FAQ: Payment Applications

What is a Payment Application? 

What is the difference between a Payment Application and an Invoice? 

What does a Payment Application in ConstructionOnline include? 

What financial data does ConstructionOnline pull from to generate a Payment Application? 

Do I need to have an Invoice to create a Payment Application? 

Is a QuickBooks integration required to use Payment Applications? 

What happens to my project data once a Payment Application is created? 

Can I attach supporting documentation to a Payment Application? 

How do I control which categories appear on the Continuation Sheet? 

What are the different statuses a Payment Application can have? 

Can I create multiple Payment Applications at the same time? 

Can I automate the payment of Invoices included in a Payment Application? 

Can I print a Payment Application on AIA forms? 

How do I print, email, or export a Payment Application? 

What is a Payment Application? 

A Payment Application—also referred to as a pay app, application for payment (AFP), draw request, certification for payment (CFP)—is a formal, documented request submitted by a contractor to an owner or general contractor to request payment for work completed during a defined billing period. Rather than sending a simple invoice, contractors submit a structured package that documents progress against the contract, formatted in a way that owners, architects, and lenders are expecting to see. 

For a full introduction to Payment Applications and key terminology, visit Overview: What Are Payment Applications?

What is the difference between a Payment Application and an Invoice? 

An Invoice is a request for payment for specific items or services rendered. 

A Payment Application is a more formal, structured billing document that provides a complete cumulative accounting of the entire project to date—including the original contract sum, Change Orders adjustments, amounts billed in all prior periods, retainage withheld, and the current amount due. 

In ConstructionOnline, Invoices are actually one of the data sources that drive a Payment Application. Valid Invoices from the project are included in the Payment Application to document amounts billed in the current and prior periods. 

What does a Payment Application in ConstructionOnline include? 

When exported, a ConstructionOnline Payment Application generates a complete billing document that consists of two components: 

• Application Cover — The high-level financial summary of the project at the time of billing, including the Original Contract Amount, Total Change Orders, Contract Amount to Date, Completed to Date, Retainage, Current Payment Due, and Balance to Finish. The cover also includes a Change Order Summary table, a Contractor's Application for Payment certification section, and an Architect's Certification for Payment section. 
• Continuation Sheet(s) — A line-item breakdown of the full Schedule of Values, generated directly from the Project Estimate. Continuation Sheets track completion percentages and amounts billed per line item across every billing period. Depending on the number of line items in the Project Estimate, the exported document may include multiple Continuation Sheets. 

For a detailed breakdown of all document fields and how they are calculated, visit the Guide to Understanding Payment Applications in ConstructionOnline. 

What financial data does ConstructionOnline pull from to generate a Payment Application? 

ConstructionOnline pulls from two required data sources to generate a Payment Application: 

• Project Estimate — Estimate data is required to generate the Schedule of Values. Without an active Estimate, line items and contract values cannot be populated. 
• Project Invoices — At least one valid Invoice must exist on the project before a Payment Application can be created. Invoices document the amounts billed in the current and prior periods. Valid Change Orders can also be included to reflect contract sum adjustments. 

Because each Payment Application builds on the last—carrying forward what's been billed, what's been retained, and what's still owed—all of this information stays connected within ConstructionOnline rather than being pulled from separate sources or re-entered manually. 

For full details on valid and invalid records and how data is calculated, visit the Guide to Understanding Payment Applications in ConstructionOnline. 

Do I need to have an Invoice to create a Payment Application? 

Yes. At least one valid Invoice must exist on the project before a Payment Application can be created. Payment Applications in ConstructionOnline are generated by selecting existing Invoices and approved Change Orders—the application uses those records to document amounts billed in the current and prior periods. You can include a single Invoice or multiple granular Invoices depending on how your project billing is structured. 

Is a QuickBooks integration required to use Payment Applications?

No. Payment Applications pull data directly from the built-in invoicing tool within ConstructionOnline and do not require an active QuickBooks integration. A QuickBooks integration may be useful for syncing financial records across platforms, but it is not a prerequisite for creating and managing Payment Applications within the system. 

What happens to my project data once a Payment Application is created?

To preserve billing integrity, creating the first Payment Application permanently locks certain project data: 

• Estimate line items and Selections cannot be edited after the first Payment Application is created. 
• Invoices and Change Orders included in a Payment Application cannot be deleted, preventing accidental changes that could affect the billing record. 

Can I attach supporting documentation to a Payment Application? 

Yes. Supporting documentation—such as submittals, lien waivers, or jobsite photos—can be attached directly to a Payment Application within ConstructionOnline. Having those documents connected to the application reduces the back-and-forth that typically happens when a reviewer needs additional information before approving. 

How do I control which categories appear on the Continuation Sheet? 

The categories and line items shown on the Continuation Sheet are pulled directly from the Invoices included in the Payment Application. During Payment Application Setup, you can also enable an option to limit the Continuation Sheet to only show line items with a Scheduled Value—keeping the document clean and focused on billable items. 

What are the different statuses a Payment Application can have? 

Each Payment Application is assigned a status that reflects its current stage in the billing lifecycle. Users manually update the status as the application progresses: 

• In Progress — The Payment Application has been created and is actively being built or edited. It has not yet been submitted for review. 
• Submitted — The Payment Application has been completed and submitted to the owner or relevant party for review and approval. 
• Approved — The Payment Application has been reviewed and approved. A new Payment Application may now be created for the next billing period, and the application can be marked as Paid. 
• Rejected — The Payment Application has been reviewed and rejected, requiring corrections or resubmission before payment can be authorized. 

Can I create multiple Payment Applications at the same time? 

No. ConstructionOnline uses a sequential billing cycle, meaning a Payment Application must be marked as Approved before the next one can be created. This ensures that billing numbers carry forward correctly and prevents overlapping billing periods. 

Can I automate the payment of Invoices included in a Payment Application? 

Yes. During the initial Payment Application Setup, you can enable an option to automatically create payments in full for all included Invoices once the Payment Application is marked as Paid. This keeps your Invoice records in sync with your billing records without requiring manual reconciliation after each approval. 

Can I print a Payment Application on AIA forms? 

Yes. ConstructionOnline's Payment Application Print Overlay outputs pay app data directly onto official AIA G702/G703 forms, sized and formatted to print correctly on top of the pre-purchased physical forms.

Step-by-step instructions for printing pay apps onto AIA forms can be found here. 

How do I print, email, or export a Payment Application? 

Payment Applications can be printed, emailed, or exported to Excel (.XLSX) at any point during the billing process.

Step-by-step instructions for printing, emailing, or exporting a Payment Application can be found here. 

HAVE MORE QUESTIONS? 

• If you need additional assistance, chat with a ConstructionOnline Specialist by clicking the orange Chat icon in the bottom left corner or visit the UDA Support Page for more options.