Subscription Management with Convergent Invoicing (5IK)

SAP Subscription Billing provides a simplified, automated approach to manage and bill your subscriptions. SAP S/4HANA Cloud provides cutting-edge financial processes for invoicing, accounting, and controlling. The scenario unites the capabilities of both solutions to establish an integrated subscription management process.

Subscriptions are created via API in SAP Subscription Billing. SAP Subscription Billing manages the subscription lifecycle, charges recurring rates, prices usage data, and prepares the billing data at the end of each billing cycle. The billing data is forwarded to SAP S/4HANA Cloud Convergent Invoicing where tax amounts are added and the invoice is created. The invoiced amounts are then available in receivable management, contract accounting, contract-based revenue recognition (CBRR), and controlling.

Key Process Steps Covered

Replicate customer master data between SAP Subscription Billing and SAP S/4HANA
Create a subscription in SAP Subscription Billing and establish a corresponding provider contract in SAP S/4HANA Cloud
Replicate billing data from SAP Subscription Billing to SAP S/4HANA Cloud Convergent Invoicing

Benefits

Foster the transition to a subscription-based business model
Improve the operational efficiency and effectiveness in the management and processing of subscriptions

Additional Information

This scope item is excluded from the default activation

The scenario requires the SAP S/4HANA Cloud for contract accounting and invoicing (8005822) feature to be active.

In addition, you must have a license for the separate product SAP Subscription Billing.

Where is Subscription Management with Convergent Invoicing(5IK) being used?

This Scope item is used in the following way:

As a core function of Subscription Billing and Revenue Management within Finance Scope Item Group

Process flow of Subscription Management with Convergent Invoicing (5IK)

Find below the process flow of the scope item Subscription Management with Convergent Invoicing as it is defined for release s4hc-2111.

Download Process Flow of Best Practice scenario Subscription Management with Convergent Invoicing (5IK) - S/4HANA Cloud

Ref: Finance of SAP S4HC-2111

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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