About Subcontractor Payment Applications
Objective
To provide Procore users with information about subcontractor payment applications in Procore.
Background
The Payment application Management solution features the Project level Payment applications tool. This tool handles two types of payment applications: subcontractor payment applications and main contract payment applications. Subcontractor payment applications originate in the project's Commitments tool. Before you can create a payment application, your project team must create a commitment for the project, establish a billing period and decide who will have permission to submit a payment application.
Tip
Prerequisites
Workflow
This diagram summarises subcontractor payment application creation.
Steps
- Create Your Subcontractor Payment applications in Procore
- Optional: Export Your Subcontractor Payment applications to an Integrated ERP System
Create Your Subcontractor Payment applications in Procore
The steps for creating subcontractor payment applications in Procore include:
| Step | Description | Learn More |
|---|---|---|
| Decide who will have permission to submit a payment application | You have these choices:
1. Grant payment application submission rights to downstream collaborators. In Procore, these users are called payment application contacts. |
Considerations |
| Optional. Decide if you want to collect signatures with DocuSign® | There are two (2) ways to collect signatures on commitments and payment applications:
|
DocuSign® |
| Configure the Payment application Management tools | Configure the payment applications settings in the Commitments and Payment applications tools. See Configure Settings: Commitments and Configure Settings: Payment applications. | Commitments and Payment applications |
| Establish a billing period | Create a billing period and place it in the Open status. A billing period defines the start, end and due date for submitting a payment application. | Manage Billing Periods |
| Create a commitment | Subcontractor payment applications originate from commitments. You can create multiple commitments for your collaborators in a Procore project. A commitment must be in the 'Approved' status before you can create a payment application. | Create a Commitment |
| Optional: Grant payment application submission rights to downstream collaborators | Optional: An payment application administrator can grant payment application submission rights to downstream collaborators. | Add Payment application Contacts to a Purchase Order or Subcontract |
| Configure the 'Advanced Settings' tab on the commitment | For best results, configure the advanced settings before you add line items to the BOQ and before you create payment applications for the commitment. | Edit the Advanced Settings Tab on a Commitment |
| Create payment applications and submit them before the Open billing period's 'Due Date' | Learn the options for creating payment applications with the Commitments tool. Only payment application administrators or payment application contacts on a commitment can create subcontractor payment applications. | Create a Subcontractor Payment application |
| Review submitted payment applications | Once submitted, an payment application administrator can review each line item on the payment application's Bill of Quantities to approve or reject it. | Review a Subcontractor Payment application as an Admin |
| Revise and resubmit payment applications | If an payment application administrator rejects one (1) or more payment application line items, users can make fixes and corrections until all the line items on the payment application's Bill of Quantities are Approved. | Revise & Resubmit a Payment Application as a Payment Application Contact |
| Optional. Complete the signature process in DocuSign® | Once Approved, you can optionally complete the signature process in DocuSign®. | Complete Subcontractor Payment Applications with DocuSign® |
| Optional: Sync payment applications with an integrated ERP system | You'll need to determine if your ERP connector supports subcontractor payment applications. | ERP Integrations |