SAP Sales and Distribution Certification Practice Exam

Which setup enables separate pricing for down payments under milestone billing?

1. Creating a specific type of pricing procedure

2. Using a relevant item category

3. Defining a distinct sales order structure

4. Utilizing different billing types in the plan

The correct answer is: Utilizing different billing types in the plan

In the context of milestone billing within SAP Sales and Distribution, utilizing different billing types in the plan is key to enabling separate pricing for down payments. Billing types in SAP are crucial because they determine how invoices are created and processed. Each billing type can be configured with specific parameters, including pricing rules that apply to down payments. When a billing type is designated for down payments, it can include unique pricing procedures tailored to those payments, allowing for flexibility in pricing strategies. This flexibility is essential when a company needs to manage cash flow or offer discounts or different pricing terms for down payments as opposed to final billing. The other options, while they involve important aspects of transaction setup, do not specifically address the ability to create separate pricing under milestone billing in the same direct way. A specific type of pricing procedure focuses on how prices are calculated rather than the differentiation of billing. The relevant item category pertains to how items are processed within sales orders but doesn't directly allow for unique pricing on down payments. Lastly, defining a distinct sales order structure can influence overall sales order management but does not specifically configure down payment pricing mechanisms. So, option D directly impacts the billing and pricing for milestone payments, making it the correct choice.