Difference between Milestone Billing and Periodic Billing in SAP PS

In SAP Project System (SAP PS), milestone billing and periodic billing are two common methods used for billing clients based on project progress. Here are the key differences between milestone billing and periodic billing:

• Milestone Billing: Milestone billing involves invoicing the client at specific project milestones or achievements. These milestones are predefined in the project plan and are typically related to project deliverables or completion of specific tasks. Clients are billed based on reaching these milestones.
• Periodic Billing: Periodic billing, on the other hand, involves invoicing the client at regular intervals, such as monthly or quarterly. The billing amount is usually based on the progress of the project during that period, rather than specific milestones.

Both milestone billing and periodic billing have their advantages and may be used depending on the project requirements and client preferences. Understanding the differences between these billing methods is crucial for effective project management in SAP PS.