What's milestone billing?

Milestone billing lets you bill customers as an event happens or using an ad-hoc date. At the same time, you can also recognize revenue based on ad-hoc dates or milestones that your finance department prescribes.

How it Works

Each bill line amount on a subscription corresponds to a billing milestone. The percentage of the charge amount is the bill line amount of the milestone. The interface date of the bill line is the completion date of the milestone.

The application creates a revenue line for the charge. The completion date of the milestone is the satisfaction date. Every satisfaction event corresponds to recognizing a percentage of the allocated revenue.

The milestones are billed by identifying those that are complete, updating the completion date for them, and then interfacing the bill lines to Accounts Receivable.

Note: Milestone-based billing is only for subscription products where sales product type equals Subscription. It's not for coverage or warranty products.