Describing SAP Convergent Invoicing

Objective

After completing this lesson, you will be able to explain SAP Convergent Invoicing

Consume-to-Cash Process

A flowchart detailing the event process from non-SAP systems through SAP Financial, subdivided into segments like Convergent Mediation, Convergent Charging, SAP Convergent Invoicing, and SAP Financial. Each segment includes a brief description of the tasks performed, such as transforming data, creating invoices, and processing payments.

SAP Convergent Invoicing is part of, and highly integrated in, FI-CA.

SAP Convergent Invoicing is part of the Consume-to-Cash process (SAP SAP Billing and Revenue Innovation Management solution).

SAP Convergent Invoicing supports the process upload of Consumption Detail Records (CDR), the storage of Billable Items (BIT), the aggregation of billable items (billing), and invoicing.

A flowchart diagram illustrates the integration and data flow between systems, including SAP CRM, SD Sales Distribution, and Rating and Charging Legacy System, with options leading to FI Accounts (FI-AR, FI-GL, and FI-CA) within SAP S/4HANA. Key components include material movement, billing, invoicing, and mediation system interaction.

Mediation System

A mediation system provides consumption data records. As there's no mediation system in place, you need to simulate the consumption data records in a CSV file, which is uploaded to SAP Convergent Charging, where the consumption data records are transformed to chargeable items by a specific field mapping (chargeable item mapping).

SAP Convergent Charging

SAP Convergent Charging models pricing and charging logic through decision trees. The intuitive, graphical user interface supports business configuration without lengthy coding cycles when making changes or designing new pricing models.

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

The charged items are sent to SAP Convergent Invoicing using the bulk loader process. As the fields of the charged items and billable items are equal, no further field mapping is necessary.

SAP Convergent Invoicing

SAP Converging Invoicing uploads the incoming charged items from SAP Convergent Charging as so called Billable Items (BIT). Billable items are stored with the processing status billable or raw, depending on possible issues that may occur during loading.

Diagram listing various billable items with categories, including route sections, tickets, downloaded songs, and SMS or call detail records. Each category is represented with an icon next to bullet points of specific examples.

Billable items occur in very different service industries, such as the following examples:

  • In the telecommunication industry, a phone call includes technical data about the connection between two phone numbers. After the data has passed a charging plan and the price of the call has been calculated, it represents a billable item.

  • In the postal services industry, a parcel shipment can be regarded as a billable item. There may be additional insurance for the parcel shipment, so that both constitute billable items which can be calculated and printed on one invoice.

  • In the internet services industry, the download of a song or an e-book is an example of a billable item.

Flowchart depicts the process of convergent billing and invoicing, illustrating two steps: Billing involves selection, grouping, and aggregation, whereas Invoicing incorporates selection, grouping, aggregation, printing, and accounting. Outputs move from billing documents to invoice documents and, finally, to contract accounting with open items.

SAP Convergent Invoicing selects, groups, and aggregates BIT during billing and invoicing.

Flowchart illustrating the sales and distribution process from sales order to convergent invoicing. It details three separate data streams leading to CI Invoice integration.

For example, in SAP Sales and Distribution, a cell phone was sold to the customer and should be added to the next monthly invoice. The SD billing document is a source document for the next SAP Convergent Invoicing process. The SAP Convergent Invoicing billing documents resulting from usage fees (phone calls) or recurring charges are source documents as well.

A conclusion box summarizing the features of Convergent Invoicing, highlighting integration of different billing streams, handling large numbers of billable items, and integration with Open Item Management.

How to Create Billable Items for Test Purposes

DemoStart Demo

Steps

  1. Run the RFKKBIXBITSAMPLE program to create billable items for test purposes.

    1. In the SAP Easy Access menu, choose Tools → ABAP Workbench → Development → ABAP Editor (Transaction SE38).

    2. Enter the RFKKBIXBITSAMPLE program.

    3. Choose Program → Execute → With Variant.

    4. Use F4–Help and select the UNIT1_INSTR1 variant.

    5. Choose Execute (Enter).

    6. Start the report using the Execute icon.

      Result

      The following Statistical Information is displayed:

      Message TextNumber
      Number of Contract Accounts Processed1
      Number of Generated Source Transactions300
      Number of Generated Billable Items300

    7. Choose the Billable Items button to display the generated test items.

    8. Choose Back.

    9. Close the Generation of Sample Data window.

    10. Choose the Get Variant... button.

    11. Delete the BR240–## user in the Created By field.

    12. Choose Execute.

    13. Double-click the variant name UNIT1_INSTR2.

    14. Start the report using the Execute icon.

      Result

      The following Statistical Information is displayed:

      Message TextNumber
      Number of Contract Accounts Processed1
      Number of Generated Source Transactions100
      Number of Generated Billable Items100

    15. Choose the Billable Items button to display the generated test items.

    16. Choose Back.

    17. Close the Generation of Sample Data window.

    18. Navigate back to the SAP Easy Access Menu.

How to Execute the Billing Process

DemoStart Demo

Steps

  1. Create billing documents for contract account CABOVI01.

    1. In the SAP Easy Access menu, choose Accounting → Financial Accounting → Contract Accounts Receivable and Payable → Convergent Invoicing → Billing Documents → Create (transaction FKKBIX_S).

    2. Enter the following parameters:

      FieldValue
      Billing ProcessBIDA
      SubprocessBSDA
      Billing DateToday
      Contract AccountCABOVI01

    3. Select Simulation Run, and choose Program → Expert Mode.

    4. Choose Cancel.

    5. Execute the report with the same parameters as the update run. Deselect the Simulation Run indicator and choose Program → Execute.

    6. Choose Save.

    7. Choose the Bill All Together button.

    8. Choose Save again.

    9. Choose the Display Billing Document button.

    10. Note the billing document numbers for a further demo: ________________.

    11. Choose Back, and close the Billing Ended window.

    12. Choose Back.

  2. Check billable items for contract account CABOVI01.

    1. In the SAP Easy Access menu, choose Accounting → Financial Accounting → Contract Accounts Receivable and Payable → Convergent Invoicing → Billiable Items → Display (transaction FKKBIXBIT_MON).

      Enter the following data on the Display of Billable Items screen:

      FieldValue
      Master Data
      Contract AccountCABOVI01
      Additional Criteria
      Billable Item ClassPBLW

    2. Choose Program → Execute (F8).

      Result

      No data found for display. If the worklist is not empty, you've either made a mistake when executing the billing process, or you have created more billable items in the previous demo.

    3. Choose Back..

How to Execute the Invoicing Process

DemoStart Demo

Steps

  1. Create invoicing documents for your contract account CABOVI01.

    1. In the SAP Easy Access menu, choose Accounting → Financial Accounting → Contract Accounts Receivable and Payable → Convergent Invoicing → Invoicing Documents → Create (transaction FKKINV_S).

    2. Enter the following parameters:

      FieldValue
      Invoicing Process:Z1
      Document Date:Today
      Posting Date:Today
      Reconciliation Key:either proposed or generated
      Contract AccountCABOVI01
      Simulation RunSelect

    3. Execute the program in Expert Mode.

    4. Choose Save.

    5. Choose Run Invoicing in the Set Parameters for Invoicing Unit window.

    6. Choose Save in the Selection of Invoicing Functions window.

    7. Select the Invoicing Document to display the details.

    8. Choose Back, and close the Invoicing (Simulation) Ended window.

    9. To execute this report as an update run, deselect the Simulation Run option.

    10. Execute the program in Expert Mode.

    11. Choose Save.

    12. Confirm the Checking reconciliation key window with Yes.

    13. Select Enter to close the Information window.

    14. Choose Run Invoicing in the Set Parameters for Invoicing Unit window.

    15. Choose Save in the Selection of Invoicing Functions window.

    16. Confirm the Save invoicing document? window with Yes.

    17. Use the Display Invoicing Document button to display details.

    18. On the Display Invoicing Document screen, choose the Preview button.

    19. Enter the printer LP01 as an output device.

    20. Choose Enter to display the Testprint.

    21. Choose Back twice.

    22. Choose Continue on the Invoicing Ended window.

  2. Display the open items for contract account CABOVI01.

    1. In the SAP Easy Access menu, choose Accounting → Financial Accounting → Contract Accounts Receivable and Payable → Account → Account Balance.

    2. Enter contract account CABOVI01 in the corresponding field.

    3. Choose Enter.

      Result

      The open items based on convergent invoicing are displayed.

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