What is the primary function of a billing schedule in NetSuite?

The primary function of a billing schedule in NetSuite is to define the schedule to bill a sale over time or through a contract term. This is particularly useful in scenarios where a sale does not require a one-time payment but is instead subject to installment payments. For example, if a company sells a subscription service or a long-term project, a billing schedule allows the organization to break down the total amount due into manageable payments that occur at specified intervals.

By having a structured billing schedule, businesses can ensure that billing is consistent with the delivery of goods or services, comply with customer contracts, and maintain cash flow. This feature supports the management of financial expectations both for the business and its customers, improving transparency and relationship management.

In contrast, while payment terms are important for defining when payments are due, they do not dictate the timing of recurring billings that a billing schedule outlines. Inventory tracking and tax calculations are also critical functions in financial management, but they serve different purposes and are not the main objective of a billing schedule specifically.