on 01-01-2008 11:46 AM
What is the difference b/w Periodic billing & Milestone billing?
Dear Harish
Periodic Billing
Periodic billing means billing a total amount for each individual billing date in the plan. For example, if you are creating a rental contract, the system can propose a schedule of monthly rental payments, according to the length and conditions of the contract.
Milestone Billing
Milestone billing means distributing the total amount to be billed over multiple billing dates in the billing plan. For example, you can use a billing plan for billing a make-to-order item that is assigned to a project in the SAP Project System. When you enter the project-related make-to-order item in the sales order (or assembly order), the system proposes a billing plan based on milestones defined for networks in the project. As each milestone is successfully reached, the customer is billed either a percentage of the entire project cost or simply a pre-defined amount.
Thanks
G. Lakshmipathi
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Periodic Billing is when billing is done periodically i.e regularly one on last day of month etc . It is normal scenerio
Mile stone Billing is generally used with Projects where billing is done after perticular milestone of Project
I mean to say 50 % putting ceiling , 20% after complete construction and Remaining 30 % during possession in case of construction Industries.
Hope this will help
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