N.Y. Comp. Codes R. & Regs. tit. 9, § 1646-5.4 – Partial payments.

(a) Payments on account of contracts included in the scope of this Subpart shall be made in accordance with the terms of the contract. Such terms may prescribe the form in which the contractor's claim for payment is to be submitted, the retention by the local agency, until the final payment is made of fixed percentages of the claim, etc. No partial payments may be made after the time fixed in the contract for the full and final completion of the work, as extended by change orders has expired unless the contract has been amended and the prior approval of the commissioner to the making of the partial payment has been obtained in accordance with such amendment. The State's construction adviser is not authorized to give approvals under such circumstances.
(b) Generally speaking, claims for partial payments on account of the contracts included in the scope of this Subpart will be submitted in either of the following forms:
1. (1) Periodical estimate for partial payments. This is a printed form supplied by the division (form DH-356) and is shown as Exhibits 13 and 14 of Appendix S-11. Claims for partial payments under most construction contracts included in the 1460, Structures, Equipment and Improvements, group of development cost accounts will be submitted on this form. All periodical estimates for partial payments require the prior written approval of the State's construction adviser. Preparation of the periodical estimate for partial payment, and of the supporting documents required in connection therewith, is described in section 1646-5.6.
2. (2) Contractor's invoices. When a contractor's claim for a partial payment is not required to be submitted in the form of a Periodical Estimate for Partial Payment (form DH-356), it will ordinarily take the form of the contractor's invoice. The processing of an invoice and the documents required to support the accounts payable voucher drawn therefor are described in section 1642-2.4 (subd. [c], par. [2], subpar. [iii]). All partial payments on contracts included in the scope of this Subpart, based on invoices, require the prior written approval of the division or the State's construction adviser, depending on the type of contract. Such approval may be in the form of a letter or an endorsement of the invoice and shall be attached to the accounts payable voucher.

(c) Assuming that the approved claim for partial payment of a plumbing contractor, holding a contract in the adjusted amount of $100,000, is for $30,000, which includes a net allowance of $5,000 for materials stored on the site, (see § 1646-5.6, subd. [f]) and that 10 per cent is to be retained on the gross value of the work performed, the following entry would be made from the accounts payable voucher.

Entry (2):

Debit: Account 1460.2, Plumbing	$30,000.00
Credit: Account 1111, Development Fund		$27,500.00
Credit: Account 2112, Contract Retentions		$ 2,500.00
Debit: Account 2400, Contract Awards	$30,000.00
Credit: Account 1150, Incompleted Contracts		$30,000.00

(d) In the entry recording the payment of the contractor's claim in the contractor's ledger (see Exhibit 19, Appendix S-8), the total value of the work performed is the sum of the amount advanced for materials stored, the net amount paid on account of the contract itself (after deduction for contract retention) and of the amount of the contract retention. The support for the above entry in the contractor's ledger shall be the approved periodical estimate for partial payment. No accrual is to be made for work performed under contract in the current quarter, and remaining unpaid as of the end of the quarter.