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Procore

Create and Submit an Invoice as a Subcontractor

Objective

To create an invoice as a subcontractor and submit it to your general contractor using the project's Commitments tool. 

Background

In Procore, there are two types of financial commitments that end users can create using the Commitments tool:

  • purchase order. This is a legal request to order a good or service from a buyer. A purchase order is often used for smaller value goods and services. See Create a Purchase Order
  • subcontract. This defines the legally agreed-upon pricing and conditions of a purchase of goods or services. A subcontract is often created for larger value goods and services. See Create a Subcontract.

Related to purchase orders and subcontracts, is an invoice. An invoice is an itemized list of goods or services provided by a contractor that includes a statement of a sum due. In Procore, there are two types of invoices you can create in the Commitments tool:

  • An owner invoice is an itemized record of a financial transaction between a project owner and a company responsible for completing work. See Create an Owner Invoice.
  • subcontractor invoice is an itemized record of a financial transaction between a subcontractor and their client (e.g., a general contractor). If you are a subcontractor, your general contract can invite you to bill them for work performed (as described in the Steps below) or they can Create an Invoice on Behalf of a Subcontractor.

Things to Consider

  • Required User Permission:
    • To submit an invoice whether or not the 'Due Date' for the billing period has passed, 'Admin' level permission on the Commitments tool. This permission is typically assigned to the general contractor.
      OR
    • To submit the invoice before the 'Due Date', 'Standard' level permission on the Commitments tool. This permission is typically assigned to a subcontractor. 
      AND
      • Listed as a member of the 'Private' list on the commitment. 
        OR 
      • Listed as a member of the 'Invoice Distribution'. See "Create Invoice Contacts" in the See Also section below.
  • Additional Information:
    • If you are a subcontractor, look for an email with "has invited you to bill" in the subject line. If you do not have a copy of the email and you know the billing period is open, see Submit from Commitment.

Prerequisites

Steps

Submit from Email

  1. If the contractor has issued you an invitation to submit a  bill, you'll receive an email notification like the one shown below.


     
  2. Under the Do you want to bill this period? area, choose one of the following:
    • If you want to submit the invoice, click Yes. Then click Post Response and continue with step 3.
      OR
    • If you are not ready to submit the invoice, click No. Then click Post Response
      Note: If you change your mind after posting your response, you can update your response to the invitation if the 'Due Date' has not yet passed and the contractor who sent you the invitation has the 'Billing Period' set to 'Open'. To do this, click Do you want to bill this period? again, choose Yes, and then click the Post Response button. 
  3. At the Create New Invoice page in Procore, the Period Start, Period End, and Billing Date is pre-filled with what the contractor set. Enter the invoice number, if applicable.
  4. In the Detail section, enter either your percent complete or amount complete for each line item in your original schedule of values. See "For Commitments Formatted as Unit Quantity" and "For Commitments Formatted as Amount Based" in the See Also section below. 
  5. Enter the materials presently stored amount. This will be added to the percent complete for each line item. See "For Commitments Formatted as Unit Quantity" and "For Commitments Formatted as Amount Based" in the See Also section below. 
  6. In the Approved Commitment Change Orders section, repeat the process for each change order's line items by entering the percent or amount complete for each line item. Any new approved change orders will automatically be added here.
    Note: You can only bill by line item on change orders that have been created after 11/6/2016.
  7. Attach any required backup documentation, such as lien waivers.
    • If the contractor requires the Invoice to be signed, complete the following steps:
      1. Click Save.
      2. Click Export and select PDF.
      3. Sign the PDF.
      4. Return to Procore and select the Summary tab.
      5. Click Edit.
      6. Attach the signed PDF.
  8. If you are not ready to submit to the contractor, click Save. This will set the status of the invoice to "Draft." If you are ready to submit it to the contractor, click Submit for Review. This will set the status of the invoice to "Under Review."
    Note: Once you submit the invoice to the contractor, you will not be able to edit it unless the contractor changes the status to Revise & Resubmit. 

Submit from Commitment

  1. Navigate to the commitment you want to create the invoice for.
  2. Click + Create Invoice.
  3. Complete steps #2-8 above. 

For Commitments Formatted as Unit Quantity

  1. Fill out the following fields for each line items that will be paid for by the invoice:
    • This Period (qty): Enter the quantity for each line item for this period and the dollar value will automatically be calculated. If you prefer to enter a percentage value for work completed instead, enter the percent and the quantity for this period and the dollar value will automatically be calculated.  
  2. If you need to release retainage:
    1. Complete Steps 6 & 7 above.
    2. Click Save.
    3. In the Detail subtab, click Edit.
    4. Released this Period ($): Enter the dollar amount of retainage to be released this period.
    5. Finish Step 8 above.
  3. To save the invoice, click Save. To submit it for review, click Submit for Review

    For Commitments Formatted as Amount Based:

    1. Fill out the following fields for each line items 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 was 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?" in the See Also section below for more information.
    1. 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 Invoicing tool’s configuration settings. See "Configure Settings: Invoicing" in the See Also section below.
    2. If you need to release retainage:
      1. Complete Steps 6 & 7 above.
      2. Click Save.
      3. In the Detail subtab, click Edit.
      4. Released this Period - Work Retainage ($): Enter the dollar value of work retainage to be released this period.
      5. Released this Period - Materials Retainage ($): Enter the dollar value of materials retainage to be released this period.
      6. Finish Step 8 above.
    3. To save the invoice, click Save. To submit it for review, click Submit for Review

See Also

If you would like to learn more about Procore’s invoice management software and how it can help your business, please visit our construction invoice management software product page here.

 

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