Overview
Double counting revenue can occur when you progressively bill and add an Application for Payment in the same project.
Who uses this feature
Project managers, accountants, administrators, and estimators
Primarily for Residential Construction and Commercial Construction business types
Feature configuration
Account configuration is required to use this feature. Please contact Technical Support for details.
Things to know
Manage jobs for a project from the project record:
Book jobs directly from the project
Duplicate existing jobs to create new jobs
Attach existing jobs to a project
Move jobs from one project to another
Example of double counting revenue from combining billing methods
In this example, the project’s first invoice for the rough-in phase contains $30,000 of revenue, made using progress billing.
This adds $30,000 to the project’s financial summary in the Invoiced section.
If you start to generate an AFP, the Work Completed section appears to show that no billing has taken place in this project, which may lead you to create the AFP. The AFP workflow doesn’t count invoices made outside of the AFP workflow.
The next part shows what happens if you also submit Application #1 for the total of the rough-in phase.
The AFP workflow automates the creation of the invoice, so if you choose to bill for 100% of the rough-in phase, the two labeled/associated items from the sold estimate are brought into the invoice.
When you return to the project, the rough-in revenue is now doubled because you used both billing methods in the same project.
Prevent double counting revenue
The best practice for preventing double revenue when billing is to use either the Application for Payment or progress billing workflow and not both.
To make this decision, consider the requirements of your contract:
Application for Payment: Use this workflow if the contract calls for an AIA-styled document, schedule of values, Continuation Sheet, and/or outlines retainage percentages.
Progress billing: Use this workflow if a schedule of values is not required in the contract.
Avoid using job invoices to bill for project revenue. In construction projects, job invoices capture costs and material consumption, while Applications for Payment or progress billing capture revenue.
Note: The workflow recommendations below are only possible if the invoice hasn’t been exported. If the invoice is posted within a batch, unpost the batch before editing the invoice.
Application for Payment workflow
If the AFP workflow aligns best with your contract:
Go to the project record and click Estimates from the side menu.
In the Invoices section, click the progress invoice that is not associated with your AFP. Invoices connected to AFPs appear in the App. for Pmt # column.
Click X next to a task to remove it from the invoice.
A confirmation message opens. Click OK to remove the task.
When you remove the items from the invoice connected to the project, the invoice and items no longer add to the invoiced amount on the project.
See Complete Application for Payment and Continuation Sheet for more information.
Progress billing workflow
Go to the project record and click Estimates from the side menu.
In the Invoices section, click the App for Pmt# on the invoice that you want to remove.
Make the changes on the Application for Payment. Updates made to the invoice will not update the Application for Payment.
The Continuation Sheet opens. Remove the values that were billed in the This Period column. To remove cost for an item, click into the This Period cell for the item and delete the value.
Make sure that the value is now $0.
When finished, click Save.
When you save your changes on the Continuation Sheet, your invoice updates automatically and the project now reflects the correct amount of revenue.
See Progress billing for more information.