How to Create a Direct Cost in Procore and Sync to Xero

Overview

Direct Costs are expenses incurred on a project that are outside of Commitments (such as Purchase Orders or Subcontract Work Orders). These are typically low-value purchases such as materials bought from suppliers like Bunnings.

The workflow begins in Procore where the Direct Cost is created within a project. Once the Direct Cost is approved, the integration will automatically create a draft bill in Xero. After the bill is paid or reconciled in Xero, the paid date is synced back to Procore and applied to the Direct Cost.

Prerequisite

Before creating a Direct Cost, ensure that Procore Direct Cost transaction type is enabled for the required project.

To verify project mapping in OneCore:

1. Navigate to Projects
2. Select Project Mapping
3. Enable Procore Direct Cost

Steps to Create a Direct Cost in Procore

Step 1: Navigate to the Project

1. Log in to Procore.
2. Open the required Project.
3. Navigate to the Financial Management tools.
4. Select Direct Costs.

Step 2: Create the Direct Cost

1. Click Create Direct Cost.

1. Select Invoice as the Direct Cost type.

Note:

• Only Invoice type is supported for Procore to Xero Direct Cost integration.
• Expense and Payroll types are not supported for syncing.

Step 3: Enter Required Information

Enter all required fields such as:

• Date
• Vendor
• Invoice number
• Cost code
• Amount
• Supporting attachments (if required)

Step 4: Approve the Direct Cost

1. Review the Direct Cost details.
2. Approve the transaction.

Once approved:

• The Direct Cost will automatically sync to Xero.
• A draft bill will be created in Xero.

• Once the bill is paid in Xero, the paid date is synced back to Procore. Note that the Direct Cost will also become ERP linked.