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Procore (en-GB)

Create an Payment Application on Behalf of an Payment Application Contact

Background

In Procore, there are two ways to create a subcontractor payment application for a purchase order or subcontract:

  • Create an Payment Application on Behalf of an Payment Application Contact
    When you do NOT want to grant your payment application contact(s) access permissions to create their own payment applications in Procore, use the steps below. With this method, you will enter the subcontractor payment application data into Procore for your collaborators. For example, if you are a main contractor, you will create an payment application in Procore on behalf of your subcontractor. 
  • Send an 'Invite to Bill' to an Payment Application Contact
    When you want to invite your payment application contacts to submit their own payment application in Procore, follow the steps in Send an 'Invite to Bill' to an Payment Application Contact instead of the steps below. If you are the recipient of an 'Invite to Bill,' you can then follow the steps in Submit a New Payment Application as an Payment Application Contact. 

Things to Consider

  • Required User Permissions:
    • 'Admin' level permissions on the project's Commitments tool. 
  • Additional Information:
    • You can create payment applications for purchase orders and subcontracts.  
    • If you are the payment application contact for the 'Contract Company' on a purchase order or subcontract, you have these options for submitting an payment application:
    • If there are multiple payment applications for a single billing period, you can only edit the billed amounts on the most recently created payment application.
    • If the contractor will create a payment schedule once the invoice is approved, enter the amounts for the work you are claiming this period in the Subcontractor Claimed This Period column of the invoice detail. In order for this column to appear, the payment schedule feature must be enabled in the Payment Applications tool’s configuration settings. See Configure Settings: Payment Applications.

Training Video

Steps

  1. Choose how to navigate to the contract:
    • From the Commitments tool:
      1. Navigate to the project's Commitments tool. 
      2. Under the 'Contracts' tab, locate the contract to work with.
      3. Click the Number link to open the contract. 
        OR
    • From the project's Invoicing tool:
      1. Navigate to the project's Payment Application tool. 
      2. Click the Subcontractor tab. 
      3. In the 'Subcontractor' tab, locate the contract to work with. 
      4. Click the Contract link to open the contract. 
  2. Click the Create Payment Application button.
     Note
  3. Verify the following information for the billing period. Procore will automatically enter these dates for you, based on the current billing period:
    • Billing Period. Select the date range for the current billing cycle. Users with 'Admin' permission can select any billing period from the drop-down list. Users with 'Standard' permission can only select a billing period that does NOT have an payment application associated with it. 
    • Payment Application Start. The start date for the billing period. 
    • Payment Application End. The end date for the billing period. 
    • Billing Date. The date by which a billing should be submitted to the contractor. 
       Note
      To create billing periods, see Create Automatic Billing Periods or Create Manual Billing Periods.
  4. Optional: Enter the payment application number.
  5. If you are an 'Admin' user, select the appropriate status from the drop-down list. 
     Notes
    • To learn more about statuses, see What are the default statuses for Procore payment applications?

    • When an payment application contract creates an payment application (or if you create an payment application on their behalf), remember to change the payment application's status to 'Under Review'. 
    • When the person reviewing has inspected the payment application, the status can be changed to 'Approved' or 'Revise and Resubmit' as appropriate.
    • Users with 'Standard' permission on the Commitments tool can only edit payment applications in the 'Draft' or 'Revise and Resubmit' status. 
  6. Attach any files associated with the payment application. For example, lien waivers or lien releases.
  7. Click Save.
    Procore automatically displays the Detail tab for the payment application. 
  8. Continue with the next step:

For Commitments Using the Unit/Quantity Based Accounting Method

When a commitment is configured to use the Unit/Quantity Based accounting method (see How do I set the accounting method for a commitment or main contract?), follow these steps:

  1. Click the Detail tab.
  2. Complete the following fields for each line item that will be paid for by the payment application:
    For Payment Applications Formatted with the Unit/Quantity accounting method:
    • 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.
  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

For Commitments Using the Amount Based Accounting Method

When the commitment is configured to use the Amount Based accounting method (see How do I set the accounting method for a commitment or main contract?), follow these steps:

  1. Click the Detail tab.
  2. Complete 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.
  3. If the contractor will create a payment schedule once the invoice 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 Applications tool’s configuration settings. See Configure Settings: Payment Applications.
  4. 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.
  5. To save your changes, click Save.

 

If you would like to learn more about Procore’s invoice management software and how it can help your business, please visit our construction invoice management software product page here.