RA Bill Format: What a Running Account Bill Contains and How Its Deductions Work

An RA bill (running account bill) has four parts: a header that names the work, the agreement and the bill period; an abstract that values the work measured to date at contract rates and subtracts what earlier bills already claimed; the deductions, such as retention, advance recovery and tax deducted at source; and the net payable, which is what the contractor should receive for that bill. Behind the abstract sit the signed measurements, and the bill can only claim what they record.

Last updated 30 October 2026. This guide is general information, not legal, tax or accounting advice. The format of a real RA bill is set by the client and the contract, so check your contract and current law. Sample figures are illustrative and are not customer data.

What does an RA bill contain?

An RA bill contains a header, the measured abstract of work, any approved deviations or extra items, the deductions and the net payable, with the measurements and supporting documents attached. Each part answers a different question a client's engineer asks before certifying the bill.

Sources: Crestline's glossary entries for RA bill and measurement book, and Indian practitioner billing formats listed below the guide. The exact columns and attachments differ by client, so use the format your client or department issues.

What does a sample RA bill abstract look like?

A sample RA bill abstract lists each BOQ item billed in the period with its quantity and rate, then totals the bill and subtracts the deductions. The sample below uses the figures from the RA bill example in Crestline's glossary: a bill of ₹2.40 crore with 5% retention and ₹0.20 crore of mobilisation advance recovery.

As of 30 October 2026. The rates and quantities are invented for the illustration and are not market rates. A real abstract also carries the up-to-date and previous quantity columns for every item, and a real bill may carry further deductions, such as tax deducted at source; this sample shows none, because their rates depend on the payee and current law.

What deductions come off an RA bill?

The deductions on an RA bill are set by the contract and by law, and the common ones are retention or security deposit, mobilisation and secured advance recovery, tax deducted at source, statutory deductions such as labour cess where they apply, liquidated damages and amounts withheld. Some of these come back to the contractor later and some do not, which is why each needs its own line.

Source for the CPWD figures: CPWD General Conditions of Contract 2019, as cited in Crestline's security deposit entry. The list of deductions follows a practitioner deductions register for RA bills (InfraLens, read 30 October 2026); it is a common set, not a complete one, and your contract decides which apply. GST on a works contract is charged on the tax invoice rather than shown as a deduction here; read the works contract under GST definition and ask your tax adviser how it applies to your bills.

How is the net payable on an RA bill calculated?

The net payable on an RA bill is the gross value of the bill less every deduction on it: net payable = value of this bill - retention - advance recoveries - tax deducted at source - other deductions. The value of this bill is the value of work to date less the value claimed in earlier bills.

1. Value the work to date: each BOQ item's quantity up to date multiplied by its rate, plus approved deviations and extra items.
2. Subtract the value certified in earlier bills to get this bill's gross value.
3. Subtract each deduction on its own line, using the rate or amount the contract and current law set.
4. Record the net payable, and keep the claimed figure: the client may certify a lower amount, and the difference is a cut that needs a recorded reason.

Whenever retention, recoveries or tax come off a bill, the cash that arrives is below the work certified. A finance team that reads only certified value will think a project is collecting better than it is.

What is the RA bill process, step by step?

The RA bill process runs from work executed on site to payment received: measure the work, compile the bill, submit it, have it checked and certified, raise the tax invoice and collect the payment. Each step has its own date, and the gaps between those dates are where an RA bill waits.

1. Work executed. The site completes work against BOQ items.
2. Joint measurement. The contractor's and client's engineers measure the work and sign it in the measurement book.
3. Bill compiled. The billing team prices the measured quantities at contract rates and applies the deductions.
4. Bill submitted. The bill goes to the client's engineer or, where one is appointed, the project management consultant, with its attachments.
5. Checked and certified. The engineer checks quantities, rates and deductions; the bill is certified for an amount or returned with comments. This wait is the certification lag.
6. Tax invoice raised. The contractor invoices the certified amount.
7. Payment released. The client pays the invoice, net of the deductions.

How long each step may take is set by the contract and by the client's own rules. To find which step is holding your bills, read why RA bills get delayed and how to find the cause, and for the stage-by-stage method read how to find working capital stuck in RA bills.

How is an RA bill different from a final bill?

An RA bill is an interim payment for work done in a period, paid on account; the final bill is prepared once all the work is complete and settles the contract as a whole, including every earlier RA bill, every adjustment and anything still withheld. The final bill definition compares the two in a table, and the no claim certificate definition explains the declaration clients often ask for with the final bill.

Where does Crestline fit with RA bills, and where does it not?

Crestline is process intelligence software for EPC and construction finance teams. Crestline reads the ERP event trail read-only, follows each RA bill as its own case from execution through measurement, submission, review and certification, keeps every returned submission, and reads the recovery and TDS lines on each bill, so the gap between value certified and cash received is explained. Grey Infra ERP is the only live connector today; other systems are not yet available, ask on the scoping call.

Crestline does not prepare, format or submit RA bills, and it does not decide which deductions a contract allows. For a handful of bills, a spreadsheet with the dates of each step answers the same questions. The method is described on the process mining for EPC finance page. To see your own RA bill waits ranked, book a Crestline demo.

What is Crestline not?

Crestline is not an ERP. Crestline holds no ledger and issues no invoice. Crestline is also not:

• Accounting or billing software. Crestline does not post entries or generate RA bills.
• Project management or scheduling software.
• A legal or tax service. Crestline does not say what a contract or the law entitles a contractor to, so check your contract and current law, and take advice.

Crestline does not write back to your systems.

Key takeaways

• An RA bill has a header, an abstract of measured work, the deductions and the net payable, with the measurements behind it.
• This bill's gross value is the work to date less what earlier bills claimed.
• Where retention, advance recoveries and tax come off a bill, cash received is below the work certified; some deductions come back later and some do not.
• The client and the contract set the format and the deductions, so use their format and check your contract and current law.
• The dates of each step, from measurement to payment, show where a bill waits.

FAQ

What is the full form of RA bill?

RA bill stands for running account bill: the periodic bill a contractor raises for work completed so far on a project, measured on site and certified by the client before payment. It is paid on account, so later bills and the final bill can correct it.

What deductions are made from an RA bill?

The common deductions from an RA bill are retention or security deposit, mobilisation and secured advance recovery, tax deducted at source, statutory deductions such as labour cess where they apply, liquidated damages and amounts withheld. The contract and current law decide which apply and at what rate, so check both for your work.

Is there a standard RA bill format I can download?

No single standard RA bill format applies to every contract. Government departments and private clients issue their own forms, and the contract decides the columns, the deductions and the attachments, so this guide explains the parts of the format rather than offering a template. Ask the client for its format before the first bill and keep to it.

What is the difference between an RA bill and a final bill?

An RA bill pays on account for the work done in a period; a final bill is prepared after the work is complete and settles the whole contract, including every earlier RA bill and every adjustment. The final bill definition sets the two side by side.

Sources

• https://www.cpwd.gov.in/Publication/GCC_Construction_2019.pdf
• https://www.infralens.in/pmc/billing/deductions-register-ra-bills
• https://infralens.in/pmc/billing/final-bill
• https://www.scribd.com/document/251311107/RA-Bill-Format
• https://www.crestlineintelligence.com/llms-full.txt