Applications for payment (AFPs)

You can create AFPs to summarize the completed work for each cost period. AFPs, which are also referred to as requests for payment or payment requisitions, are used for contracts that don't commit costs to the budget.

A contract between the general contractor and the owner specifies that the owner make progress payments at regular time intervals. The payments from the owner are based on the work done by the general contractor and the subcontractors. The general contractor creates an AFP to summarize the work completed for the current cost period.

On the Application for Payment tab, the banner displays:

  • Current contract value: Revised contract value with all change orders, including those not yet added in the records.
  • Previous invoices: Total billed in previous record for this contract.
  • Current due: Total amount earned, minus retainage and minus amounts from previous records.
  • Balance to invoice: Remaining payable value, including retainage, of the contract.
  • The contract rule determines how you can bill the contract.
  • When a new AFP is created, the previous AFPs are locked unless it's for an uncontrolled total contract.
  • Records for the same contract automatically have consecutive sequence numbers. You can edit the line items only for the AFP with the highest sequence number.
  • In the project menu, select Financials > Applications For Payment.
  • In the record, select the Financial summary tab.

    • The fields are read-only.

    Section Field Description
    Contract status Contract value Original value of the contract. The sum of the schedule of values (SOV) in the contract.
    Changes to this invoice Sum of change orders for the contract, up to and including the cost period of this AFP.
    Contract value this period Revised value of the contract for the cost period in the record. Calculated by adding Contract value to Changes to this invoice.
    Current contract value Revised contract value with all change orders, including those not yet added in the records. Calculated by adding all change order amounts to Contract value.
    Invoicing status Total completed and stored Total value of the completed work, installed material, and stored material up to and including this record.
    Total retainage Total amount of retainage up to and including this record.
    Total earned less retainage Value of the completed work, installed material, and stored material in all records up to and including this record, minus retainage.
    Previous invoices Total billed in previous record for this contract.
    Current due Amount of payment due for the current invoice. The sum of the Net current due column in the record.
    Balance to invoice Remaining value, including retainage, of the contract payable to the subcontractor. Calculated by subtracting Total earned less retainage from Contract value this period.

When you create the first AFP for a contract, you can add the SOV from the contract. You can also start with an empty AFP and then add line items to it.

  • Field permissions aren't enforced in the Create dialog but are enforced in the full record.
  • Required fields are marked with an asterisk.
  • The companies in the To company and From company fields come from the associated contract.
  • Line items are carried over to future AFPs, so setting up the first one is important.
  1. On the navigation toolbar, select Create icon (Create).
  2. If autonumbering is off, enter the record number.
  3. In the App date field, enter or select a date.
  4. From the Period list, select the cost period.
  5. From the Contract list, select the contract that the record is for.
  6. Select Create.
  7. If this is the first AFP for the selected contract, select Yes to add the SOV from the contract.

    8. —Or—

    To leave the Detailed items grid empty, select No.

  8. In the Information panel, enter the record details.
    • To change the status, select an option from the list.
      • Workflow field
    • To add an assignment, select Add in the Assigned to section, select the name, and then set a due date.
    • To add a courtesy copy, select Add in the Courtesy copies section, and then select the name.

    The Amount locked toggle is read-only. The amount becomes locked automatically when a new record is created for the same contract.

  9. In the Detailed items grid, add or edit the line items, and enter the lump sum or unit price payments.
  10. On the Comments tab, enter a comment, select Link icon (Links) to link items, and then select Send icon (Send).
  11. On the Contact Information tab, enter the company and contact information.
    • To search for or create a company, select Search icon (Search) in the company field.
    • To add a contact, select the contact field, and then select or invite a contact.
  12. To set who has access to the AFP, select Sharing icon (Sharing), and then select an option.
  13. To link an item to the AFP, select Link icon (Links), select Plus icon (Add), and then select the item type.
  14. To save the changes and keep the AFP open, select Save icon (Save).

    15. —Or—

    To save the changes and close the AFP, select Back arrow (Save).

In an AFP, you can add:

  • New line items to show the cost breakdown of SOV items from the contract.

    • You don't know the cost breakdown when you create the prime contract, so you add one SOV item for $50 million. When you add line items to the AFP, you deduct the scheduled cost of the new line items from the $50 million item.

  • PCCOs to receive payment for the work outlined in the change order.
  • Contract invoices and general invoices to identify costs from subcontractors and costs that aren't included in the contract.
    • Only the contract invoices and general invoices that are marked for inclusion are added to the AFP.
    • If you change the invoice line items in the AFP, the changes aren't synced back to the contract invoice or general invoice. To sync them, you can edit the contract invoice or general invoice directly, and then refresh the invoices in the AFP.
  1. In the Detailed items section, select Add.
  2. In the row, enter the description and scheduled value for the line item.
  1. In the Detailed items section, select Add PCCO.
  2. Select the PCCO, and then select Select.

    3. Only PCCOs that are created in the same or previous cost periods are available.

  1. In the Detailed items section, select Refresh.
  2. Select General invoices or Contract invoices.

    3. Only the invoices for the same and previous cost periods are included in the AFP.

  • In the Detailed items section, select the checkbox for the line item, and then select Remove.

When you add payment amounts for a lump sum contract, you can use the:

  • Material value: This includes the work completed, the installed material, and the stored material for the payment amounts.
  • Stored material: Using the Stored material value column follows an industry standard set by the American Institute of Architects (AIA).
  • Installed material: The Material install this invoice value column is used to track material.

The Total complete value column displays the total of the Previous work material install value, Work this invoice value, Material install this invoice value, and the Stored material value columns. The Net complete value displays the total amount due, including retainage.

  1. In the Work this invoice value cell, enter the value for the work completed during the payment period.
  2. In the Material install this invoice cell, enter the value for the material installed on the project during the payment period.

    3. The Total work material install value cell displays the total of the Previous work material install value, Work this invoice value, and Material install this invoice value cells.

  3. In the Stored material value cell, enter the total value of the newly stored material for the payment and the stored material from previous payments that isn't installed on the project yet.

    4. To ensure that you bill only once for the stored material, don't include the value for the installed material in the Stored material value cell because it's already included in the Material install this invoice value cell.

  4. Calculate the retainage.
  1. In the Work this invoice value cell, enter the total value for the work completed and the installed material during the payment period.
  2. In the Stored material value cell, enter the value of the new stored material.

    3. If previously stored material is installed on the project for this invoice, don't include that value in the Stored material value cell.

  3. Calculate the retainage.
  1. In the Work this invoice value cell, enter the value for the work completed, not including the value for the installed material, during the payment period.
  2. In the Material install this invoice value cell, enter the value of the stored material or the value of the material installed during the payment period.
  3. Calculate the retainage.

For unit price contracts, the value of work is calculated based on completed or installed quantities. When you create a record for a unit price contract, the value of work is calculated based on completed or installed quantities for the payment period.

Unit price amounts don't usually include stored material, so the Stored material value and Material install this invoice value columns aren't available in record for unit price contracts.

  1. In the UOM cell, enter the unit of measurement.
  2. In the This invoice qty cell, enter the installed quantity for the line item during the payment period.

    3. The Work this invoice value cell is calculated by multiplying the amount in the This invoice qty cell by the price in the Unit price cell. The Net complete value displays the total amount due, including retainage.

  3. In the Category cell, select the category for the line item.
  4. Calculate the retainage.

Retainage is the amount of money that's withheld from progress payments to contractors. After the work is completed, you can release the retainage for payment.

The following options are available:

  • General retainage: Calculated by multiplying the General retain percent column by the Total work material install value or Total complete value column.
  • Stored retainage: Calculated by multiplying the Stored material retain percent column by the Stored material value cell.

The Net current due column displays the total amount due minus retainage.

  1. In the General retain percent cell, enter the retainage percentage for general work.

    2. —Or—

    To automatically update the General retain percent cell, enter an amount in the General retain value cell.

  2. In the Stored material retain percent cell, enter the retainage percentage for stored material.

    3. —Or—

    To automatically update the Stored material retain percent cell, enter an amount in the Stored material retain value cell.

    If you're not using the Stored material value cell to track stored material, you don't need a retainage percentage.

  • In the General retain percent cell, enter the retainage percentage for general work.

    • —Or—

    To automatically update the General retain percent cell, enter an amount in the General retain value cell.

  • Set the General retain percent and Stored material retain percent cells to 0 (zero).

    • —Or—

    Set the General retain value and Stored material retain value cells to 0 (zero).

On the Financial Summary tab, the Total retainage field is 0 (zero), and the Current due field includes the amount of retainage that is released for payment.