Payments

The payment application tabs in Cost Management record incoming and outgoing money flow. You can track, schedule, and make requests for payment using a Cost Payment Application or a Budget Payment Application.

To effectively work with payments:

• Add nonmembers so that you can collaborate with suppliers and owners that don't need access to the rest of the project.
• Assign the Collaborate permission to the change order and payment applications they need to work with.

Payment applications can't exceed the value entered in the budget or contract by default. Allow overbilling from the More menu to accept a payment application that exceeds the budget or contract value.

Payments Workflow

The following image shows a typical workflow for requesting and receiving payments.

Main Contract

There can be more than one main contract setup. Multiple main contracts allow different billing schedules for different phases of the project or different subcontractors. The main contract is where the owner sees what they are paying for. See the Main Contract article to learn more.

Billing Periods

Billing periods define the timeframe that a payment covers and must be defined before pay applications can be created. Learn more about billing periods. Each contract requires its own billing period.

Cost Payment Applications

Cost Payment Applications are sent from a subcontractor to a general contractor to request a payment.

Budget Payment Applications

Budget Payment Applications are sent from the general contractor to the owner to request a payment.

Payment Application Tables, Sections, and Columns

The tables in the Budget and Cost Payment Application tabs contain the following sections:

• General: Contains the name and number of the cost items in the contract.
• Scheduled Value: Provides the details about the cost item from the projected budget.
• From Previous Application: Processed payment from the last billing period.
• This Period: Entry columns for the active payment application.
• This Application: Total of work completed for the current billing period and materials stored on site.
• Remaining: Scheduled value minus the completed work.
• Retention: Records of payments held back from general contractors. Project administrators manage retention rates in the General Settings article.

The values populate and move across the columns in the Budget and Cost Payment Application tabs. Hover over a column to see the logic behind it. Click the icon to see all available columns.

Here is a handful of helpful examples:

• Unit Cost: Track how variable prices may affect your budget.

  Tip: If the payment item is at the bottom of the hierarchy, you can edit the Unit Cost field directly in This Period Work Completed column.

• Claimed Work Completed: Add this column group when you want to create a cost or budget payment application document. Include the claimed amount and rejected reasons to satisfy the legal requirement.

• Payment Ongoing: Check an amount in the column for each cost payment application to follow up and regularly push the payment to full paid status.

• Materials Stored: Number of materials stored from the previous application, for this application, or currently on site and retained for the project. Learn more about materials in payment applications.

Note: By default, payment applications can't exceed the value entered in the budget or contract. To change it, allow overbilling from the More menu .

Cost Payment Application Detailed View

The Cost Payment Application tab offers a list view of every cost payment application for your project. However, it also has a detailed view, where you can review the info on any listed item. To see this view, click the icon next to a payment item.

In the detailed view of a cost payment application, you can, for example:

• Expand or collapse the list of items for better clarity
• Request input from the supplier
• Populate via Excel to obtain information from the subcontractor

Learn more about cost payment application-related actions.

Foreign Supplier Payment Application Management

Payment applications can also be entered and managed in foreign currencies. Set up a foreign currency on the contract and associate it with the cost payment application. Within the Cost tab, select the Cost Payment Application subtab and open the details view for the appropriate supplier. Now you can send it to your foreign suppliers.

In the cost payment application's list view, the values are shown in the base currency. Hover over the icon to see the converted values and the current exchange rate. To edit the exchange rate:

1. Open the detailed view of the cost payment application.
2. Click the name of the cost payment application to open the flyout.
3. Edit the exchange rate. It can be edited at any time except at the In Review, Paid, or Approved status. Learn more about payment application statuses.

In the detailed view of the cost payment application, you can:

• Toggle between currencies for the whole table.
• Edit the value of the Unit Cost and Amount columns. The selected foreign currency is shown as default.

The system will automatically recognize the currency set for a supplier within their contract, so Work Completed will be entered in the local currency. And the system will auto-convert it back to the project’s base currency.

Frequently Asked Questions about Payments

Question 1: How to create an invoice for a payment?

• Answer: In Cost Management, you can't create an invoice for a payment. Instead, expenses play the role of an invoice. You can use the document generation feature to create a document from a predefined document template, which can then be sent as an invoice. To learn more about expenses and document templates, you can check out these articles: Expenses and Create and Manage Document Templates.

Related Articles

• Materials in Payment Applications