To provide Procore users with information about subcontractor invoices in Procore.
Procore's Invoice Management product includes the Project level Invoicing tool, which supports two types of invoices on a construction project:
- Payable Invoices. In Procore, your accounts payable invoices are called subcontractor invoices. Subcontractor invoices are created in the project's Commitments tool within your project's purchase orders and subcontracts. They are used by your downstream collaborators, or submitted by you on behalf of your downstream collaborators, to request payment for the work they perform on your project. See What is a downstream collaborator?
- Receivable Invoices. In Procore, your accounts receivable invoices are called owner invoices. Owner invoices are created in the project's Prime Contracts tool within your project's prime contracts. They are used by your team to bill for the work you perform for your upstream collaborator(s). See What is an upstream collaborator?
Procore's Invoice Management tools supports progress billing so your team can incrementally collect, review, and approve invoices for the agreed upon progress milestones or billing cycles identified in your contracts. The initial steps in the invoicing process are:
- Create the purchase orders and subcontracts for your project (see Create a Commitment). To incorporate Procore's Invoice Management tools in your environment, you must designate an invoice contact for your collaborators on a commitment. In this scenario, your downstream collaborators are the contractors, subcontractors, vendors, and suppliers who will be billing you for the work they perform on your project.
- Set up a billing period in your Procore project using Procore's Invoicing tool. In this documentation, we refer to the person responsible for managing the invoicing process as the invoice administrator. The invoice administrator creates billing period to organize all of your invoices. Billing periods can be created monthly, weekly, or a custom length.
- Decide who will have permission to submit invoices on your project—your team or your collaborators. You can choose to create invoices on behalf of your collaborators or you have the option to send your collaborator's invoice contacts an 'Invite to Bill'—which is a courtesy reminder sent by email to submit an invoice for work performed by the due date. Once all of the subcontractor invoices are submitted, you can generate your project's owner invoices based on your subcontractor invoices.
- Create Your Subcontractor Invoices in Procore
- Optional: Export Your Subcontractor Invoices to an Integrated ERP System
Create Your Subcontractor Invoices in Procore
|Decide who can create invoices in your environment||Decide which option is a fit for your Procore project environment:
(1) Grant access permissions to provide downstream collaborators with the ability to submit their own invoices in Procore. These users are called invoice contacts.
(2) Collect paper or digital invoices from your downstream collaborators and require your team members to create invoices.
|What do we need to consider before allowing downstream collaborators to submit invoices in Procore?|
|Create your project's commitment contracts||Create the commitments on your project. Downstream invoices can only be created from an existing commitment.||Create Commitments|
|Optional: Add invoice contacts to your commitments||Optional: If you decide to let downstream collaborators submit their own invoices, you must add the appropriate invoice contact to each commitment.||Add Invoice Contacts to a Purchase Order or Subcontract 1|
|Create a billing period for your invoices||Create a billing period, which defines the start, end, and billing date for an invoice.||Create Manual Billing Periods or Create Automatic Billing Periods 2|
|Optional: Invite invoice contacts to submit invoices||Optional: If an invoice contact is submitting their own invoice, send them an invite to bill.||Send an 'Invite to Bill' to an Invoice Contact 2|
|Submit invoices by the billing date||Optional: If an invoice contact is submitting their own invoice, show them how to respond to an invite to bill. See Accept or Decline an 'Invite to Bill' as an Invoice Contact. 2 Then ask them to complete the steps in Submit a New Invoice as an Invoice Contact. 2
If an invoice administrator is submitting an invoice, follow the steps in Create a Subcontractor Invoice on Behalf of an Invoice Contact. 2
|Create a Subcontractor Invoice 2|
|Review submitted invoices||Once submitted, an invoice administrator can review each line item on the invoice's Schedule of Values and either approve or reject each line item. If one (1) or more line item is rejected, users can Review a Subcontractor Invoice as an Admin. 2 If all line items are approved, you can change the invoice status to 'Approved'.||Review a Subcontractor Invoice as an Admin 2|
|Revise and resubmit invoices||If an invoice administrator rejects one (1) or more invoice line items, users can make fixes and corrections until all the line items on the invoice's Schedule of Values are approved.||Revise & Resubmit an Invoice as an Invoice Contact 2|
1 You can also add invoice contacts using the Project level Commitments tool. See Add Invoice Contacts to a Purchase Order or Subcontract.
2 These tasks can also be completed with the Progress Billings tool. The Progress Billings tool is only available to Procore customers in the United States and Canada who have implemented the Procore for Specialty Contractors point-of-view dictionary. To learn more, see (Limited Release) Owners & Specialty Contractors Point-of-View Dictionary Options.
Optional: Export Your Subcontractor Invoices to an Integrated ERP System
If your company is using one of Procore's ERP Integrations and you want to sync the subcontractor invoices from your Procore project with an integrated ERP system, you first need to determine if subcontractor invoice exports are supported.