Bill for retainage based on Application for Payment

  • Updated on Mar 27, 2026
  • Published on Feb 25, 2026
  • 3 minute(s) read
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Overview

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.

Who uses this feature

  • Administrators, office employees, managers, accountants, and bookkeepers

  • 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

  • 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:

  1. Open the project you want to progressively bill for.

  2. Open the Application for Payment:

    1. If you have not already created an Application for Payment,see Complete Application for Payment and Continuation Sheet.

      1. Select an existing Application # from the Project page.
        Table displaying payment applications, due dates, invoices, payments, and balances.
        Or:

    2. Create or open the Application for Payment and review the Continuation Sheet for accuracy.
      Continuation sheet showing work completed, scheduled values, and retainage details for projects.

  3. Select Collect Retainage in column K for the Description of Work items that are 100% complete that you want to bill for.
    Financial summary showing total completed, balance to finish, and retainage details.

    Note: The entire Application for Payment does not need to be 100% complete to bill for retainage. Depending on your settings, the Description of Work row can be invoiced for retainage even when below 100% completion. For more, see Set up to collect partial retainage.

  4. 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.
    Review application for payment in the construction business unit with document preview.

    Note: Columns A through I on the Continuation Sheet are visible to your customer. Retainage columns J and K are excluded.

    Payment application document detailing construction project costs and completed work summary.

    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.

    Payment application detailing retainage, completed work, and current payment due amounts.

  5. To print the documents, click Print in the upper right corner of the screen.
    Interface displaying a payment application review with print and email options.

  6. To email the documents, click Emailin the upper right corner of the screen.
    Review application for payment with options to print or send via email.
    The Email Application for Payment screen opens.

    1. Add an email recipient by entering an email address in the New email address box or selecting an email address that appears.
      Email application form showing sender and recipient details for payment processing.

    2. Use the existing template or revise the body of the email.
      Email application for payment sent to Jamie Patter from ABC Construction.

    3. When you’re done, click Send to attach a copy of the Application for Payment and Continuation Sheetto the email.

  7. 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.

    Buttons for saving, closing, and generating an invoice on a digital interface.
    Finish and Generate Invoice opens.
    Prompt to finish generating an invoice or save progress in the application.

    Tip: If the Application for Payment has not been approved, click Save Progress. Do not generate the invoice until the application is approved.

  8. Click Finish and Generate Invoice.
    Prompt asking to save changes to an invoice before overwriting it.

    Tip: If you updated the Application for Payment and click Finish and Save Invoice a confirmation pop-up opens.

  9. Click Finish and Save Invoice.
    Invoice details showing payment terms, tasks, and amounts retained for work performed.
    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.
    Payment application document showing current payment due and total retainage amounts.

  • You can also see the invoice on the Project page.

    Invoice details showing pending status, total amount, and balance for various invoices.

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