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Procore

Create an Invoice on Behalf of a Subcontractor

Objective

To create an invoice for request of payment.

Background

In Procore, there are two types of financial commitments that end users can create: (1) a purchase order, which a legal request to order a good or service from a buyer, and (2) a subcontract, which defines the legally agreed-upon pricing and conditions of the purchase. Related to purchasing, is an invoice, which is a legal statement issued by a seller to a buyer. An invoice lists the types and quantities of the goods (e.g., equipment, materials, and so on) and/or services (e.g., inspections, installations, and so on) that were provided. It often accompanies a bill, which specifies the total monetary amount due in exchange for the goods supplied/services rendered. In many organizations, a purchase order is commonly initiated for smaller monetary amounts and a subcontract is initiated when the value of the goods/services is higher.

In a Procore project, invoices for both purchase orders and subcontracts can be created in the Project level Commitments tool.  They are also formatted in a typical progress billing format with a cover page and a detail line item page.  

Things to Consider

  • Required User Permission:
    • 'Standard' or 'Admin' on the project's Commitments tool or added as an Invoice Contact. See Create Invoice Contacts.
      Note: Users with 'Standard' level permissions can only create invoices for open billing periods. 
  • Additional Information:
    • Invoices can be created for both types of commitments (i.e., purchase orders or subcontracts).
    • Subcontractors (a.k.a., "commitment vendors") can either (1) ask someone with sufficient access permission to create the invoice on their behalf or, (2) follow the steps in Submit an Invoice as a Subcontractor.
    • You can only edit the billed amounts on the most recent invoice.

Training Video

Steps

  1. Navigate to the Commitment you want to create an invoice for. 
  2. Click Create Invoice
  3. The Period Start, Period End, and Billing Date are pre-filled based on what was inputted when entering in the billing period.
    Note: Admin level users will be able to select from billing periods that have been created. Only billing periods that do not have invoices tied to them can be selected. 
  4. Enter in the Invoice number, if applicable.
  5. Select one of the following statuses (Admin only):
    • Draft: The Invoice still needs to be approved. Costs are not reflected in the budget.
    • Under Review: The Invoice is currently being reviewed by an approver. Costs are not reflected in the budget.
    • Revise & Resubmit: The Invoice needs to be reviewed and resubmitted. Costs are not reflected in the budget. 
    • Pending Owner Approval: The Invoice is waiting to be approved by the owner. Costs are not reflected in the budget.
    • Approved as Noted: This amount will not show up on the budget.
    • Approved: This amount will show up in the Job to Date Costs column on the budget.
    • When the commitment company creates the Invoice (or when you create on their behalf), you can change the status to "Under Review" when it is ready for review. The reviewer can then mark it as "Approved" or as "Revise and Resubmit" accordingly.
    • Note: 'Standard' level users can only edit invoices with the status set to 'Draft' or 'Revise & Resubmit'. 
    • Note: These statuses reflect the budget in the ways listed above for the Procore Standard Budget View. To create or modify views, see Set up a New Budget View.
  6. Attach any required backup documentation (e.g. lien waivers or releases).
  7. Click Save.
     

For Commitments Formatted as Unit Quantity

On the Detail sub tab, for Invoices Formatted as Unit Quantity.

  1. Fill out the following fields for each line items that will be paid for by the invoice:
    For Invoices Formatted as Unit Quantity
    • This Period (qty): Enter the quantity for each line item. The total dollar amount will automatically be calculated. 
    • Retained This Period (%) (Admin only): Enter a retainage percentage for the invoice's period. (Note: You can also set the retainage on all line items by entering a value in the right sidebar and clicking Set.)
    • Released This Period ($): Enter the dollar amount of retainage to be released this period.
  2. If you want to add an approved commitment change order to the invoice, click Add to Invoice next to the change order in the Approved Commitment Change Orders to Add to this Invoice section.
    The entry and editing of the change orders will always occur at the line item level of detail.  You can select a different level of detail for how change orders will be displayed on the detail page of the Invoice when being viewed or exported from Procore.  See Edit Advanced Settings Subtab in Commitments.
  3. To save your changes, click Save

For Commitments Formatted as Amount Based:

On the Detail sub tab, for Invoices Formatted as Amount Based.

  1. Fill out the following fields for each line item(s) that will be paid for by the invoice: 
    • Work Completed (This Period): Enter the dollar amount of work completed in the invoice's pay period. If you prefer to enter a percentage value of work completed instead, click the calculator icon and enter the percentage, and click Save. Procore will automatically translate the percentage of work into the equivalent dollar amount. 
    • Materials Presently Stored: Enter the dollar amount of materials presently stored on the job site or nearby storage facility that were not included in the costs for "Work Completed" (D and E ) columns. Please note that the values entered here will remain in this column on future invoices until it is manually moved to Work Completed. See How do I bill for Stored Materials? for more information.
    • Work Retainage (%) Retained This Period (Admin only): Enter a percentage for work retained for this pay period. (Note: You can also set retainage on all line items by entering a value into the right sidebar and clicking Set.)
    • Material Retainage (%) Retained This Period (Admin only): Enter the percentage for materials retained this period. (Note: You can also set retainage on all line items by entering a value into the right sidebar and clicking Set.)
    • Work Retainage ($) Released this Period: Enter the dollar amount of work retainage to be released this period. 
    • Materials Retainage ($) Released This Period: Enter the dollar amount of materials retainage to be released this period.
  2. If you want to add an approved commitment change order to the invoice, click Add to Invoice next to the change order in the Approved Commitment Change Orders to Add to this Invoice section. 
    The entry and editing of the change orders will always occur at the line item level of detail.  You can select a different level of detail for how change orders will be displayed on the detail page of the Invoice when being viewed or exported from Procore.  See Edit Advanced Settings Subtab in Commitments.
  3. To save your changes, click Save.

 

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