Milestones

  • Release version: Washingtondc
  • Updated February 1, 2024
  • 2 minutes to read
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    Summary of Milestones in Procurement Service Management

    Milestones in Procurement Service Management are crucial for tracking the achievement of deliverables related to service products. They can be created for purchase lines and purchase order lines when the acknowledgment type is set to Milestones. This functionality ensures that all related activities are acknowledged and managed effectively.

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    Key Features

    • Key Fields: Essential fields include Deliverable Name, System-generated Number, User Assigned to the milestone, Primary contact, Purchase line, Purchase order line, State, Due date, Summary Details, Payout type, Payout amount, and reasons for Cancellation or Deferral.
    • Milestone Management: Recipients can confirm, cancel, or defer milestones. Confirming updates the state to Closed Complete, while cancellation and deferral require specific reasons and update the milestone's state accordingly.
    • Receipt Automation: Upon closing a milestone, a receipt is generated, updating the purchase order line's state and ensuring seamless tracking of received amounts.
    • Monitoring Tasks: The [PSM] Monitor Milestone Tasks job checks the completion status daily, changing the milestone's state to Confirmation Required on the specified completion date.

    Key Outcomes

    Utilizing milestones enables ServiceNow customers to streamline acknowledgment processes, ensure accurate tracking of service deliverables, and automate receipt creation. This leads to improved procurement efficiency and accountability within their operations.

    Milestones represent an acknowledgment that a certain deliverable is achieved for a service. You can create a milestone against the purchase line and purchase order line for a service product type, when the acknowledgment type is set to Milestones.

    The key fields of a milestone are:

    Table 1. Milestone fields
    Field Description
    Deliverable Name Name of the milestone
    Number System-generated unique identifier of the milestone.
    Assigned to User primarily responsible for confirming the completion of this milestone.
    Primary contact Person within the procurement team who can be contacted with questions about receipts, milestones, invoices, or other activities related to acknowledgment. This field is populated or updated with the same user in the Assigned to field of the parent task record, as follows: For a milestone or acknowledgment task, from the referenced purchase order.
    Purchase line Purchase line associated with the milestone.
    Purchase order line Purchase order line associated with the milestone.
    State Status of the milestone.
    Due date Expected completion date from the user this milestone is assigned to.
    Summary Details
    Completion date Scheduled completion date for the milestone.
    Payout type The type of the payout associated with this milestone. For example, Percentage or Amount.
    Payout amount Amount associated with this milestone.

    This field is displayed if the payout type is set to Amount.

    Sum of the amount across all milestones can’t exceed the total amount on the purchase requisition.
    Payout percentage Percentage of the payout amount associated with this milestone.

    This field is displayed if the payout type is set to Percentage.

    Sum of the percentages across all milestones can’t exceed 100%.
    Cancellation reason Reason for the cancellation of the milestone.

    This field is required when the recipient cancels the milestone.
    Deferral reason Reason for the deferral of the delivery date of the milestone.

    Milestones are assigned to the recipient of the purchase line. A recipient can either confirm, cancel, or defer milestones using Confirm completion, Cancel, or Defer Completion options.

    • Confirming a milestone updates the state to Closed Complete.
    • Canceling a milestone requires a cancellation reason.
    • Deferring the completion of a milestone requires a completion date and the state is updated to Pending Completion Date.

    When the status of a milestone task is Closed Complete, a receipt is created and the Amount received or Percentage received fields are populated accordingly on the receipt. The receipt triggers the update of the states on the purchase order line and purchase order similar to the workflow of a good receipt.

    The [PSM] Monitor Milestone Tasks scheduled job monitors the completion date of each active milestone on a daily basis. On the specified date of completion, the job updates the state of the milestone from Pending Completion Date to Confirmation Required.

    The UI action to confirm or defer the milestone is displayed when the state of the milestone is Confirmation Required.