QuickBooks has no built-in ability to handle stored materials, like many of the more costly construction specific software programs. This causes problems for contractors who need to generate AIA Pay Apps and need to make sure that their books (or accounting data) syncs with their AIA Applications for Payments.
Because the General Contractor allows billing of stored materials on the AIA Payment Application you also need to include the amount of stored materials on your QuickBooks Progress Invoice in order for your accounting records to match your AIA billing records.
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Retainage is a portion of the agreed upon contract price deliberately withheld until the work is substantially complete to assure that contractor or subcontractor will satisfy its obligations and complete a construction project. Retainage or retention can be: a fixed percentage of the contract - such as 10% of the value of the contract, a variable rate - such as 10% of the contract until the contract is 50% complete; at which time it is then reduced to 5%, OR a variable rate - such as retainage is held at 10% on labor and 0% on materials.
The amount of retention that is held quite often signifies a portion of the contractors overall profit on the construction project. Continue reading
Knowing how to complete an AIA G-702/G-703 billing form and documenting change orders are important for your overall cash flow, if they aren't done correctly - well you don't get paid on time! This Tuesday Training segment will provide you with detailed information on both. Continue reading
This week's Freebie is an AIA (G-702/G-703) Billing Training exercise. Continue reading
We've been testing, debugging, and documenting numerous certified payroll and AIA billing updates for the last few weeks - I've posted some of the information behind the changes here in our blog. Continue reading