Milestone Billing

Example

50/50 Milestone

Your sales rep sold a system performance management subscription on 03/01/18 for $20,000. As part of the deal, your rep and the customer agreed to the following milestones.

• Milestone 1: Invoice for 50% immediately
• Milestone 2: Invoice for 50% after two months

Create an active invoice plan with billing schedule creation upon order product activation. Then create two invoice plan lines.

Invoice Plan Line 1

• Name: Milestone 1
• Type: Percent
• Percentage: 50
• Commencement Date: Order Product Activation
• Commencement Date Offset Amount: 0
• Commencement Date Offset Units: Months

Invoice Plan Line 2

• Name: Milestone 2
• Type: Remainder
• Commencement Date: Order Product Activation
• Commencement Date Offset Amount: 2
• Commencement Date Offset Units: Months

This invoice plan creates a billing schedule containing two billing transactions. The first transaction has a billing target date of 03/01/18 and an amount of $10,000. The second billing transaction has a billing target date of 05/01/18 and an amount of $10,000.

Example

Milestone Billing with Manual Billing Transactions

Your sales rep sold a service desk management subscription on 04/01/2018 for $10,000. As part of the deal, your rep and the customer agreed to the following milestones.

• Milestone 1: Invoice for $4000 immediately
• Milestone 2: Invoice for $3000 upon UAT completion
• Milestone 3: Invoice for $3000 upon deployment

Create an active invoice plan with billing schedule creation upon order product activation. Since you want $4000 invoiced right away, you need only one line for your invoice plan. You’ll create the remaining billing transactions after your customer meets their milestones.

Invoice Plan Line 1

• Invoice Plan Line Name: Milestone 1
• Type: Percent
• Percentage: 40
• Commencement Date: Order Product Activation
• Commencement Date Offset Units: Days
• Commencement Date Offset: 0
• Processing Order: 1

Your customer meets Milestone 2 on 06/17/18. Go to your billing schedule and create the following billing transaction.

Billing Transaction 1

• Billing Transaction Name: Milestone 2 Met
• Status: Pending
• Billing Target Date: 06/17/18
• Amount: $3000

Your customer meets Milestone 3 on 10/14/18, so you can create one more billing transaction.

Billing Transaction 2

• Billing Transaction Name: Milestone 3 Met
• Status: Pending
• Billing Target Date: 10/14/18
• Amount: $3000