Use Project Payment Terms to set up billing dates, finance charges, early
payment discounts, and other details of payments for project
billing.
PROJECT PAYMENT TERM BASICS
Entering Project Payment Terms | Data Fields | Retainage
Time and Materials billing options | Using Lists | Using Project Payment
Terms
WEBSITE INFO LINKS
Accounts Receivable Software | Project
Billing
Software | Project
Management Software
RELATED TOPICS
Customer Payment Terms | Draw Schedule Billing | Loan
Payment Terms
Progress Payment Billing | Time and Materials Billing | Project
Accounts
Project Types | Rental Payment Terms | Vendor Payment Terms
Entering Project Payment Terms
To enter a Project Payment Term, follow these steps:
- Choose Payment Terms from the Options menu, then choose Projects from the submenu.
- Click the New button, or click on an existing item and click the Edit button.
- Enter details for the payment terms.
Data Fields
Enter the following information for each Project Payment Term:
Name-- Type in a brief name for these payment terms. This is the text that will appear in clairvoyant fields.
Comments-- Type in any comments you'd like to make about this item.
Form Message-- Enter the text that you'd like to see printed on your bills.
Billing Period-- Choose a billing period.
Payment Due-- Enter the date when you should receive payments from the customer. Use the pop-up menu to determine how the due date is
figured. If you select "days after bill date", the due date will be set as the entered number of days after the billing date. If you choose "th
of the month", the due date will occur on the entered date that next follows the billing.
Grace Period-- Enter the number of extra days you allow before you really charge interest on overdue accounts. If you charge interest immediately,
enter 0. The grace period is also used for early payment discounts.
NOTE-- The grace period is for your own internal use only-- it is not mentioned on customer bills.
Retainage-- If an amount is "held back" as retainage until the end of the project, enter the amount here.
Discount-- If you give an early payment discount, enter the discount percentage to be used. Use the pop-up menu to determine how the discount
expiration date is figured. If you select "days after bill date", the expiration date will be set as the entered number of days after the billing date.
If you choose "th of the month", the expiration date will occur on the entered date each month.
Late Charge-- If you charge interest or penalties on late payments, enter the percentage interest rate that you charge. If there is a minimum
interest charge, also enter it.
One Month Maximum Charge-- Turn on the checkbox if you add finance charges to invoices each month. Only the latest month's finance charge will
be added to each bill. Turn the the checkbox off if you want the finance charge to cover the entire overdue period.
Time and Materials Billing Options-- For more about these options, click here. They set the management
fee, markup options, and other details for time and materials billing.
They don't apply to other types of billing.
Base Date-- Enter a "starter" date for computing billing dates. The base date can be in any year.
Payment Dates-- Goldenseal automatically displays a listing of billing dates for this year. For most billing periods, you can't change the table.
For custom billing periods, you can enter any billing dates into the table.
Retainage
Enter a retainage amount for projects where some of your payment will be
'held back' until completion of the project (or some other milestone).
Use the pop-up menu to set the fee on a percentage basis or a dollar basis, and type in the amount of the fee.
If you choose a percentage, it will automatically be subtracted from each bill.
If you choose a dollar amount, the amount will be subtracted from the first invoices, until the full amount has been withheld.
When you use retainage, you will submit bills for the full amount. Each payment is reduced by the retainage amount. You'll receive the remainder
upon completion of a project, or at some other milestone.
HINT-- You can also deduct retainage from vendor invoices.
Setting up Retainage
To use retainage, set up one or more sets of Project Payment Terms that
have a percentage amount in the Retainage field.
If you use retainage for a project, follow these steps:
- Choose Projects from the Accounts menu.
- Locate the account that uses retainage.
- Click in the Payment Terms field, and enter one of the terms that has retainage.
- When you submit bills for this project, they will start out with retainage.
Calculating Retainage on Invoices
To deduct retainage from your bills, follow these steps:
- Choose Billing from the Bank menu, and choose Draw Schedule, Progress Payments or Time
and Materials from the submenu (depending on the type of billing you use for this project).
- Click the New button, or choose New Record from the Edit menu.
- Enter details for the bill.
- Click the Create Bills button.
- The Billing Record will show the retainage amount.
Viewing Retainage Balance
To see the amount of retainage currently owed by a project, follow these
steps:
- Choose Projects from the Accounts menu.
- Locate the account you'd like to see.
- Check the Retainage To Date field at lower right.
Billing for Retainage
To bill for retainage at the completion of a project, follow these steps:
- Choose Billing Records from the Bank menu.
- Click the New button, or choose New Record from the Edit menu.
- Enter the account and other details.
- Enter Retainage Balance into the Bill For popup field.
- Goldenseal automatically fills in the retainage balance.
Time and Materials Billing Options
Some project billing options are used for Time and Materials
billing only.
They do not apply to other billing types.
Use Multiple Markups-- Turn on the checkbox to use different markup percentages for equipment, labor, materials, subcontractors and other costs. Turn
it off to use the same percentage for all costs.
Management Fee-- Choose the type of additional markup or management fee that you add
to each bill. If you choose a percentage, it will automatically be added to each of your time and materials bills. If you
choose a dollar amount, a pro-rated portion of it will
be added to each invoice, based on the original contract amount. NOTE-- If you charge your
full fee at the end of the project, or want to itemize it as a job cost, enter the fee as a soft cost instead, and don't
use a management fee.
Also enter the amount of fee that you charge for each type of work. If you don't charge an additional fee,
enter zero.
Include Cost Item Markups-- Turn on the checkbox to include project markups in with the billing cost of cost items
and assemblies. Turn off the checkbox if you only bill for actual cost.
Include Sales Tax-- Turn on the checkbox to include sales tax in with the billing cost of purchases. Turn off the checkbox to bill for only the
gross amount.
Include Adjustments-- Turn on the checkbox to include adjustments such as finance charges and early payment discounts, when you include expenses
for time and materials billing.
Apply to Materials Only-- Turn on the checkbox to apply the management fee to materials only.
Using Project Payment Terms
Assign Project Payment Terms to each Project account. They
automatically determine payment details when you do project
billing.

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