contracts vs sales order billing plan

[Former Member]

Hi all,

If I have a monthly billing plan, what are the benefits of using a contract over a sales order? With both I can set up a monthly billing plan, and invoice them accordingly on a monthly basis.

Thanks

[Former Member]

Hi Pistol ,

The cancellation process of the Contract is very streamlined in the Sales Contract and it gives good visibility. You have Cancellation Control parameters. In Sales Order, we don't have that flexibility.

regards

Vinu

[gfascetti]

Assuming you have a big contract with several items you will not be able to put everything in just one sales document, so you would use the contract just to set up basic data in order to create several sales order documents with reference (representing for example the customer PO’s) to this contract. In the sales order documents you would have the billing plan for the items and data necessary to each invoice generated.

[Former Member]

Contracts are meant for periodic billing or milestone billing where in you have flexibility of continuing the contract or cancelling the contract.

[Lakshmipathi]

Sale order dont have validity end period whereas contracts have through which, you can restrict billing generation.

G. Lakshmipathi