How to Bill in Procore

Understanding the Billing Process in Procore

Procore simplifies the billing process by integrating various financial management components into one platform. At its core, the system enables invoice contacts—either subcontractors or designated billing personnel—to create and submit invoices for work completed, stored materials, or change orders. Before diving into the step-by-step guide, it’s important to understand the context:

• Billing Periods: An invoice administrator sets up billing periods, which define the start, end, and due dates for all invoicing activities.
• Invite to Bill: Invoice contacts receive an “Invite to Bill” notification that prompts them to submit an invoice for a particular billing period.
• Accounting Methods: Procore supports multiple accounting methods—such as amount-based or unit/quantity-based—tailored to fit the project needs.
• Change Orders and Attachments: Bill submissions may need to include approved change orders or supporting documents like lien waivers.

With this foundation, you’re ready to explore the detailed process for submitting an invoice in Procore.

Navigating the Invite to Bill Process

Before entering any data, you must first accept Procore's "Invite to Bill." This invitation serves as your entry point into the billing cycle for a specific period.

When an invoice administrator creates a new billing period, they typically send out invites to all relevant invoice contacts. You'll receive this notification via email and within your Procore dashboard, usually with a subject line that includes the project name and a message indicating that someone has invited you to bill. Even if you're unsure whether an invite was sent, remember that as an invoice contact, you already have sufficient permissions to create a new invoice for any open billing period.

Upon receiving the invite, you have the option to accept or decline it. Accepting grants you immediate access to the invoice creation interface, while declining might be appropriate if you're not ready to bill for that period or if there's been a mistake in the invitation process. Most users should accept the invite promptly to ensure they meet the billing deadline established for that period.

The invite acceptance process is straightforward but essential, as it establishes your participation in the current billing cycle and confirms your intention to submit an invoice. This step helps project managers track who is actively participating in the financial reporting process.

Creating Your Invoice Details

Once you've accepted the billing invitation, you'll need to provide essential information about your invoice. This step establishes the basic parameters of your billing submission.

The invoice number field is one of the first items you'll encounter in the form. Interestingly, this field is optional when saving an invoice—you can leave it blank if needed. However, when provided, the invoice number serves as a valuable reference that aligns with your internal accounting system. Every invoice submitted for the same commitment must have a unique number to prevent confusion and duplicate entries.

Beyond the invoice number, you'll need to verify the billing period dates that were established by the administrator. These dates include the billing date (due date), period start, and period end. Ensuring these dates are accurate is crucial because they determine when your invoice will be processed and which work should be included in this particular billing cycle.

The invoice creation interface also includes fields for company information and contact details. While much of this data may auto-populate based on your Procore profile, it's always wise to verify its accuracy before proceeding. Correct contact information ensures that any questions or issues related to your invoice can be promptly addressed.

Invoice Number Best Practices

The invoice number field deserves special attention as it plays a significant role in tracking and processing your payment. Though technically optional in Procore, implementing a consistent numbering system offers several advantages.

Most companies develop their own invoice numbering convention that might include the project code, date information, or sequential identifiers. This systematic approach makes it easier to reference specific invoices during discussions or when resolving payment issues. Your invoice number in Procore should match the number in your own accounting system to maintain consistency across all financial records.

Remember that duplicate invoice numbers within the same commitment will trigger an error in Procore. The system enforces uniqueness to prevent confusion and potential double payments. If you need to revise an invoice, consider using a suffix or modification indicator rather than reusing the same number.

For owner invoices, be aware that invoice numbers don't automatically populate. You'll need to manually ensure consistency between your subcontractor billing and any owner billing that occurs. This extra verification step helps maintain clear financial records throughout the project lifecycle.

Updating the Schedule of Values

After entering basic invoice details, you'll need to update the Schedule of Values (SOV). This critical section details how costs are allocated across various line items in your project.

The SOV represents the backbone of your billing submission, breaking down the total contract amount into manageable components that can be billed incrementally as work progresses. How you update this section depends on whether your project uses amount-based or unit/quantity-based accounting methods. Your approach to updating the SOV should align with the predetermined accounting method to ensure accuracy.

Each line item in the SOV represents a distinct aspect of your project scope, such as site preparation, foundation work, or electrical installation. For each item, you'll need to indicate how much work has been completed during the current billing period. This update creates a comprehensive picture of project progress that justifies your billing amount.

Accurate SOV updates not only ensure proper payment but also provide valuable project tracking information. Project managers and owners rely on these updates to monitor progress, manage budgets, and forecast future expenses. Taking the time to carefully update each line item contributes to transparent project management and builds trust with all stakeholders.

Amount-Based SOV Updates

When working with amount-based accounting, you have two primary options for entering your billing data. Both methods achieve the same result but offer different approaches based on your preference.

The percentage completion method allows you to enter the percentage of work completed for each line item during this billing period. As soon as you input a percentage, Procore automatically calculates and displays the corresponding dollar value in the "From This Period" column. This approach works well when you track progress primarily in terms of percentage milestones rather than exact dollar amounts.

Alternatively, you can directly enter the dollar amount of work completed in the "From This Period" column. This method might be preferable when you have precise dollar figures from your internal tracking systems or when dealing with complex line items where percentage calculations could be misleading. The system will automatically calculate the corresponding percentage based on your dollar entry.

For stored materials, you'll need to enter a dollar amount in the Materials Presently Stored field. This value represents a running total and will remain consistent for future invoices unless you update it to reflect additional materials. Properly tracking stored materials ensures you receive payment for items purchased but not yet installed or utilized in the project.

Unit-Based SOV Updates

Projects using unit or quantity-based accounting require a slightly different approach to updating the Schedule of Values. This method focuses on the specific quantities of materials or services provided.

When updating unit-based line items, you can either enter the quantity completed or the percentage complete. Once entered, Procore automatically updates the corresponding fields, calculating either the percentage (if you entered a quantity) or the quantity (if you entered a percentage). The system also calculates the dollar value based on the unit price established in your contract.

Unit-based accounting provides exceptional transparency for materials-heavy projects or when billing for clearly defined deliverables. It allows all parties to see exactly what quantities have been provided, making verification straightforward. This method works particularly well for items like concrete yardage, linear feet of piping, or square footage of flooring.

If your contract includes retainage provisions, you'll also need to address the "Released this Period" field. This field allows you to indicate when previously withheld funds (retainage) should be released, typically as specific project milestones are achieved or when particular sections of work are fully completed and accepted.

Managing Approved Change Orders

Change orders represent modifications to the original scope of work and often impact your billing amount. In Procore, only approved commitment change orders will appear available for invoice submission.

Change orders are a natural part of construction projects, reflecting adjustments and refinements as work progresses. These modifications might include scope additions, reductions, or alterations that affect the contract value. Procore streamlines the change order billing process by integrating approved changes directly into your invoice workflow.

When preparing your invoice, scroll to the Approved Commitment Change Orders section. This area displays only those change orders that have received formal approval and are ready for billing. For each change order line item, you'll need to enter either the dollar amount or percentage complete, just as you would for standard SOV items.

Always verify that the change orders you're including have been properly approved in the system. Billing for unapproved changes can lead to payment delays and administrative complications. If you believe a change order should be available for billing but doesn't appear in your interface, contact your project administrator to confirm its status.

The change order section maintains a clear separation from your base contract items, providing a transparent record of how project modifications have affected the overall contract value. This separation helps all stakeholders understand how the project has evolved financially from its original scope.

Including Essential Documentation

Most billing submissions require supporting documentation to verify work completion and satisfy contractual requirements. Procore makes attaching these documents straightforward.

Supporting documentation serves as evidence of work completed and often fulfills legal or contractual obligations. These attachments might include progress photos, material delivery receipts, inspection certificates, or lien waivers. The specific requirements vary by project and company policy, but having comprehensive documentation strengthens your invoice submission.

To add attachments to your invoice, scroll to the Attachments section and click the "Attach Files" button. You can upload multiple files simultaneously, and Procore accepts various file formats including PDFs, images, and spreadsheets. Consider organizing your files with clear naming conventions before uploading to make them easily identifiable during the review process.

Many projects require a signed copy of the invoice itself as part of the submission package. In such cases, you might need to export your Procore invoice, sign it externally (either digitally or physically), and then reattach the signed version. This signed document often serves as the official invoice record for accounting purposes.

Thorough documentation not only supports your current billing but also creates a valuable historical record. These attachments become part of the project's permanent documentation, potentially serving as reference material for future disputes, warranty claims, or project analyses. Taking the time to compile comprehensive supporting documents protects all parties and facilitates smoother project closeout.

Finalizing Your Invoice Submission

After completing all required sections, you must decide whether to save your invoice as a draft or submit it for review. This decision affects what happens next in the billing workflow.

The "Save" option creates a draft version of your invoice without submitting it for review. This status allows you to return later to make additional changes or updates before final submission. Draft invoices remain entirely under your control and aren't visible to reviewers or approvers. This option proves useful when you need to gather additional information, verify amounts, or consult with team members before finalizing your submission.

When you're confident that your invoice is complete and accurate, clicking "Send" changes the status to "Under Review" and forwards your submission to the appropriate reviewers. After submission, you cannot make further changes unless the invoice administrator returns it with a "Revise & Resubmit" status. The review process typically involves verification of work completion, comparison against the project budget, and approval by designated project stakeholders.

Your invoice will progress through various status stages as it moves through the approval workflow. These statuses might include Under Review, Approved, Paid, or Rejected, depending on your project's specific configuration. You can monitor this progress within Procore to anticipate when payment might be expected.

Choosing the right action at this stage is important. Premature submission might lead to rejection and rework, while excessive delays in finalizing your invoice could affect your cash flow and project payment timelines. When in doubt, save as a draft and consult with your team before final submission.

Best Practices for Efficient Billing

Implementing proven billing practices can streamline your invoicing process and reduce the likelihood of errors or delays. Consider these strategies when preparing your Procore invoices:

Accuracy in your billing submissions forms the foundation of efficient payment processing. Take time to verify all entered values, especially when updating the Schedule of Values or change order sections. Double-check your calculations and ensure that percentages and dollar amounts align with your internal records and the actual work completed. This verification step can prevent rejection and rework later in the process.

Consistency across billing periods helps establish predictable patterns that make review and approval more straightforward. Use the same terminology, numbering conventions, and documentation approaches for each invoice submission. This consistency makes it easier for reviewers to compare current submissions against previous invoices and quickly identify any discrepancies or unusual patterns.

The following practices will help you maintain a smooth billing workflow throughout your project:

• Regular communication: Maintain ongoing dialogue with your invoice administrator about upcoming billing needs or potential issues.
• Documentation preparation: Gather supporting documents throughout the billing period rather than scrambling at submission time.
• Internal review: Implement an internal review process before submitting to catch errors or omissions.
• Timeline awareness: Note billing period deadlines on your calendar to ensure timely submissions.

Proactive billing management contributes significantly to healthy project cash flow. Rather than viewing invoicing as a monthly administrative task, consider it an integral part of your project management strategy. Well-managed billing reduces payment delays, minimizes disputes, and strengthens relationships with project owners and general contractors.

Handling Stored Materials Billing

Billing for stored materials requires special attention in Procore, as these items represent value that hasn't yet been incorporated into the physical project. Understanding how to properly document and track these materials ensures appropriate payment.

Stored materials typically include items purchased for the project but not yet installed or utilized on-site. These might be stored at your facility, a supplier's warehouse, or even at the project location. Because these materials represent a significant investment, contracts often allow for billing a percentage of their value before installation, helping to maintain cash flow throughout the project.

When billing for stored materials in Procore, enter the appropriate cost in the Materials Presently Stored field during invoice creation. This value should reflect only materials that have been purchased but not yet installed or incorporated into the work. Supporting documentation for stored materials typically includes purchase invoices, photographs of the stored items, and sometimes insurance certificates covering the materials while in storage.

In subsequent billing periods, you'll need to carefully track the movement of materials from storage to installation. As materials get installed, their value should shift from the stored materials column to the completed work column. This transition ensures that you don't double-bill for the same items and maintains accurate project financial records.

Some users have noted that Procore doesn't always automatically carry forward stored material amounts as expected between billing periods. To avoid discrepancies, manually verify that these values appear in the correct columns when preparing each new invoice. If you notice inconsistencies, reach out to your invoice administrator for guidance on how to properly adjust the values.

Advanced Invoicing Techniques

For complex projects with numerous line items or specialized billing requirements, several advanced techniques can help streamline your Procore billing process. These approaches are particularly valuable for experienced users managing large-scale projects.

Large projects often involve extensive Schedules of Values with dozens or even hundreds of line items. Updating each item individually can be time-consuming, especially when billing by percentage of completion. Some companies develop custom spreadsheet templates that mirror the Procore SOV structure, allowing them to prepare calculations offline before transferring the data to Procore. This approach can save significant time and reduce the risk of data entry errors.

Procore's flexibility extends to handling specialized billing scenarios such as unit price contracts with variable quantities, cost-plus contracts with fee structures, or projects with complex phasing requirements. Understanding how to configure these specialized billing approaches requires deeper knowledge of the platform but can significantly improve billing accuracy and efficiency.

Consider implementing these advanced strategies to enhance your billing workflow:

1. Create standardized documentation templates that align with Procore's attachment requirements, ensuring consistency across all submissions.
2. Develop internal checklists specific to your company's billing process to verify all required elements before submission.
3. Establish regular internal billing review meetings prior to submission deadlines to catch potential issues early.
4. Build a library of successful past invoices as reference models for future billing submissions.

As you become more familiar with Procore's billing capabilities, you'll discover additional efficiencies specific to your organization's workflow. The platform's flexibility allows for considerable customization while maintaining the structured approach necessary for proper financial management.

Streamline Your Construction Billing Today

Billing in Procore represents a comprehensive process designed to ensure accuracy, compliance, and transparency throughout your construction projects. From accepting the initial invitation to finalizing your submission with supporting documentation, each step contributes to efficient financial management and timely payment processing.

The Procore billing system offers significant advantages over traditional paper-based invoicing methods. By centralizing all financial information in one platform, it creates a single source of truth that all project stakeholders can reference. This centralization reduces miscommunication, eliminates lost paperwork, and creates a permanent digital record of all financial transactions. The structured workflow also ensures that invoices follow a consistent approval path, reducing payment delays and improving cash flow predictability.

Mastering Procore's billing functionality requires some initial investment in learning the system, but the long-term benefits are substantial. Projects with well-managed billing processes typically experience fewer payment disputes, maintain better stakeholder relationships, and achieve more predictable cash flow. The transparency provided by detailed Schedule of Values updates also gives project owners valuable insights into progress, building trust and confidence throughout the construction process.

Whether you're billing for completed work, stored materials, or approved change orders, understanding Procore's billing system is essential for maintaining project financial health. By implementing the best practices outlined in this guide, you'll create a more efficient billing process that benefits everyone involved in your construction projects. Take the time to familiarize yourself with these procedures, and you'll soon be navigating Procore's powerful invoicing system with confidence and precision.