Automate progress claim and batch payment reconciliation
Remittance Go handles construction batch payments in Xero — progress claims, retention releases, and variation invoices mapped to the correct invoices automatically.
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Construction payments don't fit the standard invoice model. Manual reconciliation in Xero makes it worse.
Progress claims, retention deductions, variation invoices, and contract references — construction AR is complex by nature. Doing it manually compounds that complexity.
Remittances reference contracts, not invoice numbers
A payment schedule references a contract stage, a claim number, and a retention line — not the Xero invoice number. Matching that manually means understanding the contract structure, not just looking up a reference.
Retention creates partial payment complexity
A payment covering 10 invoices might have full payment on eight, retention withheld on two, and a release of prior-stage retention included. Each needs to be applied correctly in Xero.
Every principal sends a different format
Five principal contractors means five different remittance formats — some from large ERPs, some from accounting software, some manually prepared PDFs. Each needs to be read accurately.
The time cost
What manual construction payment reconciliation costs per week
Construction payment schedules are among the most complex remittances to reconcile manually. The time adds up fast.
typical manual processing time for a single complex progress claim payment covering multiple invoices, retention, and variations
Contract structure adds complexity above invoice matching
Construction payment reconciliation requires understanding the contract, not just looking up invoice numbers. Without automation, this means careful manual cross-referencing for every payment.
Retention cycles span multiple payment periods
Tracking withheld retention across multiple payment periods — and applying retention releases to the correct original invoices — is error-prone without a system that maintains that state.
Multiple principals, multiple formats, every week
Working with five principals means five different remittance formats arriving on five different schedules. Each one requires the same careful reading, matching, and entry into Xero.
Time savings estimate (10 batch payments/week)
| Task | Time saved |
|---|---|
| Reading payment schedule | ~15 min |
| Invoice matching | ~20 min |
| Xero entry | ~10 min |
| Total per payment | ~45 min |
How it works
From payment schedule received to Xero reconciled
Remittance Go reads construction payment schedules, matches each line to the correct Xero invoice using contract references and claim identifiers, applies retention as partial payments, and posts the full batch.
Step 1 — Payment schedule arrives
The principal contractor's payment schedule — PDF remittance or structured document — is forwarded to Remittance Go via email or direct upload.
Step 2 — Lines extracted
Contract references, progress claim numbers, invoice identifiers, individual amounts, and retention deductions are extracted from the document automatically.
Step 3 — Matched to Xero invoices
Each extracted line is cross-referenced against open invoices in Xero using contract numbers, stage references, and claim identifiers — not only direct invoice number matches.
Step 4 — Applied with retention tracking
The full batch is posted to Xero. Retention deductions are recorded as partial payments. Withheld amounts remain as outstanding balances until released in a subsequent payment.
Frequently asked questions
Can Remittance Go handle progress claim payments that don't reference Xero invoice numbers?
Yes. The matching logic is flexible — it can match on contract numbers, claim references, stage identifiers, and purchase order numbers. Each principal contractor's reference conventions are handled correctly once the pattern is established.
How does retention tracking work?
When a remittance includes a retention deduction, invoices are matched as partial payments — the net amount paid is applied, and the withheld retention remains as an outstanding balance. When a retention release arrives in a subsequent payment, it's matched to the original invoices and applied as the remaining payment.
Can Remittance Go handle variation invoices within the same payment as progress claims?
Yes. Variations are matched to their specific invoice references within the batch. A remittance covering a progress claim, a variation, and a retention release is reconciled as a single batch — each component matched to the correct invoice.
How does Remittance Go handle different remittance formats from different principals?
The parser adapts to payer formats over time. The first remittance from a new principal may need a brief review. Subsequent remittances from the same payer are handled automatically.
Does Remittance Go work alongside construction-specific tools like Buildxact or Simpro?
Remittance Go integrates with Xero. If your construction tool pushes invoices to Xero, Remittance Go sees those invoices in Xero and matches payments against them — regardless of where the invoices originated.
Stop reconciling construction payments by hand.
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