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Procore (en-CA)

Create a Subcontractor Invoice for Release of Retainage

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Objective

To create a subcontractor invoice for the release of retainage as a final payment.

Background

In Procore, the term Retainage refers to the practice of withholding of a portion of a contract amount until the work is deemed satisfactorily complete. The withheld amount is specified in an agreement between the contracting party (the party paying for the work) and a contracted party (the person or company performing the work).  A common practice is to withhold 5-10% of a contract's total value until a milestone is reached. Then, the withheld amount can be released as a progress payment. When work is substantially complete, the withheld amount can be released as a final payment. 

Things to Consider

 Notes
  • Access permissions to the Invoicing & Progress Billings tools are governed by the permissions set on the Commitments and/or Client Contracts, Funding, or Prime Contracts tool. Procore tool names vary, depending on the language or point-of-view dictionary configured in Procore. See What dictionaries and languages are available in the Procore web application?
  • If you are a collaborator (for example, an invoice contact employed by a company performing work on a project managed in Procore, your ability to perform invoice-related tasks is determined by the Procore company account holder. Settings that the account holder may choose to provide to you include:
    • A Procore User account.
    • Access permissions to the project's Commitments and/or Client Contracts, Funding, or Prime Contracts tool.
    • Membership on the 'Private' list of a specific contract or funding
    • Designated as an 'Invoice Contact' on the contract or funding.
  • 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'. 
  • 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:
    • 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.

Steps

  1. Navigate to the project's Invoicing tool. 
  2. Click the Subcontractor tab.
  3. 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.
  4. In the invoice, click the General tab. The General tab is active by default when you open an invoice.  
  5. Scroll down to Schedule of Values. 

  6. If you want to set and release retainage on the line items in the SOV, follow these steps:

    1. Choose from these options to select the line items:
      • To select all of the line items in the SOV, click the checkbox in the 'Item Number' header of the data table. 
        OR
      • To select individual line items, mark the checkbox(es) in the 'Item Number' column for the desired line item(s). 
    2. In the Schedule of Values, click the Edit button. 
    3. Optional: If you are an invoice administrator who wants to set the retainage for the invoice, do the following: 
      • Mark one or more Item Number check boxes. Then click the pencil icon above the data table in the Schedule of Values. 
        This opens the Edit pane on the right side of the page. 
      • Enter the retainage values to apply to the selected line item(s):
        • Work Retainage This Period (%). Enter a percentage amount to indicate the percentage of work retainage to be released this billing period. 
        • Retainage Released. Enter a percentage amount to indicate the percentage of retainage released.
        • Materials Retainage (%). Enter a percentage amount to indicate the percentage of work retainage to be released this billing period. 
      • Click Apply. 
    4. Choose from these options for entering work retainage:
      • Work Retainage This Period ($). Shows the currency amount for the work retainage this period. The value that appears here is based on your entry in the 'Work Completed this Period' column. An entry in this cell lets Procore automatically calculate the percentage value in the 'Work Retainage This Period (%)' column. 
        OR
      • Work Retainage This Period (%). Enter a percentage amount for the work retainage that you are requesting to be released this period. An entry in this cell lets Procore automatically calculate the currency value in the 'Work Retainage This Period ($)' column. 
    5. In the Total Retainage Released column, enter the total amount of work retainage being requested for release on the line item. 
    6. Choose from these options for entering materials retainage: 
      • Materials Retainage ($). Enter a currency amount for the material retainage that you are requesting to be released this period. The value that appears here is based on your entries in the New Materials Stored and Previous Materials Stored columns. An entry in this cell lets Procore automatically calculate the percentage value in the 'Materials Retainage This Period (%)' column. 
        OR
      • Materials Retainage (%). Enter a percentage amount for the material retainage that you are requesting to be released this period. The value that appears here is based on your entries in the New Materials Stored and Previous Materials Stored columns. An entry in this cell lets Procore automatically calculate the percentage value in the 'Materials Retainage This Period (%)' column. 
    7. In the Total Retainage column, Procore calculates the sum of the 'Work Retainage This Period ($)' amount plus the 'Materials Retainage ($)' amount to represent the total retainage amount on the invoice. 
  7. 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.
  8. Click Save.
  9. Optional. If the invoice administrator requires you to include a signed copy of the PDF, complete the following steps:
    1. Choose Export > PDF.
    2. 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. 
  10. Click the Summary tab.
  11. Click Edit.
  12. In the Attachments section, upload any required backup documentation, such as lien waivers and the signed export PDF.
  13. 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.