Understanding the Solution Order Process

Susan, our customer at ACME Inc., would like to purchase printing as a service. Print2You offers a combined product.

James Taylor is the order agent in Print2You. He wants to set up all relevant order data for the contract for customer ACME Inc. in the IT system.

Let's see how to do this.

The quote-to-cash process begins with creating an order. Select the video below to begin the quote-to-cash process by creating an order!

We start the process for the set-up of the solution and subscription master data process in SAP S/4HANA with the creation of a solution order for all combined products. Let's have a look at the business use case first.

Let's look at the following business example and the several product and service options James presents to Susan to create a printing as a service contract:

• Sales with configurable hardware
• Service with service confirmation for start of subscription
• Subscription product
• Recurring usage components
• Entitlements assigned

Susan decides to order the premium version of the service. The premium service allows more than 10 users and print, copy, and fax functions. This service also includes 1,000 free black and white printed pages and 200 free colored pages.

Hardware Product: PRT_HW_CFG

Description: Printing as a Service

Printer Model: Premium

Price: 7,000 USD

Discount: 50%

Discounted Price: 3,500 USD

Number of users: More than 10

Speed: More than 50 pages/minute

Function: Printing, copying, and faxing

Subscription Product: PRT_PRD_PRM

Price Model: Professional

Prints included per subscription (valid for 12 months): 1,000 Black and White / 200 Color

0-200 USD revenue with colored pages: no discount

201-400 USD revenue with colored pages: 5% discount

﹥400 USD revenue with colored pages: 7% discount

0-1000 USD revenue with colored pages: no discount

1001-2000 USD revenue with black/white pages: 5% discount

﹥2000 USD revenue with black/white pages: 7% discount

Single black/white page for US east market = 2 cent

Single color page for US east market= 18 cent

Monthly base fee: 460 USD for 12 months

Now that James has a good understanding of Susan's business requirements, James will set up the relevant solution and subscription master data in SAP S/4HANA’s Manage Solution Orders app. His work will result in the creation of a solution order that combines several products.

Next, we’ll see how James works with Susan to create a subscription printing as a service premium solution. Ultimately, James will provide a complete printing as a service solution to Susan.

James begins with ordering printer hardware.

James is tasked with determining the most suitable printer for customer ACME Inc.. This is where the software comes in.

James begins by activating the Hardware Configuration tool and entering ACME Inc.'s specifications:

Number of users: More than 10

Speed: More than 50 pages per minute

Functions: Printing, copying, and faxing

This set of information is then processed by the SAP System Product model. For simpler requirements, it suggests the Standard Printer. Still, in this case, with the specific demands of ACME Inc., it recommends the Premium Printer – a testament to the software's nuanced understanding of product configurations.

Following the system's recommendation, James proceeds with the configuration exercise, tailoring the Premium Printer Model to ACME Inc.'s precise needs within the system.

James must now think about how to add an installation service for ACME Inc. to get the printer installed.

James faces a new task; adding an installation service for ACME Inc. to get their new printer installed. This exercise will provide a better understanding of how our solution aids in smooth service planning and execution through maintenance planning in the Service Field.

So how can James accomplish this task?

First, James navigates to the system and enters a Service Installation Product 'PRT_SERV_INSTALL'. This action enables him to plan and prepare for the installation service by allocating a service field resource to ACME Inc.'s installation service. This step illustrates how effortlessly the solution coordinates the appropriate resources to ensure seamless service installation.

Keep in mind that even though the installation service ACME Inc. has requested is free of charge to them, it does incur costs for the Print2you company. This is an important consideration; underscoring the importance of strategic resource allocation and cost management in providing comprehensive and customer-friendly services.

James' next task is to enter all relevant details for the set-up of a subscription in the solution order for client ACME Inc.. This consideration delves into the system's ability to define subscription pricing models, manage subscriptions life cycles, and include automatic renewals, cancellations, and withdrawals.

So, how does James go about this task?

James begins with setting up the subscription items. He considers various options intrinsic to the process:

• The start date of the contract for the subscription.

• The assigned recurring fee 'PRT_REL_REC'.

• Discounts applied for colored and black/white pages.

• An estimation of the monthly price for the next year.

These choices encapsulate the critical data that aligns with the subscription contract with customer ACME Inc..

In the end, James successfully enters all the subscription-relevant data into the system. In this case, the subscription management demonstrates adaptability and flexibility according to the individual business needs and customer preferences of ACME Inc..

Lastly, James at Print2You must summarize the Product Model Dimensions for the premium printer he is selling to Susan at ACME Inc..

• Premium printer value: 7,000 USD
• Cost for premium printer: 3,500 USD with a subscription for 12 months

• Recurring Premium: 460 USD per month

• Printer installation: Included free of charge
• Printer maintenance: Included free of charge

• Prints included per subscription (valid for 12 months):

  • 1,000 free black and white pages

  • 200 free colored pages

• Single color page = 18 cents (for US East market)

• Single black and white page = 2 cents (for US East market)

• Discounts according to volume printed

• Usage control for maintenance

Now that James at Print2You has all the information he needs, he'll create a complete solution order in SAP S/4HANA Cloud Public Edition. Click the video below to create a solution order!

This video script provides the learner with a detailed step-by-step overview of creating, configuring, and releasing a solution order in SAP S/4HANA Cloud Public Edition using the Fiori app Manage Solution Order.

The script guides the learner through a real-world business situation involving three products: printer hardware, a service installation, and a subscription product. Key topics covered include:

• The process of initializing and filling out necessary details to create a solution order.

• How to add products to a solution order, including how to select product ID, quantity, and other parameters.

• Guidance on configuring product features according to customer requirements. In this scenario, it illustrates how to configure printing as a service.

• Saving, checking for errors, editing, and managing the solution order's lifecycle, including how to simulate sales order creation and handle subscription parameters.

• Instructions on releasing the solution order, checking the distribution status of each item, and confirming the order's successful creation.

The learner, by the end of the video, gains an understanding of managing solution orders, which will help them effectively use SAP S/4HANA Cloud Public Edition for managing sales, service, and subscription products within their business ecosystem.

Solution Order Orchestration is an integrated function within the solution order that oversees the initiation and alteration of subsequent transactions. It also brings together and processes pertinent details from these consecutive transactions, activating relevant responses.

The orchestration progress and management of any orchestration errors are monitored through the item distribution status. If any orchestration errors occur, they can easily be resolved by utilizing the redistribution operation. This effective system contributes to a robust and error-free orchestration process.

In this Unit, we have created a Solution Order with three components: Service Order, Sales Order, and Subscription. After all data has been entered, they will be released, so the solution order orchestration starts to create the sales order, the service order, and the subscription.

The next step is now to pick up the printer from the warehouse and post the goods issue. In the next step, the service order needs to be completed to release it for billing, so the customer invoice and posting in FI-AR can be performed.

1. Solution Order - Combine products in one order.

   • Design and sell solutions with physical goods, services, projects, and subscriptions.
   • Easily combine solutions into one order.
   • Supports complex pricing models.
   • Allows holistic order orchestration of all solution order items.
   • The progress monitor provided as part of the solution order allows you to easily track the completion of all solution order items and to quickly follow up on issues.

2. Process Optimization.

   Offers seamless integration with fulfillment processes, including:

   • Sales and distribution

   • Project management

   • Field service management

   • Service contract management

   • Subscription management, including rating, charging and billing

   • Convenience of integrated billing; one invoice for a complete solution
3. Cloud platform approach.
   • Offers scalability and flexibility, allowing businesses to adapt to changing demands quickly.

   • Promotes cost savings, as businesses only need to pay for the resources they use and can avoid costs related to the upkeep and maintenance of in-house IT infrastructure.

In this unit, you have learned:

• The solution order in SAP S/4HANA allows for combining various products into one order which optimizes the quote-to-cash process. This was demonstrated through a scenario involving James from Print2You and Susan from ACME Inc..

• The step-by-step hands-on creation, configuration, and release of a solution order, including the addition and adjustment of items.

• How James packages a printing as a service solution package with a hardware product, a service installation, and a subscription product.

• The product dimensions in the solution and subscription include the specifics of the hardware, service, and subscription components specified by Susan.

• That upon successful configuration, the solution order is then released and monitored for distribution status and error handling through the Solution Order Orchestration function.

• The benefits of SAP S/4HANA Solution Order. This includes process optimization with seamless integration with fulfillment processes, integrated billing with a single invoice for a complete solution, and a cloud platform approach for easy management and analytics.

• Key capabilities of SAP S/4HANA Solution Order with emphasis on solution order handling, process optimization, integrated billing, and flexible cloud platform approach.

The next unit will cover SAP S/4HANA Sales and Service logistic fulfillment processes. We will be using James at Print2You as our example again, as now he has a delivery to ship to ACME Inc..