Create an Invoice on Behalf of an Invoice Contact (Legacy)

Objective

To create a subcontractor invoice on behalf of an invoice contact.

Background

In Procore, end users can create two types of commitment contracts: (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:
  • 'Standard' or 'Admin' level permissions on the project's Commitments tool or added as the Invoice Contact. See Add Invoice Contacts to a Purchase Order or Subcontract.
    Note: Users with 'Standard' level permissions can only create invoices for open billing periods. 
• 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 'Proposed Amount' 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.

Prerequisites

• Approve and Sign a Commitment Contract

Training Video

Steps

1. Navigate to the project's Commitments tool.
2. Under the Contracts tab, locate the purchase order or subcontract. Then click Edit.
3. 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. 
4. Enter the downstream collaborator's invoice number in the Invoice Number box.

    Note

   Important things to note about the Invoice # field:

   • An Invoice # is NOT required to save an invoice. You can leave this field blank.
   • An Invoice # is a free-form entry field that lets invoice contacts enter a reference number that corresponds with their own invoice numbering system.
   • A duplicate Invoice # on a commitment is NOT permitted. On one commitment, every invoice must have a unique Invoice #. 
   • An Invoice # does NOT automatically populate on owner invoices. See How does Procore automatically complete amounts on an upstream invoice?
5. 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 need 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.  
6. Attach any required backup documentation. For example, lien waivers or releases. 
7. Click Save.
8. Depending on the commitment's accounting method (see How do I set the accounting method for a contract or funding?), do one of the following:
   • Add Invoice Detail for a Unit/Quantity Based Commitment
   • Add Invoice Detail for an Amount Based Commitment

See Also

• Add Invoice Contacts to a Purchase Order or Subcontract
• Submit a New Invoice as an Invoice Contact
• Configure Settings: Commitments
• Set up a New Budget View
• Edit Advanced Settings on a Commitment
• How do I bill for stored materials in Procore? (Legacy)