Using Discounts and Charges

Cloud Product BSU_CLOUD_Sel_Serv has two discounts assigned. One discount on RAM usage and one yearly discount for total volume amount of billable items.

The Discount and Charge assignment appears during Product Modeling with the SAP Fiori launchpad app Manage Subscription Product-Specific Data.

You assign discounts and charges in master agreements, with business customers, at the provider contract level, or at the discount agreement level.

The system determines the discounts and charges during the billing of consumption, based on specifications entered in their master data. As part of this process, the system creates base items with the relevant discount or charge information. The system stores the base items similar to the way in which billable items are stored. The system calculates and processes discounts and charges during the processing of base items in a separate billing process. The billing document stores the results of the calculation.

Process Steps of Discounting and Charging of billable Items:

1. Configuration of Discount Key and assignment to Master Agreement or Provider Contract. In Standard Billing Process determination of Base Information and Creation of Base Bits.
2. Calculation of Discounts and Charges in the Discount Billing process.
3. Create Discount/Charges Calculation Documents.
4. Invoicing of Discount Billing Documents, either with Usage Billing Documents (Option1) or separate.

Flexibility of new Discount and Charge functionality:

• Discount determination using discount agreement when usage BITs are billed (time-independent processes possible, for example, quarterly sums for discount base amount.
• Discount calculation on specified calculation level, Provider Contract Item, Provider Contract, Contract partner, or Agreement level.
• Discount distribution (assignment to source of discount or assignment to, for example, headquarter).

The benefit of this solution is that the same architecture is used in B2C and B2B. The reuse of discount key and discount definition calculation modules on Provider Contract and Master Agreement level.

From Standard Billing and Invoicing processes document linkage and traceability is used.

Discounts and Charges on Billed Items

You configure discount/charge keys in three steps on the following three tabs:

Characteristics

On the upper part of the tab, you make general settings about the use, the discount or charge currency, the calculation cycle, and the processing level. In the lower part of the tab, the derived settings for the base items show you directly the currently valid derived values for the discount/charge key from posting areas 8117 and 8118 (as long as you have maintained the posting areas).

Calculation

On the upper part of the tab, you define the basis for the calculation, meaning which billed items form the basis for the discount or charge calculation. On the lower part of the tab, you define the calculation rule. That means that you specify here how the discount or charge is calculated for the billed items defined in the basis.

Condition (optional)

On the upper part of the tab, you define the basis for the condition. That means that you specify for which billed items the system applies a condition. On the lower part of the tab, you define the condition rule. That means that you specify which prerequisites have to be met in order for a discount to be granted or a charge levied.

In SAP S/4HANA, only the product master (also known as the material master) is used to maintain central product data.

In addition, attributes like cross-catalog mapping, or discounts and charges are maintained in an own app, Manage Subscription Specific Data.

You can enable discounts / charges for transactions on the item categories in the Implementation Guide (IMG):

SPRO → Service → Transactions → Settings for Subscription Transactions → Define Settings for Item Categories.

Insert entries for the Item Categories to which you want to assign discounts. Select the Use Disc. checkbox.

SPRO → Financial Accounting → Contract Accounts Receivable and Payable → Convergent Invoicing → Billing → Additional Functions → Discounts and Charges on Billable Items → Define Assignment Groups.

Assignment groups are a grouping characteristic that you can use both in configuring discounts and charges and in posting areas 8117 and 8118.

SPRO → Financial Accounting → Contract Accounts Receivable and Payable → Convergent Invoicing → Billing → Additional Functions → Discounts and Charges on Billable Items → Define Base Item Class.

Define the base item class settings for your assignment group/discount key combination.

In this activity, you make information available for discount/charge keys that's needed for creating base items.

SPRO → Financial Accounting → Contract Accounts Receivable and Payable → Convergent Invoicing → Billing → Additional Functions → Discounts and Charges on Billable Items → Define Transactions for Base Items.

Define the transaction settings for your assignment group / discount key combination.

In this activity, you make information available for discount/charge keys that's needed for creating base items.

Dependent on the discount/charge key and the assignment group, you either specify a main transaction and subtransaction, or you specify that the original account assignment should be used.

SPRO → Financial Accounting → Contract Accounts Receivable and Payable → Convergent Invoicing → Billing → Additional Functions → Discounts and Charges on Billable Items → Define Discount/Charge Key.