Progress Invoicing

Bill clients incrementally as work progresses by creating multiple invoices tied to a single estimate — with cumulative tracking, retainage support, and a full billing history per project.

Overview

Progress Invoicing allows you to bill a client in stages throughout a project rather than sending a single invoice at the start or end. Each progress invoice is linked to an original estimate and represents a percentage or dollar amount of the total project value.

This is common in:

• Construction and contracting — Monthly draw invoices tied to completion milestones
• Software development — Phase-based billing (design, development, testing, launch)
• Consulting engagements — Invoicing monthly against a fixed project fee
• Home improvement — Deposit on signing, mid-project draw, final payment on completion

Kantivo tracks the cumulative amount invoiced against the estimate total so you always know how much has been billed, how much remains, and where each project stands as a percentage of completion.

Creating a Progress Invoice

To create a progress invoice, you must first have an accepted (or at minimum saved) estimate for the project.

1. Go to Invoice Center in the main navigation.
2. Click Create Invoice and select Progress Invoice (or open the estimate directly and click Create Progress Invoice from the estimate detail page).
3. Select the Estimate this invoice is tied to. Kantivo will display the estimate total and the amount already invoiced so you can see the remaining balance.
4. Choose how to calculate this invoice:
   • By Percentage — Enter a percentage of the total estimate (e.g., 25%). Kantivo calculates the dollar amount automatically.
   • By Dollar Amount — Enter a specific dollar amount to invoice for this stage.
5. Set the Invoice Date and Due Date.
6. Optionally add a Memo describing the work completed in this billing period (e.g., "Foundation and framing complete").
7. Review the invoice summary showing this invoice amount, cumulative invoiced to date, and remaining balance.
8. Click Save Invoice or Save and Send to email it to the client.

What the Client Sees

The progress invoice sent to the client shows the standard invoice format with the addition of a project billing summary section that displays:

• Original estimate total
• Previously invoiced amount
• This invoice amount
• Remaining balance after this invoice

This gives the client full transparency into the project billing status without any extra work on your part.

Tracking Progress

The estimate detail page is the central hub for tracking a project's billing progress. To view it:

1. Go to Estimates in the main navigation.
2. Open the relevant estimate.
3. The Billing Progress section at the top of the page shows:
   • Total estimate amount
   • Amount invoiced to date (cumulative across all progress invoices)
   • Remaining balance available to invoice
   • Percentage complete (as a visual progress bar)

Progress Tracking Fields Explained

Retainage / Holdbacks

Retainage (also called a holdback) is a contractual arrangement where the client withholds a portion of each payment — typically 5% to 10% — until the project is complete and accepted. The withheld amount is then paid in a lump sum at project close.

Retainage is standard in construction contracts and is often required by general contractors for subcontractors as well.

Enabling Retainage on an Estimate

1. Open the estimate (or create a new one).
2. In the estimate settings, check Enable Retainage.
3. Enter the Retainage Percentage (e.g., 10 for 10%).
4. Save the estimate.

When retainage is enabled, every progress invoice created from that estimate will automatically:

• Calculate the retainage amount (invoice subtotal × retainage %)
• Show the gross invoice amount and the net amount after retainage withheld
• Add the retainage to the running retainage balance tracked on the estimate

Releasing Retainage

When the project is complete and the client releases the holdback:

1. Open the estimate and scroll to the Retainage Balance section.
2. Click Create Retainage Release Invoice.
3. Kantivo pre-fills the invoice for the full accumulated retainage balance.
4. Adjust if a partial release was agreed upon.
5. Save and send the invoice.

Billing History

Every estimate has a complete billing history tab that lists all progress invoices tied to it. This serves as an audit trail for the project and makes it easy to answer client questions about what has been billed and when.

The billing history table shows:

• Invoice Number — Links directly to the full invoice
• Invoice Date — When the invoice was created
• Due Date — When payment is due
• Amount — The gross invoice amount
• Retainage Withheld — The holdback on this invoice (if retainage is enabled)
• Net Amount — The amount the client owes after retainage
• Status — Draft, Sent, Paid, or Overdue

The billing history is read-only — invoices cannot be deleted from this view. To void or edit an invoice, open it directly from the invoice number link in the table.

Best Practices

Start With a Detailed Estimate

The more detailed your estimate, the more useful the progress tracking. Break the estimate into line items that correspond to project phases or deliverables. When you create a progress invoice for a specific phase, you can reference the line items in the memo field so the client knows exactly what they are being billed for.

Get the Estimate Accepted Before Billing

Best practice is to have the client formally accept the estimate before creating any progress invoices. This ensures the contract value is agreed upon and prevents disputes later about whether the invoice amount was authorized. Mark the estimate as Accepted in Kantivo once the client signs or responds in writing.

Use Consistent Billing Intervals

For long projects, establish a billing schedule upfront (monthly, by milestone, or by percentage of completion). Consistent billing reduces the administrative burden and sets clear expectations for the client. Document the billing schedule in the estimate memo or a linked contract.

Track Received Payments Against Invoices

Record client payments against the individual progress invoices (not the estimate) so your accounts receivable stays accurate. Kantivo's invoice status will update to Paid when a payment is recorded against the full invoice amount. This keeps your AR aging report clean and makes it easy to spot overdue progress invoices at a glance.

Update the Estimate for Approved Change Orders

When the project scope changes and both parties agree on a change order, update the estimate total before creating the next progress invoice. This keeps the billing percentage calculation accurate and documents the revised project value in your books.

Frequently Asked Questions

Can I use Progress Invoicing without retainage?

Yes. Retainage is entirely optional and must be explicitly enabled on an estimate before it takes effect. Most service businesses do not use retainage — it is primarily a construction industry convention. If you do not enable retainage, progress invoices work as straightforward percentage or dollar-amount draws with no holdback.

What happens if I invoice too much by mistake?

Kantivo prevents you from creating a progress invoice that would exceed the estimate total, so accidental overbilling is blocked at the point of entry. If you need to correct an invoice that was already saved, void it and recreate it with the correct amount. Voiding a progress invoice updates the cumulative billing tracker so the remaining balance is restored correctly.

Can I create a progress invoice for a fixed amount rather than a percentage?

Yes. When creating a progress invoice, you can choose to enter either a percentage of the estimate total or a specific dollar amount. Use whichever method matches your contract terms. Both methods update the cumulative tracking the same way.

Is Progress Invoicing available on all Kantivo plans?

Progress Invoicing is available on Professional plans and above. If you do not see the option to create a progress invoice, check your plan level in Settings. You can upgrade your plan from the Settings page or from the license management portal.

Can I send a final invoice for the last portion of a project and also release retainage at the same time?

The final progress invoice and the retainage release invoice are two separate documents. Create the final progress invoice first for the remaining balance on the estimate. Then create the retainage release invoice for the accumulated holdback. Sending both together gives the client a clear final accounting of everything owed at project close.