Periodic billing is also part of billing plan type.

Billing plan types are breakdown into two categories, there are:When processing an order, instead of storing a single billing date, you can store a detailed billing plan with several billing dates in the sales sales document at item level.

You can also define a billing plan at header level, which is then valid for all items assigned to it. These header billing plans are assigned to sales document types.

Periodic billing is often used for rental and service and service agreements, in order to bill the full amount periodically at certain dates.

Milestone billing is often used in plant engineering and construction, in order to spread billing of the full amount over several dates within a billing plan.

Depending on the business transaction you  are processing, the system will automatically propose one of the two billing plan types.

Periodic billing can be used, for example, for transaction involving rental contracts.

The contract data stored in the system can then be used as the basis for creating the billing plan. The start and end dates define the duration of the billing plan.

The start and end dates define the duration of the billing plan. If possible, they are taken from the contract data. You may decide not to set an end date (if the duration is unlimited). In this case, new dates can be extended to the horizon (the horizon specifies the number of settlement periods that are set in the billing plan).

You can use the billing dates on determine when and how often billing is carried out, for example, on the first day or the last day of every month.

You can enter as many dates per billing plan as you require.

Billing plan dates can be blocked for billing. When you create a billing document, the system updates the status of the billing plan dates. Dates that have already been billed can no longer be changed in the billing plan.

Customizing for Billing Plan at Item Level

Path customizing billing plan (periodic billing): IMG > Sales and Distribution > Billing > Billing Plan

1) Define Billing Plan Types

2) Define and Assign Date Categories

>> Maintain Date Categories for Billing Plan Type

>> Allocate date category

4) Assign Billing Plan Types to Item Categories

or in Define Item Categories (VOV7).

The billing plan type is determined from the document item category and the relevance for billing (billing relevance “I” means relevant for order-related billing-billing plan).