Partner Revenue Sharing
Partner revenue sharing in SAP Convergent Invoicing is a critical functionality that manages the distribution of revenue between the primary service provider and various partners based on predefined agreements. This process ensures that all involved entities are compensated fairly for their contributions to delivering a service or product.
Partner Agreement Orders & Partner Agreements are created in Subscription Order Management. Partner Processing itself is only done in SAP Convergent Invoicing and SAP Convergent Charging.
Partner Agreements in Subscription Order Management create a partner agreement (Provider Contracts for a partner) in FI-CA. Subscription Partner Orders can only be created for products of a material type which is customized for partner processing, in addition, a settlement rule must be assigned.
Revenue Sharing
Revenue Sharing is the process of distributing revenue generated from products or services among various partners according to predetermined contracts or agreements. It ensures that each partner receives their fair share of revenue based on their contribution or partnership terms.
Partner Settlement
Partner Settlement is the subsequent financial process that involves calculating, documenting, and disbursing payments to partners after revenue sharing.
Revenue Sharing and Partner Settlement are integral components of SAP S/4HANA for Billing and Revenue Innovation Management (BRIM). These processes ensure that revenues generated through joint ventures, partnerships, or collaborations are accurately shared and settled according to predefined agreements. A detailed explanation of how revenue sharing and partner settlement are managed within the BRIM framework follows.
Revenue Sharing and Partner Settlement Overview
If an end user uses services or purchases products from a service provider and these services or products use rights, infrastructure, services, or products of a partner, then payment is due to this partner. In these cases, a portion of the amount that you invoice to the end customer has to be paid to one or more partners.
From the end customer billable item, partner items are split off as consumption items for rating. These consumption items are sent to SAP Convergent Charging for rating and charging and received back as partner billable items in SAP Convergent Invoicing. Billing and invoicing of end customer and partner billable items generate debit for the end consumer as well as credit memos for the partners.
The BRIM Partner Settlement architecture provides functionality in the following areas:
- Subscription Order Management
Creation of partner products and partner agreements and distribution of partner data into the Convergent Invoicing and Convergent Charging systems.
- SAP Convergent Invoicing
Split off partner chargeable items from one single-end customer billable item. The partner chargeable items are rated in SAP Convergent Charging in charge plans assigned to partner products and partner agreements. The system generates consumption items for partner settlement when the end customer billable item is created based on the Partner Settlement Rules defined in the Partner Agreement.
- SAP Convergent Invoicing
Execution of partner billing and invoicing provides options for time dependency of partner billing on an end customer invoice and itemization of the individual amounts in the partner credit memo. It also provides options for first alignment with the partner based on a preliminary invoice, and tracking and evaluating the partner shares only without issuing and posting a credit memo.
- SAP S/4HANA FI-CA
Deflecting the end customers' payment defaults to the partner and adjusts the disbursed credits.