Relation between Payment term and Billing Plan

[Micro]

Hi All,

I have gone through series of thread on Milestone billing and the Billing plan concept is understood but still I have a confusion regarding the relation between Payment Term that we maintain in OBB8 and the Billing plan that we maintain. practically both seems same.

For ex. Milestone Linked plan where 30% payment to be received on the completion of X work and 70% on the completion of Z work. what should be the payment term for this kind of milestone billing?

Please suggest.

Thanks in Advance.

Micro

[Golfi]

Hi Micro,

Both looks similar.

In the case of installment payment terms,system will generate only one invoice and which will be split into the number of installments defined.You can be able to see these installments in the T.Code FBL5n under "open items".

Where as in the case of mile stone/periodic billing,system will generate separate invoice for each installment.So that it will be easy to create credit/debi memos for each invoice.

Regards,
Golfi

[Micro]

Thanks for the reply Golfi!

with your answer, I have following queries If you can guide us further.

1) should we configure either of Payment Term and Milestone Billing ? or both?
2) If we want to see the dues from customer in FBL5N for the total Invoice amount, is it possible with Payment term only? because, You have not mentioned the same for Milestone Billing. evenif the Invoice is not split as you said, customer would still want to know how much amount is pending to be received.

Thanks,
Micro