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Create a Payment Application on Behalf of a Payment Application Contact (Legacy)

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 Legacy Content

This page details the legacy subcontractor payment application experience. A modernised experience is also available. 

Objective

To create a subcontractor payment application on behalf of an payment application 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 payment application, which is a legal statement issued by a seller to a buyer. The payment application 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 organisations, 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, payment applications 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:
  • Additional Information:
    • Subcontractor payment applications can be created for purchase orders or subcontracts. 
    • Subcontractors can either (1) ask someone with sufficient access permission to create the payment application on their behalf or, (2) follow the steps in Submit a Payment Application as a Payment Application Contact.
    • You can only edit the billed amounts on the most recent payment application.
    • If the contractor will create a payment programme once the payment application is approved, enter the amounts for the work you are claiming this period in the 'Proposed Amount' column of the payment application detail. In order for this column to appear, the payment programme feature must be enabled in the project's Commitment tool. See Configure Settings: Commitments.

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 Payment Application. 
     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 a payment application. 
  4. Enter the downstream collaborator's payment application number in the Payment application Number box.
     Note

    Important things to note about the Payment application # field:

    • An Payment application # is NOT required to save a payment application. You can leave this field blank.
    • An Payment application # is a free-form entry field that lets payment application contacts enter a reference number that corresponds with their own payment application numbering system.
    • A duplicate Payment application # on a commitment is NOT permitted. On one commitment, every payment application must have a unique Payment application #. 
    • An Payment application # does NOT automatically populate on main contract payment applications. See How does Procore automatically complete amounts on an upstream payment application?
  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 payment application needs to be approved. Costs are not reflected in the project's budget.
    • Under Review. Indicates the payment application is currently being reviewed by an approver. Costs are NOT reflected in the project's budget.
    • Revise & Resubmit. Indicates the payment applications need to be reviewed and resubmitted. Costs are NOT reflected in the project's budget. 
    • Pending Owner Approval. Indicates the payment application is waiting to be approved by the owner. Costs are NOT reflected in the project's budget.
    • Approved as Noted. Indicates the payment application is approved with any notations included in the response. Costs are NOT reflected in the project's budget.
    • Approved. Indicates the payment application is approved. Costs are reflected in the Job to Date Costs column on the project's budget.
       Notes
      • When the commitment company creates the Payment Application (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.
      • Payment application contacts can only edit payment applications when the payment application 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 a payment application 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 Payment Application Detail for a Unit/Quantity Based Commitment

  1. In the payment application, click the Detail tab.
  2. Complete the following fields for each line item that will be paid for by the payment application:
    • This Period (Qty). Enter a quantity for each line item. Procore calculates the total monetary amount automatically. 
    • Retained This Period (%) (Admin only). Enter the retention as a percentage amount for the current billing period. 
      Note: You can alternatively set the retention for all of the line items on the payment application by entering values in the Set Retention on All Line Items boxes and clicking Set. 
    • Released This Period (£). Enter the retention as a monetary amount for the current billing period.
  3. Optional: To add an approved commitment variation to the payment application, click Add to Payment Application.
    Notes:
    • 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 Commitment.
  4. To save your changes, click Save. 

Add Payment Application Detail for an Amount Based Commitment

  1. In the payment application, click the Detail tab.
  2. Complete the following fields for each line item that will be paid for by the payment application: 
    • Work Completed (This Period). Enter the monetary amount of work completed in the payment application'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 monetary amount. 
    • Materials Presently Stored. Enter the monetary amount of materials presently stored on the job site or nearby storage facility that were 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 payment applications until it is manually moved to Work Completed. See How do I bill for stored materials in Procore? (Legacy) for more information.
  3. Set retention as needed:
     Tip
    Do you want to set retention on all line items? If so, enter a value in the right sidebar and click Set.
    • Work Retention (%) Retained This Period ('Admin' level permissions). Enter a percentage for work retained for this pay period.
    • Material Retention (%) Retained This Period ('Admin' level permissions). Enter the percentage for materials retained this period.
  4. Release retention as needed:
    • Work Retention (£) Released this Period. Enter the amount of work retention to be released this period. 
    • Materials Retention (£) Released This Period. Enter the amount of materials retention to be released this period.
  5. Optional: If the payment programme feature is enabled (see Configure Settings: Commitments) and the contractor will be creating a payment programme after the payment application is 'Approved':
    • Proposed Amount. Enter the amount being claimed for the work this period.
  6. Optional: Add any 'Approved' commitment variations to the payment application:
    • Add to Payment application. Next to the variation(s) in the 'Approved Commitment Variations' section, click this button. 
      Note: 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 Commitment.
  7. Click Save.