> ## Documentation Index
> Fetch the complete documentation index at: https://docs.sequencehq.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Milestone billing

> Create billing schedules phases with milestones

Milestone billing allows you to set up billing schedules for contracts with milestone or success-based periods. With milestone billing, you can bill customers or transition to the next contractual phase once a milestone is marked as complete.

### Automate billing for milestone-based contracts

 Create billing schedules for contracts with milestone or success-based periods\

 Mark a billing milestone as complete to start the next phase of a contract \

 Capture a contract with milestone-based phases in a single billing schedule \


![Create a billing milestone](https://mintcdn.com/sequence/xp4yYX5et1vIHWQJ/images/product/billing/billing_schedule_8.png?fit=max\&auto=format\&n=xp4yYX5et1vIHWQJ\&q=85\&s=08b895974f05d7a148d1d0980219b64b)

### Example

Amara has sold Acme a multi-year contract that includes a paid for pilot period:

* Pilot period: \$12500 billed upfront. Completion of pilot period is depending on success criteria (e.g. successful roll-out)
* Year 1: \$1500 billed monthly in arrears

In Sequence, Amara can configure the following billing schedule:

![Create a billing milestone](https://mintcdn.com/sequence/xp4yYX5et1vIHWQJ/images/product/billing/billing_schedule_9.png?fit=max\&auto=format\&n=xp4yYX5et1vIHWQJ\&q=85\&s=d0eaae61e4db6888fbfe9338e7ea9722)

Once the success criteria have been met, Amara can mark the billing schedule milestone as complete, initiating year 1 of the contract and starting a regular monthly arrears billing process for platform access.

![Mark a billing milestone as complete](https://mintcdn.com/sequence/xp4yYX5et1vIHWQJ/images/product/billing/billing_schedule_10.png?fit=max\&auto=format\&n=xp4yYX5et1vIHWQJ\&q=85\&s=558e979827b2752af74dd4aa0ac1c64c)

![Select milestone completion date](https://mintcdn.com/sequence/xp4yYX5et1vIHWQJ/images/product/billing/billing_schedule_11.png?fit=max\&auto=format\&n=xp4yYX5et1vIHWQJ\&q=85\&s=dc71e4b07f5dcc2141229a7dd581ab0e)

### Billing behavior in milestone phases

**Prices with one-time fees**

If a milestone-based phase includes a price with a one-time fee billed in-advance, an invoice will be generated at the start of the phase.
If the one-time fee is billed in-arrears, an invoice will be generated when the phase ends, once the milestone is marked as completed.

**Prices with recurring billing frequencies**

Prices with monthly, quarterly or annual billing frequencies are billed as normal. When a milestone is marked as complete, active billing periods may be cut short, resulting in proration.

### Frequently asked questions

> [accordion] What happens when a milestone is marked as completed?
>
> When you mark a milestone as complete, you choose the completion date. You can choose a date in the past or a future date. The default completion date is today. If a milestone-based phase is marked as completed today, the phase will be completed and the subsequent phase will start (If there are no subsequent phases, the billing schedule will end.).

> [accordion] What's the milestone completion date?
>
> The completion date is the date on which the phase ends. On this date, the milestone phase will be marked as `completed` and a subsequent phase may start.

> [accordion] Can I schedule a future completion date?
>
> Yes, you can set completion date in the future.


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