AIA Billing
AIA Billing Overview
Construction vendors have a need to run and submit billing and progress reports using AIA formats, such as 702G and 703G. The Progressus Progress Billings feature for Dynamics D365 Business Central gives users the ability to produce AIA billings on a Project, based on either percent complete or completed quantity. The Progress Billing page allows users to apply Retention and payments amounts, making changes as necessary. Users can also create multiple revisions of a billing, in the event the first Version is not approved. Once the invoice is approved, users can generate an invoice and print the G702, G703, Generic Progress Billing and/or Generic Progress Billing with Quantity reports to include with the invoice.
Progress Billing – Approval Permissions
To approve invoices or make changes to the status of the Progress Billing, the Progress Billing page requires users to be approvers on the Project or Contract. The Progressus roles of Project Manager, Person Responsible, Accounting Manager and Project Executive all have the necessary permissions to perform these functions.
Project Parameters for using Progress Billings
There are no special Project parameters required to use the Progress Billings feature with a Project, other than the Project Status must be set to active.
How to access Progress Billing from the Menu
To access Progress Billing page, use these steps:
- Select a Project to use for Progress Billing from the Project List.
- Select Billing > Progress Billings.
Tip
You can also access the Progress Billing page from the Project Plan by selecting Billing > Progress Billings.
What field connects the Progress Billing to the Project?
Once a Project is entered in the Progress Billing page and saved, the Project Card> Progress Billing ID field is updated with the Progress Billing ID number. The Project Number also appears on the Progress Billing page > Project No. field.
To create a new Progress Billing
Open Progress Billings from a selected Project. See How to access Progress Billings from the menu
Select Yes to message “No Progress Billings are found, initiate New Progress Billing?”
Tip
To work on a current Progress Billing, click on the Progress Billing ID of the Application and Version.
Note
The numbers will increment as you add new Applications or Versions to the Progress Billing.
Tip
When you create the initial Application, the Progress Billing Lines section is empty. After you add lines and create a new Application or Version, any lines in the Progress Billing Lines section are copied to the new Application or Version.
Billing Info FastTab
| Field Name | Description |
|---|---|
| Project No. |
Specifies the Project Number linked to Progress Billing. Defaults in from the Project selected for Progress Billing and is not editable. |
| Project Name | Specifies the Project Name linked to the Progress Billing. Defaults in from the Project selected for Progress Billing and is not editable. |
| Contract No. | Specifies the Contract number associated with Progress Billing. Defaults in from the Project selected for Progress Billing, if the Project is part of a Progressus Contract. The field is not editable. |
| Contract Name | Specifies the Contract name associated with Progress Billing, if the Project is part of a Progressus Contract. Not editable. |
| Application No. | Specifies the Application Number used for uniquely identifying a single bill. Application Numbers start with '1' on the first billing application for a Project/Contract, and subsequent Applications are assigned by the system, incrementing the previous Application Number by 1. Not editable. |
Tip
The Customer is always billed from the last Version of the Application. A new Application is created for each billing/invoice.
| Version No. |
Specifies the Version Number for the Progress Billing within this Application. You may have multiple Versions of the same Application as you work with the client for approval. Not editable. |
| Invoice No. | Specifies the Invoice Number. Is assigned when the Progress Billing is posted to an invoice. Not editable. |
| Credit Memo No. | Specifies the Credit Memo Number. Created when a posted invoice is voided by creating a new Version. Not editable. |
| Status | Specifies the status of the bill. When status is Open the user can maintain the Progress Billing. Although multiple Applications for a Project/Contract can have status of Invoiced, the previously billed amount of a higher-numbered Application does not reflect the amount billed on previous Applications until the previous Applications have been approved, invoiced, or posted. Once the Application is set to Approved, the billing is complete and ready for posting to an invoice. When an Application has been posted to an invoice, it cannot be changed and the status changes to Invoiced. If the invoice is posted the status changes to Posted. At any time, the status can be Voided. If this occurs and a posted invoice exists, the program will create a Credit Memo and apply against the invoice if possible. If no invoice exists, the status on the billing is set to voided. |
| Application Date | Specifies the date of the Application or invoice date that prints on the report and updates the Invoice Date field of the invoice header. |
| From Date | Specifies the beginning date of the billing period for the invoice, which prints on the report. The default value of this required field is the current system date but can be overwritten. |
| To Date | Specifies the ending date of the billing period for the invoice, which prints on the report. Any Change Orders that have approval dates after this date do not appear on the billing report. The default value of this required field is the current system date but can be overwritten. |
| Contract Value | Specifies the value of the Contract as entered by the user. |
| Approved By | Specifies who approved the Progress Billing. System populated with the approver’s name. |
| Approved Date | Defaults to current business date when the Approved By field is populated. |
| Currency | Specifies the currency to use for billing. |
| Project Manager | Specifies the person who is assigned to manage the Progress Billing. Defaults from the Project's Project Manager field on the Project associated with the Progress Billing. |
| Project Manager Name | Specifies the person's name (associated with the Project Manager field) who is assigned to manage the Progress Billing. |
| Person Responsible | Specifies the person responsible on the Project/Contract. Defaults from the Project's Person Responsible field on the Project associated with the Progress Billing. |
| Person Responsible Name | Specifies the Person Responsible name (associated with the Person Responsible field) on the Project/Contract. |
| Architect Project | Specifies the architect’s Project. This is an optional reference to the architect’s internal Project Number. |
| Default Retention % | Specifies the overall default Retention percentage for the bill. Any new lines entered in the Progress Billing Lines will default this value into the Retention % field. |
| Stored Materials Retention % | Specifies the default Stored Materials Retention Percentage for the bill. Any new lines entered in the Progress Billing Lines will default this value into the Stored Materials Retention % field. |
Customer/Contacts FastTab
Most of the fields in the Customer Contact FastTab default from the Customer Card for the Customer associated with the Project. However, you can choose to add an Owner contact name or an Arch/Eng. Contact Name by clicking the "-" in the field and adding a new contact from the Contacts page that opens. Owner Contact Type, Owner Contact Code, Arch/Eng. Contact Type, Arch/Eng. Contact Code fields do not default from the Project.
Progress Billing Lines
Allows the entry of individual billing line Items. As lines are keyed in, totals appear in the Invoice Total To Bill field for each line.
| Field Name | Description |
|---|---|
| Item No. |
Specifies Item number, which is the identifier of the billing line Item. Item numbers can be optionally auto incremented (by 10). For example, if you create the first line Item number as '10', on the next line, for the Item number, type in '0' and the second line Item number will automatically increment to 20. |
| Item Type | Item Types allow you to invoice regular Items, manual taxes, deposit Applications, and other amounts. |
| Item Regular | Use Item-Regular for labor, inventory Items, Stored Materials, everything being billed except tax, deposits and other amounts. |
| Tax | Use the Tax Item Type for entering sales, use, and other taxes. If the Tax type is chosen, you must manually calculate the tax amount and enter it in the Tax Amount field. The Retention amount for the line defaults to zero. |
| Apply Deposit | Used to apply the customer's deposit to the billing. If selected, you must enter a negative number in the work amount to credit the billing. |
| Other | Can be used for comments and other amounts (but any amounts entered do not update billed to date). |
| Project No. | Specifies Project Number for this billing line. |
| Cost Type | Specifies the cost type to use in the billing and reporting. Example: Equipment, Material, Labor. |
| Project Task No. | Specifies a Task Number for this Project. |
| Change Order | Specifies an identifier for the Change Order, this could be the Contract Change Order or an identifier from the client. |
| CO Approval Date | Specifies approval date for the Change Order, it must not be greater than the To Date and must not have appeared on another Application. |
| Description | Specifies the description for this billing line. |
| Billing Type | Specifies how the line is to be billed. Options include: |
| - Percent Complete | |
| - Completed Quantity | |
| Scheduled Amount | Specifies the maximum billable amount of the line. It informs the customer how much will be charged when the Project is finished and serves as the basis for the calculation of the work amount when a value is keyed in % complete. When using completed quantity, it is the unit price times the scheduled quantity. |
| % Complete | Specifies percentage of completion for the line as of Application/revision. This is the completion percentage for the total to the Application date for this billing line. |
| Work Amount | Specifies the calculated work amount based on the percent complete entered, value can be directly entered in this field. The calculated Work Amount can be overwritten, however, the % Complete will not be back calculated/changed based on the new amount. |
| Billed To Date | Specifies accumulated total of the work to be billed and Stored Material amounts on previous Applications with any status for the current Contract/Project. You can manually overwrite the value in this field. |
| Work To Be Billed | Specifies the amount of work to be billed on this Application/revision based on the work amount less the billed to date amount. |
| Scheduled Qty | Only used if the Billing Type is set to Completed Quantity. Specifies the quantity scheduled to complete for this line. |
| Qty Complete | Only used if the Billing Type is set to Completed Quantity. Specifies the total quantity that is now considered complete. This quantity and the unit price are used to calculate the work amount for completed quantity billing type. |
| Previous Qty | Specifies accumulated total of the quantity to be billed on previous Applications with any status for the current Contract/Project. |
| Qty To Bill | Only used if the Billing Type is set to Completed Quantity. Specifies the quantity to be billed on this invoice. This quantity multiplied by the unit price will update the Work Amount for Completed Quantity Billing Types. |
| Unit Price | Specifies the unit price for this line. For Completed Quantity Billing Type, this is used to determine the scheduled amount and the work amount based on quantities entered. |
| Retention % | Specifies overall Retention percentage for the bill and is applied to the Work to be Billed to determine the Retention dollar amount. The percentage defaults from the Default Retention % field entered in the Progress Billing > Billing Info FastTab You can manually overwrite this value. |
| Retention Amount | Specifies Retention amount for the current line. It is calculated by multiplying the Retention percentage times the work amount. |
| Retention To Date | Specifies the amount of Retention previously taken but you can manually overwrite this amount. |
| Retention This Bill | Specifies the amount of Retention to include on this invoice. |
| Stored Material Amount | Specifies the amount on this Application for Stored Material. |
| Stored Material This Bill | Specifies the Stored Material amount to bill on this Application. |
| Stored Material Retention % | Specifies Stored Material Retention percentage for the bill and is applied to the Stored Material to determine the Stored Material Retention amount. The value defaults from the Stored Materials Retention % field entered in the Progress Billings > Billing Info FastTab. You can manually overwrite this value. |
| Stored Material Retention Amount | Specifies the Stored Material Retention amount for the current line and is calculated as the Stored Material Amount multiplied by the Stored Material Retention %. |
| Stored Material Retention This Bill | Specifies the Stored Material Retention amount to include on this invoice. |
| Stored Material Retention To Date | Specifies the amount of Stored Material previously taken but can be overwritten by the user. |
| Tax Liable | Specifies if this billing line is taxable. |
| Tax Amount | Specifies a manually created tax amount for lines of Line Type of Tax. For regular and other lines if Tax Liable is checked then the system should calculate tax based on standard methods for tax/VAT calculation. |
| Total Retention | Specifies the total Retention for this line as calculated by the sum of Retention this bill plus the Stored Material Retention on this bill. |
| Invoice Total To Bill | Specifies the total amount to bill the customer when creating the invoice. Total to bill = work to be billed – Retention this bill + Stored Material this bill – Stored Material Retention this bill. |
| Credit G/L Account | Specifies the G/L Account to use for the credit transaction on the invoice line. |
| Credit G/L Stored Mat. Account | Specifies the G/L Account to use for the credit transaction on the invoice line for Stored Materials. |
Creating a new Version of the Progress Billing
You can create multiple Versions (within an Application) of a Progress Billing as you work with the client for final approval of the invoice. When you create a new Version, the previous Version will be voided. If any posted Sales Invoices exist, then it will create a posted Sales Credit Memo against the invoice.
To add a new Version to an Application
Tip
When you create the new Version, any lines in the Progress Billing Lines section are copied to the new Version.
Open Progress Billings from a selected Project which has already had an Application created.
View – Progress Billing List shows the Applications and Versions. Highlight the Application and Version for which you want to create a new Version.
Select New Version to create a new Progress Billing Version.
Select Yes to reply to message "Are you sure you want to void this version and create a new one?" (the numbers will increment as you add new Applications or Versions to the Progress Billing).
Select Yes to the message "New version has been successfully created. Progress Billing ID 'xxxxxx', Application Number 'yy' and version 'zz'."
To edit the new Version, select the edit icon ("Make changes on the page") at the top of the Progress Billing page.
Creating a New Application for an Existing Progress Billing
New Applications of a Progress Billing can be created as you work with the client for approval. You may have multiple iterations of the same Application, but the invoice is always created from the last approved Application/Version.
To add a new Application to an existing Progress Billing:
View – Progress Billing List shows the Applications and Versions. Highlight the Application and Version for which you want to create a new Application.
Select New from the ribbon and New Application from the menu.
Select OK to reply to message "New application has been successfully created. Progressus Billing ID 'xxxxxx' application number 'X' and version number 'Y'" (the numbers will increment as you add new Applications or Versions to the Progress Billing).
Tip
When you create the initial Application, the Progress Billing Lines section is empty. After you add lines and create a new Application, any lines in the Progress Billing Lines section are copied to the new Application.
Click the back navigation arrow to return to the previous page and select the new Application (referenced in the previous message) from the Progress Billing List page.
To edit the new Version, select the Edit icon ("Make changes on the page") at the top of the Progress Billing page.
Process to Create a new Progress Billing Invoice
To create an invoice from the Progress Billing, the Progress Billing status must be set to Approved. To ensure you have the correct role/permissions to set the status to approved, see Progress Billing – approval permissions
Open the Progress Billing and select the Edit ("Make Changes on the page") icon at the top of the page.
Important
In the event someone else is doing the approving and in order to see what you are going to bill, the entries should be done before changing the status to approved.
Locate the Billing Info > Status field and change the value to Approved.
When the Billing type field is set to Percent Complete, you enter the % Complete value i.e. 25, 50, etc. The system calculates the Work Amount. The Work to be Billed field specifies the amount of work to be billed on this Application/revision based on the work amount less the billed to date amount.
To bill a line where the Billing Type is Completed Quantity, you need to have a Scheduled Qty and Unit Price first. Then you put in the Qty Complete and the system calculates the Qty To Bill as Qty Complete minus Previous Qty and populates the Work Amount. If there is a Billed To Date amount, that is subtracted from the Work Amount to get the Work To Be Billed amount.
From the ribbon, select Invoice > Create Invoice.
A message is received "Sales Invoice 'S=INVxxxxxx created".
Click OK
Review the invoice created from the Progress Billing
To view the invoice or credit memo generated from the Progress Billing, select Invoice > View Invoice or Invoice > View Credit Memo.
Billing Type – Percent Complete vs Billing Quantity
The Progress Billing page allows you to calculate progress (and invoice) on a Contract on either the percentage of work completed, or by the quantity that is completed.
For calculation purposes, the Percent Complete field is associated with the following fields in the Progress Billing Lines:
- Scheduled Amount
- % Complete
- Work Amount
- Billed to Date
- Work to Be Billed
For calculation purposes, the Quantity Completed field is associated with the following fields in the Progress Billing Lines:
- Scheduled Quantity
- Quantity Complete
- Previous Qty
- Qty to Bill
- Unit Price
- Scheduled Amount
- Work Amount
- Billed To Date
- Work To Be Billed
Retention – Default Retention % and Stored Materials Retention %
Progress Billings page allows you to establish separate (and potentially different) Retention percentages for regular billable Items versus Stored Materials.
To set a default Retention % for regular Items, use the Default Retention % field in the Billing Info FastTab of the Progress Billing page. The percentage value you enter here defaults to the **Retention %**field in the Progress Billing Lines section. You can also overwrite the defaulted value manually during data entry.
To set a default Retention % for Stored Materials, use the Stored Materials Retention % field in the Billing Info FastTab of the Progress Billing page. The percentage value you enter here defaults to the Stored Materials Retention % field in the Progress Billing Lines section. You can also overwrite the defaulted value manually during data entry.
Using Item Types in Progress Billing Lines
When entering lines in a Progress Billing Line Types allow you to select a value to categorize the type of Item being billed.
| Field Name | Description |
|---|---|
| Item-Regular (I) - Item-Regular |
specifies that the line is billing for Labor, Inventory Items, Stored Materials, everything being billed except tax, deposits and other amounts. If Item Type = Item-Regular & Tax Liable = True, then tax is calculated by the system when the invoice is created and is not on the 702/703 reports. |
| Invoice | Calculated on the invoice based on Tax Group Code on the G/L Account No., Tax on the Progress Billing line is then updated. It is included in regular Business Central tax, not a line by itself. |
| 702 Report | Not Included |
| 703 Report | Not Included |
| Generic Invoice/ Generic Invoice w/Quantity | In the tax field. |
| Tax (T) | Use Tax to specify the tax amount on a line. If Item Type = Tax, then this line is designed to be used to manually enter tax and/or to include it on the 702/703 reports. |
| Invoice | Separate sales line not part of tax calculation. |
| 702 Report | Included as Tax in tax amount. |
| 703 Report | Listed in a separate section. |
| Generic Invoice/ Generic Invoice w/Quantity | In Current Invoice Amount and/or Less Previous Invoices amounts. |
| Other | Use Other for comments and other amounts (but these amounts do not update billed to date). |
| Apply Deposit (A) | Use Apply Deposit to apply a customer deposit to the Progress Billing. You must enter a negative number in the Scheduled Amount to credit the billing. |
Progress Billing Reports
To access Progress Billing reports, open Progress Billings from a selected Project. See How to access Progress Billing from the menu.
Select Related > Reports > Progress Billing Reports.
When you select a report from the menu, an Options page opens where you can select the Application Number or Version Number on which to report. You can also select +Filter to add additional filters on the report.
AIAG702 Progress Billing - is an "Application and Certificate for Payment" report to include with the request for payment. Includes sections for:
- Contractor's Application for Payment
- Total Earned Less Retainage
- Less Previous Certificates for Payment
- Balance to Finish Including Retainage
The report also includes:
Certificate for Payment
Amount Certified
Signature line
If there are Change Orders on the Progress Billing, the field Net Change by Change Orders provides a sum of the net change and is factored into the Total Earned Less Retainage Amount.
AIAG703 Continuation Sheet: provides a summary of the transactions showing the status to date of the amounts from the invoiced Progress Billing. It includes a description of any tasks included in the invoice, the scheduled value, any previous Applications, Stored Material amounts, total completed, stored to date, balance to finish, and retainage. This report can be attached to the invoice to document the billed amount.
AIA Generic Progress Billing with Completed Quantity: provides a simplified summary of the Progress Billing that includes quantity when the Billing Type on a line is Completed Quantity or Percent Complete.
AIA Generic Progress Billing: provides a simplified summary of the Progress Billing that includes Contract sums, amount completed and Retention amounts. Use when the Billing Type on a line is Percent Complete.