Billing Events for Milestone Billing

You can define a billing event as either the completion of a specific phase of work or a specific billing date. To do this, you cross-reference each of the billing events that make up the billing line for the milestone billing with a specific date and the milestone amount or percentage that you want to bill for that event. The total percentage of all the billing events for the billing line must equal 100 percent. In addition, the amounts of all billing events must equal the schedule of values.

The system calculates the billing amount for a completed billing event based on this formula for percent-based milestones:

Schedule of Values × Percentage for the Milestone

The system uses the milestone amount for a completed billing event for amount-based billing events. The schedule of values for the milestone billing is the amount of the overall billing for the contract.

You can also cross-reference a draw to a billing line for milestone billing.

See Understanding Prepayments for Contracts.

When you define a milestone billing line, the system might display the following message:

Warning - Cross-Reference Not Setup

The system also highlights the X-Ref field until you enter cross-reference information for the billing line to define billing events.