Architectural Invoicing – All You Need to Know
If you have ever used a construction accounting program, you may have heard of AIA form G702 and Architectural Invoice Management. This article will introduce you to creating and managing invoices and give you a brief overview of the various types of architectural invoicing. You will learn about AIA form G702 and the different types of invoices that you can use to track your invoices and project costs.
Prepayment Invoice
An
architect's invoice is a bill listing the services rendered and associated
costs. There are four common invoicing structures. Which one you use depends on
the project, your personal preference, and your clients' expectations.
The invoices come in templates. These templates are also customizable; you can use a free template to make your invoice look more professional. Once you have completed your invoice design, you can submit it to your clients. Check out this site to know more.
Create a payment journal.
InvoiceOcean's Payment Journal allows you to issue a prepayment invoice and record the final amount to be paid. Once you've marked your prepayment, settle against the final invoice. To do this, navigate to the Purchase Order, click Invoice, and select the appropriate invoice to apply the prepayment. Once the invoice has been created, click Apply Prepayment. If you need to make additional prepayments, you can issue a separate invoice and apply it against the original one.
Fixed Fee Invoice
Invoice structures vary according to the type of architecture a company produces. A fixed fee also called a lump sum, is often the most common structure used for architecture invoices. In a survey conducted by AIA 2020, it was reported that 37.7% of architecture invoices in 2019 were fixed fee invoices. A fixed fee invoice includes the total fee for the entire project, which is then divided into phases and assigned a percentage fee for each phase.
Agiled’s Architecture Invoice Template
Agiled's architecture invoice template is customizable and stylish. It enables architects to get paid more quickly and efficiently. While everyone wants their bill paid in the shortest time possible, a good invoice can help an architect get paid on time. An invoice template helps architects to create a professional invoice in a matter of seconds. This tool is free to download and use, and the software can even automate and process invoices based on different criteria.
Recurring Invoice
To manage recurring architectural invoices, you may need to add custom fields and contact information to each invoice. You can also set recurring invoices to be sent to your clients if you have a project with a long duration. You should choose the right type of invoice depending on your project, payment method, and project status.
AIA form G702
The
AIA form G702 for architectural invoices breaks down the contract sum into
phases or segments for easy tracking. It also explains the reason for the
change. It is available in versions such as: the standard version and the
Continuation Sheet. Each version has a different price and can be purchased
separately. The G702 document can be purchased by the architect, project
manager, or property owner.
The Architect's signature is required on this document, which certifies the payment due to the contractor. A properly completed AIA form G702 is a valuable asset in cash flow management. A faulty application can seriously damage your company's cash position.
To Sum Up
There
are several types of architectural invoices to choose from. For example, you
can create a Pro Forma invoice to quote a price and a Standard Architecture
Invoice to document your work. Both types are customizable, so you can modify
them to suit your project and your pricing needs.
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