About Subcontractor Payment Applications

Objective

To provide Procore users with information about subcontractor invoices in Procore. 

Background

A subcontractor invoice is a request for payment from a seller to a buyer. Procore payment applications allow contractors to progressively bill clients at several stages during the construction process. These billings are based on a verified percentage of the commitment contract's completion. Main contractors can configure billing period start and end dates, as well as the billing date, for each billing period. They can invite subcontractors to complete payment applications for the most recent billing period or they can create payment applications on behalf of the subcontractor. Once the payment application has been approved, payment can be issued against the commitment. 

In Procore, a project team can use two Procore tools to manage subcontractor invoice: the Commitments tool and the Invoicing tool. Unlike other Procore tools, access permission to the project's Invoicing tool is governed by the permissions granted to a user account for the Commitments tool.  This is because the Invoicing tools was designed to provide main contractors and project owners with access to all of a project's subcontractor invoices, owner payment applications,  and billing periods in a single workspace. If you are a subcontractor, the Procore project owner determines whether you have access permission to perform the tasks detailed in the recommended workflow below. If you have been granted access permission to Procore for subcontractor invoicing,  you will perform those tasks using the Commitments tool. 

Recommended Workflow for GCs

Prerequisites

• Create a Subcontract

Workflow Details

The details below are intended to be used by owners and main contractors. If you are a collaborator who has been granted permission to submit a payment application, please see the Notes below. 

1. Add at least one (1) 'Payment Application' Contact' to the commitment using the tool of your choice:
   • Commitments. For instructions, see Add Payment Application Contacts to a Commitment
   • Invoicing. For instructions, see Add Payment Application Contacts to a Commitment.
2. Create a billing period choosing one of these methods:
   • Create Manual Billing Periods in the Invoicing Tool
   • Create Automatic Billing Periods in the Invoicing Tool
3. Decide who can create payment applications on your project. You have these choices:
   • Create a payment application on behalf of your subcontractor
     Use this option if you do NOT want to provide your subcontractors with access to your Procore project. For instructions, see Create a Payment Application on Behalf of a Subcontractor.
   • Invite your subcontractor's 'Payment Application Contact' to create an payment application
     Choose this option if you would like to provide your subcontractor's 'Payment Application Contact' with access to create a payment application. For instructions, see Send Subcontractor Payment Application Invitations. 

      Note

     Did you receive an email invite to submit a payment application?  If you are a subcontractor who has been designated an the 'Payment Application Contact', you may have recevied an invitation to bill from Procore. To learn how to submit a payment application, see Create and Submit a Payment Application as a Subcontractor. 
4. Review the submitted payment application. See Review Payment Applications as an 'Admin.'

    Note

   Was a payment application line item approved or rejected? If you are an 'Payment Application Contact' who has also been granted 'Standard' permission on a project's Commitments tool, you can check status of the line items on your payment application, see any comments left by the person who reviewed your payment application submission and adjust those line item amounts as need to resubmit your payment application for another review. To learn more, see Review Payment Applications as a Subcontractor.

Training Videos

See Also

• Configure Settings: Invoicing
• Add Payment Application Contacts to a Commitment
• Create Automatic Billing Periods
• Create Manual Billing Periods
• Send Subcontractor Payment Application Invitations
• Edit a Billing Period For Payment Applications
• Create a Payment Application on Behalf of a Subcontractor
• Submit a Payment Application as a Subcontractor