Describing the Integration of SAP Subscription Billing and SAP Convergent Invoicing

Let’s focus on integrating SAP Subscription Billing and SAP Convergent Invoicing in the public and private cloud editions. The public cloud edition is discussed at first.

Again, this integration enables the transfer of billing and subscription data from SAP Subscription Billing to SAP S/4HANA Cloud Public Edition for convergent invoicing and subsequent financial processes. Convergent Invoicing supports the consolidation of charges from multiple billing streams into invoices.

The business process begins with the creation of subscriptions in SAP Subscription Billing, either from a user interface or an API. SAP Subscription Billing manages the subscriptions. One-time, recurring, and usage-based charges are collected in a bill within SAP Subscription Billing. They are then transferred as Billable and Consumption Items to SAP S/4HANA Cloud Public Edition.

The accounting-related billing information in billable items is transferred from invoices in Convergent Invoicing to SAP S/4HANA Cloud Finance. Supported financial processes include receivables management, margin and revenue analysis on the subscription level, and contract-based revenue recognition (CBRR).

To provide further information on financial processes, the following objects are created automatically in SAP S/4HANA Cloud:

• A provider contract for each subscription in SAP Subscription Billing: The provider contract contains the contract data of the subscription, such as the billable charges. For more information, see Replication of Subscriptions to Provider Contracts.
• A billing plan for each billing forecast in SAP Subscription Billing: The billing plan contains scheduled subscription charges for a provider contract.

The following public cloud data flow example is like the previous data flows:

Let's look at the private cloud version.

At first, an overview of the data flow is provided:

Like the public cloud data flow, the business process in the private cloud begins with the creation of subscriptions in SAP Subscription Billing. This process is also initiated by either the user interface or an API. SAP Subscription Billing also manages the subscriptions. One-time, recurring, and usage-based charges are based on use cases and are collected in a bill within SAP Subscription Billing. This bill is transferred to SAP S/4HANA Cloud Public Edition as Billable and Consumption Items.

Accounting-relevant billing data in billable items is forwarded from invoices in Convergent Invoicing to SAP S/4HANA. Supported financial processes include receivables management, revenue accounting and reporting, and margin and revenue analysis on a subscription level.

Now that you have a better understanding of how SAP Subscription Billing is integrated with SAP S/4HANA Cloud Public and Private Editions, you move on to the next unit to focus on other integration scenarios.