Complete Application for Payment and Continuation Sheet

Overview

Progress billing is often done for commercial and construction projects. With progress billing, you bill customers based on the amount of completed work and stored materials. To progressively bill, customers may require you to submit applications for payment and continuation sheets.

Things to know

• Information on a continuation sheet is used to generate an application for payment.

  • Both documents are created at the project level.

  • Both documents are created at the same time.

• A customer approves an Application for Payment to indicate approval of the work reported.

• Progress invoices are created after the Application for Payment is approved.

• The Continuation Sheet is sometimes referred to as the schedule of values (SOV).

• You cannot delete an Application for Payment. You can edit an existing Application for Payment and clear out all the items, if needed.

• When creating an Application for Payment based on an estimate, the Description of Work column in the Continuation Sheet is automatically filled in based on the item descriptions from the estimate.

• All fields in the Continuation Sheet include calculated taxes. If you want to to display taxes in a separate row, enable the Sales Tax Display in the Application for Payment global settings screen or the Settings tab. For more, see Configure Application for Payment settings.

Best practices

• Generate the progress invoice after the Application for Payment is approved.

  • If you generate the invoice before approval, do not post or export the invoice.

  • Changes to the Application for Payment automatically update the corresponding invoice if the invoice is not posted or exported.

Create Application for Payment

The first step in progress billing is to add an Application for Payment to the project and complete a Continuation Sheet. The Continuation Sheet is used to generate the Application for Payment and both documents are sent to the customer for approval.

To create application for payment:

1. Search for the project you want to add an Application for Payment to and click it to open it.

2. From the Actions dropdown, click Add Application for Payment.
   

The Continuation Sheet opens.

The top section shows dates covered by the Continuation Sheet, application date, and retainage percent.

Note: Period From is the contract start date on the first application for payment. The date is updated after the first application.

The bottom section shows project information by project labels or categories and the total project. For more information, see Create project labels.

The table below describes each column. For more information, see Understand project records.

Note: All fields in the Continuation Sheet include calculated taxes.

Update Continuation Sheet

You can update a Continuation Sheet to reflect the correct billing period, work done, and material used for the project.

To update the Continuation Sheet:

1. In the Period To and Application Date fields, enter dates.

   Tip: You can use the calendar to select a date.

   Note: Application Date defaults to the current date.

2. In the Retainage % field, enter a new value, if necessary.

   Note: You can set the retainage percentage at the beginning of a project. You cannot set it after the second Application for Payment is done.

Update Work Completed and Materials Presently Stored

To update Work Completed and Materials Presently Stored for this period:

1. Select the row you want to update.

2. Click the Edit icon.
   
   The Description of Work Items for that label or category appears.

3. In the This Period column of the Quantity tab, enter the value of work done in this period.

4. In the Materials Presently Stored column of the Quantity tab, enter the value of materials purchased and stored but not yet used.

   Note: The project manager typically provides values for Work Completed This Period and Materials Presently Stored.

   

If you want to see prices for a label or category, go to the Price (USD) tab.

Update Work Completed and Materials Presently Stored by price

To update Work Completed and Materials Presently Stored for this period by price:

1. Click the Enable Edit Using Price toggle.
   

2. For each item you want to edit, place a checkmark in the Edit by Price box.

   Note: You can’t edit prices of Items with Inventory Tracking enabled.

   

3. In the This Period column of the Price (USD) tab, enter the value of work done in this period as a cash amount.

4. In the Materials Presently Stored column of the Price (USD) tab, enter the value of materials purchased and stored but not yet used as a cash amount.

   Note: You can’t edit prices of Items with Inventory Tracking enabled.

   

5. Save your changes.
   

Edit the Description of Work field on the Continuation Sheet

1. Find the Description of Work group you want to edit.

2. Click that row.

3. In the Description of Work field that becomes editable, enter the new description for the item group.

4. Click Save.

5. In the confirmation pop-up, click Save Edits and Update Series.

Reorder items in Continuation Sheet

If you need to make changes in the order of line items in the Continuation Sheet, use the up and down arrows on the line items to reorder them. After reordering them, click Save to save your changes.

If you used the estimate items description option when creating the Application for Payment, and you reordered items on the Continuation Sheet and saved it, you can no longer reorder using the estimate and can only reorder using the arrows in the Continuation Sheet.

Move subitems between groups in Continuation Sheet

1. Find the Description of Work group that includes the subitem you want to move.

2. Click Edit on that row.

3. On the Description of Work Items subsection that appears, click Move Item for the item you want to move.
   

4. On the pop-up that appears, select the Description of Work group where the item should be moved to.
   

5. Click Move Item.

6. The subitem is moved to the group item.

Note: To move the subitem to a new group, click New Description of Work from the dropdown.

Apply percentages in bulk

To apply percentages in bulk on a continuation sheet, click the Bulk Actions dropdown and select the action you want.

• If you select Bill for Remaining Balance, it automatically fills out the Work Completed for the This Period field to get to 100 percent.

• If you select Bill for Remaining Balance Including Retainage, it automatically fills out the Work Completed forThis Period field to get to 100 percent and selects the retainage to be collected.

• If you select Bulk Apply, you can enter the percent you want to apply to all lines. The percentage entered pre-populates the Work Completed field of the remaining items that are not at that percentage that you entered.

Note: The % field may not always be exactly equal to the percentage applied to each line. This happens if some rows are already completed with more than the percentage entered, and the system doesn’t support more than two decimal points.

To save your changes, click Apply.

Resolve rounding differences in the Continuation Sheet

When AFP line item amounts are not evenly divisible by unit price, an item may reach 100% completion in quantity while a small price difference remains due to rounding. When this happens, a warning icon displays on the affected row and shows the remaining balance in the Balance to Finish column.

• This only appears when you view the Continuation Sheet in Price (USD) view.

• The warning icon indicates the item is at 100% in quantity but not in price.

• You need to resolve this before generating the invoice to ensure the invoice balance matches the Application for Payment.

To resolve a rounding difference:

1. In the Continuation Sheet, click the Price (USD) tab.

2. Look for rows with a warning icon and a small amount in the Balance to Finish column.

   Note: Hover over the warning icon to see which items in the group are affected. 

3. Click Edit on the affected row to open the Description of Work Items.

4. Enable the Edit by Price toggle.

5. For each affected item, click Adjust Price.

6. The item total adjusts to 100% in price, resolving the rounding difference.

7. When finished, click Save.

Review Application for Payment

To review the application for payment in a PDF form, click Review Application for Payment.

Review Application for Payment opens with a preview of the Application for Payment and the Continuation Sheet.

Note: The amount in the Current Payment Due field includes tax.

In Review Application for Payment, you can:

• Change the business unit by selecting the business unit you want.

  Note: The Business Unit setting populates the contractor name, address and logo for the document. The application’s business unit must match one of the project’s assigned business units, if it has any.

  

• Print the documents by clicking Print  .
  

• Email the documents by clicking Email  .
  

When you click the Email icon, the Email Application for Payment opens:

1. Fill in the corresponding fields.

2. Click Send.

   Note: A copy of the Application for Payment and Continuation Sheet is attached to the email. For more information, see  Create email templates.

After you made changes, you have several options:

• You can click Save to confirm changes you made.

• You can click Finish and Generate Invoice to save changes after you reviewed the Application for Payment.

• You can click Discard if you don’t want to save changes you made.
  Note: When you click Discard, it does not impact changes to project dates.

Set up email template

To create an Application for Payment email template:

1. Go to the navigation bar and click Settings .

2. In the side panel, click Invoicing > Email.

3. On the Email settings screen that opens, click the Application for Payment tab.

4. Enter email template details:

   1. From

   2. Subject

   3. Body

      Note: In the Body field you can also insert placeholders for commonly used values. Make sure that you use names exactly as shown. For example, use {CustomerName} with no space between Customer and Name. For more information, see Create email templates.

      

5. Review the Preview section and modify the message as needed.
   

6. When finished, click Save.

View, email, or print Applications for Payment from the Project page

You can view, email, or print an Application for Payment from the Project page.

To do that:

1. Search for the project you want to view and open it.

2. In the side panel, click Financials.

3. In the Application for Payment section, click the Application # you want.
   

4. On the Continuation Sheet that opens, click the Application for Payment tab.
   
   Review Application for Payment opens. You can view, print or email the document. For more information, see Update Continuation Sheet.

Audit Trail for Application for Payment

You can track any changes made to an Application for Payment by any given employee. Click View Audit Trail under the Financials section of the project dashboard to view the audit trail for that specific project.

Use the filter options to filter out items in the audit trail. Changes in Application for Payment for projects are also recorded in the Audit Trail screen in the Accounting section.

Want to learn more?

• Visit ServiceTitan Academy to enroll in Progress Billing with Application for Payment

• See Add an estimate to an opportunity