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Author's profile photo Samitha Kotian

Customer Contract for Services in SAP Business ByDesign

The purpose of this blog is to explain how to create and manage contracts for services in SAP Business ByDesign. You can create a customer contract for services, expenses, or entitlements in Customer Contract business process.

In this blog I have explained complete process of Creation of Customer Contract for Services.

Process Flow:

Fig 1: Process Flow diagram of Customer Contract for Services

Create a Contract:

In general tab, fill all the mandatory fields such as account, sales unit, currency and so on. In items tab, enter the service that you are selling. This can be a material, services, an expense or an entitlement. In price agreement tab enter the negotiated price and discounts for the service.

Fig%202%3A%20Creation%20of%20Contract

Fig 2: Creation of Contract

The status of item is completed only when fulfilment and invoicing is finished and contract item is expired.

Cancellation and renewal of items are handled according to rules that you define in the contract.

Once the details are filled, Contract can be released.

Create follow-up Service Order from Contract:

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Fig 3: Creating follow up Service Order from Contract

Once the contract is released follow up documents can be created such as sales order, service order.

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Fig 4: Item details

All the details will be fetched from the contract.  Initially status of the Item will be ‘In Preparation’, once you release the Service Order Status will be changed to ‘Open’.

Confirm Service Execution:

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Fig 5: Confirming Service Execution

In order to execute service confirmation, perform Release to Service Execution. After releasing service order to execution, service will be appear in Order Pipeline view for the Service Performer to confirm the Service Execution

Perform Service Confirmation:

The Confirming Service Execution business process enables the service performer to complete the job, after executing the service, by creating a service confirmation.

Fig%206%3A%20Performing%20Service%20Confirmation

Fig 6: Performing Service Confirmation

After the service confirmation document has been released, the system automatically triggers customer invoicing and passes necessary information to Financial Management. For fixed price services, where there is no service confirmation, completion is confirmed directly in the customer contract.

Customer Invoice:

Fig 7: Creation of Customer Invoice

In the Creation of Customer Invoice , the system creates invoice requests automatically after services have been performed. You must transfer these requests to an invoice in customer invoicing work center. You can do this manually or with an invoice run. It is possible to combine several requests into one invoice or split them into several invoices.

Do comment your feedback and thoughts on this blog post in the comment section.

You can find related document regarding this topic from Help Library as mentioned bellow.

https://help.sap.com/docs/SAP_BUSINESS_BYDESIGN/2754875d2d2a403f95e58a41a9c7d6de/2ca71a4f722d1014aae6f79548936150.html

https://help.sap.com/docs/SAP_BUSINESS_BYDESIGN/2754875d2d2a403f95e58a41a9c7d6de/864a40901ee14be1a1c4d25e03330aba.html

https://help.sap.com/docs/SAP_BUSINESS_BYDESIGN/2754875d2d2a403f95e58a41a9c7d6de/2cd626f5722d1014ba38e3647e06a930.html

https://help.sap.com/docs/SAP_BUSINESS_BYDESIGN/2754875d2d2a403f95e58a41a9c7d6de/2ca48780722d1014b969dfc4ed973c4c.html

Read and follow various topics related to SAP Business ByDesign through the link given bellow.

https://blogs.sap.com/tags/01200615320800000691/

 

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      2 Comments
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      Author's profile photo Deepali Shenaoy
      Deepali Shenaoy

      Excellent blog.. Keep it up..

      Author's profile photo Samitha Kotian
      Samitha Kotian
      Blog Post Author

      Thank you Deepali Shenaoy