Using AIA Billing in Total Office Manager
There are many methods to complete AIA Billing in the contracting industry. While each of those methods may vary from one Contractor to another, Total Office Manager has integrated this process to work based on data that is entered into the software.
Many Contractors are used to filling out the AIA Payment Application then entering in an Invoice based on the information contained on the Payment Application. This practice was typically performed because there was not an easy or computerized method to tie everything together. In the world of Accounting, before you send an Invoice to a Customer, you must first enter it into you accounting software so that it increases your receivables. The AIA Payment Application is simply a Standardized Invoice which you are requesting payment for the job you are currently working. Using the Progressive Billing feature in Total Office Manager will make completing the AIA Payment Application easier.
In order to get the most out of the AIA functions in Total Office Manager, you will need to complete the following:
- Enter an Estimate for the job you are currently working on. The information on the Estimate will be used for entries on the Continuation Sheet. If any information changes on the Estimate as you work the project, you will need to be sure to adjust the Estimate accordingly. When saving the modified Estimate, please be sure to Add Change Orders. Changes to the Estimate will be recorded on the AIA Payment Application in the designated sections for Change Orders.
- When you are ready to create your first (and subsequent) Payment Applications, create an Invoice from the Estimate for a percentage of the Estimate to be billed. It is understood that the entire Estimate line items may not be invoiced at the same percentage rate.
- You can create the Progressive Invoice by opening the Invoice/Sale/Estimate/Credit List under the Customer menu, right clicking on the Estimate you are ready to invoice and choose the option to Create Invoice. Or
- Edit the Estimate you are ready to invoice and under Menu option on the Estimate choose Create | Invoice.
- Once the Invoice is created, you can then modify the percentage that is being billed on a Line Item by Line Item basis under the Total % column located to the far right on the Invoice Items grid. Save the Invoice.
- From within the Invoice (Menu option) you will then create the Payment Application. This will populate the Scheduled Values from the Estimate for the items invoiced and also put the invoiced amounts in the This Period column. Go to Menu | Create | AIA Payment Application.
- Line 1: Contract Amount is the total that is found on the Estimate.
- Line 2: Sum of Change Orders is the total amount of Change Orders that were entered for the original Estimate.
- Line 4: Total Completed and Stored is the total amount of the Invoice that was billed from the Estimate.
- Column A: For reference. You can add a line number if you wish.
- Column B contains a description of the item. This comes from the invoice and can be edited.
- Column C contains the amounts that were entered on the original Estimate.
- Column E contains the amounts that were progressively billed for the work that is completed.
- Column G is the total percentage that has been billed, which matches the Invoice percentages.