Billing and payment are different
Keep amounts due separate from money actually received.
Billing
Records an amount the client is expected to pay.
- Increases the amount due.
- Does not mean cash has been received.
- Can represent progress, final, variation, retention release, or other billing.
Payment
Records money the company has actually received.
- Reduces the outstanding balance when applied.
- Can be linked to a billing or left unassigned when appropriate.
- Record it only after the funds are actually received.
Record billing and collections
- 1
Record the billing
Use + Record Billing when the company has issued or recognized an amount the client should pay.
- 2
Record the payment
Use + Record Payment only when the money has actually been received. Enter the received amount, date, method, and reference details.
- 3
Apply the payment
Link the payment to the related unpaid billing when available. A payment can remain unassigned if there is no appropriate billing yet.
- 4
Follow up the balance
Use Outstanding and billing status to identify unpaid or partially collected amounts that still need action.
Collection metrics
- Total Due
- The amount billed or otherwise due from the client.
- Collected
- Cash already received.
- Outstanding
- The amount still unpaid.
- Collection Rate
- The portion of the amount due that has already been collected.
Billing statuses
| Status | Meaning |
|---|---|
| Unpaid | No payment has been applied; the full billing remains outstanding. |
| Partially Collected | A payment has been applied, but a balance remains. |
| Paid | The billing has been fully collected. |
Collections track cashflow, not project cost
Collections
- Shows what the client owes.
- Shows cash received.
- Highlights outstanding balances.
- Does not reduce labor, expense, or material cost.
Project profit
- Compares contract value with project costs.
- Can be positive even when collections are weak.
- Changes when relevant project costs or commercial assumptions change.
What needs follow-up
Review unpaid or partially collected billings and any unassigned payments that still need to be matched or investigated.
- Unpaid billings
- Partially collected billings
- Overdue or unresolved balances
- Unassigned payments that require review
Important notes
- Company-wide Collections and recording actions may be restricted to Admins.
- Collections is a cashflow-tracking workflow, not formal accounting or revenue recognition.
- Accurate balances depend on correctly recording and applying billings and payments.