How can the down-payment process be configured?

The down-payment process in SAP S/4HANA is primarily configured through milestone billing. This option allows businesses to create billing plans that align with specific milestones in a project or order. When a down payment is needed, a milestone is established in the billing plan, facilitating the collection of an initial payment from the customer before the completion of the entire project or delivery of goods. This approach is particularly useful in industries where upfront payments are common, ensuring cash flow management while also clearly outlining customer payment obligations.

The other options do not directly pertain to the down-payment process. Order confirmations relate to verifying the receipt of an order but do not involve payment processes. Periodic billing refers to regular billing cycles, typically for ongoing services, but does not specifically account for down payments tied to project milestones. Shipping notifications focus on informing customers regarding the shipment status of their orders and are unrelated to the financial aspects of down payments. Thus, milestone billing is the correct configuration method for managing down payments effectively in SAP S/4HANA.