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Procore (en-GB)

Create a Payment Application on Behalf of a Subcontractor

Objective

To create the payment application for request of payment.

Background

In Procore, there are two types of financial commitments that end users can create: (1) a purchase order, which 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's 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 Permission:
    • To create a subcontractor payment application, 'Admin' on the project's Commitments tool. 
    • To create a subcontractor payment application for an open billing period, 'Standard' on the project's Commitments tool and you must be the designated payment application contact on the commitment. See Create Payment Application Contacts.
       Note
      Your ability to perform certain tasks with the Invoicing tool depends on the access permission you've been granted to the Main Contracts or Commitments tool, as well as the privacy and payment application contact settings set on each main contract or commitment that you are working with. To learn more about permissions for specific tasks that can be performed with the Invoicing tool, see Permissions: Payment Applications.
  • Additional Information:
    • Payment Applications can be created for both types of commitments (i.e., purchase orders or subcontracts).
    • Subcontractors (a.k.a., "commitment vendors") can either (1) ask someone with sufficient access permission to create the payment application on their behalf or, (2) follow the steps in Create and Submit a Payment Application as a Subcontractor.
    • You can only edit the billed amounts on the most recent payment application.
    • If the contractor will create a payment schedule once the payment application is approved, enter the amounts for the work you are claiming this period in the Subcontractor Claimed This Period column of the payment application detail. In order for this column to appear, the payment schedule feature must be enabled in the Payment Application tool’s configuration settings. See Configure Settings: Payment Applications .

Training Video

Steps

  1. Navigate to the project's Invoicing tool. 
  2. Click Create Payment Application.
    Notes:
    • The Period Start, Period End, and Billing Date that appear correspond to the billing period. See How do I create a billing period for a payment application?
    • Users with 'Admin' permission can select any billing period.
    • Users with 'Standard' permission can only select a billing period that does NOT have a payment application associated with it. 
  3. Optional. Enter the payment application number.
  4. If you are an 'Admin' user, select one of the following statuses from the list:
    • Draft. The payment application still needs to be approved. Costs are not reflected in the budget.
    • Under Review. The payment application is currently being reviewed by an approver. Costs are not reflected in the budget.
    • Revise & Resubmit. The payment application needs to be reviewed and resubmitted. Costs are not reflected in the budget. 
    • Pending Owner Approval. The payment application is waiting to be approved by the owner. Costs are not reflected in the budget.
    • Approved as Noted. This payment application is approved. This amount is NOT reflected in the  budget.
    • Approved. This amount is reflected in the 'Job to Date Costs' column in the 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.
      • 'Standard' level users can only edit payment applications with the status set to 'Draft' or 'Revise & Resubmit'. 
      • These statuses reflect the budget in the ways listed above for the Procore Standard Budget View. To create or modify views, see Set up a New Budget View.
  5. Attach any required backup documentation (e.g. lien waivers or releases).
  6. Click Save.
     

For Commitments Formatted as Unit Quantity

On the Detail tab, for Payment Applications Formatted as Unit Quantity.

  1. Fill in the following fields for each line items that will be paid for by the payment application:
    For Payment Applications Formatted as Unit Quantity
    • This Period (qty): Enter the quantity for each line item. The total monetary amount will automatically be calculated. 
    • Retained This Period (%) (Admin only): Enter a retention percentage for the payment application's period. (Note: You can also set the retention on all line items by entering a value in the right sidebar and clicking Set.)
    • Released This Period ($): Enter the monetary amount of retention to be released this period.
  2. If you want to add an approved commitment variation to the payment application, click Add to Payment Application next to the variation in the Approved Commitment Variations to Add to this Payment Application section.
    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 Tab on a Commitment.
  3. To save your changes, click Save

For Commitments Formatted as Amount Based

On the Detail sub tab, for Payment Applications Formatted as Amount Based.

  1. Fill in the following fields for each line item(s) 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 jobsite 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?
    • Work Retention (%) Retained This Period (Admin only): Enter a percentage for work retained for this pay period. (Note: You can also set retention on all line items by entering a value into the right sidebar and clicking Set.)
    • Material Retention (%) Retained This Period (Admin only): Enter the percentage for materials retained this period. (Note: You can also set retention on all line items by entering a value into the right sidebar and clicking Set.)
    • Work Retention (£) Released this Period: Enter the monetary amount of work retention to be released this period. 
    • Materials Retention (£) Released This Period: Enter the monetary amount of materials retention to be released this period.
  2. If the contractor will create a payment schedule once the payment application is approved, enter the amounts for the work you are claiming this period in the Subcontractor Claimed This Period column. In order for this column to appear, the payment schedule feature must be enabled in the Payment Application tool’s configuration settings. See Configure Settings: Payment Applications .
  3. If you want to add an approved commitment variation to the payment application, click Add to Payment Application next to the variation in the Approved Commitment Variations to Add to this Payment Application section. 
    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 Tab on a Commitment.
  4. To save your changes, click Save.