...
Definition
In FirstBit, progress tracking and billing process need to be described.
Need to describe progressive invoice schema in first bit.
Explain about retention, VAT, advance tracking included in it.
follow the actual work done at the construction or project site. The system links on-site work updates to financial entries, ensuring that billing accurately reflects the actual progress.
Progress tracking refers to monitoring the actual work completed on-site. This is typically captured in a document called a progress report, which reflects the percentage of completion for different tasks.
Based on this recorded progress, the team generates billing documents such as:
- Payment Applications
- Payment Certificates
- Progressive Invoices
To align billing with project cash flow, the process also factors in advance payments received earlier.
Progressive Invoice
It is a bill for the portion of work completed in a project so far, after adjusting for advance payments and retention.
In FirstBit, a progressive invoice is built through a series of linked documents:
Advance Invoice → Payment Received
Progress report → Payment Application Issued → Payment Certificate received → Progressive invoice (arrow for advance offset link) → Credit Note
Progress Billing is a method used in project-based industries (especially construction and contracting) where payments are collected gradually, based on the percentage of work completed on-site. It’s a way to match actual progress with financial transactions, rather than billing everything upfront or after total completion.
- Progress Tracking: This refers to monitoring how much of the project is completed. It’s usually documented through a Progress Report, prepared periodically.
- This report shows the percentage of work done across various stages or deliverables.
- Progress Billing: Based on the recorded progress, partial billing is done.
- Instead of invoicing the full contract amount at once, the client is billed for the portion completed.
- This ensures transparency and fairness in billing.
Progress Billing is a payment approach commonly applied in project-driven sectors like construction and contracting. It enables gradual invoicing aligned with actual work completed, rather than charging the entire contract value upfront or upon project completion.
...
...
- Advance Invoice: Issued to request upfront payment before work begins.
- Payment Received: Records client payment and marks it for offsetting.
- Progress Report: Captures the percentage of work completed on-site.
- Payment Application Issued: Drafts the billing claim based on reported progress.
- Progressive Invoice - Final invoice issued, linked to the certified amount with advances deducted.
- Credit Note -(if needed): Used to adjust or correct previous invoices.
Noted: The system automatically or manually deducts advance payments from progressive invoices to bill only the net payable amount.