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Administrator Guide
Last Updated: 2026-02-20
Add Milestone Payments

Add Milestone Payments

  • Create a
    Draft
     statement of work (SOW) with the
    Payment Type
     of
    Milestone
     selected.
  • Complete required fields in the SOW's
    Settings
     tab.
A milestone is a marker in a SOW project that signifies a change or stage in development. You can schedule 1 or more milestones for payments on a draft SOW.
  1. From the header, select
    Statement of Work
    Statement of Work
    .
  2. Open the desired SOW.
  3. Select the
    Milestones
     tab.
  4. Click
    Add Milestone
    .
  5. Enter the
    New Milestone
     details. Consider:
    Option
    Description
    Charge Codes
    Select the charge codes for the payment.
    If the
    Enable payment allocation between multiple charge codes for Fixed Price/Milestone Payments
     option is turned off in
    Company Settings
    , you can select 1 charge code. However, if that option is turned on in
    Company Settings
    , you can select
    Multiple Charge Codes
     and allocate the payment, including both labor and expenses, across more than 1 charge code using a percentage or flat rate allocation.
    Note: When entering the labor and expenses for each charge code allocation, VNDLY doesn’t calculate taxes for the
    Expense Amount
    . This is because the
    Expense Amount
     can already include taxes, such as sales taxes and VAT taxes. VNDLY only calculates taxes for the
    Labor Amount
     in milestone payments.
    If you choose to allocate the milestone payment across multiple charge codes, the
    Total Allocated Amount
     must match the
    Planned Total
     from the milestone’s budget.
    Example: A milestone has the following budget:
    • Planned Labor
      : 2,000 USD
    • Planned Expenses
      : 1,000 USD
    • Planned Taxes
      : 400 USD
    • Planned Total
      : 3,400 USD
    You choose to allocate the milestone across 2 charge codes by flat rate. You make the following selections:
    • For Charge Code A, you set a
      Labor Amount
       of 500 USD and an
      Expense Amount
       of 750 USD, with
      Taxes
       set to 100 USD.
    • For Charge Code B, you set a
      Labor Amount
       of 1,500 USD and an
      Expense Amount
       of 250 USD, with
      Taxes
       set to 300 USD.
    As a result, the
    Total Allocated Amount
     matches the budget’s
    Planned Total
     of 3,400 USD.
    Additionally, if
    Enable SOW Budget Allocation
     is turned on in
    Company Settings
     and used on the SOW, VNDLY only allows you to select from the SOW’s available charge codes and you can’t exceed the set budget.
    For more information about the
    Enable payment allocation between multiple charge codes for Fixed Price/Milestone Payments
     and
    Enable SOW Budget Allocation
     settings, see Set Up Statement of Work Settings.
  6. Click
    Save
    .
Once all details are complete, send to the vendor for review and modifications by clicking
Send to Vendor
.