How to Invoice in Procore

Understanding Procore's Invoicing System

Construction projects involve multiple stakeholders, from subcontractors and project managers to accounting teams and owners. Procore's invoicing module centralizes all billing processes, eliminating the need to juggle multiple systems. This comprehensive platform allows teams to collect, review, and approve invoices efficiently while maintaining accuracy throughout the project lifecycle.

The platform offers remarkable benefits that transform how construction companies handle their financial transactions. With Procore, invoices that once took days to process can now be completed in minutes. The system's detailed line-by-line review capabilities ensure invoice amounts match completed work, significantly reducing overbilling risks. This level of precision builds trust between all parties involved in the project.

Communication flows seamlessly as all stakeholders access up-to-date invoice information from anywhere. Project managers can verify work completion while accounting teams process payments, all within the same system. This transparency eliminates confusion and ensures everyone remains aligned on project billing status.

The Invoice Workflow Process

When a billing period begins, the invoice administrator sends an "Invite to Bill" notification to designated invoice contacts. These contacts then accept the invitation and submit new invoices during the open billing period. The system offers flexibility by allowing users with appropriate permissions to create invoices even without receiving an invitation.

The workflow continues as submitted invoices move through review stages. Reviewers can approve, reject, or request revisions on specific line items. This granular control ensures accuracy before final approval. Once approved, invoices can be exported or integrated with external accounting systems for payment processing.

Procore Pay users enjoy an even more streamlined experience with faster payment processing capabilities. However, the standard workflow remains efficient and user-friendly even without this additional feature. The system's intuitive design guides users through each step, reducing errors and accelerating the entire billing cycle.

Step-by-Step Invoice Creation Guide

Creating an invoice in Procore follows a logical sequence designed to capture all necessary information accurately. The process begins when you receive an "Invite to Bill" notification, typically sent after the invoice administrator creates a new billing period. The email subject line includes important details like the project name and sender information.

If you can't locate your invitation, don't worry. Invoice contacts have sufficient permissions to create new invoices for any open billing period. Simply navigate to your project's invoice section and select "Create a New Invoice" to begin the process. This flexibility ensures billing continues smoothly even when communication hiccups occur.

Once you've accessed the invoice creation screen, you'll need to enter basic information to identify your submission. The system will prompt you to input an invoice number, though this field remains optional. Many organizations use this field to enter reference numbers that match their internal accounting systems. Remember that each invoice must have a unique number within a commitment to prevent confusion.

Verifying Billing Information

Accurate date information forms the foundation of proper invoicing. When creating your invoice, carefully review the billing period details provided by the invoice administrator. These dates determine when work was completed and when payment becomes due, making their accuracy crucial for proper financial tracking.

The system displays several key date fields for verification. The billing date indicates when payment is due, while period start and end dates define the timeframe during which work was completed. Confirming these dates ensures your invoice aligns with the project's payment schedule and helps prevent disputes later in the process.

Take a moment to verify that all dates match your records before proceeding. If you notice discrepancies, contact the invoice administrator immediately to resolve them. Accurate billing periods maintain the integrity of project financial records and ensure all parties share the same understanding of payment timelines.

Updating the Schedule of Values

The Schedule of Values (SOV) represents the core of your invoice, documenting completed work during the billing period. This section adapts based on the accounting method configured for your commitment. Understanding how to update this section correctly ensures accurate billing and prevents payment delays.

For amount-based accounting methods, you have two options for entering data:

• Percentage entry: Input the percentage of work completed, and the system automatically calculates the corresponding dollar amount.
• Direct dollar entry: Enter the exact dollar amount representing completed work, and update the Materials Presently Stored field as needed.

With unit/quantity-based accounting methods, similar options exist:

• Percentage complete: Enter the percentage, and Procore updates all related fields automatically.
• Quantity entry: Input the exact quantity of work completed in the appropriate field.

If you need to release retainage (funds held back until project completion), enter the requested amount in the "Released this Period" field. This action reduces the retained amount and increases the current payment. Properly managing retainage ensures compliance with contract terms while maintaining accurate financial records.

Managing Change Orders Effectively

Change orders represent modifications to the original contract scope and require careful handling during invoicing. Procore simplifies this process by providing a dedicated section for approved commitment change orders within the invoice interface. This integration ensures all approved changes appear automatically when creating your invoice.

When updating change orders, scroll to the Approved Commitment Change Orders section and enter the appropriate information for each line item. You can input either a percentage complete or a specific dollar amount depending on your accounting method. Only approved change orders appear in this section, preventing premature billing for unapproved changes.

Accurate change order management prevents scope creep and ensures proper compensation for additional work. By tracking these modifications within Procore, you create a clear audit trail that connects approved changes to their corresponding invoices. This transparency benefits all project stakeholders and reduces potential disputes over contract modifications.

Supporting Documentation Requirements

Complete invoices require supporting documentation that validates the billed amounts. Procore makes attaching these files straightforward with its built-in attachment functionality. Navigate to the Attachments section and click "Attach Files" to upload your supporting documents.

Common attachments that strengthen your invoice include:

• Signed lien waivers protecting owners from potential claims
• Detailed progress photos demonstrating completed work
• Material delivery receipts confirming on-site materials
• Inspection reports verifying work quality and completion

If your project requires a signed PDF copy of the invoice, first export the invoice as a PDF, add your signature, then upload the signed document as an attachment. This approach maintains the digital workflow while satisfying contractual requirements for signed documentation. Proper documentation accelerates the approval process and builds trust with project owners.

Finalizing and Submitting Invoices

After completing all required fields and attaching supporting documentation, you must decide whether to save or submit your invoice. This decision depends on your invoice's readiness for review and your organization's internal approval processes. Understanding the implications of each option helps you manage the submission process effectively.

Selecting "Save" stores your invoice with a "Draft" status, allowing you to return later for additional edits or reviews. This option proves useful when gathering information from multiple sources or when awaiting internal approvals before formal submission. Draft invoices remain invisible to reviewers until submitted, giving you complete control over the timing of your submission.

Choosing "Submit" changes the invoice status to "Under Review" and initiates the formal review process. After submission, you can no longer edit the invoice unless a reviewer returns it with a "Revise & Resubmit" status. Ensure all information is accurate and complete before submitting, as corrections after submission require reviewer intervention and may delay payment.

Best Practices for Invoice Management

Successful invoicing requires more than technical knowledge—it demands strategic approaches that align with project goals. Implementing these practices improves accuracy, speeds approvals, and strengthens relationships with project stakeholders. Consider these strategies when managing your Procore invoicing process.

Consistency proves crucial when creating invoices across multiple projects. Establish standard procedures for invoice numbering, documentation requirements, and internal review processes. This consistency reduces errors and creates predictable workflows that team members can follow confidently. It also helps accounting teams recognize patterns and identify potential issues before they become problems.

Maintain open communication with all stakeholders throughout the invoicing process. Notify reviewers when submitting complex invoices that might require additional explanation. Address questions promptly to prevent approval delays. This proactive approach demonstrates professionalism and facilitates smoother payment processing.

Regular training ensures team members understand Procore's invoicing features and your organization's specific procedures. Schedule refresher sessions when updates occur or when common mistakes emerge. Well-trained teams produce higher-quality invoices with fewer errors, accelerating the entire payment cycle and improving cash flow management.

Customizing Your Invoice Workflow

Procore offers numerous customization options that adapt to your organization's specific needs. Taking advantage of these features creates more efficient workflows and improves the overall invoicing experience. Tailoring the system to your requirements maximizes its value and strengthens your financial processes.

Default billing period settings save significant time when creating new billing periods. Invoice administrators can configure standard start dates (typically the 1st of the month), end dates (often the last day of the month), and due dates (such as the 25th of the month). These presets populate automatically when creating new billing periods, reducing data entry and ensuring consistency across projects.

The following customization options enhance your invoicing workflow:

• Custom fields for capturing organization-specific information
• Approval routing that directs invoices to appropriate reviewers
• Notification settings that alert team members about pending actions
• Export templates that format invoice data for external systems

Integrating Procore with your existing financial systems creates a seamless information flow between platforms. Many organizations connect Procore with Enterprise Resource Planning (ERP) systems like Sage300 or Sage Intacct to eliminate duplicate data entry. These integrations synchronize invoice data, ensuring consistency between project management and accounting systems.

Streamlining Review and Approval

Efficient review processes accelerate payment cycles and improve cash flow. Procore's collaborative review features allow multiple stakeholders to evaluate invoices simultaneously, reducing bottlenecks and expediting approvals. Understanding these capabilities helps you design workflows that minimize delays while maintaining thorough oversight.

The platform supports line-by-line approvals that allow reviewers to accept or reject specific items rather than entire invoices. This granular approach prevents minor issues from delaying payment for properly documented work. Reviewers can also attach comments explaining their decisions, creating clear communication channels for resolving discrepancies.

Automated notifications alert team members when invoices require their attention. These timely reminders prevent invoices from sitting unnoticed in review queues and help maintain consistent processing times. Configure notification settings to balance information flow without overwhelming recipients with excessive alerts.

Clear rejection processes help invoice contacts understand and address issues quickly. When rejecting an invoice, reviewers should provide specific feedback about required corrections. This guidance helps the invoice contact resolve problems efficiently and resubmit promptly. Establishing standard rejection procedures creates predictable pathways for handling exceptions.

Integrating with Financial Systems

Many construction companies use dedicated accounting or ERP systems alongside Procore. Effective integration between these platforms eliminates duplicate data entry and ensures consistent financial reporting. Understanding integration options helps you design efficient workflows that leverage the strengths of each system.

Procore offers several approaches to ERP integration, ranging from manual exports to fully automated connections. The simplest method involves exporting invoice data from Procore and manually entering it into your ERP system. This approach requires minimal technical setup but involves more manual effort. More sophisticated options include API-based integrations that automatically synchronize data between systems.

When planning your integration strategy, consider these factors:

• Data mapping requirements between systems
• Synchronization frequency needs (real-time vs. batch)
• Error handling procedures for failed transfers
• Reporting requirements across platforms

Successful integration requires collaboration between project management and accounting teams. Include representatives from both departments when designing integration workflows to ensure all requirements receive proper consideration. This collaborative approach creates solutions that satisfy operational and financial needs while maintaining data integrity throughout the process.

Troubleshooting Common Invoice Issues

Even with careful preparation, invoice issues occasionally arise. Knowing how to address common problems helps you resolve them quickly and maintain smooth financial operations. Most issues fall into predictable categories with straightforward solutions that minimize disruption to your payment cycle.

Missing or incorrect billing period dates create confusion about when work was performed. If you notice date discrepancies, contact the invoice administrator immediately to correct them. For future billing periods, verify dates before beginning the invoice creation process. This proactive approach prevents complications that might delay payment or create accounting inconsistencies.

Duplicate invoice numbers trigger system warnings that prevent submission. When this occurs, verify whether the invoice truly represents a duplicate or simply shares a number with an existing invoice. If it's a new invoice, assign a unique number that follows your organization's numbering convention. Maintaining a centralized invoice register helps prevent numbering conflicts.

Attachment issues sometimes prevent proper documentation from accompanying invoices. If attachments fail to upload, check file sizes and formats against system limitations. Consider compressing large files or splitting them into smaller components if necessary. Always verify that all attachments appear correctly before submitting your invoice to ensure reviewers receive complete information.

Handling Special Billing Scenarios

Construction projects often involve complex billing scenarios that require special handling. Understanding how to manage these situations within Procore helps you maintain accurate financial records while satisfying contractual requirements. These approaches address common challenges while preserving the integrity of your invoicing process.

Partially completed change orders require careful documentation to ensure proper payment. When billing for partially completed changes, enter the exact percentage or dollar amount representing the completed portion. Add notes explaining the completion status to provide context for reviewers. This transparency helps prevent misunderstandings about the change order's progress and payment expectations.

Materials stored on-site but not yet installed often qualify for billing under many contracts. When including stored materials in your invoice, update the "Materials Presently Stored" field with the appropriate value. Attach documentation verifying material delivery and proper storage to support your billing request. This documentation typically includes delivery receipts, storage location photos, and insurance certificates.

Retainage release requests require special attention during invoicing. When requesting retainage release, enter the specific amount in the "Released this Period" field and provide any contractually required documentation supporting the release request. Common supporting documents include substantial completion certificates, inspection reports, and owner approval letters.

Maximizing Procore's Financial Tools

Procore offers additional financial management tools that complement its invoicing capabilities. Integrating these features creates a comprehensive financial management system that extends beyond basic invoicing. Understanding these tools helps you leverage Procore's full potential for managing project finances.

The Budget tool provides real-time visibility into project financial performance by comparing actual costs against budgeted amounts. This integration with invoicing ensures that billed amounts align with budget expectations and helps prevent cost overruns. Project managers can identify potential issues early by monitoring budget impacts as invoices progress through approval workflows.

Procore's Commitment Management features track contracts with vendors and subcontractors, providing crucial context for invoice review. When reviewing invoices, team members can easily reference the original commitment terms to verify billing accuracy. This integration creates a complete financial picture that connects contracts, change orders, and invoices within a single system.

The Drawing Management tool connects financial information with project documentation, creating valuable context for invoice review. Reviewers can reference current drawings when evaluating billed work, ensuring that invoices reflect the latest design requirements. This connection between documentation and financial systems improves review accuracy and reduces payment disputes related to design changes.

Start Streamlining Your Construction Invoicing Today

Mastering Procore's invoicing capabilities transforms your financial management processes, reducing administrative burden while improving accuracy and transparency. The system's structured workflow guides users through each step, from initial invoice creation to final approval and payment processing. This guidance minimizes errors and accelerates the entire payment cycle.

The benefits extend beyond individual invoices to create comprehensive financial management. By centralizing all invoice-related information, Procore eliminates the challenges of managing multiple systems and creates a single source of truth for project finances. This consolidation improves visibility for all stakeholders and strengthens financial controls throughout the project lifecycle.

Remember that successful implementation requires both technical knowledge and strategic planning. Take time to configure the system according to your organization's specific needs and establish clear procedures for all invoicing activities. Provide thorough training for team members and maintain open communication channels for addressing questions or concerns. These investments in preparation create lasting improvements in your financial management processes.

Whether you manage a single project or oversee multiple construction sites, effective invoicing in Procore boosts operational efficiency while reducing administrative hassles. The centralized system supports collaboration, accurate tracking, and integration with other financial tools, creating a foundation for construction financial excellence. Start implementing these practices today to experience faster payments, improved accuracy, and stronger financial management across all your projects.