Billing Methods

The billing method describes the nature of the billing that applies to line products that are related to a specific billing plan. PeopleSoft Contracts supports the following billing methods:

Term	Definition
Milestone	For billing plans in which billing is triggered by an event—such as a date, a milestone, or a user-initiated action—that is associated with the billing plan. Define a schedule of events for the billing plan and spread the total billable amount over the events by percentage or amount. You associate amount-based contract lines with the Milestone billing method.
% Complete (percent complete)	For billing plans in which you generate bills over a period of time by updating the percent complete as needed. You manually generate these bill events by entering the percent complete for a given period on the Billing Plan - Percent Complete page. The total billable amount is spread over the events by percentage of completion. You associate amount-based contract lines with the % Complete billing method. You bill based on a manually entered percentage of completion or a system updated percentage of completion based on your associated project or project and activity combination.
Immediate	No events are defined for billing plans with a billing method of Immediate. Billing is eligible to be triggered as soon as the billing plan is marked Ready. You associate amount-based contract lines with the Immediate billing method.
As-Incurred	For billing plans in which the associated line products correspond to services whose billable items accumulate in PeopleSoft Project Costing. You do not have to set up events for an As-Incurred billing plan. Billing occurs for whatever has been accumulated to date when you run the Contracts Billing Interface process. You can optionally schedule date or milestone events for As-Incurred billing plans, which provides you with greater control over when billing occurs because the events act as a floodgate. Once the events have been met, all accumulated, billable items in PeopleSoft Project Costing that are not yet billed are processed. You associate rate-based contract lines with the As-Incurred billing method.
Value Based	For billing plans in which you want to attach an amount-based billing plan to a rate-based contract line. A value-based billing plan lets you define and bill independent amounts other than the actual rate-based transactions processed for revenue recognition. Amount-based contract lines (amount) cannot be associated with value-based billing plans. Value-based billing plans cannot be associated with contract lines containing discounts or retainages. You must associate every value-based billing plan with an event. The system automatically populates the value-based billing plan with a default, pending event date using the current date. The current date makes the billing plan eligible for immediate processing.
Recurring	Recurring billing does not use billing plan lines or events. You define the billing plan schedule, and each time that the billing plan is eligible for billing, the process generates the appropriate invoice lines and sends them to billing. If you are using billing plan templates, add a product or service to your contract; the system automatically creates the billing plan. Your contract administrator enters the start date and schedule, and you can preview the recurring fees before running the billing process. Here are the rules for using the recurring price type and billing method: Must have a bill plan method of Recurring with a recurring price type. Must have a revenue method of Billing Manages Revenue with a recurring price type. No billing plan lines for recurring billing method. No events for a recurring billing method. Only one project and activity allowed for each recurring contract line. No discounts and retainages for recurring billing method. No limits apply for recurring billing method.