Performing the Subscription Contract Creation in the BRIM Landscape

Objective

After completing this lesson, you will be able to perform the Subscription Contract creation in the BRIM landscape

Business Example: Subscription Contract Creation

For the Subscription Order that you created in the lesson with the product cloud selection service, one Subscription Contract with two billable items was created after submitting your Order fulfillment.

Subscription Contract Creation

Overview Subscription Order Management

A flowchart titled Subscription Order Management outlines six stages: Product Modelling, Order Capture, Order Distribution, Contract Change Processes, B2B Features, and Solution Quote and Business Portfolio, each with specific tasks and functions. The Order Distribution stage is highlighted with tasks such as Contract Creation, Document Distribution, and Order Fulfillment.

Definition Subscription Contract

A Subscription Contract

  • Results of the subscription order or a solution quotation within the SAP Billing and Revenue Innovation Management landscape.
  • Includes: Contract Account, Billing Plan with billing lifecycle, prices, assigned with a technical resource for unique identification, contract duration, allowed services, discounts on usage.
  • Includes time slices within the contract lifecycle → Changes on contract.
  • Has a billing plan assigned in Convergent Invoicing.
  • Is the basis for rating in Convergent Charging and Convergent invoicing.
  • Is distributed to SAP S/4HANA Convergent Invoicing as a provider contract.
  • Is distributed to SAP Convergent Charging as a provider contract.

Industry Examples:

  1. 1.Contract for Cloud Selection Service with CPU, RAM and Bandwidth Storage including subscription fee and usage – B2B Process.
  2. Contract for Car Sharing with usage rating – B2C Process.
  3. Parcel shipment with high volume usage rating per parcel – B2B Process.
  4. Streaming membership contract including monthly subscription, for example music and TV – optional usage fee for additional services.
  5. Telecommunication contract including 4 listed mobile numbers and a counter pool for free usage.

A Subscription Contract manages the long-term agreement for a technical service that the providing company offers to a customer. As a result of a subscription order, one or more Subscription Contract documents are created. A Subscription Contract document is automatically created when a subscription order is successfully released. Contract-relevant data is copied from the order to the contract document.

The image illustrates the process of subscription order creation and fulfillment in SAP S/4HANA SOM, detailing steps from creating a subscription order to generating a subscription contract and sales order. Key steps include selecting the sold-to party, configuring the product, and submitting the order to create a subscription contract.

This business scenario shows the creation of one Subscription Contract with one contract item.

This Subscription Contract example shows the creation of a Subscription Order with one Subscription Contract. The product bundle used in the Subscription Order is our training example, BSU_CLOUD_SEL_SERV, which contains a usage and recurring fee, a licence, and a one-time fee. The usage and the recurring fee are transmitted into the Subscription Contract after submitting the Subscription Order (Step 4), because it's contract-relevant. The technical resource and contract account are also transmitted to the Subscription Contract (Step 5).

The image illustrates the process flow of subscription order creation and contract creation in SAP S/4HANA SOM, detailing steps from selecting a sold-to party to fulfilling the order and creating subscription contracts. Key elements include partner functions, item categorization, and the transition from subscription order to subscription contract.

This business scenario shows the creation of one Subscription Contract with two items.

This Subscription Contract example shows the creation of a Subscription Order with one Subscription Contract that includes two contract-relevant items. The product bundle used in the Subscription Order contains a usage fee and a recurring fee. The usage fee and recurring fee are transmitted into one Subscription Contract after submitting the Subscription Order (Step 4), because they're contract-relevant. The technical resource and contract accounts are also transmitted to the Subscription Contract (Step 5).

A flowchart illustrates the process of creating a subscription order in SAP S/4HANA SOM, detailing steps from order creation to subscription contract creation, including partner functions, item selection, and technical resources. The process culminates in the submission of the order and the generation of subscription contracts.

This business scenario shows the creation of two Subscription contracts.

This Subscription Contract example shows the creation of a Subscription Order with two Subscription Contracts creation. One product bundle used within the Subscription Order contains a usage fee, and the other product bundle contains the recurring fee. The usage fee and the recurring fee are transmitted into a Subscription Contract, after submitting the Subscription Order (Step 4), as they're contract-relevant. The technical resource and contract accounts are also transmitted to the Subscription Contracts (Step 5).

This diagram illustrates the end-to-end process flow in SAP S/4HANA for subscription order management, billing plan management, BIT management, billing & invoicing, and contract accounting, highlighting the integration between SAP S/4HANA SOM, SAP Convergent Charging, SAP Convergent Invoicing, and SAP FI-CA.

This overview shows the document flow of the Subscription Contract through Subscription Order Management (SOM), Convergent Invoicing, and Contract Accounts Receivable and Payable (FI-CA). The Subscription Contract is transmitted to Convergent Invoicing, named Provider Contract and for the items, a CI Billing Document and Invoice is generated. The Invoice is stored in FI-CA.

Definition Situation for Expiring Subscription Contracts

  • You can use a situation to get notified when the subscription contract item is due to expire. This notification is useful when an action is expected to be executed around the end of the contract, for example, contacting the customer for a renewal.

    Technical Background

  • The Situation Handling application is a framework to implement processes to inform users proactively about issues requiring their attention and get insight into the lifecycle of situations and optimize your business processes.
  • For technical details, check product assistance of the situation template and general documentation for situation handling.

Features

  1. Copy the situation template to a situation type with new conditions.
  2. Plan situation batch run to create situations for subscription contract.
  3. Notify users assigned as employee responsible.
  4. See expiring contract in the app My situations if you are assigned user.
  5. Navigate from Notification, My situations, or Situation Monitor instance list to subscription contract item.
  6. Automatic deletion of situations for changed contracts (for example, contract extension).
  7. Track Situation subscription contract item search result list.
  8. View situation in subscription contract detail UI.

Details for Template for Expiring Subscription Contracts

Details for Template for Expiring Subscription Contracts:

Template SOM_EXPIRING_SUB_CONTR_ITEM

The template is used for Situation Handling that informs the user about a subscription contract item due to expire, that is, the upcoming contract end date.

The template is used to define custom specific process by creating an individual situation type based on this template

Situations are raised for the following conditions
  • Contracts are close to a contract end date.
  • Only for technical active main items.
  • Contract is not a phased contract.
  • Contract is not registered for autorenweal.
Trigger and Close

The situations are triggered based on a background job

Contract changes and contract deactivation remove situations automatically. If the new item (timeslice) of a changed contract applies again for the conditions of a situation it will be recreated with the next job run.

Display Situations

The image shows various SAP Fiori interface screens related to subscription contract situations, including search result lists, notifications, and detailed situation views. It highlights the business role SAP_BR_EMPLOYEE_SITUATION.
Screenshot showing SAP Fiori Tiles for Manage Subscription Orders and Manage Subscription Contracts under the role PFCG SAP_BR_INTERNAL_SALES_REP_SOM for Internal Sales Representatives (SOM).

To perform these tasks, the required SAP Fiori Business Role is Internal Sales Representative (SOM).

SAP Fiori Business Role: SAP_BR_INTERNAL_SALES REP_SOM.

The internal Sales Rep can access either from the SAP Fiori Launchpad or from the Web Client UI with role Internal Sales Rep. (Subscr.).

Create a Subscription Contract

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