
Explanation:
Box 1: Flat
One-time fee
The company bills its customers a one-time fee when customers fist set up services.
One-time fee:
Can be included as a billing schedule line with a flat pricing method, as it's a fixed amount charged once.
Note: Flat:
Applies a fixed price to the billing schedule line, allowing manual editing of the unit price. The unit price and net amount will be the same.
Box 2: Flat Tier:
Minimum charge
The company bills customers a minimum charge plus actual usage based on tiered pricing.
The company configures service items for fees, minimum charges, and usage with the sales price in released product along with the trade agreement for the pricing.
Flat Tier:
Calculates the unit price using fixed quantities and extended price amounts for different pricing brackets. The price is charged based on the extended price corresponding to the tier where the billing quantity exists. This method is also typically used with trade agreements.
Trade Agreements:
Standard, Tier, and Flat Tier pricing methods often rely on trade agreements, which define pricing brackets and discounts.
Reference:
https://learn.microsoft.com/en-us/dynamics365/finance/accounts-receivable/sb-schedule-billing-features