Configuring Product Modelling

Objective

After completing this lesson, you will be able to describe the requirements of Product Modelling.

Requirements of Product Modeling

Illustration of a subscription product, highlighting attributes for subscription orders, modeling as SAP S/4HANA product master, specifying terms like billing cycles, and relevance to fee creation.

A product in SAP Billing and Revenue Integration Management is everything that can be sold to a customer. It can be a physical product, a service, or a subscription product (rate plan) that can be used to sell services with long-term agreements.

A product consists of several characteristics such as configuration, bill conditions, prices, and technical objects. A subscription product consists of a commercial part defined in SOM and a charge plan that defines the price configuration logic.

SAP BRIM: Charge Types in the Subscription Revenue Scenario

Charge TypeDescriptionFulfillment TypeEvent TypeExample
ConsumptionConsumption Charge for items that are not included in the flat rate service subscriptionEvent BasedConsumption EventEvent Based Usage Fee
Recurring

Recurring charge covering a flat rate service subscription

Time Based-Monthly Service Fee
One Time

One time charge occurring during the flight off the contract, usually contract

Event BasedCustomer InvoiceContract Activation Fee
Hardware

Physical component that needs to be delivered to the customer

Handled via SD
Image of a 3D box next to a textbox titled Service Type detailing the classification and control of billing services, performance obligations, invoices, and account assignments in Revenue Accounting.
Flowchart illustrating the integration of a Commercial Product Bundle with SAP S/4HANA's product master and RAR.

The RAIs from SAP Convergent Invoicing contain the following different service types:

  • Recurring charge with price and SSP from provider contract
  • Usage based services from provider contract
  • One off charge from BIT

The following settings must be set to implement Service Type for consumption fulfillment:

SAP Customizing Implementation Guide Financial AccountingContract Accounts Receivable and PayableIntegrationDefine Service Types.

In this IMG activity, you define an additional service type for a Consumption-Based POB. By setting the following indicators, you can also specify for each service type, whether the system creates items for Revenue Accounting:

  • Order Item: If you select this indicator, the system creates an order item for the service type during provider contract maintenance.
  • One-Off Charge: If you select this indicator, for billable items with this service type, the system generates order items for Revenue Accounting.
  • Fulfillment Item: If you select this indicator, for billable items with this service type, the system generates fulfillment items for Revenue Accounting.
  • Invoice Item: If you select this indicator, for billable items with this service type, the system generates invoice items for Revenue Accounting when invoicing occurs.

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