Billing Plan

Billing Plans – Periodic Billing and Milestone Billing

Billing Plan

When processing an order, instead of storing a single billing date, you can store a detailed billing plan with several billing dates in the sales document at item level.

You can also define a billing plan at header level, which is then valid for all items assigned to it. These header billing plans are assigned to sales document types.

There are two types of Billing Plans:

Periodic billing is often used for rental and service agreements, in order to bill the full amount periodically at certain dates.

Milestone billing is often used in plant engineering and construction, in order to spread billing of the full amount over several dates within a billing plan.

Periodic Billing

The start and end dates define the duration of the billing plan. If possible they are taken from the contract data. You may decide not to set an end date (if the duration is unlimited).

You can create new dates either directly in the billing plan, or using the report RVFPLA01. You should schedule the report to run at regular intervals, since new dates are not compiled automatically when individual settlement periods are billed.

Milestone Billing

During milestone billing, the total value to be billed is distributed among the individual dates according to certain rules.

You can enter as many dates per billing plan as you require.

Billing plan dates can be blocked for billing.

The system creates an entry in the billing index for each billing date.

Dates that have already been billed can no longer be changed in the billing plan.

Billing Plan with Link to Milestone Billing

Milestone are assigned to the billing plan dates and blocked for billing until the milestone is confirmed as completed.

Billing Rule: Determining Billing Value

A billing rule can be created for each billing plan date. This rule determines how the value to be billed on a particular date is determined.

This allows you to define, for example, whether a fixed amount or a percentage of the total amount is to be billed.

The system can also determine whether the amount to be billed counts as a final invoice for which as yet unbilled dates must also be taken into account.

Within pricing, condition records are created for special condition types, for which monthly prices can be defined.