Fintra Feature
AIA G702/G703 progress billing, done right
Progress Billing (G702/G703)
Example figures- THIS PERIOD
- $120,000
- work completed
- RETAINAGE
- $12,000
- withheld @ 10%
- NET DUE
- $108,000
- invoiced
- DR Accounts receivable
- $108,000
- DR Retainage receivable
- $12,000
- CR Contract billings
- $120,000
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
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).
Fintra computes retainage and net due
Retainage = this-period × percent; net due = this-period − retainage, totaled across lines.
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.
Questions people ask
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.
Keep reading
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Bill your next draw in minutes
Talk to us: we will map it to your stack. Enter a schedule of values and let Fintra handle retainage and the entry.