Integration

Objective

After completing this lesson, you will be able to explain the integration of SAP Convergent Invoicing (CI) into the core Utilities Bill-to Cash processes within SAP S/4HANA.

End-to-End Processes: Different Invoicing Options

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.

Diagram comparing three invoicing process flows with IS-U and CI integration, highlighting the evolution from classic IS-U to SAP S/4HANA 2020. Detailed description available.

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)

  1. Billing (IS-U): The classic IS-U billing engine calculates charges for commodity contracts (e.g., usage-based electricity).

  2. Creation of Billable Items: The system automatically creates commodity-related billable items in the Convergent Invoicing data format.

  3. 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.

  4. Invoicing (CI): The central Convergent Invoicing engine receives all billable items (commodity and non-commodity) and consolidates them.

  5. Final Output: A single, unified invoice is created for the customer, covering all products and services.

  6. 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.

  1. 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.

  2. 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.

  3. Utilities Process Support
    • The integration fully supports established utilities accounting procedures, including:
      • Budget Billing (such as statistic budget billing procedures).
      • Partial Billing procedures.

Key Technical Features and Resources

Key Technical Features and Resources

FeatureDescriptionReference
Commodity Billable Item CreationThe 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 ExecutionThe 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 VersionThe functionality is available with SAP S/4 HANA (Software Component Version: IS-UT 805).Releases

Further Integration Resources