Milestone billing

Article
01/31/2023

This article explains how to define templates for the milestone billing functionality in Subscription billing. For each line in the milestone template, you can define the allocation percentage or amount. You can then assign the milestone template to billing schedule items that use the milestone billing functionality.

Add a template

To add a milestone template, follow these steps.

Go to Subscription billing > Recurring contract billing > Setup > Milestone templates.
Select New.
In the Milestone template field, enter a unique identifier for the new template.
In the Description field, enter a description.
In the Allocation method field, select an allocation method.
Optional: In the Total amount field, specify the total amount for the template.
To add a line, select Add. Then, in the Item number field, select the item number for the new line.
Follow one of these steps, depending on the value that you selected in the Allocation method field:
- If you selected Percentage as the allocation method, in the Percentage field, specify the allocation percentage for each line. If you specify percentages, the sum of percentages that is shown in the Total percentage field must equal 100.
- If you selected Variable amount as the allocation method, in the Amount field, specify the amount for each line.
- If you selected Equal amount as the allocation method, you don't have to specify an amount. Each line will be updated with the correct percentage and amount, based on the number of items that are added to the template.
Select Save.

Delete a template

To delete a milestone template, follow these steps.

Select one or more lines to delete, and then select Delete.
When you're prompted to confirm the action, select Yes.

Milestone template fields

The Milestone template page contains the following fields.

Field	Description
Milestone template	The unique identifier of the milestone template.
Description	The description of the milestone template.
Allocation method	Select the allocation method: Percentage of completion – A cumulative completion value is used for each line. Percentage – A percentage amount can be specified for the allocation. The sum of all percentages must equal 100. Variable amount – An amount can be specified for the allocation. The allocation amount is specified at the transaction level. Equal amount – The allocation percentages are automatically calculated and equally split among the items in the template.
Total amount	Specify the milestone amount for the template.
Lines
Item number	Select the item number for the milestone template.
Product name	The name of the item.
Percentage	Enter the allocation percentage for the line: If the Allocation method field is set to Percentage, specify the percentage for the line. If the Allocation method field is set to Equal amount, the percentage is automatically divided into equal percentages, based on the number of items in the template. The sum of all the percentages must equal 100. If a Total amount value is specified on the header, and you change the Percentage value for the line, the Amount value is updated. Conversely, if you change the Amount value, the Percentage value is updated.
Amount	The allocation amount for the line: If the Allocation method field is set to Variable amount, specify the amount for the line. If the Allocation method field is set to Equal amount, the amount is automatically divided into equal amounts, based on the number of items in the template and the Total amount value that is specified on the header. The sum of all the amounts must equal the Total amount value that is specified on the header. If a Total amount value is specified on the header, and you change the Amount value for the line, the Percentage value is updated. Conversely, if you change the Percentage value, the Amount value is updated.
Totals
Total percentage	The sum of percentages. The sum of all percentages must equal 100.
Total amount	The sum of Amount values for all lines. This sum must equal the Total amount value that is specified on the header.
Remaining amount	The remaining amount. The value is calculated as the Total amount value from the header minus the sum of Amount values for all lines.

Milestone allocation

Before you start to use milestone functionality, you should complete these tasks.

Add one or more milestone templates.
Create a billing schedule group. Specify Milestone as the item type, and select a template.
On the Item setup page (Subscription billing > Recurring contract billing > Setup > Items), select an item relation and a milestone template for the item setup.

After you've created the milestone templates, billing schedule groups, and items, you can create a billing schedule that uses the milestone functionality.

To set up a billing schedule that uses milestones, follow these steps.

From the All/Active billing schedules list on the Billing schedules page, select New.
On the All billing schedules page, create a new billing schedule, and specify a customer account and a start date.
In the Billing schedule lines section, select Add line. Then add an item number, and set the Item type field to Milestone.

If a default milestone template is set up for the item, the milestone events are automatically added to the billing schedule lines. End dates are blank for milestone lines.

If no milestone template is set up for the item, select Milestone allocation. Then, on the Milestone allocation page, select a milestone template, and make any required updates. Then select Close to return to the billing schedule, and finish creating the billing schedule.
To create invoices for the billing schedule, you must update the end date for each milestone event. For a single billing schedule, you can update the end date for the milestone event on the billing schedule lines. To update multiple billing schedules, select Update completion date process.
After the end date is updated, you can create the invoice. For a single billing schedule, select Generate invoice on the All billing schedules page. To create invoices for multiple billing schedules, select Generate invoice or Generate invoice batch processing under Periodic tasks.

Edit milestone allocation on a billing schedule line

To edit milestone allocation on a billing schedule line, follow these steps.

On the Billing schedules page > All or active billing schedules, in the Schedule number field, select the schedule number of the billing schedule.
In the Billing schedule lines section, enter an item, specify Milestone as the item, and select Milestone allocation.
In the Milestone template field, select a milestone template.
Select Process. The milestone template lines are automatically added to the billing schedule lines.

Note

A feature was added in Dynamics 365 Finance version 10.0.31 that allows a Billing schedule line with Item type of Milestone to set Renew automatically to Yes.

Milestone allocation fields

The Milestone allocation page contains the following fields.

Field	Description
Parent item	The item number of the parent.
Extended price	The extended price of the item. The value corresponds to the Net amount value of the billing schedule line. For a milestone parent item, the default value is the Total amount value that is specified for the milestone template. If the total amount is 0 (zero), the default value is the Net amount value of the billing schedule line.
Milestone template	The milestone template ID of the line item.
Template description	The description of the milestone template.
Allocation method	The allocation method that is used for the milestone template.
Lines	The default values for all lines are based on the selected milestone template. You can change them as required.
Item number	The item number for the milestone allocation template.
Product name	The product name.
Percentage	The allocation percentage for the line. The sum of all the percentages must equal 100. If you change the Percentage value for the line, the Net amount value is updated. Conversely, if you change the Net amount value, the Percentage is updated.
Net amount	The allocation amount for the line. The sum of net amounts for all lines must equal the Extended price value that is specified on the header. If you change the Net amount value for the line, the Percentage value is updated. Conversely, if you change the Percentage value, the Net amount value is updated.
Totals
Total percent	The sum of Percentage values for all lines. This sum must equal 100.
Total amount	The sum of Net amount values for all lines. This sum must equal the Extended price value that is specified on the header.
Remaining amount	The remaining amount. The value is calculated as the Extended price value from the header minus the sum of Net amount values for all lines. The final amount must be 0 (zero).