Settlements

In the settlements department, we focus on monitoring and documenting all financial transactions related to projects. Every invoice, cost, or subcontractor agreement entered into the system is considered in the reports concerning the project budget. This allows us to track and control expenses, identify potential discrepancies, and take appropriate corrective actions.

In the “Contracts → Invoices” section, you can:

View invoices issued for ongoing projects.
Export the invoice list to CSV/XLSX format.

REMEMBER: By default, only the administrator can export the invoice file. To change this, you need to edit role permissions (e.g., add the export capability to the accountant role).

NOTE: You can create a user account for the Accountant role, which will allow access to the invoice list without the need to export and send files.

The invoice list only shows those invoices that have been issued by the Contractors.es software or have been entered into the system during the settlement of a selected project after the invoice was issued in another program.

NOTE: By default, full access to the invoice list and the ability to make changes is granted only to the Accountant. The Manager can view all invoices but cannot add or edit them. The Project Manager and Cost Estimator have access only to invoices added under their projects.

REMEMBER: If an invoice on the list is linked to a change in the project, it will be marked in the appropriate column as shown in the screenshot below.

Types of Settlement Invoices

Settlement invoices are documents used for financial settlement between two parties of a contract for services rendered or products delivered. They are used to settle payments and reflect the progress in the execution of a project or contract.

Partial or full invoice applies when:

A selected stage or scope of work has been completed - the invoices issued so far reduce the contractual obligation with each subsequent settlement.
The project is billed on a “Time and Material” basis - based on the work completed so far.

Advance and final invoices are used when:

We settle with advance invoices before, during, and a final invoice after the project completion.
The value of the final invoice is reduced by the amount of the advance payment.

Stage invoicing is used when:

the project consists of several stages or parts that can be billed separately,
we want to maintain financial liquidity instead of waiting for the entire project to be completed.

REMEMBER: First, enter the advance or deposit calculated when creating the stages, and after completing the stage, issue an invoice for the remaining amount assigned to that stage.

Cumulative invoicing for the contract amount means that:

the project is not divided into stages or does not require partial billing,
invoices are issued in a way other than by stages.

Issuing/adding an invoice for a client to the project

To issue an invoice for a stage or service related to the ongoing project, follow the sequence:

Go to the “Contracts → Projects” menu and select the project you want to bill by clicking on its name.

NOTE: Invoices can only be issued/added by users with the appropriate permissions, which are modified and set by the administrator. By default, only accounting can issue/add invoices.

REMEMBER: If the first invoice issued for a given project has a specified invoicing method, subsequent invoices for that project must be billed in the same way.

NOTE: Projects carried out on a “Time and Material” basis are always billed with partial and total invoices.

In the preview, select the “More → Invoices” tab, and then click the “New” button.
Fill out the form, where the meaning of the fields is as follows:

Type: When creating the first invoice for a project, choose the type of invoice settlement from the available options:
- partial or full invoice,
- advance invoices and final invoice.
Stage billing type: Choose the method of project settlement considering the division into work stages:
- stage-by-stage billing,
- cumulative billing for the contract amount.

NOTE: For projects without stages, select cumulative billing for the contract amount to settle the project in full, without stage division.

REMEMBER: When billing by stages, indicate the stage to be settled, then set its status, date, payment deadline, and net amount for the given stage.

Date: The date the invoice is issued.
Payment deadline: Specify the financial obligation deadline for the client.

NOTE: The field is automatically filled with the default value set by the administrator. If the payment deadline is set to 14 days, the “Payment deadline” field will show a date corresponding to this setting.

Name of goods or services: Describe the scope included in the invoice settlement.
Net amount: The client’s obligation value, expressed in net amount.

NOTE: The system suggests the settlement amount in the “Net amount” field that has not yet been invoiced.

According to the pricing method specified in the project, two options are available.

Option I: For projects with a specified contractual amount.

The net value includes the remaining contractual amount.
You can change this value, and the remaining difference will be for subsequent invoices.

Option II: For projects billed according to the “Time and Material” scheme.

The net value includes:
- “Current labor cost” - a list of hours worked by employees within a specified time frame, gathered based on their logins in the mobile app or entered into the system.
“Summary of Work and Materials” - the amount indicating the total costs associated with a specific work stage, including: “Current Material Costs,” “Other Labor,” and “Current Other Costs.”

REMEMBER: Ensure you have verified the employees’ working hours for any incorrect start/end times before issuing the invoice for the given period.

NOTE: Unsettled employee working hours will be considered in subsequent settlements.

The other visible fields for this type of project estimate include:

Amount Invoiced in Other Invoices: The sum of all amounts that have already been invoiced in previous invoices for the given project.
Outstanding Balance Without Invoice: The difference between the sum of currently accrued work and material costs and the amount invoiced in other invoices.

The rest of the form will be the same for both estimates and includes data:

Uninvoiced Project Changes: This field is visible only when changes have been recorded and accepted in the system.

NOTE: Each project change is billed with a separate invoice, covering only the costs resulting from that change. If you use an external invoicing program, you can manually set the invoice number and enter the same number in two places to record a collective invoice.

Tax Rates: Specify the VAT rate depending on the service provided.
Gross Amount: The net value increased by the selected type of VAT rate.
Paid in Full: Indicates whether the invoice has been fully paid.
- Selecting “Yes” - the invoice is fully paid.
- Selecting “No” - the invoice has not been fully paid. In this case, you should enter the amount that has already been paid, not the remaining amount due.
Invoice Footer: Optionally, additional content visible at the bottom of each issued invoice.

REMEMBER: If the administrator sets the “Invoice Footer” content, the value in this field will be automatically filled by the system.

Update Work Progress: Selecting “Yes” automatically updates the work progress to the chosen level. This field is used when your company sporadically performs project visit reports and daily foreman reports.

NOTE: The “Update work progress” field is only available for projects in “Time and Material” mode. This field is used when your company occasionally performs project visit reports and daily foreman reports.

Save the changes using the “Approve” button.

NOTE: The fields “Paid in full” and “Amount paid” indicate the settlement amount with the client.

REMEMBER: To send the saved invoice to the client via email, use the “Send email” button and specify the recipient. By default, this is the client - the contact/company must have an email address entered.

Example: Issuing invoices for a project with set work stages

For an ongoing project, stage-based billing is often used. This is a safe option where the client settles costs after completing each stage or pays an advance before starting work related to that stage.

First stage to be settled – “Foundations” contains the following data:

To settle this stage of work, follow the steps below:

Go to the selected project’s preview on the list by clicking its name.
Select the “Invoices” tab and create a new invoice by clicking the “New” button in the upper right corner of the screen.
Fill in the form fields according to the description below:

Type: Select “advance invoices and final invoice.”

NOTE: The option for partial or full invoice applies when the selected stage or scope of work has been completed - previously issued invoices reduce the contractual obligation with each subsequent settlement, e.g., when the project is settled on a “Time and Material” basis - based on the work done so far.

NOTE: Only the first invoice for a given project has the option to select the type. Subsequent ones are of the same type as the first.

Stage-based invoicing type: Select “stage-based invoicing.”
Stage: Select the stage to be settled – in this case, Foundations.
Stage completed: Status of work.
- Selecting the option “Yes” - fills the settlement field with the total amount agreed for the stage, i.e., 66,301.65 PLN.
- Selecting the option “No” - generates an invoice for the advance payment amount, i.e., 18,890.50 PLN.

NOTE: The percentage value of the advance is generated according to the stage settings.

In this example, we choose the advance option, which is “No”.

REMEMBER: For the next invoice after completing the work for a given stage, the system will automatically fill in the “Net amount” field with the amount that is the difference between the advance and the total value of the stage. The system will suggest the amount remaining to be settled.

Date, Payment deadline: values are automatically filled in by the system.

REMEMBER: The administrator sets the default time range for the payment deadline, which can be changed in the drop-down calendar.

Name of goods or services: Enter, for example, “Stage I - Foundations”.
Net amount: Filled in according to the amount specified in the stage.
Tax rates: Set according to tax regulations.
Paid in full: Select “No” and leave the “Paid amount” field empty.
Invoice footer: Additional content visible on the accounting document.

Save the form using the “Confirm” button.

The created advance invoice for the selected stage of work looks as follows:

Since this is the first advance invoice, there are no issued documents yet in the “Previous advance invoices” field.

The document contains information about:

the total value agreed for the entire stage,
the advance amount along with the VAT rate.

To settle the “Foundations” stage completely, follow the same steps as when creating the first invoice, taking into account changes in the following fields:

Stage completed: Select “Yes”.
Net amount: will be automatically filled with the amount that is the difference between the contractual value and the advance indicated in the first invoice.

The created final invoice for the selected stages of work looks as follows:

The document contains information about:

the total value set for the entire stage,
the current advance payment amount for the final stage along with the VAT rate,
previously issued advance invoices.

You can register the settlement of advance and final invoices in the system using the “Change” button marked in the screenshot below.

REMEMBER: If the payment from the client is lower than the invoice amount, you can register it in the system. The “Change” button will remain available until the entire amount is settled.

NOTE: Only changing the value in the “Paid in full” field to “Yes” blocks further editing of the record related to the financial settlement.

Example: Issuing invoices for projects settled on a “Time and Material” basis

The “Time and Material” model is recommended for work where the full scope and costs cannot be clearly defined before the project starts, and settlement is based on the actual time worked and materials used.

To issue an invoice in the selected settlement model, follow these steps:

For the selected project from the list, go to the “Invoices” tab and click the “New” button at the top of the screen.
Fill out the form, where the meaning of the fields is as follows:

Type: Select “Partial or full invoice.”
Stage billing type: Choose: Cumulative billing for the contract amount.
Update work progress: Select “No” when the work progress is not updated, and the settlement only includes the work done so far along with the associated material and labor costs.

REMEMBER: Updating work progress is used to manually determine the percentage of work completed under the contract.

Date, Payment deadline: values are automatically filled in by the system.

REMEMBER: The administrator sets the default time range for the payment deadline, which can be changed in the drop-down calendar.

Name of the goods or service: Enter, for example, “Cinema - settlement 1”.
Net amount: Total value calculated from all cost components.

The values for the above component fields are settled based on the costs entered for the given project.

The remaining form fields are identical for all types of invoices and have been described in detail in the preceding example.

Save the form using the “Approve” button.

The created invoice will look as follows:

NOTE: The “Balance of receivables without invoice” field shows the amount that remains to be invoiced. If all current costs are invoiced, the value of this field will be 0.00 PLN.

REMEMBER: As new material or labor costs arise, this field will automatically update, and the amount visible in it determines the maximum value that can be invoiced on the next invoice for the client.

Project Cost Register

During the execution of a project, additional costs may arise (besides employee and material costs). By adding these costs to the system, we obtain a real “Financial Balance of the Project,” showing profits or losses. The “Costs” module allows adding these expenses, enabling more accurate monitoring of the project’s finances.

NOTE: Project costs can be created and reviewed not only by the administrator but also by the Project Manager’s Assistant, Manager, Project Manager, Estimator, and Accountant.

For convenience, a field employee can submit a reimbursement request from the construction site, attaching a photo documenting the incurred cost. Such a request receives the status of a Report. If the request indicates “Amount reimbursed to the employee,” it proceeds to further settlement in the system.

You can add a project cost in the following order:

Go to the “Contracts → Costs” menu and select the “New” button.
Fill out the form, where the meaning of the fields is as follows:

Project name: Select the project from the available list to which this cost relates.
Cost Name: Enter the name of the incurred cost. This field is required.
Invoice Number: Optionally provide the invoice number associated with this expense.
Note: Add additional information regarding this cost if necessary.
Date: Enter the date the cost was incurred.
Cost Type: Specify the type of expense, whether it pertains to material, wages, equipment, or another type of cost.
Amount: Enter the value of the incurred cost, which will be included in the final project settlement.

Save the data using the “Submit” button.

Invoice and Project Change Settlements

The above describes issuing invoices and changes in projects. This section concerns their settlement.

A full list of issued invoices is available in the menu “Contracts → Projects → Invoices”. The list can be sorted by the methods described here or searched by the name of the record of interest.

REMEMBER: Only users with specific roles have access and the ability to edit records from this list.

An invoice can be quickly found on the list by an employee settling payments to the account, using the filtering option by project name or invoice number.

To settle an invoice, follow the sequence:

Search the list for the record corresponding to the obligation being settled, using the available sorting and filtering options for records.

NOTE: Invoices for which the payment deadline has passed are highlighted in red on the list.

Click the green “Update Paid Amount” button and enter the value of the received transfer in the “Paid Amount” field in the form.

REMEMBER: Unsettled obligations on the list are marked with the “Update Paid Amount” button until fully settled. After settlement, the green button is no longer visible.

Save the changes with the “Submit” button.

In the preview of the selected invoice, you can attach notes or files.

These entries may concern:

Dates of receipt of transfers subject to settlement.
Collection statuses and arrangements with the client.
Internal notes and attached documents supporting the collection process.

To add a note to an invoice, follow the steps:

Go to the invoice preview and select the “Attached -> Notes and files” tab.
Click the “New” button and fill out the form, where the meaning of the fields is as follows:

Pinned: Setting to “Active” will display the note at the top of the notes list.
Title: Name of the note.
Note: Additional information regarding the entry.
Files: Ability to add files from the disk as attachments.
Permissions: Determine employee access to system records. More about permissions can be found here.
Display as message: Enabling this option will display the note as a message on the invoice list or in the invoice record view.

Save the entered data with the “Approve” button.

NOTE: Messages appear above the list of entries, and their visibility depends on the settings.

REMEMBER: Using messages above the list is optional and facilitates a quick response to important actions related to collection.

Settling invoices related to project changes is done in the same way. These entries can be found on the list where the “Project Change” field contains the relevant information.

Handling reimbursement requests

The module allows viewing and settling reimbursement requests incurred by field employees. The list of reimbursement requests is available in the “Contracts → Projects → Costs” menu.

NOTE: Access to the list of requests, their editing, and settlement are limited to users with appropriate permissions.

REMEMBER: Requests requiring settlement are marked with the appropriate status in the “Reimbursement Status” column. Submissions without an assigned status do not require settlement.

To settle a reimbursement request, follow the sequence:

Go to the “Projects -> Costs” menu and find the request with the status “Pending”.

To find the record more quickly, you can use the list filtering option by setting the appropriate criteria.

Click on the status name and select a new one: Rejected, Accepted, or Completed.
Optionally, add a comment to the return and save the changes with the “Approve” button.

REMEMBER: The “Accepted” status adds the cost to the project’s financial balance according to the assigned purpose.

Depending on the company’s policies and accounting regulations in the given country, the return may be made in cash or by transfer to the employee’s account, with an appropriate note specifying what the payment is for. This is not recorded directly in the system - you can add a relevant note if necessary.

Subcontractor Agreements

Subcontractor agreements are made between our company and an external entity that performs specific tasks or services within the project. The terms of cooperation entered into the system will allow for smooth and clear settlement of agreements with subcontractors.

NOTE: In addition to the administrator, the Project Manager Assistant, HR, Manager, Project Manager, and Cost Estimator can add subcontractor agreements. The responsibility for settling agreements lies with the Accountant.

REMEMBER: According to regulations, a subcontractor agreement must be in writing. The completion date specified in the agreement forms the basis for the payment of remuneration for the services performed. Optionally, you can attach it to the “More → Attached” tab in the selected project.

REMEMBER: If there is no project in the system yet that is to be associated with the “Subcontractor Agreement,” create a record of this project in the “Contracts → Projects” section.

You will register a subcontractor agreement in the system according to the following order:

Go to the “Contracts → Projects” menu and select the “New” button.
Fill out the form, where the meaning of the fields is as follows:

Project: Select from the list the project to which the subcontractor agreement is to apply.
Subcontractor: Specify the entity from the “Subcontractor” group responsible for performing the service.
Scope of the contract: Describe the arrangements regarding the work to be performed and the deadlines for their completion.
Time and material: Choose the method of billing for the service by selecting:
- Choosing the “No” option - the contract concerns a specific amount for the service, regardless of the number of employee hours and days needed for completion.
- Choosing the “Yes” option - billing for the service will be calculated after summing up the employee hours, for which a contractual cost per hour of their work must be specified. You can enter their work time into the system or create accounts for the subcontractor’s foremen to facilitate communication and time tracking.

REMEMBER: Daily reports created with the number of employees performing a given scope of work will sum up the total number of hours worked, which will be multiplied by the hourly rate for the service.

Custom hourly rates: Optionally adjust payment rates for non-standard employee working hours in subcontractor agreements, taking into account the specifics of the work or special conditions. These are set individually.
Custom percentage salary rates: Special arrangements for employee work time billing that exceed basic rate hours. These fields are automatically filled by the system with values set by the administrator. These amounts can be changed.

REMEMBER: The system allows for the introduction of multiple subcontractor agreements for the same project and subcontractor simultaneously. The scope of each contract should be specified in a separate form.

Save the entered data using the “Confirm” button.

NOTE: In the case of a subcontractor agreement concerning a project billed on a “Time and material” basis, it is recommended to fill in the “Work Schedule History” tab or monitor it if the subcontractor’s foreman uses the mobile application and account in the Contractors.es system to monitor work progress and the number of hours worked, according to which the service will be billed.

To add a “Work Schedule History,” follow the steps below:

Go to the preview of the selected subcontractor agreement by clicking on its name.
Select the “Work Schedule History” tab and fill out the form, where the meaning of the fields is as follows:

Scheduled start of work: Enter the date and time when the subcontractor’s work is scheduled to begin.
Scheduled end of work: Enter the date and time when the subcontractor’s work is scheduled to end.

NOTE: In the form, you can specify the work range for a single working day. To include additional workdays, use the “Planner → Employee Schedule” section.

Breakfast break: Leave the field empty because the workers are not employed by your company.
Scope of work: Select from the list the suggested type of work assigned to the subcontractor for the given day.

NOTE: The subcontractor’s foreman can change the scope of work you entered when submitting daily reports by selecting another option from the list available in the mobile app.

Subcontractor’s Foreman: Select the subcontractor’s foreman from the list.

NOTE: Create a new contact for the subcontractor’s foreman if they do not exist in the system. This is a mandatory requirement.

REMEMBER: If two independent crews are to work on the construction site, each with a different foreman, create a separate contact for each.

Planned number of subcontractor’s employees: Enter the number of employees who will be assigned to the task, according to the agreement with the subcontractor.
Custom percentage salary rates: By selecting “Yes,” you have the option to adjust the administrative settings entered here and introduce new values in the form fields.
Note: An optional additional description related to the work assignment arrangements.

Save the data using the “Confirm” button.

REMEMBER: “Subcontractor Agreements” related to a single subcontractor are available in the preview of their record on the “CRM & Organizer → Companies → Subcontractor Agreements” tab.

NOTE: In the “Work Schedule History” preview based on daily reports submitted by the subcontractor’s foreman via the mobile app, fields marked with a red arrow will be noted, indicating the actual working time and the number of employees involved in performing the contracted services.

Subcontractor Agreement Settlement

In the “Contracts → Subcontractor Agreements” section, the system automatically displays a list of unsettled agreements marked with the “Active” option. You can filter records on the list using standard methods.

NOTE: Only users with appropriate permissions can make changes to records in this system section.

If you want to settle an agreement with a subcontractor, follow the steps below:

Go to the “Contracts → Subcontractor Agreements” menu and find the agreement you want to settle.
Click the ”+” button or the “View” action button.

NOTE: In the case of ongoing settlements, the amount settled so far will be visible, allowing you to track the remaining amount payable to the subcontractor.

Fill out the form, where the meaning of the fields is as follows:

Subcontractor Agreement: The name of the subcontractor for whom the service settlement applies.
Date: The day on which the settlement for the provided service, included in the agreement, was accepted.
Paid Amount: The monetary value that will be transferred to the subcontractor.
Payment Description: The method of transferring the payment for the service with a note regarding its receipt, for example, “According to the agreement,” “Delay of … days,” “Incomplete service,” etc.
Agreement Fully Paid: Specify the payment status for the subcontractor agreement by choosing:
- “Active” switch - The “Paid Amount” may differ from that specified in the “Contract Amount” due to remarks regarding service execution (e.g., improperly executed service).
“Inactive” switch - the contract will remain on the list with the visible “Paid Amount” for further settlement.
Contractual Work Completed: Specify the stage of the conditions contained in the contract by selecting:
- “Active” switch - the work specified in the contract has ended, the contract is moved to the “Contractual Work Completed” list.
- “Inactive” switch - the contract remains on the “Active” list until further settlement with the subcontractor.

Save the changes using the “Confirm” button.

REMEMBER: If the subcontractor’s contract is to be settled based on the total number of employee working hours, the value in the “Contract Amount” column will be automatically updated according to the workday reports. After the project is completed, the total employee working time will stop accumulating.

Example: Multi-stage settlement with a subcontractor.

Find the contract to be settled on the list of subcontractor contracts.
Click on the “Paid Amount” or the “View” action button.
A list of previously paid amounts related to the subcontractor’s contract will be displayed on the screen.
By subtracting the value in the “Paid Amount” field from the “Contract Amount,” you will get the remaining amount to be settled with the subcontractor.
Click the “New” button and enter a new settlement in the form, entering in the “Paid Amount” field the value by which the “Contract Amount” should be reduced.

REMEMBER: If the settlement proceeded according to the contract and reached the final stage, it is important to mark the switches as “active” in the last two fields of the form.

Save the entered data using the “Confirm” button.

REMEMBER: Actions on subcontractor contract records should be coordinated with accounting.

Employee Compensation

Employee compensation for working time is settled according to:

Number of hours worked calculated based on system settings available in the sections:

“Admin → General Settings → Calendar → Default Working Hours”,

“Contracts → Settings → Working Time: Number of hours in a workday”,

Value of hourly rates, set individually in the system for each employee through the module:

“CRM → Employees → select an employee from the list → ‘HR’ tab. Variables apply to records for which the following have been specified:

Standard gross hourly rate (in the case of a fixed salary),
Non-standard hourly rates for specific work ranges,
Non-standard percentage salary rates, such as overtime beyond the workday hours or hours exceeding the number of workday hours.

NOTE: If the employee is not a company employee, their settlement is carried out according to the terms contained in the subcontractor agreement.

REMEMBER: The wage rates for field employees using the mobile app are recorded in the section “Contracts → Planner → View Events” at the time of creating a work planning record and calculated at the time of logging in and out of work.

REMEMBER: Before settling employees’ working time, it is worth verifying all fields to ensure that all records have correct start and end work times - it may happen that someone forgets to log out when leaving work.

NOTE: Only users with appropriate permissions can make changes to work schedule records.

For employees listed in the work schedule who do not use or partially use the mobile app, the method of settling working time is possible in two ways:

Method I: Using the “batch method” to automatically fill in empty fields.

There are two options to choose from:

Fill in the end of work as planned if there is a start of work: Applies to situations where the employee logged in at the start of work but did not log out at the end or did so with a significant delay.
Complete both the start and end of work as planned: The start and end work fields will align with the hours specified for the workday.

Method II: Through manual verification of fields concerning supervisor reports on employee work irregularities.

After locating the selected entry in the employee’s list, make changes using the “Edit” action button.

Method III: If we are filling in the schedule retrospectively, the work time is filled in to match the planned schedule.

REMEMBER: The system marks entries with a red background where there are irregularities related to the time or place of employee login.

REMEMBER: Employee work time can only be accounted for until the salary payment is forwarded to the accounting department.

Example: Monthly accounting of a field employee’s work time.

In the “CRM & Organizer → Employees” section, click on the data of the employee for whom the accounting is to be done.
In the record preview, select the “Salary” tab and set the accounting period on the drop-down calendars, e.g., September 1-30, 2023.
Click on the blue “Search” field just above the table with records.
The system will display a sequence of days for the given month for the employee, along with the project name, time range, and the due salary amount assigned for each workday.
By expanding the field with the “Salary Amount” value, marked with a red arrow in the screenshot below, a detailed scope of work will be visible, based on which the given rate was calculated.

According to the above example, the employee received a basic salary rate for the hours 7:00 - 15:00, which includes the workday hours. However, from 15:00 to 15:30, the salary rate was calculated according to the settings for the scope of work that exceeds the workday hours but falls within the workday hours. The sum of both amounts constitutes the value of the employee’s work time accounting for that day.
Scroll down and review the monthly summary to ensure that all days on the list have already been settled.

NOTE: If any days remain unsettled, the “Actual Work Completion” and “Salary Amount” fields will remain empty.

For unsettled days, edit the existing entries by clicking on the dates of those events.

Fill out the forms, paying attention to the “Planned Work End,” “Actual Work Completion,” and “Custom Salary Percentage Rates” fields, which will change the final value for the daily work time settlement.
Save the data using the “Confirm” button.

REMEMBER: After creating a summary list of the employee’s salary for the selected time period, the administrator will be able to export it to an Excel file for import into accounting software or another financial system. This permission can also be set, for example, for the accountant role.