AIA G702/G703 progress billing, done right
Bill your schedule of values by percent complete, withhold retainage line by line, and let Fintra generate the customer invoice for the net due and post the balancing journal entry automatically.
Illustrative product view
What AIA progress billing is
On most commercial construction contracts you bill with an AIA-style pay application: a G702 summary backed by a G703 continuation sheet that lists every line of the schedule of values. Each period you bill the value of work completed on each line, add stored materials, and withhold a retainage percentage - the owner pays the net.
- Schedule of values: the contract broken into billable lines (G703 column C).
- Previously billed and this-period columns track cumulative progress (columns D and E).
- Retainage is withheld on the billed amount, per line or per job.
- Net due = this-period billing − retainage.
How a draw posts in Fintra
One draw, three outputs
- 1
Enter this period’s billing
Bill each schedule-of-values line for the work completed this period; set a retainage percent (per line override supported, else the job default).
- 2
Fintra computes retainage and net due
Retainage = this-period × percent; net due = this-period − retainage, totaled across lines.
- 3
Invoice and journal entry post
A customer invoice is generated for the net due and the balancing entry posts: DR AR (net), DR Retainage Receivable, CR Contract Billings (gross).
Net due on a draw
net_due = total_this_period − total_retainage = $120,000 − $12,000 = $108,000
Illustrative. The customer is invoiced for the net due; the withheld $12,000 sits in Retainage Receivable until release.
The journal entry, unpacked
| Account | Debit | Credit |
|---|---|---|
| Accounts receivable (net due) | $108,000 | |
| Retainage receivable (withheld) | $12,000 | |
| Contract billings (gross) | $120,000 |
A note on the forms
Fintra models the G702/G703 data - the schedule of values, previously-billed, this-period, retainage, and net-due columns - and produces a customer invoice for the net due. Rendering the exact AIA PDF documents is not part of the module; the accounting and the invoice are.
Frequently asked questions
What is AIA billing?
AIA billing is progress billing using the American Institute of Architects G702/G703 format: a G702 application-and-certificate summary supported by a G703 continuation sheet that lists each schedule-of-values line, the work completed to date, retainage withheld, and the balance due. It is the standard way to bill commercial construction draws.
How does Fintra handle retainage on a pay application?
Retainage is withheld on the amount billed - a percent per line or the job default. Fintra invoices the customer for the net due (this period minus retainage) and posts the withheld amount to a dedicated Retainage Receivable account, so your AR reflects collectible cash and the held retainage is tracked separately.
Does progress billing record revenue?
No - billing and revenue are kept separate. A progress billing credits Contract Billings, not revenue. Revenue is recognized on its own schedule by percentage-of-completion, and the WIP schedule reconciles billings to earned revenue so over-billing shows up as a liability rather than profit.
Can Fintra generate the actual G702/G703 PDF?
Fintra models the G702/G703 data and generates a customer invoice for the net due plus the balancing journal entry. Producing the exact AIA-branded PDF forms is not part of the module today; the underlying schedule-of-values math, retainage, and postings are.
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Bill your next draw in minutes
Start free, no card required. Enter a schedule of values and let Fintra handle retainage and the entry.
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