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Allow or Prevent Overbilling on a Subcontractor Invoice

Objective

To configure the project's 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. Configure the 'Allow Subcontractors to Over-Bill' Setting
  2. Update an Amount to Over-Bill an SOV Line Item

Configure the 'Allow Subcontractors to Over-Bill' Setting

  1. Navigate to the project's Commitments tool.
  2. Click the Configure Settings icons-settings-gear.png icon.
  3. Click the Invoice Settings link.
  4. In the Settings page, scroll to the Other section.
  5. Move the toggle to the left or right: 
    • To prevent over-billing, move the Allow Subcontractors to Over-Bill toggle to the left so the toggle is GRAY. This is the default setting.
      OR
    • To allow over-billing, move the Allow Subcontractors to Over-Bill toggle to the right so the toggle is BLUE as pictured below.
      invoicing-settings-allow-over-bill.png
       Note
      If your company's Procore Administrator has turned the 'Prevent Overbilling on All Projects' setting ON in the Company Admin tool, you cannot change this setting. 
  6. Click Update.

Update an Amount to Over-Bill an SOV Line Item

When the 'Allow Subcontractors to Over-Bill' setting is turned ON, Procore alerts you when line item entries exceed 100% of the budgeted amount. 

  1. Navigate to the project's Commitments tool. 
  2. Locate the commitment in the Contracts tab. 
  3. Click the Number link to open it. 
  4. Click the Edit Contract button. 
  5. Scroll to the Schedule of Values card. 
  6. Locate the line item to update. 
  7. Enter an amount that is in excess of the budgeted amount.
    Example

    In this example, we updated five line items with values that exceed 100% of the budgeted amount on the line item. 

    sub-invoice-sov-exceeds-budget.png

  8. Click Save
    • LEGACY If you are using the legacy subcontractor invoice experience, an 'Invalid Line Items' message appears to alert you that the amount you entered exceeds 100% of the budgeted amount. Click Continue, then adjust the line items so they are no longer in excess of 100%. 
      invalid-line-items.png
    • BETA If you are using the beta subcontractor invoice experience, a 'We Couldn't Save Your Changes' message appears. The message lists all of the line items where you entry exceeds 100% of the budgeted amount. Adjust the amount so that the line item is no longer billed in excess of 100%.
      we-couldnt-save-your-changes.png
  9. 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 icon-external-link.png.