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Allow or Prevent Overbilling on a Subcontractor Invoice

Objective

To configure the Commitments tool to allow or prevent overbilling on a subcontractor invoice.

Background

Overbilling occurs when a line item on a subcontractor invoice exceeds the contract amount in an agreement. When overbilling is overlooked in Procore, it negatively impacts your project's overall budget, since you are being charged an amount that is higher than what was agreed upon. By default, the project's Commitments tool is configured to allow overbilling on a project. However, you can enable a feature that checks your invoices for overbilling and notifies you when a line item is overbilled. 

To prevent overbilling in subcontractor invoices, there are two (2) steps:

  • Turn the 'Allow Over Billing 'feature OFF. This action prevents users from saving an invoice if any of the invoice's line items exceed 100% of the budget amount. To turn this setting on, see the Steps below. 
  • Turn the 'Prevent Overbilling on All Projects' setting ON. Your company's Procore Administrator turns this setting ON in the Company level Admin tool. This setting ensures that overbilling is NOT allowed on all of your company's projects. To learn more about this setting, see Set the Defaults for Your Projects.

Things to Consider

  • Required User Permissions:
    • 'Admin' level permissions on the project's Commitments tool. 

Steps

  1. Navigate to the project's Commitments tool.
  2. Click Configure Settings .
  3. Click Invoice Settings.
  4. Choose the following:
    • To prevent overbilling, remove the checkmark from the Allow Over Billing box.
      OR
    • To allow overbilling, place a checkmark in the Allow Over Billing box. This is the default setting.
       Note
      You will NOT be able to modify this setting if your company's Procore Administrator has turned the 'Prevent Overbilling on All Projects' setting ON in the Company Admin tool. 

      commitment-settings.png
       
  5. Click Update.
  6. View the appropriate commitment invoice.  Then click the Detail tab.
  7. Click Edit.

    invoice-detail-edit.png
     
  8. Attempt to bill a line item in excess of 100% of the budgeted amount, and then click Save. A pop-up message appears, notifying you about the invalid line item.

    invoice-overbilled.png
     
  9. Adjust the amount so that the line item is not billed in excess of 100%, and then click Save.

 

If you would like to learn more about Procore's commitments software and how it can help your business, please visit our construction financials tool product page .