All communityThis categoryBlogKnowledge baseUsersManaged tags
BRIM - SAP S/4 HANA Service: Subscription Order Management – Process Flow
VivekGhulaxe
Participant
Options
2024 Sep 23 4:51 PM
5 Kudos
4,962
SAP Managed Tags:
SAP S/4HANA,
SAP Billing and Revenue Innovation Management, subscription order management,
SD (Sales and Distribution)
In this blog, I would like to provide information on the master data and configuration steps
required to implement the SOM process.
1. Overview of SOM Process from SAP
The Subscription Order Management component of SAP Billing and Revenue Innovation
Management (BRIM) helps explore new B2C and B2B markets or expand market opportunities
by targeting new customer segments across various verticals and geographies. SOM also
provides master data, such as business partners, contract accounts, and products. Changes to
existing contracts are managed within the SOM system. SAP Subscription and Order
Management is the application that manages the sales process within the SAP Billing and
Revenue Innovation Management (BRIM) solution. Subscription order management is part of
SAP S/4 HANA Service.
2. Master Data: Business Partner and Contract Account
In SAP S/4HANA, business partners are central objects with different roles based on business
needs. A business partner is used in the roles Sold-to-Party / Contract Partner. A business
partner role, for example, contact, sold-to party or supplier, is used to classify a business
partner in business function.
For SOM in SAP BRIM, the MKK role is needed for integration with FI-CA, and these partners are
replicated to SAP Convergent Charging as subscriber accounts. If SD processes are involved, the
Sold-To role is required, and the SD customer is automatically created through customer-vendor
integration. Business partners represent all parties involved in transactions, such as customers,
debtors, creditors, or suppliers.
a) Business Partner Role
b) Business Partner Role Category
c) Create Business Partner
You can check config setting in SPRO – Service – Master Data – Business Partner
d) Extend Business Partner FLCU01 Customer
e) Extend BP to MKK Contract Partner
Using default Credit Profile Risk Class and Biller Direct are integrated with FSCM so we don’t
use for SOM.
3.Contract Account
In SAP S/4HANA, only the contract account is used both in FI-CA and in Subscription
Order Management (SOM). A business partner can be assigned to more than one contract
account. For each item in a subscription order / contract a different contract account related to
the business partner can be assigned.
a) Contract Account – Transaction code /nCAA1
b) Configure Contract Account Categories /OFICAIMG
Category Extended FI-CA recommended by SAP. If using BRIM for telecommunication then use
category T Telecommunication, for Utility use R Utility Companies.
Select One Business Partner if using for only one business partner and if you uncheck then it will
use for multiple contracts.
Select collective bill account if using and it is consolidation of billing.
c. Create Contract Account – Transaction code /nCAA1
All the values will be discussed with finance before maintaining including Payment Terms. The
subscription contract created for the IT department from SAP SOM to FI-CA of SAP S/4HANA
and to SAP CC.
4. Creation of Subscription Product: Subscription products that are used in subscription orders
You can check config setting in SPRO – Service – Master Data – Setting for Subscription Master
Data
a. Material Type
b. Product Purpose Product Type – SPRO - Service
c. Product Master from S/4
d. Billing cycle
Billing plan holds the information about the billing cycle, reference to the provider contract
item, payment amount, and payment currency.
Billing Cycle -If it is monthly default then select here else you can select in sales order
Select billing cycle determination rule and contract renewal
5. Customization of Subscription order:
a. Define Transaction Type:
SPRO – Service – Transactions - Basic Settings. This transaction types used to create subscription
order
Order and Contract Types: PRVC – Subscription Contract and PRVO – Subscription Order
b. Subscription order
c. Subscription order settings: Main settings for Subscription Order Management (SOM) can be
found under SPRO - Service - Master Data - Settings for Subscription Master Data and SPRO –
Service - Transactions - Settings for Subscription Transactions
d. Contract assignment for the subscription order is mandatory with this setting
Item Categories for subscription order can be found under SPRO – Service – Basis Settings
e. Subscription Specific Customizing for Item Categories
6. Create Subscription order: Selection of the transaction type PRVO subscription order.
A subscription order is used to sell products and services by creating a subscription contract,
including usage-based, recurring, and one-time charges.
a. Select Sold-to Party
b. Select product and contract
If having multiple contact account, then select from Assign Contract Account selection
c. Select Organization data
d. Select Technical Resources: For example, in the telecommunication industry, technical data
like mobile numbers or SIM card numbers are entered, and each contract has a unique
technical resource.
e. Pricing
f. Submit Order and Subscription order is created
g. It will create provider contract, and you can see below subscription document number
h. You can see below provider contract number
When a subscription order with a recurring fee is submitted, a subscription contract is created.
During contract distribution to Contract Accounts Receivable and Payable (FI-CA), the contract
items with recurring fees in the pricing elements are identified.
7. Subscription order with sales order for the finished product
a) Sales order 80789
b) Document flow with delivery and invoice
c) Invoicing from CI
8. Subscription order with sales and Subscription item
a) Recurring product with contract validity
b) Subscription order for services
c) Contract
d) Provider Contract FP_VT3
e) Transaction FKKBIXBIT_MON – to check contract billable item
You can display and analyze billable items based on selection criteria, regardless of their
processing status. To run the BIT monitor, go to the SAP Easy Access menu and choose:
Accounting - Financial Accounting - Contract Accounts Receivable and Payable -Convergent
Invoicing - Billable Items - Display (Transaction FKKBIXBIT_MON). You can select individual
billable items or use predefined selection variants for different processing statuses.
