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Create an Invoice on Behalf of an Invoice Contact (Legacy)

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 Legacy Content

This page details the legacy subcontractor invoice experience. A modernized experience is also available. 

Objective

To create a subcontractor invoice on behalf of an invoice contact.

Background

In Procore, end users can create two types of commitment contracts: (1) a purchase order, which is a legal request to order a good or service from a buyer, and (2) a subcontract, which defines the legally agreed-upon pricing and conditions of the purchase. Related to purchasing, is the invoice, which is a legal statement issued by a seller to a buyer. The invoice lists the types and quantities of the goods (e.g., equipment, materials, and so on) and/or services (e.g., inspections, installations, and so on) that were provided. It often accompanies a bill, which specifies the total monetary amount due in exchange for the goods supplied/services rendered. In many organizations, a purchase order is commonly initiated for smaller monetary amounts and a subcontract is initiated when the value of the goods/services is higher.

In a Procore project, invoices for both purchase orders and subcontracts can be created in the Project level Commitments tool.  They are also formatted in a typical progress billing format with a cover page and a detail line item page.  

Things to Consider

  • Required User Permissions:
  • Additional Information:
    • Subcontractor invoices can be created for purchase orders or subcontracts. 
    • Subcontractors can either (1) ask someone with sufficient access permission to create the invoice on their behalf or, (2) follow the steps in Submit an Invoice as an Invoice Contact.
    • You can only edit the billed amounts on the most recent invoice.
    • If the contractor will create a payment schedule once the invoice is approved, enter the amounts for the work you are claiming this period in the 'Proposed Amount' column of the invoice detail. In order for this column to appear, the payment schedule feature must be enabled in the project's Commitment tool. See Configure Settings: Commitments.

Training Video

Steps

  1. Navigate to the project's Commitments tool.
  2. Under the Contracts tab, locate the purchase order or subcontract. Then click Edit.
  3. Click Create Invoice. 
     Notes
    • The values in the Period Start, Period End, and Billing Date from the billing period that you created are entered for you automatically.
    • Users with 'Admin' permissions on the Commitments tool can select from the billing periods that have been created. You can only select billing periods that are not yet tied to an invoice. 
  4. Enter the downstream collaborator's invoice number in the Invoice Number box.
     Note

    Important things to note about the Invoice # field:

    • An Invoice # is NOT required to save an invoice. You can leave this field blank.
    • An Invoice # is a free-form entry field that lets invoice contacts enter a reference number that corresponds with their own invoice numbering system.
    • A duplicate Invoice # on a commitment is NOT permitted. On one commitment, every invoice must have a unique Invoice #. 
    • An Invoice # does NOT automatically populate on owner invoices. See How does Procore automatically complete amounts on an upstream invoice?
  5. Select one of the following statuses:
    Note: You must be a user with 'Admin' permissions on the Commitments tool to change the status.
    • Draft. Indicates the invoice needs to be approved. Costs are not reflected in the project's budget.
    • Under Review. Indicates the invoice is currently being reviewed by an approver. Costs are NOT reflected in the project's budget.
    • Revise & Resubmit. Indicates the invoices need to be reviewed and resubmitted. Costs are NOT reflected in the project's budget. 
    • Pending Owner Approval. Indicates the invoice is waiting to be approved by the owner. Costs are NOT reflected in the project's budget.
    • Approved as Noted. Indicates the invoice is approved with any notations included in the response. Costs are NOT reflected in the project's budget.
    • Approved. Indicates the invoice is approved. Costs are reflected in the Job to Date Costs column on the project's budget.
       Notes
      • When the commitment company creates the Invoice (or when you create on their behalf), you can change the status to 'Under Review' when it is ready for review. The reviewer can then mark it as 'Approved' or as 'Revise and Resubmit' accordingly.
      • Invoice contacts can only edit invoices when the invoice status is set to 'Draft' or 'Revise & Resubmit' during the open billing period. Only users with 'Admin' level permissions on the project's Commitments tool can edit an invoice in other statuses.  
  6. Attach any required backup documentation. For example, lien waivers or releases. 
  7. Click Save.
  8. Depending on the commitment's accounting method (see How do I set the accounting method for a contract or funding?), do one of the following:

Add Invoice Detail for a Unit/Quantity Based Commitment

  1. In the invoice, click the Detail tab.
  2. Complete the following fields for each line item that will be paid for by the invoice:
    • This Period (Qty). Enter a quantity for each line item. Procore calculates the total dollar amount automatically. 
    • Retained This Period (%) (Admin only). Enter the retainage as a percentage amount for the current billing period. 
      Note: You can alternatively set the retainage for all of the line items on the invoice by entering values in the Set Retainage on All Line Items boxes and clicking Set. 
    • Released This Period ($). Enter the retainage as a dollar amount for the current billing period.
  3. Optional: To add an approved commitment change order to the invoice, click Add to Invoice.
    Notes:
    • The entry and editing of the change orders will always occur at the line item level of detail.
    • You can select a different level of detail for how change orders will be displayed on the detail page of the Invoice when being viewed or exported from Procore.  See Edit the Advanced Settings on a Commitment.
  4. To save your changes, click Save. 

Add Invoice Detail for an Amount Based Commitment

  1. In the invoice, click the Detail tab.
  2. Complete the following fields for each line item that will be paid for by the invoice: 
    • Work Completed (This Period). Enter the dollar amount of work completed in the invoice's pay period. If you prefer to enter a percentage value of work completed instead, click the calculator icon and enter the percentage and click Save. Procore will automatically translate the percentage of work into the equivalent dollar amount. 
    • Materials Presently Stored. Enter the dollar amount of materials presently stored on the job site or nearby storage facility that were not included in the costs for "Work Completed" (D and E ) columns. Please note that the values entered here will remain in this column on future invoices until it is manually moved to Work Completed. See How do I bill for stored materials in Procore? (Legacy) for more information.
  3. Set retainage as needed:
     Tip
    Do you want to set retainage on all line items? If so, enter a value in the right sidebar and click Set.
    • Work Retainage (%) Retained This Period ('Admin' level permissions). Enter a percentage for work retained for this pay period.
    • Material Retainage (%) Retained This Period ('Admin' level permissions). Enter the percentage for materials retained this period.
  4. Release retainage as needed:
    • Work Retainage ($) Released this Period. Enter the amount of work retainage to be released this period. 
    • Materials Retainage ($) Released This Period. Enter the amount of materials retainage to be released this period.
  5. Optional: If the payment schedule feature is enabled (see Configure Settings: Commitments) and the contractor will be creating a payment schedule after the invoice is 'Approved':
    • Proposed Amount. Enter the amount being claimed for the work this period.
  6. Optional: Add any 'Approved' commitment change orders to the invoice:
    • Add to Invoice. Next to the change order(s) in the 'Approved Commitment Change Orders' section, click this button. 
      Note: The entry and editing of the change orders will always occur at the line item level of detail.  You can select a different level of detail for how change orders will be displayed on the detail page of the Invoice when being viewed or exported from Procore.  See Edit the Advanced Settings on a Commitment.
  7. Click Save.