A client with a large project does not want to pay for the entire job up front because of the total expense involved with a time-consuming task that may have many financial miscalculations along the way. On the other hand, the vendor does not want to wait to be paid until the project is completed, as it needs to meet payroll and to purchase materials as the project is carried out. A progressive billing agreement serves the needs of both parties by setting up payments at several milestones during the process which are based on a verified percentage of project completion.

Utilizing a Sales Order in ALERE as the initial document, progress billing invoices can be created by entering a sales line for each milestone and the amount it represents.

A unit of measure conversion is established to convert the quantity on each line to a percentage of one.

A line note is added to each line to describe the milestone met.

As the project progresses, each sales order line is released as an invoice. The matching line note is printed on the invoice. This recognizes the revenue from the project and makes the appropriate general ledger postings.
When the last milestone has been invoiced, the sales order is then marked as completely shipped and is closed.