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1 Introduction to SAP Billing and Revenue Innovation Management
17
1.1 Flexible Consumption, the Subscription Economy, and Business Model Transformation
18
1.2 Business Drivers for SAP Billing and Revenue Innovation Management
19
1.2.1 Business Model Changes: From Products to Subscriptions
19
1.2.2 Consumption-Based Model
22
1.2.3 Subscription-Based Model
23
1.2.4 Event-Based Model
24
1.3 SAP Billing and Revenue Innovation Management Components
26
1.3.1 SAP Billing and Revenue Innovation Management, Subscription Order Management
31
1.3.2 SAP Convergent Charging
32
1.3.3 SAP Convergent Invoicing
33
1.3.4 Contract Accounting
34
1.3.5 Peripheral Solutions
35
1.4 Case Study: Martex Corp.
36
1.4.1 Background
37
1.4.2 Concerns
37
1.4.3 New Business Model
38
1.4.4 Use Case
38
1.5 Summary
40
2 Subscription Order Management
41
2.1 Master Data
42
2.1.1 Business Partner
42
2.1.2 Contract Account
48
2.1.3 Subscription Materials
56
2.2 Organizational Units
61
2.3 Configuring Subscription Order Management
65
2.3.1 Product Modeling
66
2.3.2 Product Configuration Using Advanced Variant Configuration
67
2.3.3 Cross-Catalog Mapping
71
2.3.4 Setting Up One-Off Charges
75
2.3.5 Subscription Transactions
77
2.3.6 Master Agreements
90
2.3.7 Partner Agreements
91
2.3.8 Device as a Service: Equipment Master Integration
96
2.3.9 Order Distribution Infrastructure
101
2.4 Using Subscription Order Management
105
2.4.1 Creating Master Data
106
2.4.2 Creating and Mapping Subscription Products
112
2.4.3 Managing Subscription Orders and Subscription Contracts
112
2.4.4 Modifying Subscription Contracts
115
2.5 SAP Fiori Applications for Subscription Order Management
115
2.6 Subscription Lifecycle Management
117
2.6.1 Subscription Renewal Process
117
2.6.2 Cancellation
126
2.6.3 Service Upgrade and Downgrade
134
2.6.4 Change of Contract Terms
138
2.7 Reporting and Analytics
142
2.7.1 SAP Fiori Applications for Subscription Order Management
142
2.7.2 Order Distribution Infrastructure Distribution Monitor
144
2.8 Solving Common Order and Contract Management Issues
147
2.9 Summary
150
3 Charging
151
3.1 Overview
151
3.2 Flexible Rating and Charging Model
153
3.3 Master Data
153
3.3.1 Catalog
154
3.3.2 Subscriber Account and External Account
155
3.3.3 Provider Contract
156
3.4 Organizational Units
157
3.5 Managing Tables
158
3.5.1 Tier Table
158
3.5.2 Translation Table
159
3.5.3 Mapping Table
160
3.5.4 Range Table
161
3.6 Configuring SAP Convergent Charging
162
3.6.1 Chargeable Item Class
163
3.6.2 Charged Item Class
165
3.6.3 Creating a Charge Plan (Reserved Instance)
184
3.6.4 Creating Charge Plan (Nonreserved Instance)
193
3.6.5 Creating Pricing Macros
202
3.7 Managing Allowances
204
3.7.1 Allowance Lifecycles
204
3.7.2 Define Allowances
204
3.7.3 Shared Allowances
210
3.7.4 Allowance Dashboard
210
3.8 Managing Counters
210
3.9 Managing Integrations
211
3.9.1 Managing Integration with SAP Billing and Revenue Innovation Management, Subscription Order Management
212
3.9.2 Managing Integration with SAP Convergent Invoicing
212
3.10 Solving Common Rating and Charging Issues
212
3.11 Summary
213
4 Invoicing
215
4.1 Simplified Billing and Invoicing
216
4.2 Master Data
217
4.2.1 Business Partner
218
4.2.2 Product
219
4.2.3 Contract Account
219
4.3 Configuring SAP Convergent Invoicing
221
4.3.1 Billable Items
221
4.3.2 Consumption Items
237
4.3.3 Rating and Rating Groups
244
4.3.4 Billing
250
4.3.5 Invoicing
260
4.3.6 Dependent Items
273
4.3.7 Partner Settlement
281
4.3.8 Partner Settlement Categories
282
4.3.9 Integration with SAP Revenue Accounting and Reporting
283
4.4 Using SAP Convergent Invoicing
286
4.4.1 Creating a Consumption Item or Billable Item
286
4.4.2 Modifying Consumption Items or Billable Items
295
4.4.3 Viewing Provider Contract
297
4.4.4 Posting a Billing Document, Invoicing Document, and Posting Document
297
4.4.5 SAP Fiori Apps
310
4.5 Intercompany Settlement Process
318
4.5.1 Company Code Group Assignment
319
4.5.2 Intercompany Settlement Types
319
4.5.3 Settlement Type Determination
320
4.5.4 Master Data Determination
320
4.5.5 Account Determination and Document Type Settings
321
4.5.6 Intercompany Billable Items and Document Postings
322
4.6 Reporting and Analytics
325
4.6.1 All Billable Items View/Processing
325
4.6.2 Consumption Items View/Processing
327
4.6.3 Raw Data View of Billable Items
328
4.6.4 Display Invoicing Orders
329
4.6.5 Display Accrual/Deferral Items
330
4.6.6 Billable Items View/Processing
331
4.6.7 Reversal Request for Invoicing Documents Analysis
332
4.6.8 Reversal Request for Billing Documents Analysis
333
4.7 Solving Common Billing and Invoicing Issues
334
4.8 Summary
335
5 Contract Accounting
337
5.1 Master Data
340
5.1.1 Business Partner
340
5.1.2 Business Agreement
345
5.1.3 Product
346
5.1.4 Contract Account
346
5.1.5 Provider Contract
352
5.1.6 Partner Agreement
357
5.2 Configuring Contract Accounting
359
5.2.1 Account Determination
360
5.2.2 Open Item Management
361
5.2.3 Account Balance Display
364
5.2.4 Payments and Returns
365
5.2.5 Integration with SAP Convergent Charging
366
5.2.6 Integration with the General Ledger
368
5.2.7 Financial Customer Care
372
5.2.8 SAP Cash Application in Contract Accounting
378
5.3 Using Contract Accounting
386
5.3.1 Creating a Business Partner
386
5.3.2 Creating a Contract Account
388
5.3.3 Viewing or Editing a Posting Document
389
5.3.4 Viewing a Customer’s Balance on Account
392
5.3.5 Using Open Item Management
394
5.3.6 SAP Fiori Apps
402
5.4 Reporting and Analytics
408
5.4.1 Contract Accounting Items List: Open/All Items
408
5.4.2 List of Open Items at Key Date
409
5.4.3 Reconciliation of Open Items and General Ledger
410
5.4.4 List of Open Items for Business Partner on Key Date
411
5.4.5 Customer Account Balance Display
411
5.5 Solving Common Contract Accounting Requirements
412
5.6 Summary
416
6 SAP Subscription Billing
417
6.1 Overview of SAP Subscription Billing
417
6.2 Business Configuration
418
6.2.1 Markets
418
6.2.2 Units of Measure
420
6.2.3 Rate Elements
420
6.3 Master Data
421
6.3.1 Customer Master Data
421
6.3.2 Rate Plan Templates
423
6.3.3 Rate Plans
429
6.3.4 Subscription Products
430
6.4 Provisioning Subscription Transactions
435
6.5 Billing Process in SAP Subscription Billing
438
6.6 Integration with SAP Convergent Invoicing
440
6.7 Additional Features in SAP Subscription Billing
441
6.8 Summary
441
7 Integration with Other Solutions
443
7.1 Integration between SAP Billing and Revenue Innovation Management Core Components
443
7.1.1 Consumption Data
446
7.1.2 One-Off Charges
447
7.1.3 Prepaid Data
447
7.1.4 Billing and Invoicing
447
7.1.5 Contract Data
447
7.1.6 Disputes
448
7.1.7 Communication between Systems
448
7.2 SAP Convergent Mediation by DigitalRoute
448
7.2.1 Integration with SAP Convergent Charging
450
7.2.2 Integration with SAP Convergent Invoicing
452
7.3 SAP Billing and Revenue Innovation Management and SAP Customer Experience Platform
453
7.4 SAP Revenue Accounting and Reporting
456
7.4.1 Optimized Contract Management
456
7.4.2 Integration Architecture
458
7.4.3 Five-Step Model
459
7.4.4 Freeze and Unfreeze Performance Obligations
468
7.5 SAP Customer Financial Management
469
7.5.1 Collection Management
470
7.5.2 Organizational Structure
470
7.5.3 Master Data
471
7.5.4 Collection Strategies
472
7.5.5 Promise to Pay
472
7.5.6 Customer Contact
473
7.5.7 Resubmission and Note
473
7.5.8 SAP Collections and Dispute Management
473
7.5.9 SAP Collections and Dispute Management for SAP Convergent Invoicing
475
7.5.10 Credit Management
478
7.6 Tax Engine
480
7.7 Payment Gateway
482
7.8 Summary
484
8 Extension and Connectivity
485
8.1 Extension for SAP Billing and Revenue Innovation Management, Subscription Order Management
486
8.1.1 Business Partners
487
8.1.2 Contract Accounts
487
8.1.3 Subscription Products
488
8.1.4 Subscription Transactional Data
488
8.2 Extension for SAP Convergent Charging
490
8.2.1 Overview
491
8.2.2 Managing the Catalog
493
8.2.3 Manage Contract Provisioning
493
8.2.4 Managing Contract Activation
494
8.2.5 Managing Chargeable Items
494
8.3 Extension for SAP Convergent Invoicing
495
8.3.1 Application Programming Interfaces for Consumption Items
495
8.3.2 Application Programming Instances for Billable Items
496
8.3.3 Application Programming Interfaces for Customer Invoicing
496
8.4 Extension for Contract Accounting
497
8.5 Summary
500
9 Data Migration
501
9.1 Data Migration Process
502
9.2 Data Migration Objects
503
9.3 Data Migration Types
504
9.3.1 Creating a Company Using Industry Solutions Migration Workbench
505
9.3.2 Customer Migration from Legacy Systems
506
9.3.3 Contract Account Migration
508
9.3.4 Subscription Product Migration
510
9.3.5 Subscription Order and Contract Migration from Legacy Systems
513
9.3.6 Billable Items and Consumption Items
516
9.3.7 Open Accounts Receivable Conversion from a Legacy Platform
517
9.3.8 Migration from SAP CRM-Based SAP Billing and Revenue Innovation Management, Subscription Order Management, to SAP S/4HANA
520
9.4 Summary
521
10 First Steps to SAP Billing and Revenue Innovation Management
523
10.1 Why Move into Subscription-Based Business?
524
10.2 Evaluating Your Current Landscape
524
10.2.1 Company Currently Running SAP
525
10.2.2 Set Up SAP Billing and Revenue Innovation Management Infrastructure
526
10.2.3 Communication between Systems in the SAP Billing and Revenue Innovation Management Landscape
529
10.2.4 Verify Landscape Selection with the Product Availability Matrix
529
10.2.5 Security for Your Connected Systems
531
10.2.6 Load Balancing
531
10.2.7 Migrating Changes
532
10.2.8 Monitoring
532
10.2.9 Data Protection
533
10.2.10 Sizing
533
10.3 Evaluating Your Deployment Options
536
10.3.1 SAP Billing and Revenue Innovation Management: Full Suite Deployment
537
10.3.2 SAP Billing and Revenue Innovation Management: Phased Deployment Using SAP Convergent Charging, SAP Convergent Invoicing, and Contract Accounting
537
10.3.3 SAP Billing and Revenue Innovation Management: Phased Deployment Using SAP Convergent Invoicing and Contract Accounting
537
10.3.4 SAP Billing and Revenue Innovation Management Deployment Using SAP Convergent Charging Only
537
10.3.5 Deployment Option with SAP Flexible Solution Billing
538
10.3.6 Deployment Option with Sales and Distribution Integration
538
10.3.7 Deployment Options with Contract Accounting Posting
538
10.4 SAP Standard Content Activation Service
538
10.5 Reviewing Rapid Deployment Solutions and Implementation Best Practices
539
10.5.1 Master Data
540
10.5.2 Transactional Data
544
10.6 Replication of Subscription Contracts to SAP Convergent Invoicing and SAP Convergent Charging
545
10.7 Summary
546
11 Conclusion
547
A Certification Preparation
551
A.1 Objectives of the Test
551
A.2 Key Terminology
552
A.3 Practice Questions
553
A.3.1 SAP Billing and Revenue Innovation Management, Subscription Order Management
553
A.3.2 Charging
555
A.3.3 Invoicing
558
A.3.4 Contract Accounting
560
A.3.5 Extension and Connectivity
562
A.3.6 Data Migration
563
A.4 Practice Answers and Explanations
564
A.4.1 SAP Billing and Revenue Innovation Management, Subscription Order Management
564
A.4.2 Charging
566
A.4.3 Invoicing
568
A.4.4 Contract Accounting
569
A.4.5 Extension and Connectivity
570
A.4.6 Data Migration
571
A.5 Key Takeaways
572
B The Authors
573
Contributors
574
Index
577