Cost Management Payment Application Workflow Discussion

[rachel.he]

Hi guys,

Now I am studying the workflow of payment application of cost management. 

The workflow is attached for reference. As you see that there is a step called "input pay application information". 

Anyone know how can input pay application information in Cost Payment Applications into Budget Payment Application? 

Besides, I am confused that we generate Main Contract SOV in Budget Payment Application but create billing period in Cost Payment Application. Where is the connection?  

Thanks. 

[ian_turner · Accepted solution]

Hello Rachel

Budget pay applications are generally between the General Contractor (GC) and the Owner. 

The budget application is based upon a schedule of values (SOV) which is created in the Main contract set up. Each item in the Main Contract SOV is generally linked to a budget item. 

Billing periods are set up for the main contract to suit how often the owner will pay the GC.

Cost pay applications are created for each Subcontract supplier and are also connected to the budget. They are  associated with the Budget pay application for the relevant billing periods they were on site. The GC could decide to pay their suppliers more regularly or different billing intervals if they want so they have an option to just use the main contract billing periods or could have custom ones. 

Every supplier would submit their application to the GC based upon work completed in the billing period.

When they are all done and the GC sets them as 'accepted' they can select 'Update Budget Payment Application' in the flyout for the Budget Pay Application. All completions based upon % ratios are then updated in the Budget pay app.

The GC would then enter amounts for other items not driven by Suppliers such as General Conditions/Preliminaries and Fees etc and then collate all the information to submit to the Owner.

Once the Owner has accepted the application they GC would then authorise payment to the Suppliers. (see page 39 onwards https://bim360resources.autodesk.com/construction-cost-management-with-bim-360/cost-management-workf...)

Send me an email at [email protected] if you would like more help

Thanks, Ian

[fisherket812]

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@rachel.he wrote:

Hi guys,

Now I am studying the workflow of payment application of cost management. 

The workflow is attached for reference. As you see that there is a step called "input pay application information". 

Anyone know how can input pay application information in Cost Payment Applications into Budget Payment Application? 

Besides, I am confused that we generate Main Contract SOV in Budget Payment Application but create billing period in Cost Payment Application. Where is the connection?  

Thanks. 

That’s why I’ve been looking into platforms that simplify financial transactions instead of making them more complicated. One that stood out to me is PayKassma—they offer an all-in-one payment solution that helps businesses handle transactions securely and efficiently. If anyone's interested, I found this article pretty insightful: https://paykassma.com/blog/payments/what-is-vpa-virtual-payment-address.

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I was in the same boat not too long ago, and honestly, big thanks to @ian_turner  here — your explanation really helped me connect the dots. Just in case it’s useful to someone, when I was learning, I found that making sure the payment data is correctly structured from the start saves a ton of headaches later. The key for me was understanding how different payment systems integrate smoothly, especially when handling multiple billing periods and contract structures.