Skip to main content
Procore

Create an Invoice on Behalf of an Invoice Contact

Objective

To create the 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 is 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 the invoice, which is a legal statement issued by a seller to a buyer. The 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 Permissions:
  • Additional Information:
    • Subcontractor invoices can be created for purchase orders or subcontracts. 
    • Subcontractors 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 an Invoice Contact.
    • You can only edit the billed amounts on the most recent invoice.
    • If the contractor will create a payment schedule once the invoice is approved, enter the amounts for the work you are claiming this period in the 'Subcontractor Claimed This Period' column of the invoice detail. In order for this column to appear, the payment schedule feature must be enabled in the project's Commitment tool. See Configure Settings: Commitments.

Training Video

 

Video content may not accurately reflect the current state of the system, and/or it may be out of date.

 

 

Steps

  1. Navigate to the project's Commitments tool.
  2. Click the Summary or Detailed tab.
  3. Locate the commitment you want to work with. Then click View
  4. Click Create Invoice
     Notes
    • The values in the Period Start, Period End, and Billing Date from the billing period that you created are entered for you automatically.
    • Users with 'Admin' permissions on the Commitments tool can select from the billing periods that have been created. You can only select billing periods that are not yet tied to an invoice. 
  5. Enter the Invoice Number, if applicable.
  6. Select one of the following statuses:
    Note: You must be a user with 'Admin' permissions on the Commitments tool to change the status.
    • Draft. Indicates the invoice needs to be approved. Costs are not reflected in the project's budget.
    • Under Review. Indicates the invoice is currently being reviewed by an approver. Costs are NOT reflected in the project's budget.
    • Revise & Resubmit. Indicates the invoices needs to be reviewed and resubmitted. Costs are NOT reflected in the project's budget. 
    • Pending Owner Approval. Indicates the invoice is waiting to be approved by the owner. Costs are NOT reflected in the project's budget.
    • Approved as Noted. Indicates the invoice is approved with any notations included in the response. Costs are NOT reflected in the project's budget.
    • Approved. Indicates the invoice is approved. Costs are reflected in the Job to Date Costs column on the project's budget.
       Notes
      • 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.
      • Invoice contacts can only edit invoices when the invoice status is set to 'Draft' or 'Revise & Resubmit' during the open billing period. Only users with 'Admin' level permissions on the project's Commitments tool can edit an invoice in other statuses.  
  7. Attach any required backup documentation. For example, lien waivers or releases. 
  8. Click Save.
  9. Depending on the commitment's accounting method (see How do I set the accounting method for a commitment or prime contract?), do one of the following:

Add Invoice Detail for a Unit/Quantity Based Commitment

  1. Click the Detail tab.
  2. Complete the following fields for each line items that will be paid for by the invoice:
    • This Period (Qty). Enter a quantity for each line item. Procore calculates the total dollar amount automatically. 
    • Retained This Period (%) (Admin only). Enter the retainage as a percentage amount for the current billing period. 
      Note: You can alternatively set the retainage for all of the line items on the invoice by entering values in the Set Retainage on All Line Items boxes and clicking Set
    • Released This Period ($). Enter the retainage as a dollar amount for the current billing period.
  3. Optional: To add an approved commitment change order to the invoice, click Add to Invoice.
    Notes:
    • 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.
  4. To save your changes, click Save

Add Invoice Detail for an Amount Based Commitment

  1. Click the Detail tab.
  2. Complete 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.
  3. If the contractor will create a payment schedule once the invoice is approved, enter the amounts for the work you are claiming this period in the Subcontractor Claimed This Period column. In order for this column to appear, the payment schedule feature must be enabled in the Commitment tool’s configuration settings. See Configure Settings: Commitments.
  4. 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 the Advanced Settings on a Commitment.
  5. 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 here.