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.
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.
- Progress Tracking involves assessing the percentage of completion across specific tasks or phases. This is typically documented in a periodic Progress Report detailing stage-by-stage progress.
- The billing process is then tied to these progress figures. Clients receive invoices for the portion completed to date, promoting transparency and aligning financial transactions with the real-time status of the project.