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Difference between milestone and periodic billing?
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Answer Posted / vamsi
periodic billing means its based on monthly contract (or) time based for example L&T is making an agreement with government to finish a metro project in 10 phases so for that government has to pay total amount is 10.000 RS but government has not pay total amount in single step by finishing first phase government will pay 1000 RS (10000/10) like that by finishing each and every phase they are paying 1000 rs to the L&T
MILE STONE BILLING IS based on scheduling billing dates in this case let us take as same example as above but is in different way L&T has making an agreement with government to finish a metro project within the period of 365 days so for that government has to pay total amount is 3,65,000 rs now both parties come to one mutual understanding frist month 10th they have to pay 20,000 and again same first month 31st
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