Recurring Billing Implementation

hello experts,

We have a use case to generate recurring billings based on the customer contract period and billing frequency. We are brainstorming on the solution to handle this use case and are considering using the standard AR functionality "Recurring Billing." Additionally, we are implementing the Subscription Management application. We need some clarifications regarding implementing the solution using SMC vs. AR functionality. Can you please help clarify these questions:

1. Which is the better solution to implement recurring billings: SMC or AR Recurring Billing plan?
2. What are the pros and cons of each solution?
3. How does the system create the Bill plan when the order is created?