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Former Member


Hi Experts

Can anybody say me what is 'Periodic Billing' & 'Milestone Billing'. And in which situation can we use this and what are the setting we have to do ??

Plz reply with an example!!

Thanks all

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 29, 2007 at 04:01 AM

    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.

    The billing dates in a periodic billing plan can be determined from the following sources:

    Control data in the billing plan

    Header data in the rental contract

    Manually entered dates

    Start and end dates

    Start and end dates define the duration of the billing plan and, whenever possible, are copied from the start and end dates of the corresponding rental contract. Depending on the configuration of your system, these dates may be indirectly determined by the system. For example, the contract start date may be determined automatically as soon as the installation date is entered.

    Period (monthly, quarterly, annually)

    The periodicity of the billing dates determines the frequency with which the billing dates are created in the billing plan and, in addition, whether a billing date is processed for billing on the first or last day of the month.


    In case no end date is entered, or the end date lies so far in the future that not all billing dates can established, then a rule for determining the horizon can be entered. The horizon for periodic billing determines the last date of the billing plan.

    The horizon is always determined by a rule that uses the current date as a baseline. If the current date is updated during processing, the system automatically extends the horizon and the schedule of billing dates into the future.

    The determination of dates according to the current horizon must be triggered manually via the following menu path.

    Select Logistics ® Sales and Distribution ® Sales.

    Choose Outline agreement ® Contract ® Subsequent functions ® Horizontal/peri

    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.

    odic billing.

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 29, 2007 at 04:08 AM

    Hi Ipsit,

    The billing plan is of two types namely Periodic billing and Milestone billing.

    Periodic billing:It is used in order to bill the full amount periodically at certain dates.

    Eg: REntal contract

    Milestone billing:The total value to be billed is distributed among the individual dated according to certain rules.

    Eg of milestone billing is the billing of project in plant engineering and construction.Such projects often include a series of milestones, which represent the completion of various stages of project.

    Hope this helps you.



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