Construction Subcontracting & Job Costing: AIA Billing & Project Accounting
An enterprise engineering blueprint for managing AIA G702/G703 progress billing, percentage-of-completion WIP revenue recognition, retainage holdbacks, and subcontractor lien waiver enforcement in Microsoft Dynamics 365 Business Central.
1. Executive Summary & Construction Accounting Risk
General contractors and trade subcontractors face cash flow risk when project billing lags behind field cost commitments. Inaccurate percentage-of-completion WIP calculations lead to premature tax payments or catastrophic unbilled cost overruns.
In Microsoft Dynamics 365 Business Central, implementing AIA G702/G703 Schedule of Values Progress Billing and Automated 10% Retainage Holdback Codeunits ensures financial audit compliance and cash flow protection.
2. AIA G702/G703 Schedule of Values Schema
Business Central Jobs module extensions track Schedule of Values (SOV) line items:
3. Production AL Code: 10% Retainage Holdback Engine
Below is a production AL Codeunit that automatically splits subcontractor invoices into net Accounts Payable (90%) and Retainage Payable (10%), while blocking payments if Lien Waivers are missing:
4. Subcontractor Lien Waiver Payment Hold Rules
Automated payment hold rules prevent AP checks from printing to subcontractors who have not provided signed Partial or Final Mechanics Lien Waivers.
5. Percentage-of-Completion (POC) WIP Revenue Recognition
POC calculation methods automatically recognize earned revenue based on actual job task cost incurred versus total budget cost.
6. Measurable Financial Control & ROI
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