Create a progress invoice based on Application for Payment

Overview

Progress billing allows you to invoice for work and material and collect payment from customers during the course of a project. Invoices for projects are generated using data about work done and material used from project Continuation Sheets and Applications for Payment.

Note: See Bill for retainage based on Application for Payment to learn how to bill for retainage.

Things to know

Progress billing:

• Ensures invoices are accurate.

• Associates an invoice with an Application for Payment on the Project page for traceability.

• Is done at the project level.

Best practices

• Confirm with your customer that the contract allows for progress payments based on milestone or percent completion before generating an invoice.

• Wait until the Application for Payment is approved before generating an invoice; it's difficult to reverse an invoice after it has been posted or exported.

Create a progress invoice based on an Application for Payment

The Application for Payment and the Continuation Sheet provide the information needed to create a progress invoice. Because those documents contain information about work done and material used, you will need to complete both documents before you begin progress billing.

To create a progress invoice:

1. Open the project you want to create a progress invoice 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.
      Or:

   2. Select an existing Application # from the Project page. 

3. Review the Continuation Sheet for accuracy. 

   Note: If any line items show a warning icon in Price (USD) view, resolve the rounding differences before continuing. For more, see Resolve rounding differences in the Continuation Sheet.

   

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.  

   Note: Columns A through I display on this version of the Continuation Sheet. Retainage columns J and K are excluded.

5. If the Application for Payment and Continuation Sheet are correct, click Finish and Generate Invoice at the bottom of the Preview page. 
   Finish and Generate Invoice opens.

6. Click Finish and Generate Invoice. 

   Note: Click Save Progress if the Application for Payment has not been approved. Do not generate the invoice until the application is approved.

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

   2. Click Finish and Save Invoice. 
      The Invoice screen opens. 

   3. 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.

   4. 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.

   5. The invoice balance should match the payment due on the Application for Payment.                 

      1. You can also see the invoice and the application number on the Project page. 

The invoice balance should match the payment due on the Application for Payment. If you resolved any rounding differences in the Continuation Sheet before generating the invoice, those adjustments are already included.

Review Application for Payment invoices in Invoices module

After generating AFP invoices, you can use the Invoices module in Transaction Hub to view, filter, and review all AFP invoices across your projects in one place without opening each invoice record individually.

To find and review AFP invoices in Transaction Hub:

1. Go to the navigation bar and click Accounting.

2. In the side menu, click Invoices.

3. On top of the table, select View > Application for Payment > Apply to display only AFP invoices in the list. 

4. Find an invoice you want to review and click the invoice row.        

   Note: Clicking the invoice number takes you directly to the invoice record. Clicking on the number under the AFP# column opens the AFP associated with the invoice.

      

5. On the Invoice Details screen that opens, review the invoice details.

6. When you're finished reviewing the invoice, go to Review Status > Reviewed to mark it as reviewed.

The invoice balance should match the payment due on the Application for Payment. If you resolved any rounding differences in the Continuation Sheet before generating the invoice, those adjustments are already included.

Want to learn more?

• Visit the Academy and enroll in Progress Billing with Application for Payment

• See Bill for retainage based on Application for Payment