RA Bills (Running Account)

An RA Bill (Running Account Bill) is the most common billing method in construction projects. It represents progressive billing for contracted work based on actual quantities completed and measured against the Bill of Quantities (BOQ). Each RA Bill builds on previous bills, showing cumulative progress.

Prerequisites

Before you can create an RA Bill, the following conditions must be met:

Requirement	Details
BOQ Measurements	Measurements must exist documenting the quantities of work completed against BOQ items
CONTRACTED State	BOQs must be in the CONTRACTED state. New BOQs start in CREATED state and must be transitioned
Contract Linkage	Jobs must be linked to a Contract before BOQs can transition to CONTRACTED. See Billing Contracts

BOQ State Transition

A BOQ cannot be billed while in the CREATED state. You must first link the Job to a Contract, then transition the BOQ to CONTRACTED. Only then will the system allow measurements to be compiled into RA Bills.

RA Bill Process

Step 1: Create BOQ Measurements

Record the quantities of work completed against each BOQ item. Measurements document the actual progress on site and serve as the basis for billing. Each measurement captures the quantity executed for a specific BOQ line item during the measurement period.

Step 2: Approve BOQ Measurements

Submit measurements for internal approval. Approvers verify the recorded quantities against actual work completed on site. This step ensures that only verified work is billed to the customer.

Step 3: Generate RA Bill

Compile one or more approved measurements into a single RA Bill. The system calculates amounts based on the formula:

Amount = BOQ Rate x Measured Quantity

Multiple approved measurements can be included in a single RA Bill, and the bill shows both the current period quantities and cumulative totals.

Step 4: Certify the Bill

Certification is the process where the client acknowledges and approves the invoiced amount. This is a critical step because the client may certify an amount that differs from what was billed.

Certification and Expense Accounting

If the client certifies an amount less than the invoiced amount, the uncertified difference is automatically debited to an Expense Account. This tracks the gap between what the contractor billed and what the client acknowledged, until the matter is resolved.

Certification Accounting Entries

When an RA Bill is certified, the system generates the following accounting entries:

Scenario	Debit	Credit
Full certification	Sundry Debtors (full amount)	Revenue Account (full amount)
Partial certification	Sundry Debtors (certified amount) + Expense Account (difference)	Revenue Account (full billed amount)

Best Practices

Record measurements promptly as work is completed to maintain accurate progress tracking
Have measurements reviewed and approved before compiling the RA Bill to avoid delays
Track certification differences closely and follow up with clients on uncertified amounts
Use the cumulative view on the RA Bill to verify overall project billing progress