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Milestone Billing?

I am working with a customer who is transitioning off of Softrax, a recurring billing platform that has a milestone billing function.   In concept, the way this works currently is the customer creates a sales order and can establish a milestone billing schedule against this sales order, such as 50% billable on the contract effective date and 50% billable on completion of the implementation or on customer acceptance.  The key is this second date is not known at the time the order is created, so they set it to a far off future date initially and can amend it when the date is known.  The first invoice can be posted and the second sits waiting to be posted until the future date, which as I explained can be amended when known.

We are looking at using split invoices in Zuora but it seems we must generate a draft invoice, split the invoice proportionally and set the dates at that point in time.  It also looks like it is not possible to edit the dates once the split is completed.  Is this correct?

Is there any other work around for this scenario, which is fairly common with enterprise level B2B SaaS companies.

Sean Ralph CPA CA
Support SME

Re: Milestone Billing?

Hi @sralph ,


If I understand correctly, this billable amount is a one-time charge?


In that case, I think the simplest practice would be to simply have two product, each configured to 50% of the desired total charge amount. You would only sell the first product at the initial sale, then you could amend the subscription and add the second product when the implementation is completed.


Let me know if this would work for you, it certainly seems simpler than splitting the invoice for this purpose!

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Savvy Scholar

Re: Milestone Billing?

I have a similar situation, where we have milestone billing but we do know the dates.  However, here's the twist, we also base it on usage.  Is there a way to split the invoice and then add usage to the bill later?

Zuora Support Moderator

Re: Milestone Billing?

@shiga - You can always bill for usage later, however the key is to make sure during your bill runs, you do not "lock up" the billable period for usage charges.


What I mean by this is when you are creating a bill run, leave the usage checkbox un-ticked. This will not check for usage charges until you are ready to charge.




For example, if you create a bill run that checks for usage for this customer on 07/01/2016 and it doesn't find any usage charges for the month of 06/01/2016 - 06/30/2016, then the system effectively looks at this as 0 usage for that period fo time. If on 07/05/2016 you now load in usage for the month of June, those charges will not pick up because that period of time was already checked and will remain in "Pending Process" status.


To keep this from happening, you can uncheck the box as per the image above. This will let the bill run look for any eligible charges to invoice that are one-time and recurring. You can then load in the June usage whenever you have it, and then create a bill run with that box checked to create the invoice for that amount.

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