In the previous unit, we used the Maintain Customer Entitlements app to view, create, and modify entitlements. Again, in SAP Entitlement Management, an entitlement is a customer's right to use a specific product or service.
A consumption form is different. It's used to track and monitor how a customer uses ('consumes') their entitlements. You can think of it as a template that defines and records customer usage.
It's important to know about the relationship between an entitlement and a consumption form.
- An entitlement outlines what a customer is allowed to consume.
- The consumption form tracks and records that consumption.
In other words, entitlements define the terms for what and how much a customer can use, while consumption forms track and record how many entitlements have been used. This allows accurate and effective monitoring of customer usage and accurate billing.
In the SAP Entitlement Management system, the consumption form under Model New Entitlement defines how a customer's consumption of a particular product or service is tracked, accounted for, and billed.
The consumption form categorizes entitlements based on factors, including quantity consumed, duration of use, or level of service. It enables organizations to customize the way they manage, track, and bill for the use of their products or services based on individual customer usage.
For example, some customers have a pay-per-use agreement, while others have a subscription or a tiered-level of service. The Selection Consumption Form helps manage these differing agreements in an organized way, making it a crucial component of the entitlement management process.
The following video shows a consumption form inside the system.
We have a better understanding of how consumption forms are set up and calculate information on the remaining products and services available. Now, in our next unit, let’s see how to define and monitor background jobs for performing multiple maintenance tasks.