Progressive Billing and Invoicing - Overview

Modified on Fri, 14 Aug at 2:40 AM

Linarc automates the financial lifecycle of your projects by continuously tracking the completion percentage of each scheduled work item. As work progresses, the system dynamically updates your list of billable items and their current cost values based on two core metrics:

Task allocations: The total funds distributed to each in-progress task, including the change order work.
Real-time progress: The actual completion percentage of each task at any given time.

At the end of each payment period, you can instantly generate a payment application detailing the work completed, allowing for a seamless transition directly into invoicing.

Contractor-Specific Billing Capabilities

The billing capabilities adapt to your specific workspace type on the project:

General Contractors (GCs): GCs can review and bill for self-performed work items. For subcontracted work, GCs receive progress reports from their Subcontractors to periodically update the schedule. On billing day, the actual recorded progress of all items becomes eligible for billing. GCs have the authority to reconcile and override billed progress percentages before generating a master pay app and submitting it to the project owner for approval.
Subcontractors (SCs): On billing day, the actual completion percentages of the specific tasks assigned by the GC automatically become eligible for billing. Subcontractors can review and reconcile these progress percentages, generate a pay app, and submit it directly to the GC for approval.
Stand-Alone Contractors: On billing day, the actual completion percentages of all scheduled tasks become eligible for billing. Stand-alone contractors can carefully review and reconcile their progress, generate a pay app, and submit it directly to their client (whether that is a GC or the project owner) for approval.

The Standard Billing Workflow

The billing workflow is similar across all contractor types and generally follows four key steps:

Select billable items: Choose exactly which eligible work items to include in the payment application for the current billing period.
Reconcile values: Adjust progress percentages if needed, incorporate costs for any stored materials, finalize the pay app, and submit it to the payor for review.
Generate invoices: Once the submitted pay app is officially approved by the payor, the system automatically generates a formatted invoice that can be shared for immediate payment processing.
Track and archive payments: When the funds are received, mark the invoice as paid in the system, capture the transaction details, and securely archive it for your financial records.

See the following sections to know more: