Create a Subcontractor Invoice for Release of Retainage
Objective
To create a subcontractor invoice for the release of retainage as a final payment.
Background
Things to Consider
- Required User Permissions:
- To set and release retainage when editing an invoice before, during, or after the current billing period, 'Admin' level permissions on the project's Commitments tool.
OR - To release retainage when editing an invoice during the current billing period only, 'Standard' level permissions on the project's Commitments tool and you must be the designated 'Invoice Contact' on the contract. Invoice contacts are automatically added to the 'Private' drop-down list on the contract. If you have these permissions, see these tutorials: Send an 'Invite to Bill' to an Invoice Contact and Submit a New Invoice as an Invoice Contact.
OR - To release retainage when editing an invoice during the current billing period only, 'Standard' level permissions on the project's Commitments tool and you must be added to the 'Private' drop-down list on the contract.
OR - Read about the alternative permissions options: Show/Hide
- Some Procore customers choose to grant external users access permissions to the project's Commitments tool to allow them to create invoices. The following options is available, but NOT recommended:
- 'Read Only' level permission on the project's Commitments tool and designated as an 'Invoice Contact' on the purchase order or subcontract. If users are granted these permissions, they have permission to modify the retainage amount to release on an invoice before a billing period's 'Due Date'.
- Some Procore customers choose to grant external users access permissions to the project's Commitments tool to allow them to create invoices. The following options is available, but NOT recommended:
- To set and release retainage when editing an invoice before, during, or after the current billing period, 'Admin' level permissions on the project's Commitments tool.
- Additional Information:
- You can create invoices for purchase orders and subcontracts.
- If you are the invoice contact for the 'Contract Company' on a purchase order or subcontract, you have these options for submitting an invoice:
- Ask someone with sufficient access permission to Procore to create the invoice on your behalf.
OR - Follow the steps in Submit a New Invoice as an Invoice Contact.
- Ask someone with sufficient access permission to Procore to create the invoice on your behalf.
- If there are multiple invoices for a single billing period, you can only edit the billed amounts on the most recently created 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 Invoicing tool’s configuration settings. See Configure Settings: Invoicing.
Prerequisites
Steps
- Navigate to the project's Invoicing tool.
- Click the Subcontractor tab.
- Locate the subcontractor invoice to update in the table. Then click its Invoice # link to open it.
This opens the invoice in the project's Commitments tool.Notes
- When navigating to an invoice from the Invoicing tool, your user account must be granted the required user permissions detailed above in order to view and gain access to the invoice.
- In the invoice, click the General tab. The General tab is active by default when you open an invoice.
- Scroll down to Schedule of Values.
- Optional: 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.
Note: In order for the 'Proposed Amount' column to appear, the payment schedule feature must be enabled in the Invoicing tool’s configuration settings. See Configure Settings: Invoicing. - Click Save.
- Optional. If the invoice administrator requires you to include a signed copy of the PDF, complete the following steps:
- Choose Export > PDF.
- Sign the PDF.
Tip
How do you add a signature to a PDF? Depending on your specific business requirements, there are different options you can evaluate to determine the best option for you:
- Wet Signature. You can print out the exported PDF file and add a physical signature. Then use a scanner or camera to capture the signed document and add it to your invoice an attachment.
- Electronic Signature. You can add a digital or electronic signature to the invoice. There are a variety of third-party software vendors, such as DocuSign© and Adobe® Acrobat™, that provide signature capabilities for PDF files. After you sign the document, add it to your invoice as an attachment.
- Click the Summary tab.
- Click Edit.
- In the Attachments section, upload any required backup documentation, such as lien waivers and the signed export PDF.
- Choose from the following options:
- If you are ready to submit the invoice to the contractor, click Submit for Review. This changes the invoice status to Under Review.
- If you are NOT ready to submit the invoice, click Save. This sets the invoice status to Draft.
Note: Once you submit the invoice to the contractor, you will no longer be able to edit it unless the contractor changes the status Revise & Resubmit.