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(Beta) Create a Subcontractor Invoice on Behalf of an Invoice Contact

 Phased Release: New Admin & Collaborator Views for Subcontractor Invoices
On March 23, 2022, the modernized subcontractor invoice experience was turned ON in all Procore project's using Procore's Invoice Management tools. To give you time to preview the design changes, Procore is providing users with the option to switch between the modernized and legacy experience until February 2023. After February 2023, the ability to exit out of the new experience will be removed and the legacy experience will no longer be available in Procore. To learn more, see Financial Management: New Admin & Collaborator Views for Subcontractor Invoicing.
 Note
If you have the legacy version of subcontractor invoices, follow the steps in Create an Invoice on Behalf of an Invoice Contact instead of the ones below.
 Limited Release
flag-us.png flag-canada.png The Progress Billings tool is only available to Procore customers in the United States and Canada who have implemented the Procore for Specialty Contractors point-of-view dictionary. To learn more, see (Limited Release) Owners & Specialty Contractors Point-of-View Dictionary Options

Objective

To create a downstream invoice as an invoice administrator on behalf of an invoice contact

Background

In Procore, there are two (2) ways for an invoice administrator to create a downstream invoice for a commitment contract.

  • Create an Invoice on Behalf of an Invoice Contact
    When you do NOT want to grant your collaborator's invoice contact(s) access permissions to create their own invoices in Procore, use the steps below. With this method, you will enter the downstream invoice data into Procore on behalf of your collaborators. In this context, a collaborator is the person or business that you contracted to perform work on your project. 
  • Send an 'Invite to Bill' to an Invoice Contact
    When you want to invite your collaborator's invoice contacts to submit their own invoice in Procore, follow the steps in Send an 'Invite to Bill' to an Invoice Contact instead of the steps below. If you are the recipient of an 'Invite to Bill,' you can then follow the steps in Submit a New Invoice as an Invoice Contact. 
Examples

In Procore, downstream invoices that bill against your project's commitment contracts. Below are some examples of downstream invoice relationships:

  • If your project is using Procore's default dictionary for general contractors, you would create a downstream invoice in Procore on behalf of the subcontractor who performed work for your project. In Procore, this is called a subcontractor invoice. 
  • If your project is using Procore's Owners dictionary, you would create a downstream invoice in Procore on behalf of the general contractor who performed work for your project. In Procore, this is called a contractor invoice. 
  • If your project is using Procore's Specialty Contractors dictionary, you would create a downstream invoice in Procore on behalf of a subcontractor who performed work for your project. In Procore, this is called a subcontractor invoice. 

To learn about the available dictionaries in Procore, see What dictionaries and languages are available in the Procore web application?

Things to Consider

  • Required User Permissions:
    • 'Admin' level permissions on the project's Commitments tool. 
       Notes
      • Access permissions to the Invoicing & Progress Billings tools are governed by the permissions set on the Commitments and/or Client Contracts, Funding, or Prime Contracts tool. Procore tool names vary, depending on the language or point-of-view dictionary configured in Procore. See What dictionaries and languages are available in the Procore web application?
      • If you are a collaborator (for example, an invoice contact employed by a company performing work on a project managed in Procore, your ability to perform invoice-related tasks is determined by the Procore company account holder. Settings that the account holder may choose to provide to you include:
        • A Procore User account.
        • Access permissions to the project's Commitments and/or Client Contracts, Funding, or Prime Contracts tool.
        • Membership on the 'Private' list of a specific contract or funding
        • Designated as an 'Invoice Contact' on the contract or funding.
  • Additional Information:
    • You can create invoices for all commitment contracts.  
    • If you are the invoice contact for the 'Contract Company' on a commitment contract, you have these options for submitting an invoice:
    • If there are multiple invoices for a single billing period, you can only edit the billed amounts on the most recently created invoice.
    • If you are an invoice administrator and want to edit the 'Schedule of Values' card later, the invoice must be in the 'Draft' or 'Revise and Resubmit' status. See What are the default statuses for Procore invoices? 
       Note
      flag-australia.png This feature was designed for Procore customers in Australia and New Zealand who have a legal requirement to provide claimants with a payment schedule. However, this feature is available for use by all Procore customers using the Project level Commitments, Invoicing, & Progress Billings tools.

Prerequisites

Steps

  1. Open the New Invoice Page
  2. Update the General Information Card
  3. Update the Schedule of Values Card
  4. Set an Release Retainage on SOV Line Items
  5. Add Attachments
  6. Save the Invoice

Open the New Invoice Page

New invoices are always created in the project's Commitments tool. The first step is to open the 'New Invoice' page as follows:

  1. Navigate to the project's Commitments tool.
  2. In the Contracts table, locate the commitment that you want to create the invoice for. 
  3. Click the Number link to open the commitment.
    subcontract-number-link-status.png
     Tip

    Want to collect signatures using the Procore + DocuSign© integration? To do this, click Edit Contract button. Next, place a mark in the Sign with DocuSign© checkbox on the 'General Information' card in the commitment contract. If you add a mark, click Save now. Otherwise, click Cancel. Important things to note:

  4. In the contract, click the Create button. Then choose the Create Invoice option from the drop-down menu. 
     Notes

    subcontract-create-button-create-invoice.png
  5. Continue with the next step. 

Update the General Information Card

The next step is to update the 'General Information' card as follows:

  1. In the new invoice, add and/or verify the data in the General Information card:
     Tip
    Need to edit an existing invoice? If you are editing an existing invoice, you can click the Edit button that appears in the top-right corner of the General Information card. This button only appears on the card after the new invoice is saved.
    new-sub-invoice-general-information-card.png
    • Contract Company
      Shows the name of the company that completed the contracted work associated with this invoice. This company is assigned to the commitment contract during creation. See Create a Commitment
    • Status
      Select a status for the invoice from the drop-down list. On a new invoice, Procore's default status is Draft
       Notes
      • To learn about statuses, see What are the default statuses for Procore invoices?
      • If an invoice is ready to be reviewed by an invoice administrator, remember to change its status to Under Review.
      • After the invoice administrator reviews an invoice, its status can be change to Approved or Revise and Resubmit as needed.
      • Users with 'Standard' permission on the Commitments tool can only edit invoices in the Draft or Revise and Resubmit status. 
    • Optional: Invoice #
      Enter the downstream collaborator's invoice number in the Invoice # box.
       Note
      • Invoice # is NOT a required field, you can leave this field blank.
      • Typically, Procore users use this freeform field to enter a reference number corresponding to the downstream collaborator's invoice number. If you enter an 'Invoice #', it must be unique from all other invoices created for the corresponding commitment contract. If you attempt to enter a duplicate number, a RED warning banner appears across the top of the page to remind you to enter a unique number. 
      • Procore does NOT automatically complete the 'Invoice #' entered here on associated upstream invoices. To which fields are automatically completed, see How does Procore automatically complete amounts on an upstream invoice?
    • Billing Period
      Select the date range for the billing period. Procore automatically selects the current billing period by default. 
       Notes
      • Invoice administrators are responsible for creating billing periods. For instructions, see Create Automatic Billing Periods or Create Manual Billing Periods.
      • Users with 'Admin' level permissions on the Commitments tool can select any billing period from the drop-down list.
      • Users with 'Standard' level permissions on the Commitments tool can only select a billing period that does NOT have an invoice associated with it. 
    • Billing Date
      Procore automatically selects the default date defined in the current billing period. This is a required field. 
    • Period Start
      Procore automatically selects the default start date defined in the current billing period. This is a required field. 
    • Period End
      Procore automatically selects the default start date defined in the current billing period. This is a required field. 
       Note
      The 'Billing Period' date in Procore is intended to align with the work being performed on a project so project managers can track and report the affect of invoices on the project's budget. However, if your accounting team defines billing periods differently, it is recommended that you keep the 'Billing Period' entry and then manually enter your unique accounting dates in the 'Billing Date,' 'Period Start,' and 'Period End' fields. 
    • Optional: Payment Date
      Enter the date the payment should be made to the 'Contract Company'. 
    • Optional: Submitted Date
      Enter the date the payment should be submitted to the 'Contract Company'.
  2. Continue with the next step. 
     Tip
    Want to save your invoice now? If you want to click the Save button on the invoice, you may do so now. Procore will create the new invoice and you must click the Edit buttons on each card in the invoice to proceed with the data entry. The instructions in this tutorial assume that you will proceed with the creation process before clicking Save

Set and Release Retainage on SOV Line Items

If you want to set and release retainage on the line items in the SOV, follow these steps:

  1. Choose from these options to select the line items:
    • To select all of the line items in the SOV, click the checkbox in the 'Item Number' header of the data table. 
      OR
    • To select individual line items, mark the checkbox(es) in the 'Item Number' column for the desired line item(s). 
  2. In the Schedule of Values, click the Edit button. 
  3. Optional: If you are an invoice administrator who wants to set the retainage for the invoice, do the following: 
    • Mark one or more Item Number check boxes. Then click the pencil icon above the data table in the Schedule of Values. 
      This opens the Edit pane on the right side of the page. 
    • Enter the retainage values to apply to the selected line item(s):
      • Work Retainage This Period (%). Enter a percentage amount to indicate the percentage of work retainage to be released this billing period. 
      • Retainage Released. Enter a percentage amount to indicate the percentage of retainage released.
      • Materials Retainage (%). Enter a percentage amount to indicate the percentage of work retainage to be released this billing period. 
    • Click Apply
  4. Choose from these options for entering work retainage:
    • Work Retainage This Period ($). Shows the currency amount for the work retainage this period. The value that appears here is based on your entry in the 'Work Completed this Period' column. An entry in this cell lets Procore automatically calculate the percentage value in the 'Work Retainage This Period (%)' column. 
      OR
    • Work Retainage This Period (%). Enter a percentage amount for the work retainage that you are requesting to be released this period. An entry in this cell lets Procore automatically calculate the currency value in the 'Work Retainage This Period ($)' column. 
  5. In the Total Retainage Released columnenter the total amount of work retainage being requested for release on the line item. 
  6. Choose from these options for entering materials retainage: 
    • Materials Retainage ($). Enter a currency amount for the material retainage that you are requesting to be released this period. The value that appears here is based on your entries in the New Materials Stored and Previous Materials Stored columns. An entry in this cell lets Procore automatically calculate the percentage value in the 'Materials Retainage This Period (%)' column. 
      OR
    • Materials Retainage (%). Enter a percentage amount for the material retainage that you are requesting to be released this period. The value that appears here is based on your entries in the New Materials Stored and Previous Materials Stored columns. An entry in this cell lets Procore automatically calculate the percentage value in the 'Materials Retainage This Period (%)' column. 
  7. In the Total Retainage column, Procore calculates the sum of the 'Work Retainage This Period ($)' amount plus the 'Materials Retainage ($)' amount to represent the total retainage amount on the invoice. 

Add Attachments

  1. Scroll to the 'Attachments' section. 
  2. Choose from these options:

    admin-view-attachments-section.png
    • Click the Attach Files button. This opens the Attach Files dialog box, where you can upload files from your computer. Click the Attach button when finished. 
      OR
    • Use a drag-and-drop operation to move the files from your computer or network into the 'Attachments area'. 

Save the Invoice

Click the Save button at the bottom of the 'New Invoice' page. 

save-button-admin-invoice.png

Send an Invoice with DocuSign©  

Optional: If your project team wants to collect signatures on your invoices using the Procore + DocuSign© integration, click the Send with DocuSign© button at the top of the page. To use this button, the DocuSign© integration must be enabled on the project (see How do I enable the DocuSign® Integration?) and the invoice must be in the Approved, Approved as Noted, or Pending Approval status. To learn more about the DocuSign© integration and preparing envelopes for signature, see DocuSign®.

send-to-docusign.png

 Tip
How do you collect signatures with DocuSign? After the data entry for the item is complete, Procore recommends changing the item's status to 'Out for Signature' before clicking the Send to DocuSign button to launch the DocuSign® application. If you have not previously signed in, you will be prompted to Log In to DocuSign®. Once you are signed in, you can prepare the DocuSign® envelope for signatures. After the signature process is complete, Procore automatically changes the status of the item to 'Approved' and marks the item as 'Executed'. To learn more, see DocuSign®.