Difference between Schedule line agreement & Milestone billing

[Former Member]

Hi Gurus

Can you please elaborate billing plans and their configurations in IMG in billing - billing plan and why we use billing plans,and i doubt that milestone is just like schedule lline agreements where the billing amount is divided in milestone and in schedule line agreement we give the order dates fixed,Then what is the difference between this two .,

Thanks in advance

Thanks & Regards

Narayana

[madhan_narlapuram · Accepted solution]

sent both the material to your email ..plzz check

reward if useful

thanks

madhan

[Former Member · Accepted solution]

Hi Madhan,

Can u send the materials to my mail id dlokesh82@gmail.com

Lokesh

[Former Member]

Difference between Scheduling agreement & Milestone billing is in scheduling agreement on the said schedule, the delivery & billing will take place, but incase of milestone billing it will have tentitive dates of milestone to be achieved, but will not be billed untill & inless the milestone is achieved. Eg of MIlestone Billing with reference to Implementation Project may be as under (just for illustration purpose)

1. Initial payment during Project Preparation Stage, say 10%

2 On signing off of Business Blueprint document like AS-IS & TO-BE, say 20%

3. On signing off of Realization Phase, say 20%

4. Project Go-Live, say 40%

5. At the end of Post Go-live support, Say 10%

(If you sum the total of %'s it will be 100 %)

Regards,

Rajesh Banka

Reward points if helpful.

[Former Member]

<b>Billing plans: </b> These are used for billing only. There are two types - periodic billing and milestone billing. In periodic billing, the same amount is billed every period, for eg, a rental contract where the rent amount is billed every month. In milestone billing, a whole amount is billed in parts at certain "milestones" of a project. E.g. When building a structure the milestones could be approval of plan, foundation, roofing and final closing.

<b>Schedule lines</b> are used in delivering the goods to the customer. Schedule lines allow you to subdivide a delivery based on availability, time required to make the goods etc.

The only similarity - if they can be called that - is they split the activity(billing, delivering) into multiple dates.

[Former Member]

<b><u>A Quick Guide to Configuring Milestone Billing plan in 46C</u>.</b>

1. Create a billing plan type in OVBO. Give a name and description. Choose a start date. Start dates are self-explanatory.

2. Define date descriptions in OVBN. Give names and descriptions

3. Define/assign date categories in OVBJ. Press new entries. Enter your billing plan type and date category(this is where you are creating it) and a date description from Step 2. The billing rule and billing block are the most important pieces of information here.

4. Maintain date proposals in OVBM. This is where the actual billing plans are created. Double-click the billing plan type, and press the Maintain Date button. Enter a start date, and the individual billing dates. Also enter the percentages or amounts. <u>Note that this cannot be transported. You will have to do this in each client.</u>

5. Assign the billing plans to either item categories (OVBK) or sales doc type (OVBP). I find that you get more flexibility in design if you assign billing plans to item categories.