AIA Billing Management

You can set up service orders to generate proper AIA forms to satisfy AIA billing standards and requirements. The AIA billing solution retains labor and material and lets you recognize and defer revenue separate from invoicing.

Use these steps to perform AIA billing:

  1. Prepare the estimate. A subcontractor prepares an estimate for work to be performed and presents it to the architect who represents the project owner.

    Create and estimate the SRO and assign general project information on the Service Orders form AIA Billing tab. If there is an amount to be retained for project labor or material, also specify the percent retained.

    Create an SRO line for each work category. The SRO Line Description is printed on the Continuation Sheet.

    Create an SRO operation for each SRO line. The operation includes the item number and description of work. For SRO operations that should not print on the Continuation Sheet, clear Show on Configuration. Otherwise, the original estimate amount is displayed as the Scheduled Value and is used with the other SRO operations to calculate the Original Contract Sum of the Application and Certificate for Payment form.

  2. Approve the estimate. After the job has been won, click Approve Estimate on the Service Orders form to convert the estimate to a live order.
  3. Specify the costs incurred to the project. As labor, material, and expenses (SRO Actual Transactions) are posted against the SRO, you can measure the actual cost against the planned cost to assess the project percent complete. When costs incur more quickly than application for payment schedule, you can recognize revenue above what is being invoiced. Click Recognize Revenue on the AIA Billing Console form to allow revenue to be recognized separately from the Application for Payment process.
    Note:  Materials Presently Stored is calculated as the sum of the planned material transactions that are cross-referenced to a PO line that has been received but not yet posted to the service order.
  4. Prepare the application and certificate for payment.

    Use the AIA Billing Console form to specify Work Completed this Period and Materials Presently Stored to process for each SRO operation. The Percent Completed can be used to determine the Work Completed value.

    Note:  The Actual values are provided to help guide you, based on the Actual transactions posted against the SRO. To set the To Process values from the Actual values, click Copy from Actual.

    When there are known project overruns or over-estimations, you can drill into the Service Order Operations form and adjust the Forecasted Cost on the Billing tab. The Actual Cost Percent Complete on the AIA Billing Console is calculated by comparing Actual posted amounts with the Forecasted Cost amount.

    As each SRO operation value is set and saved, the SRO in the AIA Project grid is updated with the total amount from all SRO lines and operations.

    Use the Period To column to set the cutoff date for the Actual (Billing Detail) value calculations. This way you can focus on values as of a certain date, for example, the previous month.

    After you are satisfied with the numbers, click Generate Application for Payment to send the Application for Certificate and Payment (G-702) and Continuation Sheet (G-703) to the output folder.

  5. Mark the Application for Payment as Rejected or Approved.

    To approve the Application for Payment, open the AIA Billing Console form, find the AIA Project or SRO number and select the row in the grid, and click Approve and Invoice. The AIA Invoicing form is displayed so that you can review the AIA projects to be invoiced, the revenue to recognize, the work completed this period, and set the Invoice Date.

    To reject the Application for Payment, click Reject Applications for Payment to release the lock on the AIA Project or SRO, clear the Application Submitted field, and clear the Application Date.

  6. Optionally, specify change orders. If any additions or subtractions are required to adjust the original scope of work, create new SRO operations and set the Original Estimate Amount to a positive or negative amount to reflect the change. The Estimate Cost is zero on these operations, thus distinguishing them as changes, and is displayed in the Change Order Summary section of the Application and Certificate for Payments form.
  7. Perform final submission. To prevent the Application and Certificate for Payment from calculating retainage on the final invoice of the project, select Final Application on the SRO. When the invoicing routine sees the Final Application designation, it flushes all values in the deferred revenue and unbilled asset account to the appropriate Accounts Receivable and Revenue account.

Recognize or Defer Revenue: You can recognize more or less revenue than the amount being invoiced. These values are stored in the related Product Code Distribution accounts until they are relieved.

Invoice History: The Order Invoice Listing form includes fields to track details related to the AIA application for payment.