Use Case: Milestone-based billing
To remain competitive and meet diverse customer requirements, Conga Billing has introduced a flexible and customizable billing framework. One of the most widely adopted approaches within this framework is Milestone Billing. This model allows billing administrators to generate invoices based on predefined milestones or specific time intervals throughout the year. By linking billing events to project progress or contractual achievements, milestone-based billing ensures greater transparency, improves cash flow management, and aligns payment schedules with customer expectations.
Overview
This use case describes how to implement milestone-based billing for your organization.
Scenario
A billing administrator of a company selling computer hardware has to bill his client on completion of four predefined milestones for an order of 1000 laptops. The net price of each laptop is USD 500.00. Each milestone is achieved after the shipment of 250 laptops. The order is not Activated yet and the Quote/Proposal is not Accepted.
To implement milestone based billing
Follow these steps to configure milestone billing for this order:
- Four Milestones are created
- Four Billing Schedules are created, each with a fee amount of USD 125,000.00 in Pending Milestone status.
When a milestone is achieved, edit the milestone and enter Actual Date. This changes the milestone status to Completed. The status of the billing schedules is changed to Pending Billing.
