Managing Subscription Contract Lifecycle Management Processes

Objective

After completing this lesson, you will be able to detail the contract change process for subscription contracts.

Detail the Contract Change Process for Subscription Contracts

Business Example

A month has now passed since CutAbove purchased the cloud service from the O2C Company. CutAbove has realized that they use the cloud service intensively, so more free volume and a lower tariff for more usage would be an advantage. Therefore, they have decided to upgrade the subscription contract from gold to platinum.

Let’s remind ourselves of the subscription contracts available and what they include:

The four service plans are: Pay-as-you-Go (1,000 EUR/Month), Silver (2,000 EUR/Month), Gold (4,000 EUR/Month), and Platinum (5,000 EUR/Month), each with different benefits and tariffs.

Change Management

Visualization of the persona Lena.

O2C’s order management administrator, Lena, is responsible for changing the subscription contract for CutAbove from gold to platinum. The following graphic outlines the contract changes that Lena can make in SAP Billing and Revenue Innovation Management, Subscription Order Management.

Change Processes

Overview of Change Processes. The process is explained in the following text.

All contract change processes for existing customers are handled via change orders. This means that, if an agent triggers a change process, an order is created based on the contract. Within this order, the changes are applied and afterwards written back into the contract. Change orders can also be scheduled in the future and can include one or several of the following change processes.

Change Processes

Contract ExtensionRevoke ExtensionConfiguration Change
Cancellation of OptionsRevoke Cancellation of OptionsBusiness Agreement Assignment
Change Technical ResourcesChange Billing CycleAllowance Refill
Upgrade Cross-Catalog MappingChange Rating AreaLock/Unlock Service
Revoke ExtensionNew Change OrderCreate Repair Order
Diagram outlining the change process. The process is explained in the following text.
  1. Current Subscription Contract 2060. Contract Start Date 15.2.2020.
  2. Start Product Configuration Change for Product Configuration A.
  3. Product Configuration B is done. Time Slice beginning at 15.2.2020.
  4. Change Fee is created.
  5. Change Order is released and created.
  6. Changed item 10 is set to End Date 15.2.2020.
  7. Subscription Contract 2060 now has been changed, to item 20

From the contract, all relevant data is copied to the change order. The change order changes the validity dates of the existing contract item and copies the new data of the change order to a new contract item with relevant dates to the contract. The technical object is linked from the old contract item to the new contract item.

All contract changes are used to apply the changes to the contract. Therefore, the contract will always retain its previous ID and the related change processes are stored in detail as a contract history.

Changes that should be performed in the future can also be scheduled in the change order for a future date. When the date is reached, the order applies the changes to the contract.

Change a Contract

Business Scenario

The following simulation walks you through how Lena changes CutAbove’s contract service level from gold to platinum.

Walk through the following simulation, either in Demo or Practice mode.

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