This lesson focuses on the strategic integration of SAP Convergent Invoicing (CI) into the core Utilities Bill-to Cash processes within SAP S/4HANA. This integration is essential for supporting modern, mixed-portfolio utilities business models.
I. Overview of the CI Integration in SAP S/4HANA Utilities
The integration of SAP Convergent Invoicing (CI) with SAP S/4HANA Utilities (IS-U) was introduced to allow the Utilities core system to handle high-volume, complex invoicing scenarios typical of a competitive retail market.
Core Concept: Coexistence and Centralization
In SAP S/4 HANA, CI is available as an additional option beyond the existing classic IS-U invoicing and bill print process.
- Classic Process: The existing IS-U billing process (for commodity services like electricity, gas, and water) continues to execute in SAP S/4HANA Utilities.
- Central Invoicing: Instead of the IS-U system executing the final invoicing and print, the results of the IS-U billing run are converted into standardized data elements called billable items and sent to the central Convergent Invoicing engine.
Integration Flow (Bill-to-Cash)
Billing (IS-U): The classic IS-U billing engine calculates charges for commodity contracts (e.g., usage-based electricity).
Creation of Billable Items: The system automatically creates commodity-related billable items in the Convergent Invoicing data format.
Billable Item Sources (CI):
Commodity: Billable Items from IS-U Billing.
Non-Commodity: Billable Items from other systems like SAP Convergent Charging (for new services) or third-party rating engines.
Invoicing (CI): The central Convergent Invoicing engine receives all billable items (commodity and non-commodity) and consolidates them.
Final Output: A single, unified invoice is created for the customer, covering all products and services.
Contract Accounting (FI-CA): The final aggregated invoice data is posted to Contract Accounts Receivable and Payable (FI-CA) for subsequent collections and payment processing.
II. Benefits of Using Convergent Invoicing
The move to a centralized CI-based invoicing process delivers key benefits, particularly in the context of Digital Transformation and Integration.
- Support for Modern Business Models
Non-Commodity Sales: CI allows utilities to quickly introduce and monetize new retail offerings, which typically use different billing/rating systems.
Optimized Invoice Processing: Optimizes processing and makes it more flexible by combining invoices for commodity products (typical utilities products) and non-commodity products in a single invoice.
- Efficiency and Cost Reduction
Central Invoicing Solution: Reduces the total cost of ownership (TCO) by using one central invoicing solution for all revenue streams.
Rating Engine Integration: Supports the integration of various rating engines in the central invoicing engine.
- Utilities Process Support
- The integration fully supports established utilities accounting procedures, including:
- Budget Billing (such as statistic budget billing procedures).
- Partial Billing procedures.
- The integration fully supports established utilities accounting procedures, including:
Key Technical Features and Resources
Key Technical Features and Resources
| Feature | Description | Reference |
|---|---|---|
| Commodity Billable Item Creation | The IS-U billing process is enhanced to automatically convert the results of the billing run into a standardized format and create the commodity related billable items in the CI component. | Release Note: Integration of IS-Utilities and Convergent Invoicing |
| IS-U Billing Execution | The original, complex IS-U contract billing logic remains in S/4HANA Utilities, ensuring accurate calculation of commodity charges, before the data is passed to CI. | Overview |
| Software Version | The functionality is available with SAP S/4 HANA (Software Component Version: IS-UT 805). | Releases |
Further Integration Resources
Demo Video: Demo Video: Integration of IS-U and CI
Help Document (Introduction): Introduction: Integration of IS-U and CI
Help Document (Implementation): Implementation Guide