Integrating with SAP CPQ (Configure, Price, Quote)

Let's first review the purpose of SAP CPQ before you see how it integrates with Subscription Billing.

SAP CPQ (Configure, Price, Quote) focuses on guiding sales teams through the process of configuring products, pricing them, and generating quotes for customers. It streamlines the sales process by ensuring accurate and optimized quotes. On the other hand, SAP Subscription Billing manages the monetization of subscription-based services, including billing, invoicing, and revenue recognition. While SAP CPQ focuses on one-time product sales, SAP Subscription Billing handles ongoing subscription service revenue. Both components contribute to overall revenue generation, with SAP CPQ focusing on initial sales and SAP Subscription Billing managing recurring revenue from subscriptions.

SAP CPQ integrates with SAP Subscription Billing to provide a seamless end-to-end sales process for businesses offering subscription-based products or services. The integration between SAP CPQ and SAP Subscription Billing allows for the automatic creation of subscription billing plans and contracts based on the quotes generated in SAP CPQ. When a sales rep uses SAP CPQ to configure a product or service and create a quote, the relevant subscription terms, pricing, and billing information are all seamlessly transferred to SAP Subscription Billing.

The following are the limitations of integrating SAP CPQ with SAP Subscription Billing:

• Integration does not support pricing with pricing schemes.
• Integration with SAP S/4HANA for convergent invoicing is not supported.
• SAP CPQ does not trigger subscription changes in SAP Subscription Billing.
• The following SAP Subscription Billing features are also not supported when integrating with SAP CPQ:
  • Custom references
  • Product configuration
  • Products with multiple rate plans
  • Standard or custom business partner functions
  • Allowances

The following graphic illustrates the integration process between SAP Subscription Billing, SAP Cloud Integration, and SAP CPQ (Configure, Price, Quote) for managing subscription products. Here's a step-by-step explanation of the process:

1. SAP Subscription Billing:
   • Rate Plan Template: A rate plan template is created in SAP Subscription Billing.
   • Rate Plan Template Replication: This template is then replicated through SAP Cloud Integration.
   • Subscription Product: A subscription product is defined with the replicated rate plan.
   • Replicate Product with Defined Rate Plan: This product, along with its rate plan, is replicated through SAP Cloud Integration.
2. SAP Cloud Integration:
   • Product Creation: The replicated product is created in SAP CPQ.
   • Set Charges: Charges for the product are set in SAP CPQ.
   • Select Subscription Product: The subscription product is selected in SAP CPQ.
   • Add to Quote: The selected product is added to a quote in SAP CPQ.
   • Fill in Pricing Details: Pricing details are filled in for the quote.
   • Replicate Subscription: The subscription is then replicated back to SAP Subscription Billing through SAP Cloud Integration.

This process ensures that subscription products and their associated rate plans are consistently managed and integrated across SAP Subscription Billing and SAP CPQ, facilitated by SAP Cloud Integration.

Here's a breakdown of the process:

1. Subscription Product Event:
   • SAP CPQ triggers a Subscription Product Event.
   • This event is sent to SAP Cloud Integration.
2. Read Subscription Product: SAP Cloud Integration reads the subscription product details from SAP CPQ.
3. Create/Update Subscription Product: SAP Cloud Integration sends the subscription product details to SAP Subscription Billing to create or update the subscription product.
4. Read Rate Plan: SAP Cloud Integration reads the rate plan from SAP CPQ.
5. Create/Update Rate Plan: SAP Cloud Integration sends the rate plan details to SAP Subscription Billing to create or update the rate plan.
6. Quote Release Event:
   • SAP CPQ triggers a Quote Release Event.
   • This event is sent to SAP Cloud Integration.
7. Read Quote: SAP Cloud Integration reads the quote details from SAP CPQ.
8. Create Subscription: SAP Cloud Integration sends the quote details to SAP Subscription Billing to create a subscription.
9. Rate Plan Templates (Sync. Read): There is a synchronization process where rate plan templates are read from SAP Subscription Billing to SAP CPQ.

In summary, the graphic shows how SAP CPQ, SAP Cloud Integration, and SAP Subscription Billing interact to manage subscription products, rate plans, and quotes, ensuring that all systems are synchronized and up-to-date. Now that we’ve covered how SAP Subscription Billing integrates with SAP CPQ, let’s explore the integration of SAP Convergent Mediation by DigitalRoute, cloud edition.