Billing plan is required when you create a contract. It defines how the customer pays you. This is the second step in a contract creation flow
Create a contract
Set up Billing plan and make it READY (this article)
(optional) Request a sub-contract to bargain for competitive cost and wait for it to be approved/rejected
Mark the contract READY manually.
2 types of billing plan
- As incurred:
- Subscription items in the contract renew normally according to subscription configuration (monthly/yearly) until the contract ends.
- User is charged when the items are provisioned and renewed.
- Milestone:
- Subscription items in the contract are provisioned for the entire period of the contract
- User is charged as soon as the contract is marked READY.
- After you draft a contract, choose Billing plan > Create billing plan > Choose either As incurred or Milestone
- To mark billing plan as READY, Edit the plan > Mark as Ready
A READY billing plan can still be edited. When you edit a READY billing plan, the status will be changed back to PENDING automatically.
1. Billing plan is As incurred
Step 1: Click Edit to add the items
Step 2: Add the items in and Finish
Step 3: Mark the plan READY --> Done
2. Billing plan is Milestone
Step 1: Click edit to add the items
Step 2: Add the items -> Finish
Step 3: Add the milestone --> Save
Make sure the total amount of all milestone matches with the contract value.
Total amount = unit price * maximum quantity * contract duration
Step 4: Mark the plan READY --> Done