement and then checks to determine if the selected invoices are eligible for payment. An error message appears for each ineligible invoice. Click Show Details to expand the error message and review the details. Click Hide Details to hide the error message.  
    review-invoices-page-with-workflow.png
  5. Optional. To remove an invoice, click the icon-delete-trash6.png icon. See Remove Subcontractor Invoices from Disbursements as a Payor. 
  6. Click Continue and proceed with the Next Step.

Select Funding Account

Your next step depends on whether your company configured a custom payments workflow. See Best Practices for Creating a Payments Workflow.

If you only see the #2 Select Funding Account page, your company implemented a custom payments workflow to streamline approval. Click here for next steps.  

  1. In the #2 Select Funding Account page:
    • Funding Account. Select your company's funding account from the drop-down list. 
    • Disbursement Name. Enter a unique name to help others identify the disbursement. There is a maximum character limit of 50. 
      select-funding-account.png
  2. Choose one (1) option:
    • To go back to the previous step, click Back.
    • To save the disbursement as a 'Draft', click Save as Draft. Procore adds a 'Draft' status to the disbursement for easy identification. To add more invoices to the disbursement, see Add Subcontractor Invoices to a 'Draft' Disbursement.
    • If you are ready to pay the invoices in the disbursement, click Start Workflow.
       Note
      After clicking Start Workflow, the system checks to determine if the selected invoices are eligible for payment. If invoices are ineligible for payment, an error message appears. Click Show Details to expand the message and review the details. Click Hide Details to hide the error message.  
  3. Continue with the steps in Workflows Enabled: Start the Payments Workflow & Authorize the Disbursement.

 

If you see a #3 Authorize page, your company hasn't implemented a custom payments workflow to streamline approval. Click here for next steps.  

  1. In the #2 Select Funding Account page:
    • Funding Account. Select your company's funding account from the drop-down list. 
    • Disbursement Name. Enter a unique name to help others identify the disbursement. There is a maximum character limit of 50. 

      select-funding-account-no-workflow.png
       
  2. Choose one (1) of these options:
    • To save the disbursement as a 'Draft', click Save as Draft. Procore adds a 'Draft' status to the disbursement for easy identification. To add more invoices to the disbursement, see Add Subcontractor Invoices to a 'Draft' Disbursement.
    • To pay the invoices in the disbursement, click Continue and proceed to Authorize Disbursements.
       Note
      After clicking Continue, the system loads the disbursement and then checks to determine if the selected invoices are eligible for payment. An error message appears for each ineligible invoice. Click Show Details to expand the error message and review the details. Click Hide Details to hide the error message.