Prime Contract Invoice Overview

Progress payments for Prime Contracts are processed in the Prime Contract Invoice feature. For commercial contractors, Prime Contract Invoices are often referred to as an "Application for Payment" and residential contractors use the term "Bank Draw" when a construction loan is needed for the funding source.

Preparation of the Prime Contract Invoice is historically a difficult and time-consuming task due to retainage (aka holdbacks), determining current and previous change orders, and calculating previous invoice amounts. However, Corecon has Invoice Wizards that were designed to ease this burden dramatically.

Important Things To Know

  • The Prime Invoice process changes based on Contract Type. Please review Prime Contract Billing Methods for more details.
  • The Invoice Order # (NOT Invoice Date) will determine previous invoice amounts. Corecon will automatically set the next value when creating the invoice. See table below for example.

    Invoice Date Order # Invoice #
    31-Mar-2018 1 001
    30-Apr-2018 2 002
    15-May-2018 * 3 003
    15-May-2018 * 4 004

    * Two invoices can be created on the same date but be sure to reference the appropriate Order # on each.

  • The Project # can not be changed after the Prime Invoice has been saved. Thus, if the Project # is incorrect then the transaction needs to be deleted.
  • The Prime Invoice should have the Approved field unchecked until it has been reviewed by the owner or manager. Upon approval, this field should then be checked.
  • Default Work and Stored Material Retainage percentages are copied from the Prime Contract and can be changed in the Invoice itself.
  • Previous, Current, and Billed Retainage amounts are tracked by Job Cost Code and not in the Item Details table (ex. Original Contract Items, CO Items, Cost Plus Items etc.).
  • Expenses and timecards must meet the following requirements to be imported into a Cost Plus Prime Invoice:
    • Not referenced on a prior Prime Invoice
    • Expense Issue and Status Date ≤ Prime Invoice's Issue Date
    • Timecard Date ≤ Prime Invoice's Issue Date
    • Status = Approved
    • Billable Status = Billable
    • Expense or Timecard Billable Amount > 0
  • Invoicing or releasing Retainage should always be processed last. For example, if a Prime Contract Invoice includes Original Contract Items, COs and Retainage, then Retainage should be done last.
  • When Prime Invoices are exported to an accounting system using a CoreconLink utility, they can be locked automatically in order to prevent further changes or deletions. Please see Settings | Company Settings | Global Settings for more details.

Steps To Complete Before Entering Prime Contract Invoices

All Contract Types:

Cost Plus Contracts:

Fixed Lump Sum or Unit Price:

  • Review Change Orders (CO) to ensure they are marked Approved with an Issue and Status Date that is less than the planned Invoice Date. Otherwise, the Prime Invoice will not allow these changes to be imported.

Adding Prime Contract Invoices

Edit Prime Contract Invoice Functions

Important Things to Know About Editing Prime Contract Invoices:

  • If a Workflow Rule applies to the Prime Contract Invoice and the Rule has been initiated or approved already then nothing can be modified unless the Rule is abandoned.
  • If a Prime Contract Invoice has been exported and the Transaction Lock Setting is "Auto-Lock Exported Transactions" (See Settings | Company Settings | Global Settings), then only an administrator can unlock it temporarily to make non-financial related changes.

See Also

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