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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.
In SAP SD a billing plan is a schedule of individual billing dates for a single item in a sales document. You can define a billing plan at header level, which is then valid for all items assigned to it.
Creating a Service ContractIn the Sales menu choose Contract Create .Enter the contract type (WV for a maintenance contract, MV for a rental contract) and, if necessary, the organizational data.Choose Enter.Enter the following data as required:Choose Enter.More items...
A contract is a written agreement between a customer and a provider (contractor). The customer, who is the owner of a job or project, requests a product or service. Your company, as the provider, bills the customer for the product or services that you provide under the contract.
How to Write a Service AgreementA description of the parties involved in the agreement.A description of the services to be performed.A description of fees and payment schedules.The effective date of the contract, when work will begin, and the terms under which it can be terminated.Include a place for signatures.More items...