Definition
Progress tracking and Billing 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
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- Issued to request upfront payment before work begins.
- Payment Received- Records client payment and marks it for offsetting.
- Project Progress Report - captures the percentage of work completed on-site.
- Payment Application Issued - Drafts the billing claim based on reported progress.
- Payment Certificate Received - Approves and certifies the amount to be invoiced.
- Progressive Invoice - Final invoice issued, linked to the certified amount with advances deducted.
- Credit Note - 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.
Explain about retention, VAT, advance tracking included in it.
Received.