billing plans

[Former Member]

can any one give me with example difference b/w periodic billing and milestone billing

[Former Member]

tanx to all

[Lakshmipathi]

Dear narendra

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 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

[Former Member]

Periodic Billing is similar to rentals being paid on monthly basis & the amount is fixed.

Incase of Milestone Billing, it is similar to Construction Project. For Ex: for a 6 floor building, the down payment may be 40 % of the property value & 10% is payable on constuction being complete of each floor.

Hope the above concept is helpful to you.

Regards,

Rajesh Banka

Reward points if helpful.