Describing the Architecture of SAP Convergent Invoicing

Objectives

After completing this lesson, you will be able to:

  • Describe the architecture of SAP Convergent Invoicing
  • Explain the architecture of billing and invoicing in an SAP context

The History of SAP Convergent Charging

Lesson Overview

In this lesson, the following topics are discussed:

  • Process overview of convergent invoicing.
  • Understand convergent invoicing in SAP S/4 HANA Context.
  • Demonstrate switch framework-relevant business functions.
  • Demonstrate a basic process in SAP CI - Show the terms of SAP CI in the system.
  • Show the terms relevant to SAP CI in the system.

Business Example

Print Service Corporation has SAP Convergent Charging as a rating and charging system and SAP S/4HANA with activated convergent invoicing for billing and invoicing processes.

SAP Convergent Charging

The figure illustrates the high level System Architecture of Convergent Invoicing.

Repro: Not possible. Convergent charging is not available as a training system component in AC245.

The figure shows an example of a Charge Based on Decision Trees in SAP Convergent Charging.

The figure merely provides an impression of the look and feel of SAP Convergent Charging.

SAP Convergent Charging was born as Highdeal Transactive in the labs of France Telecom in 1996. Highdeal Transactive was an initiative to solve issues common to the many billing systems used by France Telecom at the time. SAP Convergent Charging is a cross-industry monetization platform that provides clear business benefits for a broad range of industries, from telecommunications, high tech, media, transportation, postal and shipping, finance, and utilities. This innovative platform enables companies to monetize services dynamically and in real time. It also enables them to manage revenue sharing between diverse business partners, and sustain massive transaction volumes, while rapidly changing their business models and optimizing profitability.

SAP Convergent Charging is designed for business users as opposed to specialized IT staff. Compared to other systems, the solution uses a very different way of representing pricing and charging logic, namely through decision trees. The intuitive, graphical user interface supports business configuration without lengthy coding cycles when making changes or designing new pricing models.

The decision trees allow for a genuinely flexible expression of configurable pricing and charging logic. They are easy to learn and easy to use. This is not a fill in the blanks model where the pricing logic is predefined, and all the user can do is set price levels or tiers. Pricing and charging logic are built up by assembling decision trees containing simple components. These components are like simple building blocks that users can put together in many different ways. There are no constraints on the depth of the tree or the way in which users choose to sequence the different decision building blocks. In this way, users can create exactly what they need, without requiring custom coding or change requests from SAP.

This different approach is the primary reason why our customers choose our solution.

Illustration of the data flow over several systems.
Mediation System

A mediation system provides consumption data records. As there is no mediation system in place, you need to simulate the consumption data records. In this case, simulate means having a CSV file, where records are stored in a simple table-like structured text file. The values of the CSV file have to be edited manually for individual usage.

The CSV file is then uploaded to SAP CC, where the consumption data records are transformed to chargeable items by a specific field mapping (chargeable item mapping).

SAP CC System

Incoming consumption data records are called chargeable items in SAP CC. After the rating process, the chargeable items are transformed into charged items by a specific field mapping (charged item mapping).

The charged items are sent to SAP CI using the bulk loader process. As the fields of the charged items and billable items are equal, no further field mapping is necessary. Bulk loading is generally a scheduled process, so it has to be triggered manually for testing purposes.

SAP CI

Incoming charged items are called billable items in SAP CI. Billable items are stored with the processing status billable or raw, depending on possible issues that may occur during loading.

Follow the path SAP Easy Access menuToolsCustomizingIMGExecute Project to SAP Implementation Guide. Select the first node in the SAP Implementation Guide, Activate Business Functions (transaction code SFW5).

Example of the Switch Framework.

The switch framework enables optional activation of business functions:

With the switch framework, you can control the activation of SAP ERP objects. Activating a business function triggers switches, which then influence the execution of the code enhancements. These switches ensure that you only see the new functions if you have activated them. All functional changes, and the impact of an activated business function, are made clear in advance by the documentation. Once a business function is activated you cannot reverse it.

Note

The activation process starts a job in your SAP system that automatically performs all the changes in the system.

Billing and Invoicing in SAP Convergent Invoicing

Visualization of the difference between Billing and Invoicing.

What is the difference between billing and invoicing in SAP terminology?

You can perform selection, grouping, and aggregation in two separate steps.

This is not necessary in all system architectures, but with SAP Convergent Invoicing, it is possible to do so.

The billing process describes the first step, and invoicing the second step.

Visualization of the invoicing of the SD Billing Document in CI with Invoicing Function.

Business Example:

Customer Bovi's printer was repaired by Print Service Corporation. The repair service is handled in SAP Sales and Distribution. The cost of the repair is added to the next monthly invoice. An invoicing order is sent from SAP Sales and Distribution to SAP Convergent Invoicing (both in the same SAP S/4HANA ON-PREMISE 1709 system).

Conclusion about Convergent Invoicing

  • Different billing streams together in Convergent Invoicing to produce a common invoice.
  • Handles large numbers of billable items.
  • Has strong integration with Open Item Management.

Log in to track your progress & complete quizzes