About Main Contract Payment Applications (Beta)
Objective
To provide Procore users with information about main contract 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:
- Subcontractor Payment applications
In construction accounting, accounts payable (A/P) refers to the bills received from your downstream collaborators. From the perspective of a Procore company account holder, these are the subcontractor payment applications created in the project's Commitments tool that bill against your project's purchase orders and subcontracts. - Main Contract Payment Applications
In construction accounting, accounts receivable (A/R) are the bills sent to upstream collaborators for payment. From the perspective of a Procore company account holder, these are your main contract payment applications. Main contract payment applications are created in the project's Main Contracts tool and you send them to your upstream collaborator(s) as bills for the work you perform on your project's main contracts. Procore can also expedite the payment process, by automatically generating your owner payment application(s) and completing them with amounts from your 'Approved' subcontractor payment applications.
Prerequisites
Steps
- Create Your Main Contract Payment Applications in Procore
- Optional: Export Your Main Contract Payment Applications to an Integrated ERP System
Create Your Main Contract Payment Applications in Procore
The steps for creating main contract payment applications in Procore include:
| Step | Description | Learn More |
|---|---|---|
| Decide who can create main contracts and main contract payment applications on your project | Provide these users with 'Admin' level permissions on the Main Contracts tool. Procore recommends using a permissions template to manage user access to your main contracts and main contract payment applications. See What is a permissions template? | Create a Project Permissions Template |
| Create a main contract | Create one or more main contract(s) on your Procore project. The main contract must be in the 'Approved' status before you can create a payment application against it. | Create Main Contracts |
| Configure the owner payment application settings on the main contract | Configure the 'Main Contract Payment Applications' settings in the Advanced Settings of a main contract. | Edit the Advanced Settings on a Main Contract |
| Decide if you want to electronically complete the required signatures with DocuSign® | Since main contracts and payment applications are legal documents, decide how you want to complete the signature process. Your options are:
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| 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 Billing Periods |
| Create an owner payment application | Create an owner payment application to use when submitting your application for payment to the upstream collaborator for your work in the current billing period. | |
| Optional: Complete the Owner Payment application in DocuSign® | Once you've created and approved the payment application, you can complete the signature process in DocuSign®. | Complete Owner Payment Applications with DocuSign® |