Create a MC/Client Payment application for a Client Contract

Objective

To create a MC/Client payment application for a client contract. 

Background

An MC/Client Payment application is an application for payment, typically submitted by a Speciality Contractor to a Main Contractor (MC) or client to provide an itemized record of the amount due for work performed. In Procore, a MC/Client payment application is equivalent to an accounts receivable payment application.

Things to Consider

• Required User Permissions:
  • To create a payment application, 'Admin' level permissions on the project's Client Contracts tool.
  • To view the Detail tab on a payment application, 'Read Only' or 'Standard' level permissions on the project's Client Contracts tool with the 'View MC/Client Payment application Detail' granular permission enabled on your permission template.
    Note: If you do NOT have 'Admin' level permissions on the project's Client Contracts tool and want to view some or all of the client contracts, see View Client Contracts.
• Additional Information:
  • When you enter a value for a payment application that is larger than the bill of quantities, the payment application will be highlighted in red.
  • You can only edit the billed amounts on the most recent payment application.
  • To learn how amounts are automatically completed by Procore on MC/Client payment applications, see How does Procore automatically fill in amounts on a MC/Client payment applications?

Prerequisites

• Create a client contract. See Create Client Contracts.
• Place the client contract in the 'Approved' or 'Complete' status. See Approve a Client Contract.
• You must create a billing period. See Create Automatic Billing Periods in the Progress Billings Tool or Create Manual Billing Periods in the Progress Billings Tool.

Steps

1. Navigate to the project's Client Contracts tool.
2. Locate the client contract to work with. Then click its Number link. 
3. Click Create and then choose the Create Progress Billing option.

    Note

   If a payment application has already been created for the current billing period, click the Progress Billings tab. Then click the Edit button to open it. 
4. On the 'New Payment application (Payment Application)' page, do the following:
   • Commitment Billing Period
     Select the current billing period from the drop-down list. If there is no billing period in this list, follow the steps in Create Automatic Billing Periods in the Progress Billings Tool or Create Manual Billing Periods in the Progress Billings Tool.
   • Number
     Enter a unique, alphanumeric identification number for the payment application. Procore automatically numbers payment applications in ascending numerical order, starting with one (1). The number entered in this field does NOT affect Procore's default payment application numbering scheme.  
   • Period Start
     Select a start date for the payment application. Procore automatically populates this field with the current billing period's start date. 
   • Period End
     Select an end date for the payment application. Procore automatically populates this field with the current billing period's end date. 
   • Billing Date
     Select the billing date for the payment application.
   • Status
     Select a status for the MC/Client payment application. See What are the default statuses for Procore payment applications?
   • Percent Complete
     Shows the percentage of work completed.
   • Attachments
     A PDF of the payment application and any related payment application PDFs from the project's Direct Costs tool are combined into a single PDF and attached here. 
5. Click Create. 

    Note

   You will be prompted to confirm that you want your new payment application to pre-populate with the following information:

   • Amounts on the 'Work Completed' and 'Materials Presently Stored' columns of 'Approved' and 'Pending Approval' subcontractor payment applications. 
   • Amounts for 'Invoices' are created in the project's Direct Costs tool when the 'Received Date' on that direct cost falls within the billing period. 
   • Amounts from Commitment Variations that have amounts in Client Contract Variations. 
6. In the 'Do you want to pre-fill the MC/Client Payment application?' message, you have these options:
   • Yes. Click this button to confirm that you want the payment application to pre-populate the payment application with the amounts billed from the fields listed in the message. 
   • No Thanks. If you want to manually complete the payment application
   • Cancel. Click this button to cancel payment application creation. 
7. Scroll down the page to view a preview of the payment application form under "Summary Preview." To learn how the 'Current Amount Due' amount is calculated, see How does Procore calculate a payment application's 'Current Payment Due' amount?

Edit Line Items

1. Click the Detail tab. 

    Note

   Users with 'Read Only' or 'Standard' level permission on the Client Contracts tool can only view the Detail tab only if the 'View MC/Client Payment application Detail' granular permission is enabled on their permission template.
2. Click Edit.
3. Enter data in these YELLOW boxes:
   • Work Completed (This Period)
     If you confirmed the option for Procore to automatically complete the MC/Client payment application's amounts (see How does Procore automatically complete amounts on a MC/Client payment application?), the values from the 'Work Completed (This Period)' column from any related subcontractor payment applications and any direct costs amounts are included in this column.
   • Materials Presently Stored
     If you confirmed the option for Procore to automatically complete the MC/Client payment application's amounts Payment application amounts (see How does Procore automatically complete amounts on a MC/Client payment application?), the values from the 'Materials Presently Stored' column in any related subcontractor payment applications are included in this column. 
   • Work Retention Retained this Period
     Enter a percentage or monetary amount for work retention retained this period. You can also set retention on all line items by entering a value into the right sidebar and clicking Set.
   • Materials Retention Retained this Period
     Enter a percentage or monetary amount for materials retention retained this period. You can also set retention on all line items by entering a value into the right sidebar and clicking Set. 
   • Work Retention $ Released This Period
     Enter a monetary amount of work retention released this period.
4. Optional: If you have any 'Approved' contract variations, you can choose to add them to the payment application by scrolling to the bottom of the page and clicking Add to Payment application. 
   The entry and editing of the variations will always occur at the line item level of detail. You can select a different level of detail for how variations will be displayed on the detail page of the Payment application when being viewed or exported from Procore. See Edit the Advanced Settings on a Client Contract.
   Values on a payment application are never copied to a project's variations.
5. Click Save.
   Your changes are reflected on the General tab under the Contract Summary Report section. 

See Also

• Grant Granular Permissions in a Permission Template
• Compile Payment application Backups in the Progress Billings Tool
• How do I set the accounting method for a contract or funding?