How to Create an Invoice in Procore

Procore's Invoicing System

Procore stands as a leading construction management platform offering comprehensive tools designed to simplify project management, with invoicing being a key component. The platform enables users to generate detailed invoices capturing completed work, stored materials, and approved change orders. With specialized workflows for both owner and subcontractor invoices, Procore maintains transparency and traceability throughout the invoicing process.

The digital nature of Procore's invoicing system eliminates many traditional pain points associated with paper-based methods. Construction professionals can quickly generate, review, and approve invoices while maintaining a clear audit trail for every transaction. This digital approach significantly reduces the risk of lost documents, calculation errors, and communication breakdowns that often plague manual invoicing systems.

Procore's invoicing features adapt to various project roles, whether you're an invoice administrator overseeing the entire billing process or an invoice contact submitting work for payment. The platform's flexibility accommodates different project structures and contractual arrangements, making it suitable for projects of any size or complexity.

Benefits of Digital Invoicing in Construction

Traditional paper-based invoicing methods often lead to errors, payment delays, and excessive administrative burden. Procore's digital approach transforms this experience by offering substantial improvements to the entire billing workflow.

Efficiency stands as perhaps the most immediate benefit, as Procore automates repetitive tasks by pre-populating financial data from existing records. This automation dramatically reduces manual entry requirements, cutting down on both time investment and potential errors. The system ensures accuracy by maintaining current approval processes, change orders, and billing period dates that accurately reflect the actual state of work.

Transparency represents another crucial advantage, as Procore provides clear, detailed breakdowns of completed work, stored materials, and approved change orders. This comprehensive documentation helps prevent disputes and facilitates faster approval. The platform also maintains compliance through complete audit trails for every invoice, simplifying tracking and resolution of any discrepancies that might arise.

Integration capabilities further enhance Procore's value, with seamless connections to popular accounting systems like Sage or Intacct. These integrations ensure financial data remains synchronized across platforms, eliminating the need for duplicate entries and reducing reconciliation headaches.

Types of Procore Invoices Explained

Procore accommodates multiple invoice types based on your project role and requirements. Understanding these distinctions helps ensure you're using the right approach for your specific situation.

Owner Invoices come in both Legacy and Beta versions, designed for billing owners for work completed on prime or head contracts. The Legacy design offers a familiar workflow for experienced users, while the Beta version introduces enhanced features like improved prefill capabilities and streamlined navigation. Both versions serve the same fundamental purpose but differ slightly in their interface and available features.

Subcontractor Invoices facilitate billing for work performed by subcontractors. These can be submitted directly by invoice contacts after accepting an invitation to bill, providing subcontractors with direct access to the billing process. Alternatively, invoice administrators can create these invoices on behalf of subcontractors when necessary, maintaining flexibility in workflow management.

Invoices on Behalf of an Invoice Contact (Legacy) allow administrators to create invoices when subcontractors lack required permissions or when paper invoices need digital entry. This option ensures all financial documentation remains within the Procore system regardless of how it originated, maintaining comprehensive project records.

Head Contract Progress Claims (Beta) represent a specialized invoice type for billing upstream collaborators on head contracts. These include additional configuration options for group row billing, approved budget changes, and early payment programs, catering to more complex contractual arrangements.

Step-by-Step Invoice Creation Process

Creating an invoice in Procore follows a logical sequence that ensures all necessary information is captured accurately. The process begins with accessing the right tools and locating the relevant contract.

First, log into Procore and navigate to the appropriate project area. For owner invoices, you'll need the Prime Contracts tool, while subcontractor invoices require the Project-level Commitments tool. Ensure you have proper permissions—typically Admin or Standard level—to access these invoicing functions.

Next, locate the specific contract requiring invoicing. This might be a prime contract for owner invoices or a subcontract/purchase order for subcontractor invoices. Verify that the contract status allows for invoice creation, typically requiring Approved or Complete status before proceeding.

Once you've found the relevant contract, open the invoice creation interface by clicking "+Create" and selecting "Create Invoice" in the contract's invoice tab. If this option appears grayed out, double-check that the contract has the proper status. For subcontractor invoices, you may need to accept an "Invite to Bill" through the invoice contact's dashboard or create a new invoice for an open billing period.

Completing Essential Invoice Information

The heart of invoice creation involves entering accurate information that properly documents the work completed and payment requested. This process requires attention to detail across several key areas.

Start with the invoice number, entering a unique identifier in the free-form field provided. While this field remains optional, using consistent numbering helps with organization and tracking. Remember that each invoice on a commitment must have a unique number to prevent confusion or duplicate entries.

Next, verify and adjust the billing period dates, including billing date, period start, and period end. These dates must accurately reflect either the open billing period or the most recent closed period to maintain proper records. Incorrect dates can cause payment delays or reconciliation problems, so take extra care with this information.

The Schedule of Values section requires particular attention, as it documents the financial details of work completed. Depending on your commitment's accounting method, you'll need to enter either percentages of work completed (for amount-based accounting) or specific quantities (for unit/quantity-based accounting). These entries automatically update corresponding value columns, calculating the appropriate billing amounts based on your inputs.

Finally, address any approved commitment change orders by entering the corresponding dollar amounts or completion percentages. Only approved change orders appear in this section, ensuring that all billed items have proper authorization. This approach prevents billing for unapproved work while maintaining accurate financial records throughout the project lifecycle.

Documentation and Supporting Materials

Proper documentation strengthens your invoice submission and accelerates the approval process. Procore makes attaching and organizing these supporting materials straightforward.

Required attachments often include lien waivers, signed PDF copies of invoices, or other documentation mandated by your contract. These documents provide verification of work completed and compliance with contractual requirements. To attach these files, simply scroll to the "Attachments" section, click "Attach Files," and upload the relevant documents from your computer or cloud storage.

Digital signatures add another layer of verification when required by your project. Procore's integration with DocuSign allows you to send invoices for electronic signature directly from the platform. Once signed, Procore automatically updates the invoice status to "Approved" and marks it as "Executed," creating a seamless approval workflow that eliminates paper handling.

Supporting documentation serves multiple purposes beyond mere contract compliance. These materials create a comprehensive record of work completed, materials delivered, and contractual obligations fulfilled. This documentation proves invaluable during audits, dispute resolution, or when questions arise about specific billing items.

Finalizing and Submitting Your Invoice

After completing all required information and attaching necessary documentation, you must decide whether to save your work as a draft or submit it for review. This decision depends on your invoice's completeness and readiness for approval.

The Save option sets your invoice status to "Draft," allowing you to return later for additional editing or review. This option proves useful when you need additional information or want to double-check entries before submission. Draft invoices remain invisible to approvers until explicitly submitted, giving you complete control over timing.

Choosing Submit changes the invoice status to "Under Review" and notifies relevant parties that your invoice awaits approval. This action typically restricts further editing unless the invoice returns with a "Revise & Resubmit" status. Ensure all information is accurate and complete before submission to avoid potential delays from revision requests.

Remember that invoice submission initiates the payment approval workflow, so timing matters. Consider your organization's payment cycles and approval timelines when deciding when to submit. Strategic timing can help ensure your invoice processes efficiently through the system and results in timely payment.

Handling Special Invoicing Scenarios

Construction projects often present unique situations requiring specialized approaches to invoicing. Understanding how to navigate these scenarios helps maintain efficient billing regardless of circumstances.

When submitting as an invoice contact, you'll typically receive an "Invite to Bill" notification. Accept this invitation by following the instructions in the subject line, then complete the standard invoicing process by entering the invoice number, updating the schedule of values, and attaching required documentation. If no invitation arrives but a billing period remains open, you can still create an invoice using your existing permissions.

Creating invoices on behalf of external contacts sometimes becomes necessary when subcontractors lack Procore access or prefer traditional billing methods. In these cases, navigate to the project's commitment or subcontract tool and follow the standard invoicing steps. The process mirrors regular invoice creation, though you'll be entering information on behalf of another party rather than for your own work.

Complex billing scenarios like owner payment applications and progress claims follow similar workflows but include additional details specific to these more sophisticated billing types. These tools accommodate the increased complexity of major contracts while maintaining the same fundamental approach to documentation and approval that characterizes all Procore invoicing.

Best Practices for Procore Invoicing

Adopting proven best practices ensures your invoicing process runs smoothly and efficiently. These approaches minimize errors, reduce processing time, and help maintain positive relationships with all project stakeholders.

Accuracy forms the foundation of effective invoicing. Double-check all billing period dates to ensure they correctly reflect the work period. Use unique invoice numbers for each submission on the same commitment to prevent confusion or duplicate processing. Maintain consistent entry methods in your Schedule of Values, whether using percentages or dollar amounts, to create clear patterns that simplify review and approval.

Documentation plays a crucial role in successful invoicing. The following elements require particular attention:

• Change Order Records - Document all approved changes thoroughly with proper references and amounts
• Supporting Attachments - Include all required documentation like lien waivers, signed PDFs, and work verification
• Permission Verification - Ensure you have appropriate user roles before attempting to create or edit invoices

Regular updates keep your financial data current and accurate. If project changes occur after invoice creation, update accordingly to reflect the new reality. Take advantage of Procore's automatic calculation features to reduce manual entry errors and speed up the process. Consider using digital signature options when available to streamline approval workflows and reduce paper handling.

Leveraging Procore's Automation Features

Procore's automated capabilities dramatically reduce manual effort while improving accuracy. Understanding these features helps you maximize efficiency throughout the invoicing process.

Prefill settings represent one of the most powerful time-saving features. When creating a new invoice, selecting appropriate prefill options allows Procore to automatically import financial data from eligible subcontractor invoices, direct costs, and approved change orders. This automation eliminates redundant data entry and ensures consistency across related documents.

Automatic calculations further streamline the process. For amount-based accounting, entering a percentage automatically updates the "From This Period" column with the corresponding dollar amount. This feature not only saves time but also reduces calculation errors that might otherwise cause approval delays or payment discrepancies.

Enterprise Resource Planning (ERP) integration connects Procore with accounting systems like Sage or Sage Intacct, creating a seamless flow of financial information. While some companies still enter one-line invoices into their ERP system, others prefer line-item charges by cost code. Either approach benefits from integration, as data flows automatically between systems without requiring duplicate entry or manual reconciliation.

Digital workflows eliminate traditional paper-handling bottlenecks. Sending an invoice with DocuSign ensures it reaches the right approver immediately, without physical routing delays. This digital approach speeds up the accounts receivable cycle while maintaining complete documentation of the approval process.

Troubleshooting Common Invoice Issues

Even with Procore's user-friendly design, occasional challenges may arise during the invoicing process. Knowing how to address these common issues helps maintain momentum and prevent unnecessary delays.

Access problems sometimes occur when users can't locate expected functions. If you're an invoice contact unable to find an "Invite to Bill," verify your permissions and check whether you can create invoices directly for open billing periods. Sometimes, even without a direct invitation, you may have sufficient access to proceed with invoice creation.

Invoice numbering occasionally causes confusion. Remember that while the invoice number field remains optional, using a unique identifier for each invoice prevents duplicate entries and simplifies tracking. Consider implementing a systematic numbering approach that includes project codes or billing period references to maintain clear organization.

Editing restrictions can surprise users who attempt changes after submission. Once your invoice status changes to "Under Review," modifications typically require the invoice to return to "Draft" or "Revise & Resubmit" status. Plan your work accordingly, ensuring all information is complete and accurate before submission to avoid revision cycles.

Change order management requires careful attention, especially when details evolve over time. Ensure that the values you enter correspond to original contract values, and update promptly if change order details shift. This diligence prevents discrepancies in project financial records and maintains clear documentation of all modifications.

Advanced Invoicing Strategies

Experienced Procore users develop sophisticated approaches that further enhance efficiency and accuracy. These advanced strategies build on fundamental skills to create truly optimized workflows.

Custom templates save significant time for organizations with consistent invoicing needs. By creating standardized templates for common invoice types, you can dramatically reduce setup time and ensure consistency across projects. These templates can include predefined line items, standard attachment requirements, and optimized layouts that reflect your organization's specific needs.

Approval workflows benefit from strategic planning and clear communication. Consider establishing clear guidelines for what constitutes a complete invoice submission, including required documentation and verification steps. Communicate these expectations to all stakeholders to minimize revision requests and accelerate the approval process.

The following reporting capabilities enhance financial visibility:

• Progress Tracking - Monitor completion percentages across multiple contracts simultaneously
• Payment Status - Track outstanding invoices and payment timelines in real-time
• Financial Forecasting - Use current billing data to project future cash flow and resource needs

Integration with field data collection tools creates powerful connections between on-site progress and financial documentation. When field teams document work completion through Procore's mobile apps, this information can flow directly into invoice preparation, ensuring billing accurately reflects actual project status.

Streamline Your Construction Billing Today

Creating invoices in Procore transforms a traditionally cumbersome process into a streamlined, accurate workflow that benefits everyone involved. By following the detailed steps outlined in this guide, you'll create professional invoices that clearly document work completed, materials provided, and changes approved—all essential elements for prompt payment and healthy project finances.

Remember that effective invoicing goes beyond mere form completion. It represents a critical communication tool that documents project progress, maintains financial transparency, and facilitates timely payment. The care you invest in creating accurate, well-documented invoices directly impacts your project's financial health and stakeholder relationships.

We encourage you to implement these best practices in your next Procore invoice. Start by organizing your supporting documentation, verifying contract details, and familiarizing yourself with the specific requirements of your project's invoicing workflow. As you gain experience with Procore's powerful invoicing tools, you'll discover additional efficiencies that further streamline your process and enhance your project's financial management.