Milestones, installments, and percentage of completion
If the billing or revenue methods for a project contract are Milestone or Installment, then you can use event- or deliverable-based billing and revenue recognition. If the revenue method is Percentage of Completion, then you can use percent complete revenue recognition.
This table provides descriptions of milestones, installments, and percentage of completions:
| Item | Description |
|---|---|
| Milestone | A milestone is a significant point or event in a project. Milestones
are user-defined and can be used to track dates deliverables, or events.
When completed, an invoice is triggered for the amount associated with
the milestone. Note: If the billing or revenue
method for a project contract is not
Milestone, then you can create a
milestone override on the project funding source. Amounts on
milestone overrides can be manually adjusted without creating manual
journals. A milestone override can be used at the end of the project
contract to adjust billing or revenue.
|
| Installment | Installments are used to track billing and revenue dates. When completed, an invoice is triggered for the amount that is associated with the installment. |
| Percentage of completion | Percentage of completions are a type of milestone that is used to calculate revenue based on percent complete. When completed, an invoice is triggered for the amount associated with the percentage. |
When milestone billing or revenue is selected, you must specify the Default Milestone Project on the project funding source. The posting project to bill and the revenue recognition entries to which to post must be specified for milestones. Milestone billing and revenue is event-based, not transaction-based.
You cannot create a milestone, installment, or percentage of completion that is
outside of the date range of the contract. The project that is used for posting the
milestone transactions is not subject to any date checks until the GLTransactionDetail record is created. You cannot create an
invoice for a milestone, installment, or percentage of completion that extends beyond
the boundary of the contract.