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Submit a New Payment application as a Payment Application Contact

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 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 Submit a New Payment application as a Payment Application Contact instead of the ones below.

Objective

To submit a new subcontractor payment application as an payment application contact after accepting an 'Invite to Bill.' 

Background

If you are the designated payment application contact for a purchase order or subcontract, the company you are performing work for creates a billing period to define the 'Billing Date' for submitting your payment application. After the billing period is created, the payment application administrator has the option to send you an email message with the subject line, "Project Name: User Name has invited you to bill." The invite is a courtesy reminder to help ensure that a payment application is created and submitted before the due date. 

Things to Consider

  • Required User Permissions:
    • To create a new subcontractor payment application in response to an 'Invite to Bill' before the 'Due Date' of the billing period, 'Read Only' level permissions on the project's Commitments tool and you must be the designated 'Invoice Contact' on the purchase order or subcontract.
       Notes
      • Adding a payment application contact to a purchase order or subcontract also adds the person to the 'Private' list.
      • If you are the designated payment application contact and want to submit a payment application after the 'Due Date,' you must contact the company you performed the work for to request that they create the payment application on your behalf. See Create a Payment Application on Behalf of a Payment Application Contact. Payment application contacts cannot submit payment applications in Procore after the due date passes. 
      • If you are the designated payment application contact and cannot find the 'Invite to Bill' that you were sent, you do NOT need the email message to create a new payment application. As long as it is before the 'Due Date', you can log in to Procore and navigate to the Commitments tool to create the new payment application for the purchase order or subcontract.

Prerequisites

Steps

Step 1: Enter a Payment Application Number

  1. In the 'New Payment application for' page under 'General Information,' do the following:
    • 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?
    • Verify the information in the following fields. Procore automatically completes the following dates for you.
       Note

      The billing period dates are set by the payment application administrator. If you are using a different billing period, you can change the values in these fields as needed. All of these fields are required.

      • Billing Date
        Indicates the due date for the billing period. 
      • Period Start
        Indicates the start date for the billing period. 
      • Period End
        Indicates the end date for the billing period. 
  2. Continue with the next step. 

Step 2: Update the Bill of Quantities

  1. In the Bill of Quantities section, click one (1) or both of the BLUE arrows next to 'Commitment Line Items' or 'Variations'. This expands the selected row in the table.
     Notes
    • The 'Variations' section is only visible and available when the company's Procore Administrator has enabled the two (2) or three (3) tier variation configuration on the commitment. See Configure the Number of Commitment Variation Tiers.
    • After expanding a line in the 'Variations' section, click the commitment variation line(s) and potential variation line(s) in order to expand them until you reach the data entry line items. 
  2. Determine which accounting method was set for the contract. This determines which data entry form you use to update the Bill of Quantities:

Amount Based Accounting Method

Use this method to payment application lump-sum amounts for the payment application line items on the Bill of Quantities (BOQ). Procore automatically calculates and adjusts the other entries on the line item for you. If you want to release retention, enter a monetary amount as needed. Depending on your specific commitment, you may also have the option to bill for stored materials (pictured below). For details about the additional columns that appear when billing for stored materials, see How do I bill for stored materials in a subcontractor payment application? 

Click here for more detailed information about the Amount Based accounting method.  

The Amount Based accounting method requires you to enter lump sum amounts on each line item in the Bill of Quantities. With this method, Procore automatically uses your entries to calculate and update the values in other columns. 

 Note
  • An asterisk (*) in the list below indicates that you can edit the value of the Bill of Quantities line item on the payment application. 
  1. 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 line item on the Bill of Quantities. 
  2. If you will be submitting a payment application for work completed during the current billing period, you have this option: 
    • 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 currency 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 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. 
  3. If you have received materials this billing period and are storing them on the job site (or in a storage facility), you have this option:
    • Conditional: 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. 
       Note
      If the payment application administrator turned ON the 'Enable Billing Separately for Stored Materials' setting for the commitment, enter a monetary amount for materials for this billing period. Your entry automatically calculates the values in the 'Total Completed & Stored to Date (£) %' and 'Total Completed & Stored to Date (%)' columents. 
    • Previous Materials Stored If this is the first payment application, this value is £0.00. If previous payment applications have been created, this value shows the cumulative amounts entered in New Materials from previous payment applications. For details, see How do I bill for stored materials in a subcontractor payment application? As a payment application contact, you cannot modify this setting.
    • 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).  
  4. If you are submitting a payment application requesting to release a retention amount: 
    • Total Retention Released. Enter the currency amount of retention that you are requesting to be released this billing period. It is important to note that you can request the amount to be released, but you are NOT permitted to change the rate of the retention. 
    • Total Retention. Shows the cumulative amount of retention released for the line item. 
  5. Continue the steps above for each line item. 

Unit-Based Accounting Method

Use this method when payment applications for materials you've ordered in quantity. With this method, you either enter a percentage value 'Total Progress' column or a monetary value in the 'Work Progress' column. Procore automatically calculates and adjusts the other entries on the line item for you. If you want to release retention, you can enter a monetary amount in the 'Retention Released' column needed. 

Click here for more detailed information about the Unit-Based accounting method.  

The Unit-Based accounting method requires you to enter a quantity and unit price for each line item on the BOQ. With this method, Procore automatically calculates line item totals for you. 

 Note
An asterisk (*) in the list below indicates that you can edit the value of the BOQ line item on your payment application. 
  • Quantity
    Shows the total number of units for the line item. 
  • Unit Price
    Shows the expense incurred for each unit for the line item. 
  • Value
    Shows the total monetary amount of the line item. This is the sum of the Unit Price + Quantity values. 
  • Previous Quantity
    Shows the total number of units issued in previous billing periods. 
  • Previous Value
    Shows the total monetary amount issued in previous billing periods.
  • Total Progress %.*
    Enter a percentage amount that reflects your total progress. Your entry must reflect the cumulative progress of any previous billing periods and the current billing period. 
  • New Quantity.*
    Enter a new quantity to reflect the quantity being billed this period on the new payment application. 
  • New Value.*
    Enter a new value to reflect the value of the line item being billed this period on the new payment application. 
  • Retention Released.*
    Enter a monetary amount of retention to be released this billing period. 
  • Total Retention
    Shows the total monetary amount of retention to be released for the line item. 

 

Step 3: Add Attachments

If you have any files to add as an attachment to the payment application, you can add them now. For example, you might be required to add a lien waiver or a signed PDF copy of the payment application. 

  1. Scroll to the Attachments section.
  2. Click Attach Files or use a drag-and-drop operation to move the files from your computer or network to the GREY area of the page. 
    attachments-attach-files.png
  3. Upload any files that may be required from your computer.
     Notes
    • Collaborators and users with 'Standard' level permissions on the project's Commitments tool can use the Attach Files option after a payment application is 'Approved'.
  4. Continue with the next step.

Step 4: Save as Draft or Send for Review

If you are ready to submit the payment application for review, you may do so now. If you want to submit the payment application at a later time, you have the option to save the payment application. Choose one (1) of these options:
save-as-draft-or-send-buttons.png

  • If you are NOT ready to send the payment application, click Save as Draft. This sets the payment application's status to Draft. 
     Tip
    If you want to email a copy of your payment application to others before submitting it for review, Procore recommends following the steps in Export a Subcontractor Payment application. You can then add your payment application as an attachment to a message using your company's email system. 
    OR
  • If you are ready to send the payment application, click Send. This automatically sets the payment application's status to Under Review.
     Important

 

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.