Let's first review the purpose of Price Calculation before you understand how it integrates with Subscription Billing.
What Is Price Calculation?
Price Calculation integrates with SAP Subscription Billing to calculate and determine the pricing for subscription-based services and products. One of the key features of the Price Calculation is its ability to handle dynamic and variable pricing models. It ensures that billing is consistent and aligned with the specific terms and conditions of subscription plans.
Integrating Price Calculation
Integrating Price Calculation with SAP Subscription Billing provides seamless access to various APIs that enable businesses to extend and customize the pricing functionality to meet their needs. The functionalities also include integrating with other systems, automating pricing updates, and accessing pricing data for reporting and analysis.
Before integrating SAP Subscription Billing with Price Calculation, it’s important to know that SAP Subscription Billing has its own pricing engine that can calculate simple prices without relying on lookup tables. Prices are defined independently without requiring integration with Price Calculation. Therefore, when creating your first subscription through API, know that prices have already been calculated in the Price Calculation, which is seamlessly integrated with the SAP Subscription Billing solution. Integrating SAP Subscription Billing and Price Calculation is straightforward and does not require any configurations in Cloud Integration or other integration systems. The integration process is automatically managed upon deploying the essential entitlements in your BTP Subaccount. It's mandatory to deploy SAP Subscription Billing and Price Calculation within the same Subaccount. This is followed by assigning the necessary roles for authorization to trigger automatic integration of both systems.
Note that the focus of this course is integrating with APIs and events. This course does not focus on configuring Subscription Billing through any user interface. For information on configuring through a user interface and using lookup tables for Price Calculation, refer to course BR468 Applying SAP Subscription Billing.
Now that you have a better idea on how SAP Subscription Billing integrates with Price Calculation, let’s move on to the integration of SAP Commerce.