What is milestone payment in SAP PSM-GM - Grants Management?

SAP Term: milestone payment

• Component: PSM-GM

• Component Name: Grants Management

• Description: Funding arrangement where a specific goal in an agreeement is determined, and when fulfilled and verified, a defined percentage amount is paid to the grantee from the grant's authorized funds. Example A grant is awarded to a contractor to build low-income housing. In the agreement, specific targets are set for the completion of the project, such as having a percentage of the houses ready to live in by a specified date. This is a milestone, that if reached on time and to the satisfaction of the grantor, triggers a payment to the grantee for the costs incurred.

Smart SAP Assistant

• Key Concepts: 
  Milestone payment is a type of payment in the Grants Management component of SAP PSM-GM. It is used to pay out funds to grantees in stages, based on the completion of certain milestones or objectives. This type of payment allows for more control over the grantee’s progress and ensures that funds are being used appropriately. 
  
  How to use it: 
  In order to use milestone payments, the grantee must first be registered in the system. Once registered, the grantee can then be assigned a milestone payment plan. This plan will outline the milestones that must be achieved in order to receive payment. The grantee must then complete each milestone in order to receive payment. 
  
  Tips & Tricks: 
  It is important to ensure that the milestones are clearly defined and measurable so that progress can be tracked and payments can be made accordingly. It is also important to ensure that the milestones are achievable and realistic so that the grantee can successfully complete them. 
  
  Related Information: 
  For more information on milestone payments, please refer to SAP’s documentation on Grants Management.