Part of AIA billing requires approval from the architect, general contractor, or owner for each invoice (called an Application for Payment). That is unless they have created a progress invoice for the contracted job to apply this deposit/retainer against. Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type. It’s a popular method for billing because the information tracking and sign-offs make it easier to collect money from customers. They made me create an invoice in 2018 to apply the payment to, which I then had to create a credit invoice in 2019 to offset it. The focus of the app differs slightly between which kind of contractors it was primarily built for. If you are a QuickBooks Online user, it may cause some additional panic since you have never seen those words anywhere in your software. It’s always exciting to be awarded a construction project. Uses QuickBooks Estimates and Progress Invoicing as it's backbone. We are a general construction company that uses AIA billing. AIA Billing for QuickBooks. Then come some big words: AIA billing required. When you receive a deposit/retainer for a construction job in-progress (and often under contract) it is not income until a progress invoice has been created and the deposit/retainer on file has been applied as payment against this progress invoice. Sometimes they will want you to adjust amounts billed or the percentage completed before they sign off. How do you account for an initial draw i.e deposit that relates to the total contract value? . Learn how to change your payroll bank account info. Products, Track That is unless they have created a progress invoice for the contracted job to apply this deposit/retainer against. I believe this company received a deposit/retainer and not a first payment on a sale. All The use of the Other Charge type item linked either to liability or income, allows you to operationally process this as prepayment and then to apply it to later sales, without impacting your accounting and tax reporting requirements. This difference often requires updating the previous application sections when you are starting on a new invoice and while the previous invoice is in the approval process. If you are a Cash Basis tax reporting entity, that is income to you. Automatically Generate Quick, Accurate Billing Information Following Standard AIA® G-702/G-703 Format . Part of AIA billing requires approval from the architect, general contractor, or owner for each invoice (called an Application for Payment). https://quickbooks.intuit.com/community/Income-and-expenses/Record-a-retainer-or-deposit/td-p/185566... Actually, if they have a construction project and this is a deposit for the job per the terms of the construction contract, they should create a deposit/retainer account and only apply the deposit against a progress invoice as they make progress on the job per the terms of the agreement. Sales Tax. For those of you who don't know, "AIA Billing" is "Construction Progress Billing". To set this feature, user can follow the steps illustrated below: Step 1:In the current screen select the tab labeled ‘QuickBooks’ from the menu bar in the top of the screen. Sometimes they will want you to adjust amounts billed or the percentage completed before they sign off. It needs to go into a holding account (like a customer security deposit in property management) to be applied or returned at a later date. For those of you who don't know, "AIA Billing" is "Construction Progress Billing". AIA billing is a standardized method for billing construction projects. I wish I could figure out how to explain this to our tax accountants. A Cash Basis entity has Income when they receive funds; an Accrual Basis entity would track this as liability. "Construction Application for Payment Solution" generates AIA billings using original AIA G-702/703 forms and G-702/703 CMa versions (or similar plain paper versions), 30+ standard Contract Documents, and other "plain paper" billing formats. The deposit does not become income until they apply the deposit against the progress invoice. In either case, any of the QB programs allow you to track it as "prepayment" by using "Items/Services" that allow the item to flow to your accounting, to meet your accounting requirements. AIA billing gets tricky following the first invoice because of all the information you need to track. Here's how to change I totally understand their thinking, but I can't apply that payment to an invoice as it hasn't been billed to the client yet...and they won't listen to me. In QuickBooks Online Accountant, you can do bookkeeping for your wholesale billing clients and clients who pay for QuickBooks Online on their own. They made me create an invoice in 2018 to apply the payment to, which I then had to create a credit invoice in 2019 to offset it. If a client currently pays for their subscription but wants to become part of your wholesale billing plan, you can take over their subscription. Sales & I just can't get them to understand that. If you would like help figuring out which AIA billing app would work best for you, please contact our Squire Quickbooks ProAdvisors at 801-225-6900 or find us online at www.squire.com. Squire provides complete and personalized accounting solutions to meet your individual needs. That is your First payment for that sale. All three apps track the information needed for progress billing along with job costs, estimates, and compliance documentation tracking. For example, Knowify for Contractors focuses mainly on remodelers, residential contractors, and commercial subcontractors, while CoreCon focuses on general contractors, residential contractors, subcontractors, and engineering firms. As such, the original Application for Payment and Continuation Sheet with schedule of values will not always match the finalized versions. How do you account for an initial draw i.e deposit that relates to the total contract value? We are a general construction company that uses AI... We are a general construction company that uses AIA billing. I've worked with thousands of contractors, assisting them with QuickBooks setup, Certified Payroll Reporting requirements, AIA Billing and Weighted-Average Overtime. QuickBooks Construction & Payroll Expert. . We have several specialists in the construction industry, and we are happy to help. So I play their game and correct it in the next year. It uses progress billing, a percentage-of-completion method for accounting, and compares prior period invoices with current period invoices. th... QuickBooks Online, QuickBooks Self-Employed, QuickBooks ProAdvisor Program, QuickBooks Online Accountant, QuickBooks Desktop Account, QuickBooks Payments, TSheets by QuickBooks, Other Intuit Services, QuickBooks Self-Employed, QuickBooks ProAdvisor Program, QuickBooks Online Accountant, QuickBooks Desktop Account, QuickBooks Payments, TSheets by QuickBooks, Other Intuit Services. Connect with and learn from others in the QuickBooks Community. AIA billing gets tricky following the first invoice because of all the information you need to track. I wish I could figure out how to explain this to our tax accountants. I've been using and supporting QuickBooks products since the early 1990's. These apps include: Odds are, you might already be using one of the above apps for your other construction needs. QuickBooks Desktop Discontinuation FAQ for Payroll, Turn off automatic tax payments and form filings, See There’s no reason to worry though; there are plenty of tools to help you with AIA billing.