About Subcontractor Payment Applications

Objective

To provide Procore users with information about subcontractor payment applications in Procore.

Background

Procore's Payment Application Management product includes the Project level Invoicing tool, which supports two types of payment applications on a construction project:

Payable Payment Applications. In Procore, your accounts payable payment applications are called subcontractor payment applications. This tutorial provides you with an introduction to the subcontractor payment application workflow in Procore. Payable payment applications are created in the project's Commitments tool, where your purchase orders and subcontracts are also created.
Receivable Payment Applications. In Procore, your accounts receivable payment applications are called owner payment applications. The receivable payment application process works with the project's Main Contracts tool and also lets you base your owner payment applications on your subcontractor payment applications.

Procore's Payment Application Management tools supports progress billing, so your team can incrementally collect, review and approve payment applications for the agreed upon progress milestones or billing cycles identified in your contracts.

The first step of the invoicing process is to create your purchase orders and subcontracts and to designate an payment application contact for the subcontractors and vendors who will be billing you for the work they perform. The next step is for the person (or people) responsible for managing your project's payment applications to set up a billing period. In this documentation, we refer to that person as the payment application administrator. A billing period allows you to organise your payment applications—monthly, weekly or a custom length.

For your project, you can choose to create the payment applications for your subcontractors and vendors or you have option to send your payment application contacts an 'Invite to Bill'—which is a courtesy reminder to submit the payment application by the due date. After the subcontractor payment applications are submitted, you can generate your project's owner payment applications based on your subcontractor payment applications.

Workflow

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 in the subcontractor payment application workflow are designed for use by your team's payment application administrator(s). You also have the option to either create all of your project's subcontractor payment applications on behalf of your payment application contacts or to invite your payment application contacts to submit their own payment applications:

Add at least one (1) payment application contact to the purchase order or subcontract using one (1) of these tools:
- Commitments. For instructions, see Add Payment Application Contacts to a Purchase Order or Subcontract.
- Invoicing. For instructions, see Add Payment Application Contacts to a Purchase Order or Subcontract.
Create a billing period using the Invoicing tool:
- Create Manual Billing Periods
- Create Automatic Billing Periods
Decide who can create payment applications for your Procore project. Users have these choices:
- Create an payment application on behalf of an 'Payment Application Contact'
  Choose this option if you do NOT want to provide your collaborators with access permission to your Procore project. This option requires you to enter the payment application information for your collaborators. For instructions, see Create an Payment Application on Behalf of an Payment Application Contact.
- Send an 'Invite to Bill' to an Payment Application Contact
  Choose this option if you want your collaborators to create their own subcontractor payment applications. This option lets the designated 'Payment Application Contact' on a commitment access the Create New Payment Application form from an email invitation. For instructions, see Send an 'Invite to Bill' to an Payment Application Contact.
  - If you receive an invite to bill, you can accept or decline the invite. See Accept or Decline an 'Invite to Bill' as an Payment Application Contact.
    - If you accept the invite, you can then Submit a New Payment Application as an Payment Application Contact.
    - If you decline the invite, you will not create an payment application for the billing period. See Accept or Decline an 'Invite to Bill' as an Payment Application Contact.
After the payment applications are created, a user with 'Admin' level permissions must review it. See Review a Subcontractor Payment Application as an 'Admin.'
- If you are an 'Payment Application Contact' who has also been granted 'Standard' permission on a project's Commitments tool, you can check the 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 needed to resubmit your payment application for another review. To learn more, see Revise & Resubmit an Payment Application as an Payment Application Contact.

Optional: Export Your Subcontractor Payment Applications to an Integrated ERP System

If your company is using one of Procore's ERP Integrations and you want to sync the subcontractor payment applications from your Procore project with an integrated ERP system, you first need to determine if subcontractor payment application exports are supported. The list below details the ERP Integrations that support subcontractor payment application exports.

ERP Integration Name	For instructions
Integration by Procore: Connects Procore to Viewpoint® Spectrum®	Subcontractor payment applications cannot be synced at this time.
Integration by Ryvit: Connects Procore to Viewpoint® Vista™	Subcontractor payment applications cannot be synced at this time.
Procore + Sage 100 Contractor®	Subcontractor payment applications cannot be synced at this time.
Procore + Sage 300 CRE®	Export Subcontractor Payment Applications from Procore to Sage 300 CRE®
Procore + QuickBooks®	Export Subcontractor Payment Applications from Procore to QuickBooks®