Solution:

In Job Cost there is an invoice format called AIA G702. This format produces an AIA invoice that summarizes the currently applied billings for a job. This article explains how the values are calculated for lines 6, 7 and 8 on the report.

Important
Please refer to AIAinvoice.jpg attached to this article for an image of the AIA G702 invoice.

The following formulae are used to calculate lines 6, 7 and 8 on the AIA G702 invoice:

• Line 6: Total Earned Less Retainage = [Line 4] – [Line 5]This field displays the total amount billed for the job minus the retainage value. After each successive application (by finalizing AIA draft invoices in Job Cost), the value reflects the previous application value plus the current billed amount earned less current retainage.

  Example One
  A job has 5% retainage and is billed for $650. The first AIA Document (application one) shows Line 6 as $617.50 ($650 – 5%). The job is then billed for $500. Due to the 5% retainage (500 – 5% = $475), the next AIA Document (application two) shows Line 6 as $1092.50 ($617.50 + $475). Line 6 is the previous AIA Document plus the current billed amount less current retainage.

   

• Line 7: Less Previous Certificates For Payment = [Line 6] – [Line 8]This field shows the earnings from the previous AIA billing. The value should equal to Line 6 in the previous AIA document.

  Example Two
  Continuing from the above example, the first AIA document would show $0.00 and the second would show $617.50 (value of Line 6 in first AIA document).

• Line 8: Current Payment Due = [Line 6] – [Line 7]This field should show the amount collectable for the job for this current AIA billing.

  Example Three
  Continuing from the above example, this value should equal the value of Line 6 in the second AIA Document minus the Line 6 of the first AIA Document ($1092.50 – $617.50 = $475).

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