Pay subcontractors and their advances

A subcontractor is paid in two ways: an advance before the work, which its certificates recover, and payment of each issued certificate.

Pay an advance

1. Open the subcontract and its money tab, then select Pay advance.

2. Enter the date, the amount and the cash or bank account it is paid from, then select Save.

The advance posts as an asset of the project (advance paid) against cash. Each certificate recovers part of it, in proportion or at the agreed percentage, never more than is left.

Pay a certificate

1. Open the issued certificate and select Pay certificate.

2. The amount starts at what is still owed on it. Enter the date, the account it is paid from and a reference, then confirm.

The payment debits the subcontractor and credits cash, and is recorded against this certificate, so the certificate shows what is paid and what is still owed. A payment cannot exceed what is owed.

Follow what you owe

• The subcontract shows what is payable, paid and still owed, with retention held and the advance still to recover.

• The subcontractor's supplier statement lists each certificate as Subcontractor certificate, and each payment.

• Aged payables and the supplier's profile age certificates by their date or due date, like invoices.

Common questions

Can I pay from the supplier payment screen instead? Yes, the supplier's balance goes down the same way. But that payment is not linked to a certificate, so pay from the certificate when you want each certificate to show what is paid.

When is withholding tax paid to the tax authority? It is held in the withholding tax payable account from the moment the certificate is issued, ready for the quarterly return.