Billing & collections
Turn agreed progress into clear bills and keep collections tied to the right contract.
Approval conditions
Finance Manager independently approves every invoice and credit snapshot (Status: Draft → PendingApproval → Approved).
PendingApproval
- INV-77032 ACC-110
- INV-32994 ACC-110
- INV-32862 ACC-110
- INV-88489 ACC-120
- INV-53453 ACC-110
INV-77032
- Account
- ACC-110
- DocumentType
- Invoice
- NetAmount
- 170
- TaxAmount
- 850
- Currency
- CRR-9078
Approval waits for the finance manager.
Prepare a progress application from the work
The application brings together eligible completed work and agreed stored-material amounts. Fixed-price milestones, measured progress and unit-rate lines use the basis accepted in the contract.
Cumulative values retain prior applications and certificates. The current request identifies the additional scope since the earlier accepted basis, even when an earlier invoice remains unpaid. Customer payment history stays available for collection without changing the quantity of new work claimed.
- Keep the measured quantity and contract rate together.
- Preserve the evidence behind each claimed increment.
- Show agreed changes in the authorized scope.
- Distinguish completed work from eligible stored materials.
When previously certified stored material is installed, its classification changes without billing that same material amount again. Separate installation work may have its own additional entitlement. Finance assesses recognition independently, including revenue first earned at installation when the earlier material billing was unearned.
StatusReceivedPendingVerificationDisputed
Keep certification separate from internal approval
Independent Project Manager approves the application’s technical and stored-work basis, and independent Commercial Manager approves its commercial basis. The customer or another contract-authorized external party supplies the actual certificate. An independent Project Manager verifies that evidence and scope, excluding the local preparer and material editors.
The record can therefore explain both the amount requested and what the external party certified. A returned or reduced certificate retains the difference and the next action. Internal review helps prepare and validate the request; it does not impersonate an external certifier.
Certification supplies evidence for the selected billing route. Finance separately reviews the contract’s recognition basis, so the same progress percentage is not automatically copied into revenue.
StatusHeldPartiallyReleasedReleasedPartiallySettledDisputed
Allocate each invoice to eligible scope
Billing obligations and allocations connect the invoice to the accepted commercial source. Draft claims reserve their intended amount, and issued amounts consume it. This supports partial bills without making the original entitlement available again on the next run.
Independent Finance Manager approval binds the current invoice, tax treatment and source allocations. Prior billed amounts are deducted independently of whether they were paid. Final rounding consumes the exact remaining authorized amount rather than creating a small extra entitlement.
| Billing source | Basis retained with the invoice |
|---|---|
| Project progress | Eligible certified or agreed milestone scope |
| Unit-rate work | Accepted measured quantity and contract rate |
| Contract advance | Approved advance entitlement and recovery terms |
| Goods sale | Actual eligible shipped scope from the goods order |
Explain retention and advance recovery
Retention keeps the gross entitlement, currently due portion, held amount and contractual release condition visible. The financial classification distinguishes an unconditional retained receivable from consideration that is still conditional.
Release evidence changes the due status or classification of an existing amount. It does not create another progress certificate, earned amount or revenue entry. Finance Manager reviews the required release and financial treatment before execution. Released amounts remain outstanding until collected or otherwise settled.
Advances retain their exact source balance and approved recovery schedule. Each recovery consumes only the remaining available amount. The customer can follow the connection between an earlier advance and its offset on subsequent bills. An unpaid advance invoice remains an amount due. Spendable advance funds require actual confirmed cash, with the same receipt assigned or applied through one path.
Contract rates, caps, tax treatment and timing come from reviewed terms. The system does not supply an assumed legal retention percentage or a universal release date.
Apply real cash and resolve differences
Accountant records confirmed receipt evidence and applies available cash to the eligible company and customer balances. Unapplied cash stays a reconcilable liability until an authorized use is selected.
Document currency, settlement currency and functional carrying value remain distinguishable. A partial receipt leaves the unpaid scope visible. Actual bank confirmation and the accounting effect are linked without turning an uncertain message into a successful payment.
Credits, refunds and returned payments reference the original scope and current balances. Independent Finance Manager approval controls protected corrections and refunds. A physical customer return can support review, but it does not itself authorize money to move.
See Bill and collect for project billing, or Order to cash for the retained goods-sales route.
Modules
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Estimates & contracts
Build a clear offer and carry the agreed scope into every project.
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Projects & costs
See the cost of each job alongside its budget, commitments and remaining work.
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Purchasing & subcontractors
Connect supplier commitments, accepted work and bills to the right job.
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Materials & sites
Know what is available, where it is held and what each job has used.
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Production & prefabrication
Turn released designs and actual workshop work into traceable finished assemblies.
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Billing & collections
Turn agreed progress into clear bills and keep collections tied to the right contract.
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Finance
Bring project economics, supplier obligations and collections into each company’s books.
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Reporting
Bring project progress, cost and financial obligations into a consistent review.
Reports
All reportsProgress and Billing Position
Compare current accepted ProjectContracts/SalesOrderLines with cumulative ProgressApplications, externally evidenced ProgressCertificates and conserved BillingObligations/BillingAllocations by contract and source currency; show certified-to-date, prior certified increments, active billing claims, gross billed, conditional/unconditional retention and eligible unbilled scope independently of paid cash, preserving the same stored-material amount through installation while allowing separately priced installation work and a separately assessed first revenue-recognition delta.
Retention and Advances
Reconcile RetentionBalances/RetentionMovements and AdvanceAllocations with their original contract, invoice/bill, cash and settlement sources by entity/counterparty/currency at the cutoff; disclose total outstanding, held and released-unsettled retention, conditional versus unconditional entitlement, actual funded assignments, prior recoveries, purpose releases and active claims, treating ordinary retention release as redistribution rather than settlement and an unpaid billed advance as non-spendable until its separately evidenced cash path occurs.
Receivables and Payables Aging
Age remaining Invoices and Bills by company, counterparty, source currency and actual due-date bucket after posted applications, credits and signed corrections at the cutoff; show held retention, released-unsettled amounts, unapplied receipts, customer or supplier advances and surplus credits separately, reconcile source balances and current functional carrying including prior FX, and exclude unbilled contract assets and accepted-but-unmatched subcontract accruals from ordinary invoiced AR/AP totals.
Roles and permissions
Independently accepts customer commitments and commercially reviews applications for payment.
Controls project scope, technical budgets, forecasts and independent accepted work.
Independently controls financial authority, recognition, valuation and final close.
Related processes
Order to cash
Carry an approved goods order through actual shipment, billing and collection.
5 stages · 2 approvals
Procure to pay
Match supplier commitments to real deliveries, accepted subcontract work and payment.
8 stages · 4 approvals
Record and certify work
Connect accepted site activity to a reviewable customer progress application.
7 stages · 4 approvals