Billing plan Type

[Former Member]

Hii friends

what's the difference between 'Periodic billing plan' and 'Milestone billing plan'

explain with example??????

[Former Member]

<b>Periodic Billing:</b>

Periodic Billing is the billing, which is done at regular Interval. Examples of Periodic Billing are: Monthly House Rent, Fixed Price Billing for Support Consulting, & so on.

In Periodic Billing, you can create the periodic Billing plan for a said period at once. Say Fixed Price Billing for Support Consulting to be billed at Rs. 100000/- Per Month for a period of 12 months. Every month the billing of Rs. 100000/- is to be done. In Billing Plan Tab Page of Sales Order we can remove the Billing Block & Bill for the same.

<b>Milestone Billing:</b>

Milestone billing is a billing plan, such that once a particulr milestone is crossed, it is to be invoiced to an customer. Example of Milestone Billing are Implementation Project, Constuction Industry, & so on.

In Milestone Billing say the order is of Rs. 100000/-. This Rs 100000/- is going to be received say 10 % as advance before Project Preparation, 20% on completion of Business Blue Print, 20% on signoff of realization, 40% on Go-Live & 10 % at the end of Post Go-Live Support.

Milestone Billing & Periodic Billing are controled by maintaining Billing Plan Type in Item category. If Billing Plan is not maintained in Item Category, then we do not get Billing Plan Tab page in Sales order.

Regards,

Rajesh Banka

Reward Points if helpful.

[Former Member]

Hello Sourabh,

here is a link to the documentation of the functionality of the billing plans:

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/SDBIL/SDBIL2.pdf

I hope this helps.

Best regards, Bernd

[Former Member]

Hi Sourabh,

<b>Periodic billing</b> can be used, for example, in rental contracts. The billing dates in a periodic billing plan can be determined from the following sources:

Control data in the billing plan

Header data in the rental contract

Manually entered dates

<b>Milestone billing</b> is typically used for billing projects, such as plant engineering and construction projects. Such projects often include a series of milestones that mark the completion of different stages of the work. In the SAP R/3 System, milestones are defined in a network along with planned and actual dates for the completion of work. The milestones are also assigned to the billing dates in the billing plan. Each milestone-related billing date is blocked for processing until the Project System confirms that the milestone is completed.

Delivery-relevant order items for which a milestone billing plan applies are billed on the basis of the requested delivery quantity and not on the total of the confirmed quantities.

Hope this helps. Reward points if it is useful.

Thanks & Regards

Sadhu Kishore

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[Former Member]

Milestone is a billing plan type where a customer is billed for the amount distributed between the dates until total value is reached

Example:if the total billing amountis 1000 USD for a year. You will bill the customer in different amounts say 200, 500, 300 at different intervals as per customer agreement.

On the other hand Periodic billling is billing the customer for the total amount(here 1000 USD) at regular intervals peridically until the customer agreement is reached. eg: 1000/12 for a 1 year agreement and say billed at the 1st day of every month.

Milestone billing is generally used in an engineering or industrial design company. For a design project, an agreement with a customer requires a down payment and billing based on the performance of defined milestones.

Regards,

Gauravjit

Reward Points if solution is helpful

[Former Member]

Hi Sourabh,

Periodic billing is based on period such as months,weeks year.This means client has to pay after a specific period.

Milestone billing is based on the activities we do during the project.For e.g. while constructing a flyover if one activity is completed,that would be milestone and client will pay for that and then you will work for the second activity.

Reward points if it helps.

Regards

Karan

[Former Member]

periodic billing plan is periodically we will generate the billing document.

Eg:Monthly billing

milestone billing plan generated at the time of the customer completes the business at that time we wil generate milestone billing

[Former Member]

Adding to the above answer

The difference between these two kinds of billing plans is the fact that the total value to be billed is either distributed between the individual dates of the billing plan, or is billed periodically as a total value for each date until a predefined end date is reached

The billing plan type is determined from the document item category and the relevancy for billing.....

Example

<b>Periodic:</b> its like your telephone Bill which is generated every month on a fixed date

<b>Milestone:</b> It could be like an apartment u buy u pay the first installment at the plan phase .. and then second installment after certain time .. and ... so on .

hope this resolves the issue.

cheers

[Former Member]

Periodic Billing Plan : Billing once in every month/Week/Fortnight/Year.

Milestone Billing Plan : Billing at the completion of each milestone or pre-identified phases of a project.

Example : In a SAP implementation project milestones can be

1. BluePrint Sign-Off

2. UAT Sign-Off

3. Go-Live