Supplier Invoice Workflow (Buildertrend)

This document defines the end-to-end procedure for handling inbound supplier invoices through Buildertrend — from invoice receipt and verification, through Purchase Order creation, Bill generation, and final approval for payment. It applies to both PSEC and SAIYU.

Outbound invoicing to clients is covered separately in SAIYU - Invoicing to Clients.

1. Core Concepts: PO–Bill–Invoice relationship

Understanding the distinction between these three components is critical for maintaining financial integrity.

Component	Purpose	Key Rules
Purchase Order (PO)	Defines the scope and approved budget for work or materials.	- Authorizes work to begin. - Once approved, its value appears as a Committed Cost in the job budget.
Bill	Records a debt owed to a supplier or subcontractor for services/goods rendered.	- Must be linked to a PO. - Cannot exist independently. - Total bills cannot exceed the PO amount.
Invoice	A request for payment from a supplier or subcontractor.	- Triggers the verification and approval process. - Payment is based on approved invoices, not just submitted ones.

2. Stage 1 — Invoice receipt and classification

2.1 Receiving invoices

All invoices must be centralised in the accounting inbox for processing.

• Centralising invoices (all staff):

  • Digital invoices: Apply the shared Gmail label Invoices-to-SAIYU or Invoices-to-PSEC. This automatically notifies the accounting team. Do not forward the email.
  • Physical invoices: Scan the document and email to [email protected] (SAIYU) or [email protected] (PSEC).
  • Always include the Project Manager on invoice-related emails.
  • Do not delete the original emails.

• Review (Accounts Assistant):

  • The Accounts Assistant monitors the Invoices-to-SAIYU and Invoices-to-PSEC labels and processes the invoices found there.

2.2 PSEC classification

For PSEC, invoices often relate to project disbursements and require careful handling:

• Nature: Most are reimbursement invoices for costs incurred on behalf of the client (e.g. consultant fees).
• Process: Depending on the project agreement, PSEC may pay these invoices and seek reimbursement, or forward them to the client for direct payment.
• Verification: Always confirm the correct procedure with Sunny before filing — the process is project-specific.

2.3 SAIYU classification

For SAIYU, identify the nature of the invoice before processing:

• Accounts-related invoices: Monthly or fortnightly accounts (e.g. labour hire).
• Sub-contractors' invoices: Lump sum, unit price (rate), or variation work.
• One-off trades / subcontractors: Specialised services not covered under main contracts.
• Card payments: Fees, council charges, one-off purchases.
• Cash payments: Consult Account Manager Sunny for guidance.

Note: If a company is not on the Accounts & Labour Company List, classify it as a Sub-Contractor or One-Off Trade. For new subcontractors, consult Director Gear.

3. Stage 2 — Invoice review and verification

• Responsible: CA (Contract Admin), Account Manager.
• Action: Review each invoice using the consolidated checklist below before any Buildertrend action.

Invoice review checklist

• Duplicate check — invoice has not been processed before.
• Completeness — supplier name, ABN, job site, amount, GST, bank details all present.
• Accuracy
  • ABN match — validate via ABN Lookup.
  • GST — correctly calculated and stated.
  • Amount — matches PO and contract terms.
• Legitimacy — work or material is documented and justified.
• Quality — work was completed to standard, no outstanding defects.
• Cross-reference — aligns with the contract terms and PO.
• Abnormalities — report unusual charges, mismatched amounts, or discrepancies to management via email and label the original email Pending.

4. Stage 3 — Purchase Order strategy and creation

A PO is the foundation of any expenditure. The approach depends on the supplier type.

4.1 PO creation strategy

Subcontractor / Supplier Type	Policy	Rationale
Main Subcontractors	One PO per job.	Consolidates all work, including variations, under a single order for streamlined tracking.
Accounts & Labour	One PO per billing cycle (e.g. monthly).	Aligns with recurring payment schedules. For labour, itemize costs weekly within the monthly PO.
One-Off Trades	One PO per contractor.	Ensures even small, specialised jobs are properly documented and tracked.
Direct Card / Cash Payments	A PO may still be required.	For one-off purchases (e.g. materials from Bunnings) or fees. Consult Account Manager Sunny for cash payments.

Important

If a company is not on the official Accounts & Labour List, they are treated as a Main Subcontractor or One-Off Trade. For new subcontractors, always consult the Director (Gear) before proceeding.

For the Buildertrend mechanics of creating a PO, see Subcontracting and Budget Management Workflow.

5. Stage 4 — Bill creation in Buildertrend

Every approved invoice must be uploaded against its corresponding PO by creating a Bill.

1. Identify the corresponding PO in Buildertrend.
2. Within the PO, select "Generate Bill from PO".
3. Fill in the Bill details, ensuring the Title and Attachment fields are correct:
   • Title: reflect the invoice specifics (supplier, period, claim number where relevant).
   • Attachment: attach the invoice document.
4. The Bill amount should match the invoice amount.

info

A Bill can be created without being marked "Ready for Payment". This signifies that the invoice has been logged but is still pending final review (e.g. waiting for a signed delivery docket).

6. Stage 5 — Scenario-based processing and approvals (SAIYU)

6.1 Scenario-based processing

• Lump Sum sub-contracts: Follow contract payment terms; conduct a site inspection or get foreman confirmation.
• Unit Price sub-contracts: Require a foreman-signed docket.
• Accounts-related invoices: Reconcile with account entries and budget.
• Card payments (already paid): Verify payment, match to the statement, update records.
• Reimbursement claims: Check for completeness and attached receipts.

6.2 Approvals

• Responsible: PM / Director.
• Process: Digitally sign off in Buildertrend by marking the Bill as "Ready for Payment".
• Exceptions: Accounts-related and pre-paid invoices are auto-approved after verification.

6.3 Supplier monthly statements

When a supplier statement is received:

• Match each amount to the corresponding entry in Buildertrend.
• If amounts match, mark the corresponding Bills as "Ready for Payment".
• If discrepancies are found, investigate and resolve before proceeding.

7. Key principles

• No PO, no work — a PO must exist before any cost is committed.
• Bills follow POs — all Bills must be tied to a pre-existing PO.
• Invoices trigger action — invoices are claims that require verification and approval before payment.
• Documentation is key — maintain meticulous records of all POs, Bills, and Invoices for auditing and financial accountability.
• When in doubt, ask — for any uncertainties, consult Director Gear or Account Manager Sunny.

8. Workflow diagram

9. Resources and escalation

• Abnormal activities: Report with detailed documentation to Director Gear and Account Manager Sunny.
• Buildertrend training: Buildertrend Help Center.
• Archived files (pre-2024): Contact Gear Zhan.
• IT support: Email Gear for technical issues.
• Related procedures: Subcontracting and Budget Management Workflow, Accounts & Labour List.