Chapter 4

Business Processes

Business Processes
A business process consists of a series of connected work steps. The individual
steps can be processed by a variety of people or organizational units with time
delay. This chapter discusses how IS-U/CCS handles those business processes
that are encountered most frequently in utility companies.
In most cases, you execute a business process in the front office. You can use the
data finder to identify the object you need, for example, the customer. The system
then provides you with information views, predefined processes, front office pro-
cesses, and workflows. For a detailed description of the front office, refer to the
section Customer Service.
For some of the more important business processes, IS-U/CCS offers predefined Processes
processes that provide very efficient processing in a single step:
❑ Initial data creation for premises
❑ Move-in
❑ Move-out
❑ Customer consolidation (Release 4.51)
❑ Disconnection or reconnection
❑ Rate maintenance
The predefined processes are parts of the Customer Service/Workflow Management
component of IS-U/CCS.
Business processes in which more than one person is involved or that are driven by Workflows
certain events (such as executing a work order) can be mapped as a workflow using
the SAP Business Workflow component. For each processing step, the system locates
the responsible person and places an appropriate message in that person’s electronic
inbox. (For more information, refer to the section Basic Functions/Clerk Assignment).
A workflow is initiated either manually by someone in the front office or by the
system itself in response to a specific event.
The following workflows are available:
❑ Laying a service connection
❑ Initial data creation for a premise (currently implemented as a front office
process)
❑ Collection procedure
❑ Disconnection or reconnection
❑ Vacant status monitoring
❑ Complaint about the bill
Other workflows will be implemented in future releases of IS-U/CCS. The fol-
lowing section describes some of the typical business processes.

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Laying a Service Connection

The business process for laying a service connection is implemented as a workflow.
From developing a quotation and creating a service order through creating a bill,
it includes all the steps required to lay a new service connection. This business
process uses the Work Management (IS-U-WM) component and integration with
the standard R/3 components Plant Maintenance, Service Management, Sales and
Distribution, Materials Management, Controlling, and Financial Accounting. . (For more
information, please refer to the chapter titled Work Management.)

Fig. 4-1: Interaction of R/3 Components for Laying a Service Connection.

Figure 4-1 illustrates the process of laying a service connection. It begins when a
customer requests a quotation for laying a service connection (step ”a” in Figure
4-1).
The process includes the following steps:
1. Identify customer (a)
2. Create SD quotation (b)
3. Enter the service product Lay Connection as the material in the items of the
quotation (c)
4. Create the written quotation (d)
The costs to be expected are calculated in an SD quotation on the basis of technical
factors (such as soil condition) or flat rates. The technical data for the connection is
entered in the quotation as the service product is configured.

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Say the customer accepts the quotation (e). The user then follows these steps:
1. If relevant, request a down payment
2. Create SD order (f)
3. Create the connection and the connection object
4. Allocate the connection to the connection object
5. If relevant, set device installation (meter )
All planned and incurred costs are managed in the SD order. The items from the
SD quotation can be transferred to the SD order. A service order is automatically
created in the background in Plant Maintenance and Service Management (g). The
connection is stored as a piece of equipment, and the connection object as a func-
tional location, in Plant Maintenance.
Next, the connection is laid at the given location, and the Plant Maintenance ser-
vice order is confirmed completed (h). The user performs the following steps:
1. Complete Plant Maintenance service order
2. Initiate expense-based billing (i)
3. Create SD billing request
4. Create SD billing document (k)
5. Post SD billing document
6. Create bill
7. Execute debit entry in Contract Accounts Receivable and Payable (l)
The Plant Maintenance service order is settled as a flat rate or based on expense.
The invoicing run that follows can be handled in IS-U/CCS instead of Sales and
Distribution (as of Release 4.51). In such cases, the bill can either be printed imme-
diately or included in the first consumption billing.
In the next step, the customer pays the bill (m). The user enters the posting in
Contract Accounts Receivable and Payable and clears the receivable.

Initial Data Creation for a Premise

Initial data creation for a premise is defined as a front office process. It is used to enter
all technical and billing data for a new premise. IS-U/CCS provides a predefined
process for this purpose. Following initial data creation for a premise, you can pro-
cess a customer move-in as an integrated part of the online processing.
For example, say the owner or the municipality that issued the construction per-
mit submits information for the initial data creation of a premise. The user takes
the following steps:
1. Check to determine whether a connection already exists
2. If necessary, execute the business process Laying a Service Connection
3. Create premise and installation
4. Perform device installation and, at the same time, create device location

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5. Maintain additional data relevant to billing (such as register relationships)

6. If necessary, repeat the preceding processing steps for other divisions. (Steps
one through six may in some cases be processed in parallel.)
7. If necessary, execute the business process Move-In
If, in a deregulated market, the customer has contracts with more than one com-
pany (for example, for a connection to the grid and for energy supply), those con-
tracts can be allocated accordingly here.

Fig. 4-2: Initial Data Creation for a Premise

Device Installation and Removal

Events that may trigger device installation or removal include:
❑ Initial data creation
❑ Installation extension
❑ Periodic replacement or sampling procedure
❑ Damage or complaint
❑ Change in consumption pattern
❑ Installation removal
Steps:
1. Inform customer
2. Create field service order
3. Execute installation or removal

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4. Enter installation or removal

5. If applicable, update rate or billing data
6. If applicable, invoice costs
7. If applicable, send confirmation letter to customer
Device installation and removal is not the same as device replacement. In the case
of device replacement, the old device is removed and the new device installed in
a single step. The new device takes over the function of the old device, and the
attributes of the installation and the billing data for the device are transferred to
the new device.

Move-In/Out
For handling move-ins or move-outs, the predefined transactions move-in, move-
out, and move-in/out are available to help you enter all the necessary data. These
transactions provide for immediate and complete processing, with a bill for the
customer moving out, and a welcome letter for the customer moving in.
The move-in/out transaction allows you to process either the move-out and move-
in of two different business partners in connection with the same premise or the
move-out of a business partner from a given premise and the move-in of that
same business partner to a different premise.
You can adapt the screen displays and the process flows involved in move-in/out
to meet the requirements of the utility company.
Move-in processing is used to select or create a customer and to allocate that cus- Move-In
tomer to existing functional installations.

Fig. 4-3: Customer move-in

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Event: A customer gives notification of a move-in.

Steps:
1. Identify customer and premise
2. Enter contact data
3. If necessary, enter and process customer moving in and his/her contract ac-
count
4. Create contracts
5. If necessary, create order for meter reading at move-in and perform meter
reading (if meter reading is not performed by customer)
6. Enter move-in meter reading results
7. Maintain rate data
8. Determine whether the billing construct can be billed
9. If applicable, manually maintain creditworthiness or display results of auto-
matic determination of creditworthiness
10. If applicable, request cash security deposit
11. If applicable, create budget billing plan
12. If applicable, create welcome letter
Move-Out Move-out processing terminates the contracts that were concluded with the cus-
tomer. When a customer moves out, new contracts for another customer are allo-
cated to the associated utility installations after the move-out date.

Fig. 4-4: Customer move-out

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When a customer gives notification of a move-out you perform the following steps:
1. Identify customer and premise
2. Enter contact data
3. If necessary, process customer moving out and his/her contract account
4. Terminate contracts
5. If applicable, stop budget billing collection
6. If applicable, suspend current dunning procedures
7. If applicable, change dunning procedures that affect open items
8. If applicable, create final meter reading order and perform meter reading (if
reading by customer has not been submitted)
9. Enter final meter reading results
10. If applicable, execute final billing for contracts affected by the move-out, and
invoice and print final bills
11. If applicable, create move-out confirmation
When a premise is without a customer temporarily or for a longer period, you Premise Without Customer
perform the following steps:
❑ Option 1: Execute move-in of owner or landlord
❑ Option 2: Create notification to determine owner
❑ Option 3: Create field service order to check use of installation
❑ Option 4: Automatic monitoring of vacant status (defined as a workflow). If a
premise has no customer for a lengthy period, you can initiate a workflow
that triggers the disconnection of the installation concerned. The reconnection
of the installation is initiated as the result of a new customer move-in (see also
Disconnection and Reconnection).
You can: Special Cases
❑ Create orders for archiving or for handing over customer documentation
❑ Suppress the printout of the meter reading document for the final meter read-
ing if a meter reading result already exists or if a meter reading is already
planned for some other reason
❑ Contrary to the normal procedure, have final meter readings performed by
the meter reader or the customer
❑ Create meter reading documents for the move-in/out meter reading, and not
use automatic data entry
❑ Agree meter reading dates with the customers (Release 4.51)
❑ Have implausible meter readings taken by the customer checked by a meter
reader
❑ Exclude cash security deposits from interest calculation
❑ Defer or write off receivables created by final invoicing or convert them to an
installment plan
❑ Levy charges for move-in/out processing

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Allocation Changes for Master Data

Changes, such as those described below, may be necessary to allocate master data.
The following items will be available as separate functions with Release 1.2 at the
earliest.
❑ Customer change
A customer change is required as a result of a change of landlord, an inheritance,
or a gift. The customer switches to another contract account. There is no final bill.
❑ Contract account change
A contract account change is required when alternative bank and payment
data is agreed on for just some of the contracts in a contract account. You must
set up a new, separate contract account for the installations concerned.
A final bill is not required if the change applies to the entire unbilled period. If
proration is to be applied during an as yet unbilled period, final billing must
be performed for the period through the change date.
❑ Contract change
You can terminate a contract with a final bill at any time and then manage the
utility installation with a new contract. This capability is needed, for example,
in a deregulated scenario when the energy supplier is changed.
❑ Customer consolidation
Where two customer master records were created for a single customer, you
can consolidate them in a single master record. This function is still in the
planning stage.

Rate Maintenance
A predefined process is available for rate maintenance.
Event: Change in the billing data for a customer
Because changes of this kind are often necessary when a new customer moves
into a premise, you can also start rate maintenance from move-in.
Steps:
1. Identify utility installation(s) concerned
2. Perform changes to data
3. Start overall check
4. Execute budget billing amount adjustment
5. Create written information for the customer
In rate maintenance, you can maintain all the data relevant to billing for one util-
ity installation or for all installations in a given contract account.
The following functions are supported:
❑ Maintain utility installation data
❑ Maintain data for the installed devices (installation structure)
❑ Adjust period consumption
After the changes have been processed, you can extrapolate the budget billing
amount again.

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Customer Service
Event: A customer complains that he/she has received a dunning notice in spite Account Check
of his/her payment.
Steps:
1. Identify customer
2. Check customer account
Event: Payment is found.
Step: Allocate payment
Event: A customer requests interim billing. Interim Billing
Steps:
1. Identify customer
2. If applicable, block budget billing plan for adjustment
3. If applicable, create meter reading order (where no reading by customer exists)
4. Enter meter reading results
5. Execute billing
6. Execute invoicing
7. Initiate bill printout
8. If applicable, print new budget billing requests
9. Send bill
Event: A customer requests a change to the budget billing amount as a result of a Change to Budget Billing
change in consumption pattern. Amount
Steps:
1. Identify customer
2. Check budget billing plan
3. Change budget billing amount
4. Notification is created automatically.

Receivables Processing
Event: A customer is unable to pay and requests deferred payment or payment by
installments.
Steps:
1. Identify customer
2. Check customer account
Event: Payment by installments or deferral is agreed
Steps:
1. Create installment plan or defer items
2. If applicable, calculate interest on items
3. Create notification

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Other receivables processing functions:

❑ Existing credits can be paid out to the customer.
❑ The receivable can be blocked for dunning.
❑ The due date can be changed.
❑ If a payment has already been made, you can reverse posted dunning costs.

Returns Processing
Event: The utility company receives a returns tape or document
Steps:
1. Execute reversal
2. Depending on the reason for the returns document, the following steps are
possible:
❍ Pass on charges to expenses
❍ Change payment methods

❍ Set payment blocks (at master data or item level)

❍ Update event record (for creditworthiness calculation)
❍ Set deferral date

❍ Create follow-ups for clerks

3. If applicable, create notification
The entire returns processing runs automatically. The reversal is executed as the
result of returns. All other steps are executed according to the reason for the re-
turns, the creditworhtiness of the business partner, the amount and the number of
the returns in a given period.

Collection Procedure
The collection procedure is implemented as a workflow.
Event: A customer has been repeatedly dunned without success and at least one
item has reached a collection dunning level.
Step: Create collection order
Option 1: The customer makes payment directly to a field service employee.
Step: Update payment (stops the collection procedure.)
Option 2: The customer presents a payment document.
Steps:
1. Check payment
2. Payment was made: stop collection procedure
Payment was not made: continue collection procedure

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Option 3: The customer does not make payment.

❍ Option a): Disconnection and Reconnection business process
In this case, the disconnection and reconnection workflow (see also the
description of this workflow on the following page) is initiated and em-
bedded in the collection procedure workflow (the collection procedure
workflow remains in the hold position).

The person authorized to collect performs the disconnection on site and

subsequently enters the disconnection in the system (when disconnection
on site occurs, step 3 of the disconnection workflow is executed first).

If the customer then makes payment or agrees on an installment plan, the

reconnection workflow is executed and the collection procedure workflow
is stopped.

❍ Option b): Customer denies field service employee access to the installa-
tion

Step: Inform legal department and sue for access

❍ Option c): Field service employee cannot find customer
Step: Set new collection date

❍ Option d): Installation must not be disconnected (for example, if it is locat-

ed at a hospital)
Step: Inform legal department

Fig. 4-5: Possible Process Flows in the Collection Procedure

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Disconnection and Reconnection

The disconnection and reconnection of a utility installation is implemented as a
workflow.
Event: A customer does not pay even though an item has reached the collection
dunning level. The installation is therefore to be disconnected or the energy sup-
ply restricted.
Steps:
1. If applicable, create disconnection document manually (unless the dunning
run automatically creates it)
2. Create disconnection order
3. Perform disconnection
4. Enter disconnection
Option 1: The customer has paid.
Steps:
1. Initiate reconnection
2. Contract Accounts Receivable and Payable creates a reconnection order as part of
the workflow
3. Perform reconnection
4. Enter reconnection
Option 2: Payment is not made
Step: Hand over to legal dunning procedure (external)

Fig. 4-6: Disconnection and Reconnection

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Billing Complaint
Billing complaints are implemented as workflows.
Event: The customer makes a complaint about a bill that is actually incorrect.
Steps:
1. Call central customer information
2. Check bill in the system
Option 1: Correct error(s) with reversal
Steps:
1. Execute reversal
2. Execute new billing
3. Initiate bill printout
4. If applicable, print new budget billing requests
5. Send or hand over bill
6. Process incoming or outgoing payment
Option 2: Correct error with manual credit memo or backbilling
Steps:
1. Execute manual credit memo or backbilling
2. If applicable, adjust budget billing amount and print requests
3. Initiate bill printout (print immediately or with the next periodic billing)
4. Send or hand over bill
5. Process incoming or outgoing payment
Option 3: Execute an interim meter reading as a check
Interim meter reading for a billing complaint is implemented as a workflow. Fol-
lowing the interim reading, the meter reading result is corrected if necessary, and
processing continues with option 1 or 2.
Event: A customer requests a copy of his/her last bill. Bill Reprint
Steps:
1. Identify customer
2. Identify bill
3. Reprint bill

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Technical Complaint
Repair Event: A customer reports a defective meter.
Steps:
1. Identify customer and premise
2. Determine connection or device
3. Create service notification
4. If applicable, create service order
5. Execute action, for example, repair or device replacement
6. Confirm the action executed with a completion confirmation
A service notification can be processed either with or without a service order. A
service order is not required for service processing in cases where no material,
tool, or labor costs have to be calculated or none of those resources have to be
scheduled.
If there is a service contract for a service order, you can create an expense-related
billing request. Costs and sales revenues are then posted directly to the service
order, which in the case of a repair would be, for example, material and labor
costs. The system also supports expense-related billing and includes warranties,
which allows certain repair activities not to be charged to the customer.
Maintenance You also manage maintenance costs using a service order. Unlike a repair, mainte-
nance implies a planned service. Planning is carried out via the Maintenance Plan-
ning component of Plant Maintenance, which supports both time- and activity-
related maintenance work. The system automatically generates service orders from
the maintenance plan.
If a service contract exists for a device, that service contract can be assigned more
than one maintenance service order. Costs and sales revenues are then posted
directly to the service contract via the expense-related billing request. In the case
of expense-related billing of maintenance service, all materials, work performed,
and costs are listed individually. The customer receives a billing document that
lists actual expenses plus items that do not get billed because, for example, they
come under a warranty.

Billing Simulation
Events:
❑ A customer wants to know the probable amount of his bill.
❑ A clerk wants to check the billing results before the actual billing is performed.
❑ A clerk wants to check if the probable amount of a bill matches the customer’s
agreed budget billing amounts.
❑ A clerk performs energy consulting for a customer (Release 4.51).
Steps:
1. Identify customer
2. If applicable, adjust values relevant to billing (such as expected consumption
in period, rate category, or meter reading results)

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3. Run billing simulation

4. Display bill
Steps 2-4 can be executed repeatedly in cycles.
Billing simulation is performed for actual master data. This means that the simu-
lated contract exists as a real contract relevant to billing.
Event: Rate conversion (Release 4.51) Forecast
If you want to analyze the effects of a rate conversion in advance, you can perform
mass simulation.
Steps:
1. Change data (for example, rate category, rates, price key)
2. Execute mass simulation of the contracts
3. Analyze forecast results
Event: Customer requests energy consulting (Release 4.51) Energy Consulting
Energy consulting involves the assessment and comparison of combinations of
master data and rate data. You obtain the billing results that can be expected by
using billing simulations. For that purpose, you create reference contracts for which
you simulate billing with different meter reading data combinations. The meter
reading data can reflect both fictitious and real consumption and demand. You
can combine the contract data with different rate data.
You can run a simulation for either past or future periods. You can therefore com-
pare rate quotations for a single division or rate quotations for various divisions.
The system identifies simulated bills and stores them as such. You can compare
the results of different simulated bills with each other.
Steps:
1. Select reference data.
2. Create customer-specific data.
3. Create simulated bills.
4. Create notification.

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