Billing Projects with Milestone Billing

Objective

After completing this lesson, you will be able to explain milestone billing for projects

Milestone Billing for Projects

James and Lisa Discuss Milestone Billing

James is a project planner at Hybrid Machinery. Lisa is a sales specialist. They discuss the milestone billing process.

Note

This is their conversation:

A Billing Process Using Milestones Billing

A sales order can trigger a project. A sales order item of such a sales order can contain a billing plan, with billing dates connected to milestones from the project.

The benefit of billing projects with milestone billing is that milestones in your project trigger billing processes for your sales order.

The requirements for using milestone billing are as follows:

  • A work breakdown structure (WBS) with a billing element
  • A sales order item account assigned to the WBS billing element
  • A milestone with an integration to sales and distribution
  • A billing plan that is assigned to a sales order item and linked to a milestone

The starting point for milestone billing is a sales order item that has a billing plan whose dates are related to milestones of the assigned project. If you enter actual dates in the billing milestones (for example, by confirming the assigned activity), the billing lock imposed on the corresponding date in the billing plan is disabled. The figure shows the confirmation of a milestone, and the lock disablement in the respective billing plan item.

How to Execute Milestone Billing

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