How do I process field tickets for time and material work in construction AP?

Key takeaways

• Vergo automates field ticket coding and three-way match reconciliation by inferring cost codes from your accounting history, so T&M invoices route to the right job without manual lookup.
• Field tickets must be captured daily at the point of work with complete documentation of hours, equipment, materials, and authorizing signatures.
• A three-way match between invoice, approved field tickets, and contract rate schedules prevents overbilling and catches unauthorized charges before payment.
• Every ticket should tie to a unique T&M authorization number and be logged by job number and cost code within 24 hours of collection.
• Weekly reconciliation of open ticket logs against subcontractor invoices catches duplicate billing and missing documentation before the AP cycle closes.

Why T&M field ticket processing breaks down in construction AP

Time and material work generates paper and exceptions faster than almost any other billing type. A single storm-damage repair or change-order scope item can produce dozens of daily field tickets from multiple crews, each with handwritten labor hours, equipment IDs, and material quantities. By the time those tickets reach the AP manager, they've passed through a foreman, a project manager, and sometimes a third-party owner's rep—each handoff introducing delay, lost documentation, or conflicting numbers. The core problem is verification. Unlike lump-sum invoices tied to a schedule of values, T&M invoices can bill for anything that appears on a signed ticket. Without a disciplined intake process, AP teams routinely encounter unsigned or undated tickets that can't be verified against field logs, missing cost codes requiring back-and-forth with the field before the invoice can be coded, duplicate billing when a subcontractor invoices for a ticket already captured in a prior pay period, and rate mismatches where billed labor rates exceed the rates established in the T&M contract or subcontract exhibit. Vergo eliminates the missing-cost-code loop by proposing the coding by inference from your own accounting structure and job cost history, so T&M invoices are coded on first sight without manual lookup.

The recommended workflow for T&M field ticket processing

Capture tickets at point of work. The foreman or superintendent collects a signed field ticket from the subcontractor or crew lead at the end of each shift or work day. Tickets must include date, crew size, hours by classification, equipment used, and materials consumed. Log tickets by job and cost code immediately. The project engineer or field admin enters ticket data into the project management system the same day, tagging each ticket to the correct job number, cost code, and change order or T&M authorization number. Project manager reviews and approves within 48 hours. The PM confirms that the work described on the ticket was actually performed and authorizes the quantities. Any disputes—incorrect hours, unauthorized equipment, unapproved scope—are flagged before the invoice cycle opens. AP receives the vendor invoice with ticket backup attached. Subcontractors and vendors must submit invoices with all supporting field tickets attached. AP should reject invoices that arrive without complete ticket documentation. Three-way match: invoice, field tickets, and contract rates. AP verifies that invoiced quantities match approved ticket quantities, and that billed rates match the labor rate schedule and equipment rate schedule in the subcontract. Flag any line item where rates or quantities deviate. Vergo automates this three-way match by extracting line-item data from T&M invoices and comparing quantities and rates against contract rate schedules, flagging exceptions before routing for approval. Code to job cost and route for approval. Once verified, AP codes the invoice to the correct job, cost code, and phase. Route to the PM for final approval, especially if the invoice total approaches or exceeds the T&M authorization limit. Post to ERP and retain ticket images in the project record. Post the approved invoice to accounts payable in the ERP. Attach scanned or digital ticket images to the transaction record so auditors, owners, and project controls teams can trace every dollar back to field documentation.

A practical example

A subcontractor performing emergency storm repair submits an invoice for $18,400 covering seven days of work. The invoice references fourteen field tickets, but only eleven are attached to the submission. AP rejects the invoice and requests the missing tickets. When the complete packet arrives, the AP analyst cross-checks each ticket against the approved T&M authorization and discovers that three tickets list a foreman rate of $68 per hour, but the subcontract exhibit caps foreman billing at $62. The analyst flags the discrepancy and routes the invoice back to the project manager, who negotiates a credit memo with the subcontractor. After adjustment, the invoice is re-coded to the correct job and cost code, approved by the PM, and posted to the ERP with all fourteen ticket images attached. The entire cycle took nine days instead of three, but the correction saved the project $504 in overbilled labor.

Tips for construction AP teams handling T&M work

Establish a ticket submission deadline. Require subcontractors to submit signed field tickets within 24–48 hours of completing the work. Tickets older than five business days at invoice time should trigger automatic review. Build a T&M rate sheet into every subcontract. Labor classifications, equipment rates, and markup caps should be documented before work begins—not negotiated when the invoice arrives. Use a unique authorization number for every T&M event. Tie every ticket to a T&M authorization or change order number. This prevents invoicing for work that was never formally approved. Reconcile open ticket logs weekly. Project engineers should maintain a running log of approved tickets by cost code. Reconcile this log against subcontractor invoices at each billing cycle to catch omissions and duplicates. Vergo eliminates manual reconciliation by comparing T&M invoice line items against logged field ticket data and flagging duplicate ticket numbers across pay periods before approval.

How Vergo handles this

Vergo brings card spend, employee reimbursements, and AP invoices through one coding model—same coding, same review, one reconciliation—while payment stays on the rails you already use. Vergo proposes the coding by inference from your own accounting structure and job cost history, so new vendors and cost types are coded on first sight without building rule libraries or maintaining keyword lists. Every coding shows why it was chosen, so a reviewer confirms in seconds instead of re-coding by hand. Approval workflows are optional and fit how you already control spend: route by GL account, by amount, or by project—or skip approval flows entirely and let policy flags catch only what breaks a rule. Transactions are ready to code the moment they happen, and once they clear they sync into your accounting or ERP software. Vergo integrates with every ERP and accounting software, and connecting your existing cards involves no card applications, no re-issuing, and no banking change.

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