Understanding Integration

As shown in the preceding figure, the quote-to-cash management solutions process consists of the following three steps:

1. SAP CPQ: Shown as a cloud icon and a sales rep figure, indicating the quote preparation and approval process ​
2. SAP Commerce Cloud: Shown as a shopping cart cloud icon and an SAP Commerce customer figure, showing the customer-facing aspects of the quotation process
3. SAP S/4HANA: Shown at the bottom, representing the back-end system for order processing ​

The workflow proceeds as follows:​

1. The process begins with a Request for Quote initiated by the SAP Commerce customer.​

2. This request is sent to the SAP CPQ system, where the sales rep prepares the quote.​

3. The quote goes through an approval process within SAP CPQ.​

4. Once approved, the quote is released back to the SAP Commerce Cloud.​

5. The customer can then check the quote and decide to accept, reject, or request modifications.​

6. If accepted, the quote becomes a customer order in the SAP Commerce Cloud.​

7. Finally, the order is transferred to the SAP S/4HANA system as a (sales) order.​

Throughout the process, there are status updates and communication between the systems to ensure synchronization.​

This integration allows for a seamless quote-to-cash process, combining the strengths of SAP's e-commerce platform (SAP Commerce Cloud) with its advanced quotation system (SAP CPQ) and robust SAP S/4HANA solution. It enables businesses to manage complex pricing scenarios, streamline approvals, and provide a smooth customer experience from quote request to order placement.​

In an alternative sales scenario, quotes can also be started directly from SAP CPQ, and SAP Commerce is used for quote acceptance.

This scenario consists of the following steps:

1. Create a quote in SAP CPQ and send it to SAP Commerce (discounts, configuration, and so on) for customer review.
2. Place a sales order from SAP Commerce to SAP S/4HANA and SAP Subscription Billing.

Note the prerequisites for SAP Cloud Integration middleware:

To integrate the Cloud applications, the middleware, SAP Cloud Integration, is needed where preconfigured integration flows can be used to replicate data between both systems. If there are also configured products in the SAP S/4HANA back-end system, SAP Variant Configuration integration is needed.

As an end user, you create a request for quotation in SAP Commerce Cloud for simple (non-configurable) products and configurable products.

1. Customers are primarily synced from the SAP S/4HANA system.
2. The Customer ID from SAP S/4HANA serves as a unique identifier across all integrated systems (SAP Commerce Cloud, SAP CPQ, SAP Subscription Billing).
3. SAP Commerce can create local customers, which are then synced back to SAP S/4HANA.
4. SAP CPQ uses an External ID field to store the unique Customer ID from SAP S/4HANA.
5. When customer data is updated in SAP Commerce and sent with an RFQ, SAP CPQ will update its customer records accordingly.

This figure shows the process of creating a quote request in SAP Commerce Cloud and its integration with the SAP CPQ (Configure, Price, Quote) system.​

1. Commerce Customer Experience:
   1. A customer visits the SAP Commerce Cloud site.
   2. They configure products and add items to their shopping cart.
   3. The customer can optionally add comments at both the item and overall quote level.
   4. When ready, the customer initiates a request for quote (RFQ) for potential special pricing or benefits.
2. SAP Commerce Cloud Actions:
   1. Once the RFQ is submitted, the SAP Commerce quote becomes locked to prevent further changes.
   2. The complete cart details are sent as an XML payload through SAP Cloud Integration to the SAP CPQ API.
3. SAP Cloud Integration:
   1. Acts as a middleware, facilitating communication between SAP Commerce and SAP CPQ systems
   2. Transforms the SAP Commerce cart data into a format compatible with SAP CPQ
4. SAP CPQ System Integration:
   1. SAP Cloud Integration creates a new SAP CPQ quote via API, including:
      1. Market (SAP Sales Org)
      2. Pricebook (SAP Distribution Chain)
      3. Customer (SAP Customer Code)
      4. Products (matching SAP Commerce cart)
      5. Item discounts (as applied in SAP Commerce)
      6. Comments (both header and item level)
   2. The quote is set to a default starting status, for example, "Prepared".
5. Sales Representative Notification:
   1. The SAP CPQ system generates an e-mail notification.
   2. This is sent to a predefined user group of sales representatives.
   3. The e-mail contains a link to access the newly created quote in SAP CPQ.

This process ensures a seamless flow of information from the customer's online shopping experience to the sales team's quoting system, enabling efficient handling of special pricing requests and maintaining data consistency across multiple SAP systems.​

This diagram illustrates the intricate process of quote preparation and document generation in a B2B commerce scenario, involving SAP CPQ (Configure, Price, Quote), SAP Commerce Cloud, and SAP Cloud Integration.

1. Initial Quote Preparation:
   1. The process begins with the sales rep accessing the selected quote in SAP CPQ, which includes all comments from SAP Commerce.
   2. The sales rep can modify the quote by applying discounts, editing products, adjusting quote data, and adding comments at header or item level.
2. Quote Submission:
   1. Once prepared, the sales rep submits the quote to the customer using a new "Release Quote to Commerce" action.
   2. SAP CPQ publishes an event, notifying SAP Cloud Integration to retrieve and process the quote.
3. Integration and Commerce Update:
   1. SAP Cloud Integration processes the quote and sends it back to the SAP Commerce system.
   2. The SAP Commerce system applies all changes, including updated prices, discounts, new products, and comments.
4. Document Generation:
   1. If required, a proposal document is generated in SAP CPQ.
   2. The sales rep uses a new "Release Quote and Proposal to Commerce" action to send both the quote and document.
   3. SAP CPQ notifies SAP Cloud Integration, which retrieves and processes both items.
   4. The SAP Commerce system applies changes and attaches the proposal document for customer review.
5. Final Steps:
   1. Instead of an e-mail form, the sales rep provides a message for the customer in a text area.
   2. The process emphasizes the iterative nature of quote negotiation until final acceptance or rejection.

This comprehensive work flow demonstrates the seamless integration between SAP CPQ, SAP Commerce Cloud, and SAP Cloud Integration, enabling efficient B2B quote management and document generation.

This flowchart illustrates the process of quote acceptance or rejection in an integrated SAP Commerce and SAP CPQ (Configure, Price, Quote) system:

1. Starting Point: A quote with applied changes made by the sales rep in SAP CPQ is presented to the SAP Commerce customer.
2. Decision Point: The customer decides whether to accept the quote.
3. This leads to two possible paths:
   • If Quote Accepted (''Yes'' path), the following actions occur:
     1. The status is changed to "Customer Accepted" via a Perform Cart Action.
     2. This triggers a Customer Order process.
     3. If the order is confirmed, the status is updated to "Order Placed" and the Commerce Order ID is updated.
     4. This leads to two actions:
        1. A provisioning request is sent to SAP Subscription Billing.
        2. A sales order is created in SAP S/4HANA.
   • If Quote Not Accepted (''No'' path), the following occurs:

     The status is changed to "Customer Rejected" via a Perform Cart Action.

   • System Components Involved:
     • SAP CPQ: Handles the sales representative's interactions and quote modifications
     • SAP Commerce Cloud: Manages the customer-facing processes and order placement
     • SAP Subscription Billing: Handles provisioning requests for subscription components
     • SAP S/4HANA: Processes the sales orders for physical products

This workflow ensures a seamless transition from quote acceptance to order processing across multiple SAP systems, maintaining data consistency and enabling efficient order fulfillment.

This flowchart illustrates the process of creating and managing quotes using SAP CPQ (Configure, Price, Quote) and SAP Commerce Cloud, with SAP Cloud Integration serving as the middleware.

Step 1: Quote Initiation in SAP CPQ​:

• The sales representative starts the quoting process using SAP CPQ.
• They create a new quote, add the customer, define the market/pricebook, add products, apply item discounts, and enter comments at header or item level.

Quote Preparation and Submission:

• Once the quote is prepared, the sales rep uses a new standard action "Release Quote to Commerce" to send it to the SAP Commerce customer.
• SAP CPQ publishes an event notifying the SAP Cloud Integration artifact that the quote is ready.
• Cloud Integration retrieves the quote from SAP CPQ, processes it, and sends it to the SAP Commerce system.
• During this translation, Cloud Integration creates an SAP Commerce quote and adds the customer, market/pricebook, items, and comments.

Document Generation and Final Submission:

• When the proposal document is ready, the sales rep uses the "Release Quote and Proposal to Commerce" action.
• SAP CPQ publishes an event notifying SAP Cloud Integration that the quote and proposal document are ready.
• SAP Cloud Integration retrieves both from SAP CPQ, processes them, and sends them to the SAP Commerce system.
• The SAP Commerce system applies all changes and attaches the proposal document for customer review.
• Instead of showing an e-mail form, a text area is provided for the sales rep to include a message for the end customer.

Customer actions in SAP Commerce: The SAP Commerce customer has three possible actions:

1. Accept: The quote is accepted, and an order is sent to SAP S/4HANA / SAP Subscription Billing. Cloud Integration updates the CPQ Quote status using the Perform Cart Action API.
2. Reject: The quote is rejected. Cloud Integration updates the SAP CPQ quote status. The customer can optionally add a comment explaining the rejection, which is replicated in SAP CPQ.
3. Edit: The customer requests changes, initiating a negotiation process that continues until acceptance or rejection.

This process ensures seamless communication between SAP CPQ and SAP Commerce systems, allowing for efficient quote management and customer interaction throughout the sales cycle.

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The integration of product master data between SAP Configure Price Quote (SAP CPQ) and SAP Commerce Cloud is crucial for maintaining consistency across these platforms. This alignment ensures that accurate product information, pricing, and configuration options are available throughout the sales and e-commerce processes.​

Key aspects of the integration:

1. Data Alignment: Product master data must be precisely aligned between SAP CPQ and SAP Commerce Cloud to prevent discrepancies in product offerings, pricing, and configurations.
2. Simple Products Synchronization:
   1. Data for simple (non-configurable) products are synchronized in parallel.
   2. Synchronization occurs from SAP S/4HANA, the core SAP S/4HANA system, to both SAP CPQ and SAP Commerce Cloud.
   3. This process utilizes SAP Cloud Integration (formerly SAP Cloud Platform Integration or CPI) as the integration middleware.
   4. This process ensures that basic product information, such as descriptions, prices, and availability, is consistent across platforms.
3. Configurable Products Synchronization:
   1. Complex, configurable products require a different approach for synchronization.
   2. These products are synchronized in parallel to both SAP CPQ and SAP Commerce.
   3. The synchronization leverages SAP Variant Configuration and Pricing.
   4. This ensures that all possible product configurations, rules, and dynamic pricing are accurately reflected in both SAP CPQ for sales quotes and SAP Commerce for online configurations.
4. Benefits of Integration:
   1. Maintains data consistency across sales and e-commerce channels
   2. Enables accurate quoting in SAP CPQ based on the latest product data
   3. Ensures customers see up-to-date product information and pricing in the SAP Commerce platform
   4. Streamlines the process of managing complex, configurable products across multiple systems

This integration scenario highlights SAP's comprehensive approach to managing product data across its ecosystem, ensuring seamless operations from SAP S/4HANA to sales quoting and e-commerce platforms.

Our advanced SAP Subscription Billing capabilities allow for a unified and streamlined sales process, combining subscription-based offerings with traditional physical products. This integration offers several key benefits:

1. Consolidated Quoting: Generate comprehensive quotes that include both subscription services and tangible goods in a single, cohesive document.
2. Simplified Ordering: Customers can place orders for subscriptions and physical items simultaneously, enhancing the user experience and reducing friction in the purchase journey.
3. Flexible Pricing Models: Incorporate various pricing structures, including one-time purchases, recurring subscriptions, and hybrid models, all within the same order.
4. Improved Cross-selling Opportunities: Easily suggest complementary physical products to subscription services and vice versa, increasing average order value.
5. Streamlined Billing: Manage invoicing and payment collection for all product types through a single integrated system.
6. Enhanced Reporting: Gain deeper insights into customer purchasing behavior across both subscription and physical product lines.
7. Scalable Solution: Adapt to changing business needs by easily adding or modifying product offerings without overhauling the entire sales process.

By leveraging this integrated approach, businesses can offer a more diverse product portfolio, improve operational efficiency, and provide a seamless purchasing experience for their customers.

Key Capabilities of SAP Subscription Billing Integration:

1. Product Master Replication:
   1. Seamless synchronization of subscription product data from SAP Subscription Billing to SAP Commerce and SAP CPQ
   2. Ensures consistent product information across platforms
   3. Enables real-time updates of product details, pricing, and availability
2. Subscription Order Processing:
   1. Efficient replication of subscription orders from SAP Commerce to SAP Subscription Billing
   2. Facilitates automated order fulfillment and management​
   3. Enables accurate tracking and processing of recurring revenue streams
3. Enhanced User Experience via Storefront UI:
   1. Integrated My Account section in the storefront interface.​
   2. Allows customers to:
      • View and manage their active subscriptions
      • Access billing information and usage details
      • Make changes to subscription plans or settings
      • Review historical billing data and usage patterns
4. Streamlined Subscription Management:
   1. Includes centralized control for both customers and administrators
   2. Supports subscription lifecycle management, including upgrades, downgrades, and cancellations
5. Real-time Billing and Usage Insights:
   1. Provides customers with up-to-date billing information
   2. Offers detailed usage analytics for consumption-based subscriptions
   3. Enables informed decision-making for customers regarding their subscriptions​
6. Integration with SAP ecosystem:
   1. Seamless data flow between SAP Subscription Billing, SAP Commerce, and SAP CPQ
   2. Ensures consistency across all touchpoints of the customer journey
   3. Leverages SAP's robust infrastructure for reliable and scalable subscription management

This enhanced description provides a more comprehensive overview of the integration's capabilities, highlighting the benefits for both businesses and customers in managing subscription-based services and products.

Key Features of the Integration Flow:

1. Order Management for SAP Commerce:
   1. Acts as a central hub for order processing ​
   2. Splits orders between physical items and subscriptions ​
   3. Routes order items to appropriate fulfillment systems:
      1. Physical items are sent directly to SAP S/4HANA.
      2. Subscription items are routed to SAP Subscription Billing.
2. Order and Order Status Replication:
   1. Only order (items) and order status updates are replicated in the system.​
   2. This ensures real-time tracking and management of orders across platforms.​
3. Subscription Handling:
   1. Subscriptions are not replicated in the same manner as orders​.
   2. Instead, they are displayed and managed within SAP Commerce by consuming services from SAP Subscription Billing.
   3. This approach allows for centralized subscription management while maintaining integration with the SAP Commerce platform.
4. System Integration:
   1. SAP Commerce Cloud serves as the front end for customer interactions.
   2. SAP S/4HANA handles physical item fulfillment and inventory management.​
   3. SAP Subscription Billing manages all subscription-related processes.
5. Data Flow:
   1. Order originates in SAP Commerce Cloud​.
   2. Order Management for SAP Commerce splits and routes order data.
   3. Physical items are processed by SAP S/4HANA.
   4. Subscription items are handled by SAP Subscription Billing.​
   5. Order status updates flow back to SAP Commerce Cloud for customer visibility.
6. Benefits:
   1. Streamlined order processing for both physical and subscription-based products
   2. Improved efficiency through specialized handling of different order types
   3. Enhanced customer experience with real-time order status updates
   4. Centralized subscription management with seamless integration to the SAP Commerce platform

This integration flow enables a comprehensive and efficient handling of mixed orders containing both physical items and subscriptions, leveraging the strengths of each system in the SAP ecosystem.