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 Payment applications 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. Subcontractor payment applications are created in the project's Commitments tool within your project's purchase orders and subcontracts. They are used by your downstream collaborators or submitted by you on behalf of your downstrem collaborators, to request paymen for the work they perform on your project. See What is an downstream collaborator?
- Receivable Payment applications. In Procore, your accounts receivable payment applications are called main contract payment applications. Main contract payment applications are created in the project's Main Contracts tool within your project's main contracts. They are used by your team to bill for the work you perform for your upstream collaborator(s). See What is an upstream collaborator?
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 inital steps in the payment applications process are:
- Create the purchase orders and subcontracts for your project (see Create a Commitment). To incorporate Procore's Payment application Management tools in your environment, you must designate an payment application contact for your collaborators on a commitment. In this scenario, your downstream collaborators are the contractors, subcontractors, vendors and suppliers who will be billing you for the work they perform on your project.
- Set up a billing period in your Procore project using Procore's Payment applications tool. In this documentation, we refer to the person responsible for managing the payment applications process as the payment application administrator. The payment application administrator creates billing period to organise all of your payment applications. Billing periods can be created monthly, weekly or a custom length.
- Decide who will have permission to submit payment applications on your project—your team or your collaborators. You can choose to create payment applications on behalf of your collaborators or you have the option to send your collaborator's payment application contacts an 'Invite to Bill'—which is a courtesy reminder sent by email to submit a payment application for work performed by the due date. Once all of the subcontractor payment applications are submitted, you can generate your project's main contract 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
In Procore, a subcontractor payment application is considered a downstream payment application. The basic steps for creating payment applications in Procore include:
| Step | Description | Learn More |
|---|---|---|
| Decide who can create payment applications in your environment | Decide which option is a fit for your Procore project environment: (1) Grant access permissions to provide downstream collaborators with the ability to submit their own payment applications in Procore. These users are called payment application contacts. (2) Collect paper or digital payment applications from your downstream collaborators and require your team members to create payment applications. |
What do we need to consider before allowing downstream collaborators to submit payment applications in Procore? |
| Create your project's commitment contracts | Create the commitments on your project. Downstream payment applications can only be created from an existing commitment. | Create Commitments |
| Optional: Add payment application contacts to your commitments | Optional: If you decide to let downstream collaborators submit their own payment applications, you must add the appropriate payment application contact to each commitment. | Add Payment application Contacts to a Purchase Order or Subcontract 1 |
| Create a billing period for your payment applications | Create a billing period, which defines the start, end and billing date for a payment application. | Create Manual Billing Periods or Create Automatic Billing Periods 2 |
| Optional: Invite payment application contacts to submit payment applications | Optional: If an payment application contact is submitting their own payment application, send them an invite to bill. | Send an 'Invite to Bill' to a Payment Application Contact 2 |
| Submit payment applications by the billing date | Optional: If an payment application contact is submitting their own payment application, show them how to respond to an invite to bill. See Accept or Decline an 'Invite to Bill' as a Payment Application Contact. 2 Then ask them to complete the steps in Submit a New Payment application as a Payment Application Contact. 2 If an payment application administrator is submitting a payment application, follow the steps in Create a Subcontractor Payment application on Behalf of a Payment Application Contact. 2 |
Create a Subcontractor Payment application 2 |
| Review submitted payment applications | Once submitted, an payment application administrator can review each line item on the payment application's Bill of Quantities and either approve or reject each line item. If one (1) or more line item is rejected, uses can Review a Subcontractor Payment application as an Admin. 2 If all line items are approved, you can change the payment application status to 'Approved'. | Review a Subcontractor Payment application as an Admin 2 |
| 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 2 |
1 You can also add payment application contacts using the Project level Commitments tool. See Add Payment application Contacts to a Purchase Order or Subcontract.
2 
These tasks can also be completed with the Progress Billings tool. The Progress Billings tool is only available to Procore customers in the United States and Canada who have implemented the Procore for Speciality Contractors point-of-view dictionary. To learn more, see (Limited Release) Owners & Speciality Contractors Point-of-View Dictionary Options.
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.
See Also
- Configure Settings: Payment Applications
- Create a Payment Application on Behalf of a Payment Application Contact
- Send an 'Invite to Bill' to a Payment Application Contact
- Accept or Decline an 'Invite to Bill' as a Payment Application Contact
- Submit a New Payment application as a Payment Application Contact