Create Disbursements (Alberici Enterprise)
Objective
To create a new disbursement in the Company level Payments tool to pay subcontractor invoices.
Background
With Procore Pay, only a Payments Admin or Disburser can create disbursements using the 'Subcontractor Invoice' tab in the Company-level Payments tool. A disbursement can handle up to 100 subcontractor invoice payments and saved as a 'Draft' for flexibility. Users can add or remove invoices in 'Draft' status before authorization.
With the Company level Workflows tool, payors can track invoice payment requirements and start a custom payments workflow for review and approval. A Procore Pay disbursement initiates the drawdown request from the funding account and transfers funds to the deposit account to process and execute payment orders.
This table details the difference between a funding account and a deposit account:
|
Account Type |
Definition |
Purpose |
Learn More |
|---|---|---|---|
| Funding Account | A bank account used as the source to withdraw funds for disbursements. | Holds the payor's funds and releases them to the Deposit Account. | What are the different types of bank accounts in Procore Pay? |
| Deposit Account * | Procore Pay initiates a reverse wire from the deposit account to transfer the funds for a disbursement from the funding account to the deposit account. | Receives the withdrawn funds to process and execute the payment orders for a disbursement's subcontractor invoices. |
Things to Consider
- Required User Permissions
- Additional Information:
- A single disbursement can handle up to 100 subcontractor invoice payments.
- Invoice payments must be a positive amount. Procore Pay does not support negative invoice payments.
- Disbursement contributors can only save their disbursements as drafts.
- Payment Admins and Disbursers cannot authorize a disbursement if they are the last approver on any invoice within the disbursement.
Prerequisites
- Before an Invoice can be saved in a draft disbursement:
- Beneficiary Account status must be Approved
- Subcontractor Invoice must be in an Approved status
- All Payment Requirements must be met
- All Manual Holds must be released
Steps
Additional Details
Disbursements
- Disbursement Name: The disbursement name will help accounting determine which disbursements are ready for approval and payment
- Disbursement Creation: Utilize the following naming sequence "Last Name_DesiredPaymentDate"
- Ensure the Payment Date accounts for the standard 7-10 days post owner-funding
- Ready for Approval: Append the name to include "_FINAL"
- Note: In order for accounting to approve the disbursement for payment, the name must:
- Have the corresponding payment date
- Have the _FINAL designator
- Note: In order for accounting to approve the disbursement for payment, the name must:
- Disbursement Creation: Utilize the following naming sequence "Last Name_DesiredPaymentDate"
- Funding Account: For companies operating with multiple business entities, a Business Entity drop-down list appears.
- Business Entity. If applicable, select the appropriate business entity from the drop-down list. If the field is grayed-out, the project's Business Entity has been pre configured in Project Settings and no action is required.
- Funding Account. Select the entity's funding account from the drop-down list. If only one funding account is set up for the selected business entity, it’ll be preselected.
Next Steps
- Procore Payments will be processed on Wednesday mornings each week.
- In order to be eligible for payment, the disbursement name must have the '_FINAL' designator before 10:30 am CT on the desired payment date.
- On payment dates, accounting will initiate the review and approval process for all eligible disbursements