Definition
Progress tracking monitors the actual work completed on-site, and billing is generated accordingly to reflect the project's actual progress.
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 - An invoice issued based on the certified amount, with any applicable advance deductions
- Credit Note - Used to adjust or correct previous invoices.
Retention
Retention is a percentage (e.g., 10%) of the invoiced amount temporarily withheld to ensure proper project completion and defect resolution. In FirstBit, retention can be applied per invoice or only at the project’s end, depending on contract settings. The retained amount is posted separately to Retention Receivables and can be claimed later.
Details on how VAT is treated on retention are specified in the contract attributes.
At project completion and after the retention period ends (e.g., 12 months), the system automatically retrieves original retention and VAT details. A Tax Invoice is generated to finalize the retention release and ensure VAT compliance.
Advance Tracking
The system allows advances paid by the client to be tracked and offset automatically or manually against future progressive invoices. This ensures that only the remaining balance (net payable) is invoiced. The link between the advance invoice and the progressive invoice is maintained, and users can review how much of the advance has been used or is still available.