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Procore (en-CA)

Create a Subcontractor Invoice for the Release of Retainage

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Objective

To create a subcontractor invoice for the release of retainage. 

Background

The first step in releasing retainage on a project is to create a subcontractor invoice. There are two ways to create an invoice in the Commitments tool: 

The steps below summarize how to create and submit an invoice for releasing retainage.

 Important
When creating an invoice to release retainage, it is important to ensure the invoice is in the 'Draft' status before you enter the retainage amounts on the invoice's Detail tab. 

Things to Consider

  • Required User Permissions:
    • To create a subcontractor invoice before or after the billing period's 'Due Date' has passed, 'Admin' level permissions on the project's Commitments tool. 
      OR
    • To create a subcontractor before the billing period's 'Due Date' has passed, 'Standard' level permissions on the project's Commitments tool and you must be added as a member of the 'Private' drop-down list in the purchase order or subcontract. This also lists your user name as an 'Invoice Contact' on the purchase order or subcontract. 
      AND
    • To release retainage on a subcontractor invoice, 'Standard' level permissions or higher on the project's Commitments tool.
       Notes
      To learn more about setting and releasing retainage on a subcontractor invoice, see Set or Release Retainage on a Subcontractor Invoice.

Prerequisites

Steps

Step 1: Create a 'Draft' Invoice

  1. Navigate to the project's Commitments tool. 
  2. Under the Contracts tab, locate the purchase order or subcontract. Then click View.
  3. Click Create Invoice. 
  4. Enter the following information:
    1. Invoice #. Enter the invoice number for the invoice.
    2. Invoice Start. Shows the start of the billing period.  Billing periods are set up in Procore by the contracting party.
    3. Invoice End. Shows the end of the billing period.  Billing periods are set up in Procore by the contracting party.
    4. Billing Date. Shows billing date for the billing period.  Billing periods are set up in Procore by the contracting party.
       Note

      To learn more about billing periods in Procore, see Create Automatic Billing Periods and  Edit a Billing Period For Invoices.

  5. Click Save as Draft.

Step 2: Update the Retainage Amounts Released this Period

 Important
Remember that when creating an invoice to release retainage, it is important to ensure the invoice is in the 'Draft' status before you enter the retainage amounts on the invoice's Detail tab. If you are a subcontractor who has been invited to submit an invoice and navigating to that invoice from the invitation,  always check to make sure the invoice is in the 'Draft' status.  
  1. Click the Detail tab in the subcontractor invoice.
  2. Click Edit.
  3. Under the Retainage - Released This Period column, do the following:
    • Work Retainage. Enter the retainage amount that you are requested to have released using the currency format.  
    • Materials Retainage. Enter the retainage amount being released using the currency format. 
       Tip
      Keep in mind that the values in the Currently Retained columns show the retainage amounts being withheld by the contracting party. 
      released-this-period.png
  4. Optional. If the contracting party has enabled the 'Show Amounts Subcontractors Claim' setting in the Commitments tool, you will have the ability to enter amounts for the work being claimed for the billing period in the Subcontractor Claimed This Period column.
     Note
    The 'Show Amounts Subcontractors Claim' setting was designed for Procore clients in Australia and New Zealand. This provides construction businesses with the ability to create payment schedules to facilitate invoice approvals and claims of work performed by contractors. To learn more, see Create a Payment Schedule. 

     
  5. Click Save at the top of the table. 

Step 3: Sign the Invoice Detail PDF

If the contracting party requires you to sign the invoice that you submit, do the following:

  1. In the invoice, click the Detail tab. 

    invoice-detail.png
     
  2. Click Export and choose the PDF option from the drop-down list. 
  3. Provide your signed subcontractor invoice to the contracting party as per your contract terms.  
  4. Optional. If you would like to include a copy of your signed invoice as an attachment, do this:
    • Click the Summary tab.
    • Click Edit. 
    • Scroll to the Attachments area and upload a copy of your signed invoice. You may also attach supplemental documentation related to your invoice, such as any lienwaivers.
  5. Click Save to save the invoice as a 'Draft.'

Step 4: Save and Submit the Invoice

 Caution
  • Before submitting your invoice, it is important to review it for accuracy and completeness. To learn how, see Review Invoices as a Subcontractor.
  • Once you submit the invoice, you will NOT be able to make changes without contacting the contracting party to change your invoice's status to Revise & Resubmit. 

When you are ready to submit your invoice, click Submit for Review. This changes the invoice's status to Under Review.

 

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