How to Review and Approve a Subcontractor Pay App in Acumatica
A subcontractor pay application is the monthly AIA G702 summary and G703 schedule of values asking to be paid for work completed. Before it is paid, someone has to confirm the math, the retainage, the commitment it bills against and the AP bill that will be posted.
This guide follows a recorded review in Acumatica Construction Edition: opening the emailed pay app, reading the G702/G703, checking the project's retainage settings and the subcontract commitment, auditing the AP bill and its cost allocation, and approving the bill.
- Who does itProject accountant or AP specialist; the project manager approves
- How oftenMonthly, per subcontractor billing cycle
- Steps9 steps · 3 systems
Watch the full workflow
every click in this recording is an AI agent — no one is touching the keyboard.
In the recording, an AI agent opens the Pay Application #02 email in Outlook, downloads PayApp_02.pdf and reads the G702 summary and G703 continuation sheet. It signs in to Acumatica, opens project PR00000003 (200 East 71st St - Upgrade Power for Northwest) to check retainage settings, and reviews the project's Commitments tab for the $50,000 subcontract. It then opens Bills and Adjustments, selects bill 000006 (Pay App #02 - G702 Billing, Pending Approval), checks the totals, retainage and line allocation, and clicks Approve.
Systems involved
You need access to each of these before you start. In the recording the agent works in all of them from one desktop, signed in as the user.
- Acumatica Construction EditionProjects, Commitments, and Payables > Bills and Adjustments where the bill is approved
- Microsoft OutlookReceives the subcontractor's pay application email and PDF
- AIA G702/G703 (PDF)Pay application summary and continuation sheet being reviewed
What you start with
- Pay application email with G702/G703 PDF
- Project record and retainage settings
- Subcontract commitment
- AP bill entered for the pay app
What you end with
- Validated pay application figures
- Approved AP bill for the pay app
The workflow at a glance
Action Decision Human review Select a step to jump to how it's done.
- 01 Action · Microsoft Outlook Open the pay application email
- 02 Action · AIA G702/G703 (PDF) Read the G702 summary
- 03 Action · AIA G702/G703 (PDF) Check the G703 schedule of values
- 04 Action · Acumatica Construction Edition Open the project and check retainage
- 05 Action · Acumatica Construction Edition Check the commitment
- 06 Action · Acumatica Construction Edition Find the AP bill
- 07 · Human review · Acumatica Construction Edition Audit the bill header and lines
- 08 Decision · Acumatica Construction Edition Do the bill and pay app agree? Yes Approve the bill. No Reject or route it back with the line that is wrong.
- 09 Action · Acumatica Construction Edition Approve the bill
Step-by-step: how to do it
-
Action · Microsoft Outlook · 1:40 in the video
Open the pay application email
Open the subcontractor's pay app email and download the attached PDF. Note the billing figures in the email body so you can compare them to the form.
In the video- Subject
- Pay Application #02 - Project PR00000003
- Attachment
- PayApp_02.pdf
- Work through
- September 30, 2026
- Email states: original contract sum $50,000.00; total work completed to date $25,000.00; retainage (10%) $2,500.00; less previous payments (App #01) $9,000.00; current net amount due $13,500.00
-
Action · AIA G702/G703 (PDF) · 2:05 in the video
Read the G702 summary
Go line by line down the G702: contract sum, change orders, total completed and stored, retainage, previous certificates and current payment due. Recalculate retainage and the amount due yourself.
In the videoG702 Application No. 02, period to 09/30/2026.
- Original contract sum
- $50,000.00
- Net change orders
- $0.00
- Total completed & stored
- $15,000.00
- Retainage (10% of $15,000.00)
- $1,500.00
- Total earned less retainage
- $13,500.00
- Less previous certificates
- $0.00
- Current payment due
- $13,500.00
- Balance to finish incl. retainage
- $36,500.00
-
Action · AIA G702/G703 (PDF) · 2:40 in the video
Check the G703 schedule of values
On the continuation sheet, confirm each line's scheduled value, previous work, this period, percent complete and balance, and that the grand totals tie to the G702.
In the video- Item 101 · CHIMNEY - Service 401(k) Ties to G702
- Scheduled value
- $50,000.00
- Work previous
- $0.00
- This period
- $15,000.00
- Complete
- 30%
- Balance
- $35,000.00
-
-
Action · Acumatica Construction Edition · 3:40 in the video
Open the project and check retainage
Sign in, go to Construction > Projects and open the project. On the Summary tab, check status, contract total and the retainage mode and percentage against the pay app.
In the video- Project
- PR00000003 - 200 East 71st St - 411595 - Upgrade Power for Northwest
- Status
- Active
- Contract total
- 303,200.00
- Retainage mode
- Standard
- Retainage (%)
- 10.00
-
Action · Acumatica Construction Edition · 4:20 in the video
Check the commitment
Open the project's Commitments tab and find the subcontract the pay app bills against. Confirm the commitment amount and status so the billing doesn't exceed it.
In the video- Commitment date
- 5/29/2025
- Amount
- 50,000.00 USD
- Status
- Open
-
Action · Acumatica Construction Edition · 5:05 in the video
Find the AP bill
Go to Payables > Bills and Adjustments and filter for bills pending approval. Pick the one whose description and vendor reference match the pay app.
In the video- Bill 000006 · Pay App #02 - Upgrade Power Pending Approval
- Bill 000005 · Pay App #02 - Upgrade Power Pending Approval
-
-
Human review · Acumatica Construction Edition · 5:25 in the video
Audit the bill header and lines
Open the bill and compare detail total, retained amount and balance to the G702. Scroll the Details lines to check the inventory/description, account, subaccount and project on each line.
In the video- Bill
- 000006
- Vendor ref
- PAY-APP-02
- Description
- Pay App #02 - G702 Billing
- Detail total
- 15,000.00
- Retained amount
- 1,500.00
- Balance
- 13,500.00
- Terms
- NET30 - 30 Days
- Line
- CHIMNEY · account 40070 · Service 401(k)
- Project
- X - Non-Project Code
-
Decision · Acumatica Construction Edition · 6:20 in the video
Do the bill and pay app agree?
Confirm the bill's totals, retainage and allocation match the validated pay app and the commitment has room.
- If yes Approve the bill.
- If no Reject or route it back with the line that is wrong.
In the videoBill total 15,000.00, retainage 1,500.00 and balance 13,500.00 match the G702.
-
Action · Acumatica Construction Edition · 6:30 in the video
Approve the bill
Click Approve on the bill toolbar. The bill moves on to normal AP posting and payment controls.
In the videoApprove clicked on bill 000006.
Rules, exceptions and controls
Rules to follow
- Retainage on the pay app must equal the project's retainage percentage applied to work completed (10% of $15,000.00 = $1,500.00 in the video).
- G703 grand totals must tie to G702 line totals.
- Billing to date may not exceed the subcontract commitment.
- The AP bill's detail total, retained amount and balance must match the G702.
- Only bills in Pending Approval are approved; mismatches are rejected or routed back.
When something doesn't match
- Email cover note and form disagree (in the video the email cites $25,000.00 completed and $9,000.00 previous payments while the G702 shows $15,000.00 and $0.00): rely on the signed form and confirm with the subcontractor.
- Bill posted to a non-project code: correct the project and cost code before approval if job costing is required.
- Billing exceeds the remaining commitment: route to the project manager for a change order.
Controls and audit trail
- Bills require approval in Acumatica before they can be released and paid.
- Retainage is checked against project settings, not just the subcontractor's form.
- Commitment amount limits billing.
- Approve/Reject actions are recorded on the bill.
Practitioner tips
- Recalculate retainage and the current amount due yourself instead of trusting the form.
- Compare the cover email to the form; differences often mean an outdated draft was attached.
- Match the vendor reference (e.g. PAY-APP-02) to the application number to avoid approving the wrong bill.
- Check the project and cost code on each line so job cost reports stay accurate.
About this recording
In the recording, the agent read the emailed G702/G703, checked the project, retainage and commitment in Acumatica, audited the AP bill and approved it.
Documented the way you'd train a new hire — and the same way an agent learns it.
Frequently asked questions
How do I approve a subcontractor pay application in Acumatica?
Validate the G702/G703, check the project's retainage and the subcontract commitment, then open the matching bill in Payables > Bills and Adjustments, confirm totals and allocation, and click Approve.
How is retainage calculated on an AIA G702?
Retainage is the retainage percentage times the work completed and stored to date. In the video, 10% of $15,000.00 gives $1,500.00, leaving $13,500.00 earned less retainage.
What should I check on a G703 continuation sheet?
Each line's scheduled value, previous work, work this period, percent complete and balance to finish, and that the grand totals tie to the G702.
Where are subcontract commitments in Acumatica?
On the project's Commitments tab, which lists the purchase orders and subcontracts against the project with amounts and status.
Can an AI agent review subcontractor pay applications in Acumatica?
Yes. As shown in the video, the agent works the same Outlook and Acumatica screens a person does, from reading the G702/G703 to approving the bill, with a person approving where required.