Service Contract Management (426)

This scope item covers the management of service contracts in SAP S/4HANA Service. Service contracts are outline agreements that define services offered for a particular period and represent long-term service agreements with customers. Service contracts are billed on periodic billing plan. Via price adaptations for service contract, different prices within the contract periods are possible. Optionally, customers can choose ad-hoc billing, a structured method of service contract billing that allows you to define billing values and billing dates manually.

Customer-specific price agreements can be defined and handled within service contracts. Service contract determination is enabled for service orders that correspond with the service contract in predefined criteria – in this case, contract and price details from determined service contract are considered.

Customers can define service level agreements and maintain service/response profiles in service contracts.

It’s possible to renew an expiring service contract automatically for a predefined period at a predefined date. If needed, you can also manually renew service contracts and items. As part of the change process, you can change the sold-to party of a service contract and a new service contract is automatically created.

Furthermore, you can create and configure a configurable service contract item.

This scope item includes situation handling for service contracts. Situation handling is SAP S/4HANA functionality that lets you bring certain circumstances (situations) to the attention of a relevant group of business users.

Key Process Steps Covered

Create Service Contract and Add Service Contract Items with Periodic and/or Ad-Hoc Billing Plan
Maintain Product List and Create Price Agreements for Service Product
Create Service Contract Item with Configurable Product
Adapt Service Contract Prices
Release Service Contract and Service Contract Items
Schedule and Manage Billing Document Requests
Create Billing Request Lines (Only valid for Ad-hoc Billing)
Create Invoice
The following service contract change processes are possible:
- Change Sold-to-Party in Service Contract (Optional)
- Manually Renew Entire Service Contract (Optional)
- Manually Renew Service Contract Item (Optional)
- Auto Renewal of Service Contract Item (Optional)
- Cancel Service Contract or Service Contract item (Optional)

Benefits

Flexible and powerful service contracts that reflect your customers' needs
Enable flexible pricing with price adaptation or manual prices
Use full integration into SAP S/4 billing

Where is Service Contract Management(426) being used?

This Scope item is used in the following way:

As a support function of Service Master Data & Agreement Management within Service Scope Item Group

Process flow of Service Contract Management (426)

Find below the process flow of the scope item Service Contract Management as it is defined for release s4h-2021.

Download Process Flow of Best Practice scenario Service Contract Management (426) - S/4HANA OP

Ref: Service of SAP S4H-2021

Best Practices related to S/4HANA

Best Practices of SAP S/4HANA On Premise *1
Best Practices of SAP S/4HANA Cloud *2
Best Practices of SAP Analytics Cloud *2
Best Practices of Robotics Process Automation(RPA) with SAP Leonardo *2

*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.

Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:

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