Business glossary
Milestone billing
Invoicing when defined project stages or deliverables are completed.
Example
A design project agrees on $1,000 after concept approval and $2,000 after final delivery. Each invoice references the completed milestone and any deposit or prior payment allocated to it.
How it differs from related terms
Milestone billing is triggered by an agreed event or deliverable. Progress billing can be based on measured completion, and recurring invoicing follows a calendar. State the acceptance condition before work begins.
Frequently asked questions
What is an example of milestone billing?
A design project agrees on $1,000 after concept approval and $2,000 after final delivery. Each invoice references the completed milestone and any deposit or prior payment allocated to it.
How should milestone billing be interpreted?
Milestone billing is triggered by an agreed event or deliverable. Progress billing can be based on measured completion, and recurring invoicing follows a calendar. State the acceptance condition before work begins.