Contract invoices

You can use contract invoices to record invoices from subcontractors and to determine the value of progress payments to them. A contract invoice can be created for any contract that commits costs to the budget.

On the Contract Invoice tab, the banner displays:

  • Contract Value This Period: Revised value of the contract for the cost period.
  • Previous Invoices: Total billed in previous contract invoices for this contract.
  • Current Due: Total amount earned, minus retainage and minus amounts from previous contract invoices.
  • Balance to Invoice: Remaining payable value, including retainage, of the contract.
  • The contract rule determines whether you can overbill the contract.
  • If the contract invoice is for a controlled total contract, negative values cause an overbilling error.
  • When a new contract invoice is created, the previous contract invoices are locked unless it's for an uncontrolled total contract.
  • Contract invoices for the same contract automatically have consecutive sequence numbers. You can edit or delete only the contract invoice with the highest sequence number.
  • To view and modify the contract invoices for companies other than your own, you need the Can Access Contract Invoices for All Companies permission. Without this permission, you can only see contract invoices for your own company and not for any other companies.
  • In the project menu, click Financials > Contract Invoices.
  • In the contract invoice, click 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 added to the contract in contract invoices, up to and including the cost period of the active contract invoice.
    Contract Value this Period Revised value of the contract for the cost period in the contract invoice. 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 contract invoices. 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 contract invoice.
    Total Retainage Total amount of retainage up to and including this contract invoice.
    Total Earned Less Retainage Value of the completed work, installed material, and stored material in all contract invoices up to and including this contract invoice, minus retainage.
    Current Due Amount of payment due for the current invoice. The sum of the Net Current Due column in the contract invoice.
    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.

You can create a contract invoice and then add subcontract change orders (SCOs) to it. You can also include the contract invoice in applications for payment (AFPs).

  • Field permissions aren't enforced in the Create dialog but are enforced in the full record.
  • Required fields are marked with an asterisk.
  • Duplicate numbers are allowed for contract invoices if autonumbering is off and if the number is unique for the selected contract.
  1. On the navigation toolbar, click add_circle (Create).
  2. From the Contract list, select the contract that the contract invoice is for.

    3. If you don't have the Can Access Contract Invoices for All Companies permission, the list only displays the contracts with your company in the To Company field.

  3. If autonumbering is off, enter the record number.
  4. In the Invoice Date field, enter or select a date.
  5. From the Period list, select the cost period.
  6. Click Create.
  7. In the Information panel, enter the record details.
    • To change the workflow status, select an option from the list.
      • Workflow field
    • To add an assignment, click Add in the Assigned To section, select the name, and then set a due date.
    • To add a courtesy copy, click Add in the Courtesy Copies section, and then select the name.
  8. In the Detailed Items grid, add the SCOs , and enter the lump sum or unit price payments.
  9. On the Comments tab, enter a comment, click link (Links) to link items, and then click Send icon (Send).
  10. On the Contact Information tab, enter the company and contact information.
    • To search for or create a company, click Search icon (Search) in the company field.
    • To add a contact, click the contact field, and then select or invite a contact.
  11. To link an item to the contract invoice, click link (Links), click add (Add), and then select the item type.
  12. To save the changes and keep the contract invoice open, click save (Save).

    13. —Or—

    To save the changes and close the contract invoice, click arrow_back Done.

In a contract invoice, you can add SCOs from the same or previous cost periods.

SCOs are added automatically to a new contract invoice if they're approved for the budget and if their executed date isn't set or if their executed date is the same as or prior to the invoice date of the contract invoice.

  1. In the Detailed Items section, click Add SCO.
  2. Select the SCO, and then click Select.

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

  • In the Detailed Items section, select the checkbox for the SCO line item, and then click Remove.

When you add invoice 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 invoice 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 Value 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 invoice and the stored material from previous invoices 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 contract invoice for a unit price contract, the value of work is calculated based on completed or installed quantities for the payment period.

Unit price amount amounts don't usually include stored material, so the Stored Material Value and Material Install This Invoice Value columns aren't available in contract invoices 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.

You can include contract invoices as line items in AFPs. AFPs are created for non-committing contracts, so you need to select the non-committing contract in the contract invoice.

If a contract invoice is included in an AFP, it's also automatically included in all future AFPs for the same contract. If you delete the contract invoice, it remains in the AFP unless you remove it.

  1. In the Information panel, turn on the Include in Application for Payment toggle.
  2. From the Contract list, select the non-committing contract.
  • In the Information panel, turn off the Include in Application for Payment toggle.

When the contract invoice is approved, the value of the contract invoice is applied in the budget. The Net Complete Value of each line item is added to the Actual Cost This Period and Actual Cost To Date columns for the assigned budget code.

  • In the Information panel, turn on the Approved for Budget toggle.