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A schedule of dates for billing a customer for percentage values of the total value of a service or product sold.

 

The milestone billing plan enables you to bill business transactions that involve large sums of money and where a service or product is provided in stages, such as a construction project. As each stage of the project is completed, you can bill the customer for a certain amount of the total value.

Structure

The milestone billing plan contains a header and plan lines for each milestone. Each billing milestone consists of a date and a percentage value of the total value that you wish to bill.

Integration

You can integrate a milestone billing plan into the business transaction type that you are using to process complex products such as construction projects.

Note Note

  • You cannot use milestone billing plans in service contracts.

  • It is not possible to link the milestones in a billing plan to milestones in a project system.

End of the note.

Example

You have created a billing plan for the construction of a warehouse. The total billing value is EURO 820,000.00 and you have agreed that the customer should pay a certain percentage of the total value at specific dates. The following table shows the milestone billing plan for the project:

Billing Plan Dates

Billing plan start date

10/01/07

Billing plan end date

04/30/08

Milestone Dates

Percentage of Value to be Billed

Start of ground preparation

15%

Completion of foundation

15%

Completion of scaffolding

30%

Completion of outer walls

25%

Completion of inner walls

15%

At each stage, the customer pays the agreed percentage of the total value, for example, at the start of ground preparation, EURO 123,000.00.

The system uses the final milestone in the billing plan to bill any remaining quantity so that 100% of the total quantity has been billed.