Invoice Data Extraction for
Construction and Contractors
Construction invoices are the most complex type in AP — AIA applications for payment, mixed labor and materials, retention tracking, change orders, and multiple subcontractors per project. SkipEntry extracts data from all of them without templates.
No credit card required.
Why construction AP is harder than other industries
A general contractor on an active commercial project might receive 50–200 invoices per month from subcontractors alone — framing, mechanical, electrical, plumbing, roofing, concrete, finish trades. Add materials suppliers, equipment rentals, and specialty vendors, and AP becomes one of the heaviest operational burdens in construction.
What makes it harder than other industries is the structure of the invoices themselves. AIA G702/G703 applications for payment span multiple pages with scheduled values grids, work completed columns, retention calculations, and stored materials breakdowns. Time-and-materials invoices mix labor and materials on the same document. Subcontractor invoices reference job numbers, cost codes, and change orders that need to match your internal job costing records.
Template-based OCR tools require configuration for every subcontractor — and construction subcontractors use an enormous variety of invoice formats. Most construction bookkeepers and project accountants end up entering invoices manually, sometimes capturing only the total and losing the cost code and retention detail needed for accurate job costing.
SkipEntry uses AI to read construction invoices the way an experienced project accountant would — no templates, no per-vendor configuration. Upload the AIA application, the subcontractor invoice, or the materials bill. It extracts the relevant fields.
Invoice types SkipEntry handles
Any subcontractor, any format. No templates to configure.
Subcontractor invoices
Framing, plumbing, electrical, HVAC, and other subcontractors each have their own invoice format and billing cycle. SkipEntry handles every sub without templates — extract amounts, retention, and job references from each.
Materials and supply invoices
Lumber yards, concrete suppliers, roofing distributors, and building material vendors send line-item invoices with product codes, quantities, and unit prices. Full line-item extraction without manual entry.
Equipment rental invoices
Crane rentals, scissor lifts, excavators, and other equipment rental invoices often span multiple days with daily and weekly rate breakdowns. SkipEntry extracts rental periods, rates, and equipment codes.
AIA G702/G703 applications for payment
The standard AIA format includes scheduled values, work completed to date, materials stored, retention amounts, and net payment due. SkipEntry reads the structured AIA format and extracts all key payment application fields.
Time-and-materials invoices
T&M invoices from subcontractors break out labor hours, rates, and materials separately. SkipEntry extracts both components so your job costing captures the full cost picture.
Scanned paper invoices from smaller subs
Smaller subcontractors and specialty trades often submit handwritten or older-format paper invoices. SkipEntry handles scanned PDFs and image files with the same accuracy as digital originals.
Key extraction fields for construction
Job costing requires more than vendor name and total — SkipEntry extracts the project and cost code detail that drives accurate job cost reporting.
| Field | Why it matters |
|---|---|
| Job number / project code | Route every invoice cost to the correct job in your accounting system |
| Cost code / phase code | Break down costs by phase (foundation, framing, MEP, finish) for job costing accuracy |
| Subcontractor name | Match to vendor record and subcontract agreement for compliance |
| Invoice date and due date | AP aging and payment scheduling against subcontract payment terms |
| Invoice number | Duplicate detection and lien waiver matching |
| Scheduled value / contract amount | Track AIA payment applications against original subcontract |
| Retention amount | Track retention withheld and released separately from net payment |
| Net amount due | Actual payment amount after retention — what gets paid now |
Job costing: extract job number and cost code
Accurate job costing requires every invoice cost to be assigned to the correct job and cost code — not just posted to a general subcontractor expense account. When subcontractors and suppliers include your job number on their invoices, SkipEntry custom fields can extract it automatically, so costs route to the right job without manual re-coding.
Phase and cost codes — whether you use CSI divisions, your own internal codes, or codes set up in your accounting software — can also be extracted when they appear on invoices, enabling cost-code-level reporting without additional data entry.
Job number extraction
Extract job or project codes from subcontractor and supplier invoices. Map to QBO class or project, or Xero tracking category, so every cost lands on the right job.
Cost code extraction
Pull phase and cost codes when they appear on invoices. Critical for detailed job cost reporting beyond the job level.
Retention tracking on subcontractor invoices
Most subcontract agreements include a retention clause — typically 5–10% withheld from each progress payment until substantial completion. Tracking retention correctly requires recording both the gross invoice amount billed and the retention withheld, not just the net payment amount.
SkipEntry extracts the retention amount and net payment due from subcontractor invoices and AIA payment applications. When exported to QBO or Xero, you can post gross amount to AP and retention to a retainage payable account — maintaining accurate records of what you owe each sub in total and in retention.
Example: AIA G702 extraction
All fields extracted automatically — no manual entry.
Integration with QBO and Xero for job costing
QuickBooks Online and Xero both support project or job costing, but the mapping from extracted invoice data to the correct project is a manual step in most workflows. SkipEntry exports in import-ready formats for both platforms, with extracted job numbers and cost codes mapped to QBO class or project fields, or Xero tracking categories.
Related reading
- Construction Bookkeeping: Managing Subcontractor Invoices— How to handle AIA applications, retention, and job costing in construction AP.
- Batch Invoice Processing— Processing high volumes of invoices efficiently in a single batch workflow.