Create Disbursements

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. Users can also issue partial payments for subcontractor invoices. See About Partial Payments with Procore Pay.

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	Receives the withdrawn funds to process and execute the payment orders for a disbursement's subcontractor invoices.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
Additional Information:
- 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.
- Disbursement contributors can only save their disbursements as drafts.
- Payment Admins and Disbursers cannot authorize a disbursement if they are the last approver on any invoice within the disbursement.
- Invoices must meet all Payment Requirements as configured by a Payments Admin in the Payment Requirement settings. Only authorized users can manage and view payment requirements and holds. See Manage Payment Requirements as a Payor and Manage Payment Holds as a Payor.
  - Under Payment Requirements, a unit fraction in the Requirements column shows if an invoice meets payment requirements and an icon appears in the Manual Holds column if a hold has been applied.

Prerequisites

Payors must complete all steps in Enable Procore Pay as a Payor.
Payees must complete all steps in Set Up Procore Pay as a Payee.
Create at least one (1) commitment on a Pay-enabled Procore project. See Create a Commitment.
Create at least one (1) subcontractor invoice for a commitment and place the invoice into the 'Approved' status. See Create a Subcontractor Invoice.

Video

Review Invoices

Navigate to the Company level Payments tool.
Click the Subcontractor Invoices tab.
Note: Use the Search, Filter, and Group By options to narrow the list. See Manage Rows & Columns on the Subcontractor Invoices Tab and Search for and Apply Filters on the Subcontractor Invoices Tab.
Select one (1) or more 'Unpaid' invoice(s) by marking the checkbox(es) and click Add to Disbursement.
- - If one or more ‘Draft’ Disbursements are available to add the selected invoice(s) to, choose Add to Disbursement or Create New from the dropdown menu.
  - If there are no available ‘Draft’ Disbursements to add the selected invoice(s) to, click Create New.
    
    Important
    
    When using a custom payments workflow, the New Disbursement page contains two sub-pages: #1 Review Invoices and #2 Select Funding Account.
    
    When not using a custom workflow, the New Disbursement page also contains a #3 Authorize sub-page.
In the #1 Review Invoices page, confirm the list of Invoices being added to the Disbursement. Use the icon to remove any invoices as needed.

Tip

Use the carats in the Amounts column header to expand the column group to display the Net Amount, Paid Amount, Joint Check Amount, Early Pay Fee, Amount Due, and Payment Amount for each invoice.
Click Next or Continue.

Select Business Entity & Funding Account

In the #2 Select Funding Account page, enter the disbursement details:
- Disbursement Name. Enter a unique name to help others identify the disbursement. There is a maximum character limit of 50.
- Business Entity. If applicable, select the appropriate business entity from the drop-down list. This list only appears for companies operating with more than one (1) business entity. See Add Business Entities as a Payor.
- Funding Account. Select your company's funding account from the drop-down list. If only one funding account is set up for the selected business entity, it’ll be preselected.
Select an option to complete the entry:
- Save as Draft. To save the disbursement as a '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.
- Start Workflow. To continue with the steps in Workflows Enabled: Start the Payments Workflow & Authorize the Disbursement.
- Continue. To proceed to Authorize Disbursements.
  Note: The Continue button only appears if you do not have a custom payments workflow. If you do have a custom payments workflow, the Start Workflow button will appear instead.
After clicking Save as Draft, Continue, or Start Workflow, the system checks to determine if the selected invoices are eligible for payment. If any 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.
- Click Deselect All & Start Over to remove impacted invoices and:
  - If all selected Invoices are ineligible for payment, you are returned to the Subcontractor Invoices tab in the Payments tool to start again.
  - If at least one selected invoice is eligible for payment, you are returned to the Review Invoices step in the New Disbursement panel.
- Click Back to return to the Review Invoices screen and address the eligibility issue(s) or click the icon to remove the affected invoice(s) from the disbursement.
  See Remove Subcontractor Invoices from Disbursements as a Payor.
Click Continue to proceed to the next step.

Next Steps

Authorize Disbursements

Create Disbursements

Important

General Availability in Select Markets (United States)

Objective

Background

Tip

Things to Consider

Prerequisites

Video

Steps

Review Invoices

Important

Tip

Select Business Entity & Funding Account

Next Steps

See Also