Bill for retainage based on Application for PaymentLast updated on 03/22/2022
Progress billing allows you to invoice for work and material and collect payment from customers during the course of a project. Retainage is a percentage of an invoice that is billed when a project or phase is complete. The percentage is optional and is determined when the contract is signed.
Things to know
Retainage must be set up before creating an Application for Payment.
Retainage is invoiced when a Description of Work on the Continuation Sheet is 100% complete, unless otherwise specified in the customer contract.
Applications for Payment reflect deductions for retainage.
Final invoices include retainage charges that were deducted from previous invoices.
Retainage can be withheld for projects not using Applications for Payment. See Create Retainage.
In Canada, retainage is the same as “holdback”.
Bill for retainage based on Application for Payment
The Application for Payment and the Continuation Sheet have the information needed to bill for retainage. You will need to complete those documents before you can invoice for retainage.
To bill for retainage:
Open the project you want to progressively bill for.
Open the Application for Payment:
If you have not already created an Application for Payment,see Complete Application for Payment and Continuation Sheet.
Select an existing Application # from the Project page.
Create or open the Application for Payment and review the Continuation Sheet for accuracy.
Select Collect Retainage in column K for the Description of Work items that are 100% complete that you want to bill for.
Note: The entire Application for Payment does not need to be 100% complete to bill for retainage. A Description of Work row that is 100% complete can be invoiced for retainage.
Click Next on the bottom right of the Continuation Sheet.
Document Preview: Application for Payment opens. You’ll see this heading and the detail shown below.
Note: Columns A through I on the Continuation Sheet are visible to your customer. Retainage columns J and K are excluded.
Note: The retainage section in the Application for Payment is reduced by the amount of retainage billed. The amount that is billed is reflected in Current Payment Due.
To print the documents, click Print in the upper right corner of the screen.
To email the documents, click Emailin the upper right corner of the screen.
The Email Application for Payment screen opens.
Add an email recipient by entering an email address in the New email address box or selecting an email address that appears.
Use the existing template or revise the body of the email.
When you’re done, click Send to attach a copy of the Application for Payment and Continuation Sheetto the email.
Once the Application for Payment and Continuation Sheet are approved, click Finish and Generate Invoice at the bottom of the Preview page.
Tip: Do not generate, post, or export an invoice before the Application for Payment and Continuation Sheet are approved. This is recommended to help you avoid significant rework.
Finish and Generate Invoice opens.
Tip: If the Application for Payment has not been approved, click Save Progress. Do not generate the invoice until the application is approved.
Click Finish and Generate Invoice.
Tip: If you updated the Application for Payment and click Finish and Save Invoice a confirmation pop-up opens.
Click Finish and Save Invoice.
The Invoice screen opens.
Note: The invoice date defaults to the date you create the invoice. If you want to change the date, click Update invoice details and enter the new date in the Invoice Date field.
The warning at the top of the invoice lets you know that changes made to the invoice will not update the related Application for Payment. You will need to update the Application for Payment.
The retainage balance should match the retainage amount billed from the Continuation Sheet.
You can also see the invoice on the Project page.
Want to learn more?
Visit the Academy and enroll in Progress Billing with Application for Payment
Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.
Disclaimer: Information provided in this article is for informational purposes only and it should not be construed to be legal advice. Information provided in this article may also not constitute the most up-to-date legal or other information. You should not act or refrain from acting on the basis of any information in this article to meet any compliance requirements without seeking independent legal or other professional advice.