Final invoices are processed to close the contract and release the retainage.
Important details you may be wondering about final invoices:
- Will I be able to bill for one more change order after the final invoice is processed? No! Once the final invoice is created, you won't be able to bill for any additional commitment amounts. Therefore, you don't want to process a final invoice if there are incomplete change orders or if there is still any work to be done on the contract that may generate more change orders.
- Will a final invoice release the retainage? Yes! Once the final invoice checkbox is marked and saved, all approved commitment values will be automatically billed to 100%, and all retainage will be released.
- What if more work is added to the job after the final invoice is processed? The best practice in this situation is to add a new contract for the additional work. This will maintain the history of the original agreement separately from the add-on agreement.
- How can I issue the final invoice without paying out all of the commitment amounts? If the actuals are less than the commitment amounts, you'll want to issue a negative change order for the difference. This will release the commitment amounts in your budget and allow your final invoice to payout correctly.