Customer Contract Management

Best Practice Scenario: Customer Contract Management

The Customer Contract Management business scenario enables you to create and manage contracts related to services in the framework of your support entitlements or managed services.

In addition, the following features are provided:

• Seamless integration with service request and service confirmation processing, allowing you to fulfill and confirm services carried out for a contract
• Invoice schedules for contract items
• Generation of standard contracts from sales orders, using contract templates
• Price agreements for items sold on a time and material basis

This scenario incorporates business functions from related areas that directly support service delivery for contracts, such as processing due items and payments in Financial Management.

Process Flow details Customer Contract Management

Roles involved to Customer Contract Management

• Sales/Customer Service Representative
• Service Planner/Dispatcher
• Service Performer
• Accounts Receivables Accountant

Business Value of Customer Contract Management

This scenario enables service contracts to be offered to customers. This is applicable for companies that may be dedicated to the managed service business, or for companies that may provide contracts after the sale of a product or project. This enables a long term revenue stream and consistent relationship with the customer. Examples of managed services include software as a service, telecommunication services, meeting hosting services, etc.

Support contracts are offered in many industries and for many types of services

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[caption id="attachment_201659" align="aligncenter" width="1024"] with Support Entitlement[/caption]

[caption id="attachment_201660" align="aligncenter" width="1024"] with Managed Services[/caption]

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Key Benefits of Customer Contract Management

Selling and Managing contracts in SAP Business ByDesign®

• Contributes  to new revenue streams from managed service operations and support activities
• Manages all aspects of the contract through creation, service provisioning, renewal and cancellation, invoicing, and financial consistently to ensure the operating efficiencies
• Avoids off-line contract management and information silos by this being a standard part of the business systems.
• Provides complete profitability analysis of contracts so that their future pricing and Service Level Agreements can be managed for profitability.
• Provides a continued relationship with the customer for service which can help increase loyalty and provide stability to financial flows for the company.
• Standard contracts can be sold and generated directly from sales orders.

Application

• SAP Business ByDesign

Continue to review the other Business Processes SAP Business ByDesign