NetSuite Schedule of Values and AIA Progress Billing for Contractors
Contractors manage a Schedule of Values (SOV) and generate AIA-style G702 and G703 payment applications directly inside NetSuite using BlueCollar Projects, a Built for NetSuite SuiteApp. Each progress billing draws from contract line items, prior applications, current period progress, stored materials, approved change orders, and line-level retainage without rebuilding pay apps in Excel.
Why Native NetSuite Invoicing Falls Short for Construction Schedule of Values Billing
Standard NetSuite sales orders and progress invoices are built for shipping physical inventory or billing fixed fee milestones. Commercial general contractors and trade subcontractors, however, are required by project owners, architects, and lenders to submit monthly payment applications formatted around an itemized Schedule of Values (AIA Document G702 Application and Certificate for Payment and G703 Continuation Sheet).
Attempting to produce AIA progress billings in uncustomized NetSuite creates four immediate problems for construction billing teams:
- No prior-period cumulative column memory: A standard NetSuite invoice shows what is billed on that single transaction, whereas a G703 Continuation Sheet must display Scheduled Value, Work Completed from Previous Applications, Work Completed This Period, Stored Materials, Total Completed and Stored to Date, Balance to Finish, and Retainage on every line.
- Stored materials get mixed into work in place: Owners and lenders require off-site or on-site stored materials to be tracked in a dedicated column and moved into completed work in subsequent billing periods without double-counting revenue.
- Approved change orders do not roll into a contract summary grid: G702 applications require a running summary of additions and deductions approved in previous months versus the current month, tied to the revised contract sum.
- Line-level retainage and printable PDF forms require external spreadsheets: When billing coordinators prepare G702/G703 packets in Excel and then key summary totals into NetSuite, rounding differences and manual typing errors cause the customer pay app, the NetSuite retainage subledger, and the monthly WIP report to drift apart.
How BlueCollar Projects Maps the G702 and G703 Schedule of Values in NetSuite
Inside NetSuite construction software with BlueCollar Projects, the Schedule of Values lives natively on the BlueCollar Contract record. Every column on the G703 Continuation Sheet and summary line on the G702 cover sheet maps directly to NetSuite transactions.
| AIA G703 / G702 Element | How It Is Tracked in BlueCollar Projects | NetSuite General Ledger & Reporting Impact |
|---|---|---|
| Column A & B: Item No. & Description of Work | Contract line items defined on the BlueCollar Contract Schedule of Values, mapped to project cost codes or billing phases | Links progress billing lines directly to job cost and budget tracking |
| Column C: Scheduled Value | Original baseline contract amount per SOV line item | Establishes original contract sum on the G702 header and WIP schedule |
| Approved Owner Change Orders | Added as new SOV lines or adjustments to existing SOV lines upon owner approval | Updates Revised Contract Value and populates the G702 Change Order Summary block (prior vs. current period additions and deductions) |
| Column D: Work Completed From Previous Applications (D + E from prior draw) | Automatically pulled from prior posted NetSuite progress invoices on that contract | Prevents prior-period billing drift and eliminates manual carry-forward errors |
| Column E: Work Completed This Period | Entered by the billing coordinator as a dollar amount or target cumulative percent complete per line | Generates current period gross progress billing on the NetSuite AR invoice |
| Column F: Materials Presently Stored (Not in D or E) | Tracked per SOV line for stored materials billed this draw and converted into Column E in later draws | Tracks stored material billings separately for owner/architect verification and lien waivers |
| Column G: Total Completed and Stored to Date (D + E + F) & % (G / C) | Calculated automatically per line and summed across the contract | Feeds cumulative Billed to Date on the NetSuite WIP report for over/under billing calculations |
| Column H: Balance to Finish (C - G) | Remaining unbilled contract value per SOV line and in total | Gives controllers and PMs immediate visibility into remaining contract billing backlog |
| Column I: Retainage (Fixed or Variable Rate) | Calculated per SOV line (for example, 10% reduced to 5% at 50% completion, or 0% on fee lines) | Posts withheld retention to a dedicated Retainage Receivable balance sheet account outside standard Trade AR aging |
Step-by-Step Workflow: From Contract Setup to Printing AIA-Style Forms in NetSuite
With BlueCollar Projects, construction billing teams run the entire monthly requisition cycle inside NetSuite:
- Set up the BlueCollar Contract and Schedule of Values: Create the contract against the NetSuite customer and project, set the default retention rate, and enter or import the SOV line items (Item Number, Description, Scheduled Value, and retainage rules).
- Process approved owner change orders: When a change order is approved, log it against the contract in BlueCollar Projects. The SuiteApp updates the revised contract total, records the approval date so the G702 Change Order Summary knows whether it belongs to a prior month or the current month, and adds the change to the G703 lines.
- Create the monthly progress billing application: Select the billing period end date and application number. BlueCollar Projects pulls all prior applications into Column D and lets the billing coordinator enter current period progress by percentage or dollar amount (Column E) plus any newly stored materials (Column F).
- Post the NetSuite invoice and split retainage: Saving the progress draw generates a standard NetSuite invoice linked to the project and contract. NetSuite records the gross billing for WIP over/under billing, posts the withheld retention to Retainage Receivable (covered in detail in our NetSuite retainage tracking guide), and places only the net current payment due (Line 8: Current Payment Due on the G702) into Trade Accounts Receivable.
- Print or export the G702 and G703 PDF packet: Click Print AIA Forms on the billing record to generate the formatted Application and Certificate for Payment (G702) cover sheet (complete with contract summary lines 1 through 9, change order net summary, contractor certification, notary block, and architect certification block), followed by the multi-page Continuation Sheet (G703).
Syncing Prime Contract Billings Between NetSuite and Procore
Many commercial contractors manage field operations in Procore while keeping accounting and owner billing in NetSuite. Through our NetSuite Procore integration, the Procore Connector by BlueCollar syncs prime contracts and approved change orders from Procore into NetSuite so the Schedule of Values starts with the exact numbers negotiated by the project team. Once accounting generates the AIA progress invoice and records owner payments in NetSuite, those prime contract invoices and customer payments sync back to Procore so project managers see billing and collection status without asking accounting.
BlueCollar Cloud Solutions works with 90+ construction contractors on NetSuite. BlueCollar Projects is a Built for NetSuite SuiteApp with no separate infrastructure, and our team is made up of former NetSuite employees and construction finance practitioners. If your team also wants experienced construction accountants to help run monthly progress billing and job closeouts, explore our construction financial operations services.
Frequently Asked Questions
Can NetSuite generate AIA G702 and G703 billing forms natively?
Standard NetSuite invoices do not include the multi-column Schedule of Values continuation sheet, cumulative prior billing tracking, stored materials column, or line-level retainage summary required on AIA G702 and G703 progress billing forms. BlueCollar Projects adds native Schedule of Values management and generates printable PDF G702 Application and Certificate for Payment and G703 Continuation Sheet forms directly from NetSuite.
How do approved owner change orders appear on the Schedule of Values in NetSuite?
When an owner change order is approved in BlueCollar Projects (or synced from Procore into NetSuite), it updates the revised contract total and can be added either as new Schedule of Values lines on the G703 continuation sheet or as adjustments to existing scheduled lines, while also summarizing net additions and deductions by prior and current period on the G702 summary page.
How does BlueCollar Projects handle stored materials on a progress billing application?
BlueCollar Projects tracks Materials Presently Stored (Column F on the G703 continuation sheet) separately from Work Completed This Period (Column E). When stored materials are installed in a subsequent draw, the value moves from Stored Materials into Work Completed without double-billing the owner or distorting the line's percent complete.
Can we apply different retainage percentages to individual Schedule of Values lines in NetSuite?
Yes. BlueCollar Projects supports both contract-level default retention rates and line-level retainage overrides on the Schedule of Values. Contractors can hold 10% on construction trade lines, 0% on insurance or general conditions lines, and reduce retention to 5% once the contract reaches 50% completion.
How does AIA billing in NetSuite work when project managers use Procore?
With the Procore Connector by BlueCollar, prime contracts and approved owner change orders flow from Procore into NetSuite. The accounting team prepares the Schedule of Values draw, calculates retainage, and generates the AIA-style invoice inside NetSuite. Once posted, the prime contract invoice and subsequent customer payments flow back to Procore so project managers can see billing and collection status.
Related Reading
- NetSuite retainage tracking for contractors
- NetSuite WIP reporting and over/under billing for contractors
- What is a WIP report in construction
- Why WIP reporting breaks in spreadsheets
- NetSuite construction job costing guide
- NetSuite Procore integration
- Construction project accounting in NetSuite
- NetSuite construction software
