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Create a Subcontractor Payment application on Behalf of a Payment Application Contact

 Phased Release: New Admin & Collaborator Views for Subcontractor Payment applications
On March 23, 2022, the modernised subcontractor payment application experience was turned ON in all Procore project's using Procore's Payment application Management tools. To give you time to preview the design changes, Procore is providing users with the option to switch between the modernised and legacy experience until February 2023. After February 2023, the ability to exit out of the new experience will be removed and the legacy experience will no longer be available in Procore. To learn more, see Financial Management: New Admin & Collaborator Views for Subcontractor Payment applications.
 Note
If you have the legacy version of subcontractor payment applications, follow the steps in Create a Payment Application on Behalf of a Payment Application Contact instead of the ones below.

Background

In Procore, there are two (2) ways for a payment application administrator to create a downstream payment application for a commitment contract.

  • Create a Payment Application on Behalf of a Payment Application Contact
    When you do NOT want to grant your collaborator's 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 downstream payment application data into Procore on behalf of your collaborators. In this context, a collaborator is the person or business that you contracted to perform work on your project. 
  • Send an 'Invite to Bill' to a Payment Application Contact
    When you want to invite your collaborator's payment application contacts to submit their own payment application in Procore, follow the steps in Send an 'Invite to Bill' to a 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 a Payment Application Contact. 
Examples

In Procore, downstream payment applications that bill against your project's commitment contracts. Below are some examples of downstream payment application relationships:

  • If your project is using Procore's default dictionary for main contractors, you would create a downstream payment application in Procore on behalf of the subcontractor who performed work for your project. In Procore, this is called a subcontractor payment application. 
  • If your project is using Procore's Owners dictionary, you would create a downstream payment application in Procore on behalf of the main contractor who performed work for your project. In Procore, this is called a contractor payment application. 
  • If your project is using Procore's Speciality Contractors dictionary, you would create a downstream payment application in Procore on behalf of a subcontractor who performed work for your project. In Procore, this is called a subcontractor payment application. 

To learn about the available dictionaries in Procore, see What dictionaries and languages are available in the Procore web application?

Things to Consider

  • Required User Permissions:
    • 'Admin' level permissions on the project's Commitments tool. 
       Notes
      • Access permissions to the Payment applications & Progress Billings tools are governed by the permissions set on the Commitments and/or Client Contracts, Funding or Main Contracts tool. Procore tool names vary, depending on the language or point-of-view dictionary configured in Procore. See What dictionaries and languages are available in the Procore web application?
      • If you are a collaborator (for example, an payment application contact employed by a company performing work on a project managed in Procore, your ability to perform invoice-related tasks is determined by the Procore company account holder. Settings that the account holder may choose to provide to you include:
        • A Procore User account.
        • Access permissions to the project's Commitments and/or Client Contracts, Funding or Main Contracts tool.
        • Membership on the 'Private' list of a specific contract or funding
        • Designated as an 'Invoice Contact' on the contract or funding.
  • Additional Information:
    • You can create payment applications for all commitment contracts.  
    • If you are the payment application contact for the 'Contract Company' on a commitment contract, you have these options for submitting a 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 you are a payment application administrator and want to edit the 'Bill of Quantities' card later, the payment application must be in the 'Draft' or 'Revise and Resubmit' status. See What are the default statuses for Procore payment applications? 
       Note
      flag-australia.png This feature was designed for Procore customers in Australia and New Zealand who have a legal requirement to provide claimants with a payment programme. However, this feature is available for use by all Procore customers using the Project level Commitments, Payment applications, & Progress Billings tools.

Prerequisites

Steps

  1. Open the New Payment application Page
  2. Update the General Information Card
  3. Update the Bill of Quantities Card
  4. Set and Release Retention on BOQ Line Items
  5. Add Attachments
  6. Save the Payment application
  7. Optional: Send a Payment Application with DocuSign© 

Open the New Payment application Page

New payment applications are always created in the project's Commitments tool. The first step is to open the 'New Payment application' page as follows:

  • Navigate to the project's Commitments tool.
  • In the Contracts table, locate the contract that you want to create the payment application for. 
  • Click the Number link to open the contract.
    subcontract-number-link-status.png
     Tip

    Want to collect signatures using the Procore + DocuSign© integration? To do this, click Edit Contract button. Next, place a mark in the Sign with DocuSign tickbox on the 'General Information' card in the commitment contract. If you add a mark, click Save now. Otherwise, click Cancel. Important things to note:

  • In the contract, click the Create button. Then choose the Create Payment application option from the drop-down menu. 
     Notes

    subcontract-create-button-create-invoice.png
  • Continue with the next step. 

Update the General Information Card

The next step is to update the 'General Information' card as follows:

  1. In the new payment application, add and/or verify the data in the General Information card:
     Tip
    Need to edit an existing payment application? If you are editing an existing payment application, you can click the Edit button that appears in the top-right corner of the General Information card. This button only appears on the card after the new payment application is saved.
    new-sub-invoice-general-information-card.png
    • Contract Company
      Shows the name of the company that completed the contracted work associated with this payment application. This company is assigned to the commitment contract during creation. See Create a Commitment
    • Status
      Select a status for the payment application from the drop-down list. On a new payment application, Procore's default status is Draft
       Notes
      • To learn about statuses, see What are the default statuses for Procore payment applications?
      • If a payment application is ready to be reviewed by a payment application administrator, remember to change its status to Under Review.
      • After the payment application administrator reviews a payment application, its status can be change to Approved or Revise and Resubmit as needed.
      • Users with 'Standard' permission on the Commitments tool can only edit payment applications in the Draft or Revise and Resubmit status. 
    • Optional: Payment application #
      Enter the downstream collaborator's payment application number in the Payment application # box.
       Note
      • Payment application # is NOT a required field, you can leave this field blank.
      • Typically, Procore users use this freeform field to enter a reference number corresponding to the downstream collaborator's payment application number. If you enter an 'Invoice #', it must be unique from all other payment applications created for the corresponding commitment contract. If you attempt to enter a duplicate number, a RED warning banner appears across the top of the page to remind you to enter a unique number. 
      • Procore does NOT automatically complete the 'Invoice #' entered here on associated upstream payment applications. To which fields are automatically completed, see How does Procore automatically complete amounts on an upstream payment application?
    • Billing Period
      Select the date range for the billing period. Procore automatically selects the current billing period by default. 
       Notes
      • Payment application administrators are responsible for creating billing periods. For instructions, see Create Automatic Billing Periods or Create Manual Billing Periods.
      • Users with 'Admin' level permissions on the Commitments tool can select any billing period from the drop-down list.
      • Users with 'Standard' level permissions on the Commitments tool can only select a billing period that does NOT have a payment application associated with it. 
    • Billing Date
      Procore automatically selects the default date defined in the current billing period. This is a required field. 
    • Period Start
      Procore automatically selects the default start date defined in the current billing period. This is a required field. 
    • Period End
      Procore automatically selects the default start date defined in the current billing period. This is a required field. 
       Note
      The 'Billing Period' date in Procore is intended to align with the work being performed on a project so project managers can track and report the affect of payment applications on the project's budget. However, if your accounting team defines billing periods differently, it is recommended that you keep the 'Billing Period' entry and then manually enter your unique accounting dates in the 'Billing Date,' 'Period Start,' and 'Period End' fields. 
    • Optional: Payment Date
      Enter the date the payment should be made to the 'Contract Company'. 
    • Optional: Submitted Date
      Enter the date the payment should be submitted to the 'Contract Company'.
  2. Continue with the next step. 
     Tip
    Want to save your payment application now? If you want to click the Save button on the payment application, you may do so now. Procore will create the new payment application and you must click the Edit buttons on each card in the payment application to proceed with the data entry. The instructions in this tutorial assume that you will proceed with the creation process before clicking Save

Update the Bill of Quantities Card

The next step is to update the 'Bill of Quantities' card. The available data entry fields depend upon the contract's accounting method setting: the Unit/Quantity Based method or the Amount Based method.

 Tip
How do I set the accounting method on a contract? To learn how, see How do I set the accounting method for a contract or funding?

For Commitments Using the Unit/Quantity Based Accounting Method

Follow these steps when the line item data is using the 'Unit/Quantity Based' accounting method. 

 Important
  • These instructions describe how to update the BOQ line items and assume you are using Procore's default column layout. Because you can personalise your column layout, it is important to note the column layout in your environment may be different.
  • To reset a personalise column layout to Procore's default setting at any time, click the vertical ellipsis in any column header and choose Reset Columns from the Overflow menu. 
  • If you are a payment application administrator and want to edit the 'Bill of Quantities' card later, the payment application must be in the 'Draft' or 'Revise and Resubmit' status. See What are the default statuses for Procore payment applications? 
  1. Scroll down to the 'Bill of Quantities' section of the new payment application. 
  2. Click a line item in the 'Bill of Quantities' section to select it. 
  3. Review and complete the fields in the following columns for each line item(s) that will be paid for by the payment application:
    • Total Progress %: Enter a percentage amount to represent the total work progress to date. For example, if this is your first payment application and 50% of the work has been installed, enter 50% in this field. This automatically updates the quantity and monetary values in these columns: 'New Quantity', 'Total Completed & Stored To Date' and 'Balance to Finish.'
    • New Quantity: If you would prefer, you can also enter a monetary amount to represent the monetary value of the work progress to date. For example, if you didn't enter 50% in the 'Total Progress %' column, you may want to enter £500.00 in this field to indicate that half the total 'Quantity' from the contract has been installed This automatically updates the percentage amount in the 'Total Progress %' field.  
      Example

      The illustration below shows you how Procore automatically updates column values on a line item when you enter a percentage amount in the 'Total Progress %' column. If you prefer to enter a quantity amount in the 'New Quantity' column, your entry automatically updates the percentage value in the 'Total Progress %' column. Whichever method you choose for your data entry, Procore also automatically calculates the values in the 'Total Completed & Stored to Date' and 'Balance to Finish' columns. 

      sov-unit-quantity-line-item-entry.png

For Commitments Using the Amount Based Accounting Method

Follow these steps when the line item data is using the 'Amount Based' accounting method.

 Important
  • These instructions describe how to update the BOQ line items and assume you are using Procore's default column layout. Because you can personalise your column layout, it is important to note the column layout in your environment may be different.
  • To reset a personalise column layout to Procore's default setting at any time, click the vertical ellipsis in any column header and choose Reset Columns from the Overflow menu.
  • If you are a payment application administrator and want to edit the 'Bill of Quantities' card later, the payment application must be in the 'Draft' or 'Revise and Resubmit' status. See What are the default statuses for Procore payment applications? 
  1. Scroll down to the 'Bill of Quantities' section of the new payment application. 
  2. Click a line item in the 'Bill of Quantities' section to select it. 
  3. Review the data for each line item(s) on the payment application's Bill of Quantities: 
    • Item Number. Shows the line item number on the payment application's Bill of Quantities. 
    • Budget Code. Shows the budget code assigned to the payment application's line item on the Bill of Quantities.
    • Description of Work. Shows the description entered on the commitment contract the payment application line item. 
    • Bill of Quantities. Shows the bill of quantities of the line item on the commitment contract. This is the contracted value of the line item. 
    • Work Completed from Previous Application (%). If previous payment applications have been created for the commitment contract, this cell shows a percentage value that represents the work completed during previous billing periods for the commitment contract. 
  4. If you will be submitting a payment application for work completed during the current billing period, you have these options: 
    • Optional: Total Completed & Stored to Date (%). Enter the percentage of work completed and materials stored to date. For example, if this is the first payment application for a commitment contract and you completed half of the work for the line item during this billing period, you can enter 50% here. If this is not the first payment application for the commitment, you might prefer to add your data entry in the 'Work Completed this Period' column (detailed below) instead. 
       Note
      If you have previously created payment applications for this commitment contract, its important to remember that the value entered here represents the total work completed and the total materials stored to date. An entry in 'Total Completed & Stored to Date (%)' column represents all work and stored materials for both the current billing period for this payment application and any payment application(s) for past billing periods. 
      If you enter a value here, Procore automatically calculates the line item data as follows:
      • The currency amount in the 'Work Completed this Period' column. If the line item has a bill of quantities of £500.00, Procore enters £250.00, which is 50% of the work. 
      • The currency 'Total Completed & Stored to Date (£)' column. Procore adds £250.00 to this column. This column also shows the cumulative value from previous payment applications. 
      • The amount in the 'Balance to Finish' column. This subtracts your current entry from the 'Bill of Quantities' column, to show the work remaining on the commitment contract. 
      • The amount in 'Work Retention this Period (£)' column. This calculation is based on the amount entered and the entry in the 'Work Retention this Period (%) column on the line item. 
        OR
    • Optional: Work Completed this Period. Enter an amount to represent the work completed for the current billing period. For example, if you completed half of the work for the line item, you could enter the currency amount here (instead of a percentage value in 'Total Completed & Stored to Date (%)' column. For example, you could enter £250.00 in the column (instead of 50% in the 'Total Completed & Stored to Date (%)' column). If you enter a value here, Procore automatically calculates the line item data as follows:
      • The percentage amount in the 'Total Completed & Stored to Date (%)' column. If the line item has a bill of quantities of £500.00, Procore add £250.00, which is 50% of the work to the value. Remember that the value in this column represents the total work on the current payment application and any payment application(s) from past billing periods. 
      • The currency 'Total Completed & Stored to Date (£)' column. Procore adds £250.00 to this column. This column also shows the cumulative value from previous payment applications. 
      • The amount in the 'Balance to Finish' column. This subtracts your current entry from the 'Bill of Quantities' column, to show the work remaining on the commitment contract. 
      • The amount in 'Work Retention this Period (£)' column. This calculation is based on the amount entered and the entry in the 'Work Retention this Period (%) column on the line item. 
  5. If you will be submitting a payment application to bill for new materials received and being stored during this billing period, enter the following:
     Note

    New to billing for stored materials in Procore? To learn more about billing for materials stored in a downstream payment application, see How do I bill for stored materials in a subcontractor payment application?

    • New Materials Stored. Enter a currency amount of any new materials being stored on the job site (or in a storage facility) for the current billing period. The amount you enter her should exclude the costs entered in the 'Work Completed this Period' column.
    • Previous Materials Stored. Enter a currency amount for the materials that were recorded as being stored on the previous payment application. 
    • Materials Presently Stored. Shows the currency amount of the materials being stored during the current billing period. 
    • Total Completed & Stored to Date (£). Shows the currency amount of the work completed and materials stored on the job site for the current payment application and on payment application(s) for past billing period(s).  
  6. Balance to Finish: Shows the remaining currency amount for the line item. This represents the work that has not yet been completed. 
  7. Optional: If you want to set or release retention on the BOQ line items, continue with the next step. 

Set and Release Retention on BOQ Line Items

If you want to set and release retention on the line items in the BOQ, follow these steps:

  1. Choose from these options to select the line items:
    • To select all of the line items in the BOQ, click the tickbox in the 'Item Number' header of the data table. 
      OR
    • To select individual line items, mark the tickbox(es) in the 'Item Number' column for the desired line item(s). 
  2. In the Bill of Quantities, click the Edit button. 
  3. Optional: If you are a payment application administrator who wants to set the retention for the payment application, do the following: 
    • Mark one or more Item Number tickboxes. Then click the pencil icon above the data table in the Bill of Quantities. 
      This opens the Edit pane on the right side of the page. 
    • Enter the retention values to apply to the selected line item(s):
      • Work Retention This Period (%). Enter a percentage amount to indicate the percentage of work retention to be released this billing period. 
      • Retention Released. Enter a percentage amount to indicate the percentage of retention released.
      • Materials Retention (%). Enter a percentage amount to indicate the percentage of work retention to be released this billing period. 
    • Click Apply
  4. Choose from these options for entering work retention:
    • Work Retention This Period (£). Shows the currency amount for the work retention this period. The value that appears here is based on your entry in the 'Work Completed this Period' column. An entry in this cell lets Procore automatically calculate the percentage value in the 'Work Retention This Period (%)' column. 
      OR
    • Work Retention This Period (%). Enter a percentage amount for the work retention that you are requesting to be released this period. An entry in this cell lets Procore automatically calculate the currency value in the 'Work Retention This Period (£)' column. 
  5. In the Total Retention Released columnenter the total amount of work retention being requested for release on the line item. 
  6. Choose from these options for entering materials retention: 
    • Materials Retention (£). Enter a currency amount for the material retention that you are requesting to be released this period. The value that appears here is based on your entries in the New Materials Stored and Previous Materials Stored columns. An entry in this cell lets Procore automatically calculate the percentage value in the 'Materials Retention This Period (%)' column. 
      OR
    • Materials Retention (%). Enter a percentage amount for the material retention that you are requesting to be released this period. The value that appears here is based on your entries in the New Materials Stored and Previous Materials Stored columns. An entry in this cell lets Procore automatically calculate the percentage value in the 'Materials Retention This Period (%)' column. 
  7. In the Total Retention column, Procore calculates the sum of the 'Work Retention This Period (£)' amount plus the 'Materials Retention (£)' amount to represent the total retention amount on the payment application. 

Add Attachments

  1. Scroll to the 'Attachments' section. 
  2. Choose from these options:
    • Click the Attach Files button. This opens the Attach Files dialogue box, where you can upload files from your computer. Click the Attach button when finished. 
      OR
    • Use a drag-and-drop operation to move the files from your computer or network into the 'Attachments area'. 

Save the Payment application

Click the Save button at the bottom of the 'New Payment application' page. 

save-button-admin-invoice.png

Send a Payment Application with DocuSign©

Optional: If your project team wants to collect signatures on your payment applications using the Procore + DocuSign© integration, click the Send with DocuSign© button at the top of the page. To use this button, the DocuSign© integration must be enabled on the project (see How do I enable the DocuSign® Integration?) and the payment application must be in the Approved, Approved as Noted or Pending Approval status. To learn more about the DocuSign© integration and preparing envelopes for signature, see DocuSign®.

send-to-docusign.png

 

If you would like to learn more about Procore's payment application management software and how it can help your business, please visit our construction payment application management software product page icon-external-link.png.