Customer Contract Management EN

Customer Contract Management
Scenario Overview
Click process
chevrons for details
Request-to-
Resolve
Processing
Confirming Creating
Creating a Executing Receivables
Creating a Customer Contract Service Customer
Sales Order Services and
Execution Invoices
Payments
Creating
Processing
Down
Receivables
Payment
and Procure-to- Expense
Request -
Payments Pay (Services) Reimbursement
Customer
Scenario Scenario Description Open Legend
Explorer The Customer Contract Management business scenario enables • Price agreements for items sold on a time and material basis
you to create and manage contracts related to services in the
framework of your support entitlements or managed services. This scenario incorporates business functions from related
Scenario/Processes In addition, the following features are provided: areas that directly support service delivery for contracts,
• Seamless integration with service request and service such as processing due items and payments in Financial
confirmation processing, allowing you to fulfill and confirm Management.
Business Value services carried out for a contract
• Invoice schedules for contract items
Scenario Flow • Generation of standard contracts from sales orders, using
contract templates
+ Further Information
The following business roles are involved in this scenario:
Sales/Customer Service Accounts

Service Planner/ Service Receivablbes
©© 2012 SAP AG. All rights reserved. Representative Dispatcher Performer Accountant
Scenario Overview
Click process
Request-to-
Resolve
Processing
Confirming Creating
Execution Invoices
Payments
Creating
Processing
Down
Receivables
Payment
Request -
Customer
Scenario Scenario Description Legend Open

CloseLegend
Legend
Explorer The Customer Contract Management business scenario enables • Price agreements for items sold on a time and material basis
you to create and manage contracts related to services in the Process mainly driven by the user
framework of your support entitlements or managed services. This scenario incorporates business functions from related
Scenario/Processes In addition, the following features are provided: Processdelivery
areas that directly support service mainly driven by the system
for contracts,
• Seamless integration with service request and service such as processing due items and payments in Financial
Manual process not supported by the
confirmation processing, allowing you to fulfill and confirm Management. system
Business Value services carried out for a contract
• Invoice schedules for contract items Process that communicates with third-
Scenario Flow party software (mouse-over for details)
• Generation of standard contracts from sales orders, using
contract templates
+
Process with relevance to Financials
Further Information
The following business roles are involved in this scenario: Related scenario
i Info button with more information

Sales/Customer Service Accounts
Service Planner/ Service Receivablbes
©© 2012 SAP AG. All rights reserved. Representative Dispatcher Performer Accountant <Role Name> <Role Name>
Process Details: Creating a Sales Order
Click process
Request-to-
Resolve
Creating a Sales Order

X
Processing
Confirming Creating
Create a Approve a Executing Receivables
sales order sales order Services and
Execution Invoices
Payments
i i
Creating
Processing
Down
Receivables
Payment
Request -
Customer
Scenario Process Description Further Information

Explorer The Creating a Sales Order business process enables you to create a sales order with fixed Performed by
terms and price conditions when a customer orders products or services. You enter the Sales/Customer Service
necessary details in the order such as the account, the products or services, the requested Representative
Scenario/Processes date, and customer information as additional text.
If a contract is to be sold , for example together with a physical product as a warranty
extension or a maintenance contract, you can enter a specific item into the sales order. From In the Work Center
Business Value
this item, a contract is generated automatically using a contract template. Sales Orders
Optionally, the sales order can then be approved.

Scenario Flow
See also
+ Further Information Sales Orders Quick Guide
Approval for Sales Order
©© 2012 SAP AG. All rights reserved.

Process Details: Creating a Customer Contract
Click process
Request-to-
Resolve
Creating a Customer
Contract X
Processing
Confirming Creating
Creating a Create a Executing Receivables
Service Customer
Sales Order contract Services and
Execution Invoices
Payments
i
Creating
Processing
Down
Receivables
Payment
Request -
Customer

Explorer In the Creating a Customer Contract business process, you create a customer contract for Performed by
services, expenses, or entitlements. This can be done on the basis of a contract template Sales/Customer Service
whose data is copied to the new contract. If a contract is sold via a sales order, a contract Representative
Scenario/Processes template is mandatory. Or you enter details manually such as start and end dates, renewal
and cancellation rules, service level, and the service, expense, or entitlement you are selling.
When an account requires support and a service request is created, the system checks if the In the Work Centers
Service Entitlements
Business Value affected product in the service request is covered under contract, and relevant information
Sales Orders
such as service levels are then taken into account. Contract items sold on time and material
basis are later processed using standard service confirmation functions.
Scenario Flow
Cancellation and renewal of items are handled according to rules that you define in the
+ Further Information contract.
See also
Customer Contracts Quick Guid
e
Price Agreements for Customer
Contracts
Process Details: Executing Services
Click process
Request-to-
Resolve
Executing Services
X
Processing
Travel to a Confirming Creating
Creating a Execute a Receivables
Creating a Customer Contract service Service Customer
Sales Order service and
location Execution Invoices
Payments
i i
Creating
Processing
Down
Receivables
Payment
Request -
Customer

Explorer In the Executing Services business process, once the order has been released for execution
and preparations made, the service performer travels to the customer to perform the Performed by
requested service, or performs the service working remotely or in a repair center. Service Performer
Scenario/Processes
Business Value
Scenario Flow
See also
+ Further Information Execute Very High Priority Ser
vice
Order

Process Details: Confirming Service Execution
Click process
Request-to-
Resolve
Confirming Service Execution

- With a Service Confirmation X
Document work, Processing
Creating
Creating a Executing track actuals and Receivables
Creating a Customer Contract Customer
Sales Order Services release a service and
Invoices
confirmation Payments
i
Click here to display process variants

Creating
Processing
Down
Receivables
Payment
Request -
Customer

Explorer The Confirming Service Execution business process enables the service performer to
complete the job, after executing the service, by creating a service confirmation directly from Performed by
the contract to report back actual times. Service Performer
Scenario/Processes This service confirmation is also used to record additional information about the work
performed, the root cause of a product problem, warranty information, or feedback with the In the Work Centers
aim to increase product quality. Service Entitlements
Business Value
Sales Orders
After the service confirmation document has been released, the system automatically triggers
customer invoicing and passes necessary information to Financial Management. For fixed
Scenario Flow
price services, where there is no service confirmation, completion is confirmed directly in the
customer contract.
+ Further Information See also
Create a Service Confirmation

Process Details: Confirming Service Execution
Click process
Request-to-
Resolve
Confirming Service Execution

- With a Service Confirmation X
Document work, Processing
Creating
Creating a Executing track actuals and Receivables
Creating a Customer Contract Customer
Sales Order Services release a service and
Invoices
confirmation Payments
i

Creating
Processing Confirming Service Execution –
Down
Receivables
Payment With a Contract
Request -
Customer

Explorer The Confirming Service Execution business process enables the service performer to
complete the job, after executing the service, by creating a service confirmation directly from Performed by
the contract to report back actual times. Service Performer
Scenario/Processes This service confirmation is also used to record additional information about the work
performed, the root cause of a product problem, warranty information, or feedback with the In the Work Centers
aim to increase product quality. Service Entitlements
Business Value
Sales Orders
After the service confirmation document has been released, the system automatically triggers
customer invoicing and passes necessary information to Financial Management. For fixed
Scenario Flow
price services, where there is no service confirmation, completion is confirmed directly in the
customer contract.
Quick Guide for Service Order
Processing

Process Details: Creating Customer Invoices
Click process
Request-to-
Resolve
Creating Customer Invoices

X
Processing
Confirming Transfer
Creating a Executing Release an Receivables
Creating a Customer Contract Service invoice
Sales Order Services invoice and
Execution requests Payments
i i
Creating
Processing
Down
Receivables
Payment
Request -
Customer

Explorer In the Creating Customer Invoices business process, the system creates invoice requests
Performed by
Accounts Receivables
automatically after services have been performed or products delivered. You must transfer Accountant
these requests to an invoice which is sent to the customer and passed to Cash Flow Invoicing Clerk
Scenario/Processes Management. 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.
Business Value In the Work Centers

Customer Invoicing
Scenario Flow

Customer Invoice Processing

Process Details: Processing Externally-Initiated Payments
Click process
Request-to-
Resolve
Processing Externally-Initiated Payments by Incoming

Bank Transfer
X X
Confirming Creating Enter a Process a
Creating a Executing Allocate a Clear a
Creating a Customer Contract Service Customer remittance bank
Sales Order Services payment payment
Execution Invoices advice statement
i i i i

Creating
Processing
Down
Receivables
Payment
Request -
Customer

Explorer The Processing Externally-Initiated Payments by Incoming Bank Transfer business
process enables customer invoices, for which payment is initiated externally, to be paid by Performed by
bank transfer. Accountant
Scenario/Processes
In the Work Centers
Receivables
Business Value Payment Management
Liquidity Management
Scenario Flow
+
See also
Further Information Allocate a Payment Manually

Process Details: Processing Externally-Initiated Payments
Click process
Request-to-
Resolve
Processing Externally-Initiated Payments by Incoming

Bank Transfer
X X
Confirming Creating Enter a Process a
Creating a Executing Allocate a Clear a
Creating a Customer Contract Service Customer remittance bank
Sales Order Services payment payment
Execution Invoices advice statement
i i i i
Click here to hide process variants

Creating
Processing
Down
Receivables
Payment
and
i Processing Externally-Initiated Payments by Incoming Check
Request - Procure-to- Expense
Payments i Processing Externally-Initiated Payments by Incoming Check
Customer Pay (Services) Reimbursement
with Lockbox
i Processing Externally-Initiated Payments by Multiple Incoming
Checks
i Processing Incoming Payments by Bill of Exchange
Scenario Process Description i Processing Incoming Payments Further Information
with Petty Cash
Explorer i Processing Internally-Initiated Payments by Credit Card
The Processing Externally-Initiated Payments by Incoming Bank Transfer business
i Processing
process enables customer invoices, for which payment is initiated externally, to be paidInternally-Initiated
by Performed
Payments by Direct Debit by
Processing Receivables and Payments with Accounts
bank transfer. i Accountant
Maintenance
Scenario/Processes
In the Work Centers
Receivables
Business Value Payment Management
Liquidity Management
Scenario Flow

Allocate a Payment Manually

Process Details: Creating Down Payment Request - Customer
Click process
Request-to-
Resolve
Processing
Confirming Creating
Execution Invoices
Payments
Creating Down Payment

Request - Customer X
Create and Processing
release Receivables
down and
payment Procure-to- Expense
request
i

Explorer The Creating Down Payment Requests - Customer business process enables you to Performed by
request down payments from the customer, before services are performed. The sales Sales/Customer Service
representative creates and releases a down payment request for this purpose. Representative
Scenario/Processes
In the Work Center

Business Value Customer Invoicing
Scenario Flow
See also
+ Further Information Quick Guide for Payment Cleari
ng (
Payables)

Process Details: Processing Receivables and Payments
Click process
Request-to-
Resolve
Processing
Confirming Creating
Execution Invoices
Payments
X
Processing Receivables and Payments
X
Creating
Down Enter a Process a Procure-to- Expense
Allocate a Clear a
Payment remittance bank Pay (Services) Reimbursement
payment payment Procure-to- Expense
Request - advice statement
i i i i

Explorer The Processing Receivables and Payments business process enables the processing of
incoming payments, initiated either internally by your company or externally by your Performed by
customers. The process uses country-specific payment methods. Accountant
Scenario/Processes Payments can be made manually, or automatically via a payment run in which the system
proposes open items for payment. You then release the payments and the system posts them In the Work Centers
to accounting. You create the payment medium, either manually or as part of an automatic Receivables
Business Value
run, using files for direct debit or credit card payments. It is also possible to upload credit Payment Management
card statements to pre-confirm payments. When the payments are credited to the company's Liquidity Management
Scenario Flow bank account, the bank statement is entered in the system, either uploaded electronically or
entered manually, before being confirmed. If payments are initiated externally by the See also
+ Further Information customer, the bank statement provides notification of payment. The payments are matched in
the system to the open invoices before being cleared.
Quick Guide for Payment Cleari
ng (Receivables
)

Process Details: Processing Receivables and Payments
Click process
Request-to-
Resolve
Processing
Confirming Creating
Execution Invoices
Payments
X
Processing Receivables and Payments
X
Creating
Down Enter a Process a Procure-to- Expense
Allocate a Clear a
Payment remittance bank Pay (Services) Reimbursement
payment payment Procure-to- Expense
Request - advice statement
i i i i
Scenario Process
i Description
Process Description
Processing Externally-Initiated Payments by Incoming Check Further Information
Explorer i Processing Externally-Initiated Payments by Incoming Check with Lockbox
The Processing Receivables and Payments business process enables the processing of
Processing Externally-Initiated Payments by Multiple Incoming Checks Performed by
incoming payments, initiated either internally by your company or externally by your
Processing Incoming Accounts Receivables
customers. The process usesPayments by Bill of Exchange
country-specific payment methods. Accountant
Scenario/Processes Processing Incoming Payments with Petty Cash
Payments can be made manually, or automatically via a payment run in which the system
Processing Internally-Initiated Payments by Credit Card
proposes open items for payment. You then release the payments and the system posts them In the Work Centers
Processing Internally-Initiated Payments by Direct Debit
to accounting. You create the payment medium, either manually or as part of an automatic Receivables
Business Value
run, usingProcessing Receivables
files for direct debit orand Payments
credit with Accounts
card payments. Maintenance
It is also possible to upload credit Payment Management
card statements to pre-confirm payments. When the payments are credited to the company's Liquidity Management
Scenario Flow bank account, the bank statement is entered in the system, either uploaded electronically or
entered manually, before being confirmed. If payments are initiated externally by the
+ Further Information customer, the bank statement provides notification of payment. The payments are matched in
the system to the open invoices before being cleared.
See also
Automatic Incoming Payments

Business Value
Define Contracts Manage Service Execution Financial
Create Manage
Define Create Create
Customer Invoicing Receivables
Entitlement Service Service
Contract and
and Service Request Confirmation
Payables
Scenario Overview Key Benefits

Explorer This scenario enables service contracts Selling and Managing contracts in SAP Business ByDesign®
to be offered to customers. This is
applicable for companies that may be  Contributes to new revenue streams from managed service operations and support
dedicated to the managed service activities
Scenario/Processes business, or for companies that may
provide contracts after the sale of a  Manages all aspects of the contract through creation, service provisioning, renewal
product or project. and cancellation, invoicing, and financial consistently to ensure the operating
Business Value efficiencies
This enables a long term revenue stream
 Avoids off-line contract management and information silos by this being a standard
and consistent relationship with the
part of the business systems.
Scenario Flow customer.
 Provides complete profitability analysis of contracts so that their future pricing and
Examples of managed services include
+ Further Information software as a service, telecommunication
Service Level Agreements can be managed for profitability.
services, meeting hosting services, etc.  Provides a continued relationship with the customer for service which can help
increase loyalty and provide stability to financial flows for the company.
Support contracts are offered in many
industries and for many types of services.  Standard contracts can be sold and generated directly from sales orders.
Scenario Flow Variant: With Support Entitlements
Service Field Service Customer Receivables /

Sales Orders Service Desk
Entitlements and Repair Invoicing Cash & Liquidity Mgt
Creating Processing
Creating Creating
a Sales Receivables
a Customer Customer
Order and
Contract Invoice
Payments
• With
entitlement(s)
• Processing
externally-
initiated
payments by
incoming bank
transfer
• Processing
Scenario externally-
initiated
Explorer Confirming
Service
payments by
incoming check
Execution • … (7 more
Request-to-Resolve Expense Reimbursement variants)
Scenario/Processes
• using a service
confirmation
Business Value
Scenario Flow Legend & Variants Variants of the Scenario:

Dotted Dotted
+
line = line =  Scenario Variant: With Support
Further Information Process related Work center in which
optional optional Process Entitlements
Process • Process mainly to Financials process is performed
Process
mainly mainly variant1 driven by  Scenario Variant: With Managed Servi
driven by • Process the Work Additional ces
driven by
the user the variant 2 system Center Application Related Business
system document flow :
scenarios

Scenario Flow Variant: With Managed Services
Service Field Service Customer Receivables /

Sales Orders
Entitlements and Repair Invoicing Cash & Liquidity Mgt
Creating Processing
Creating Creating
a Sales Receivables
a Customer Customer
Order and
Contract Invoice
Payments
• With
entitlement(s)
• Processing
externally-
initiated
payments by
incoming bank
transfer
• Processing
Scenario externally-
initiated
Explorer Executing Confirming payments by
Services Service incoming check
Execution • … (7 more
Expense Reimbursement variants)
Scenario/Processes
• using a service
confirmation
Business Value
Scenario Flow Legend & Variants Variants of the Scenario:

Dotted Dotted
+
line = line =  Scenario Variant: With Support Entitle
Further Information Process related Work center in which
optional optional Process ments
Process • Process mainly to Financials process is performed
Process
mainly mainly variant1 driven by  Scenario Variant: With Managed
driven by • Process the Work Additional Services
driven by
the user the variant 2 system Center Application Related Business
system scenarios document flow

Further Information
Scenario Do you want to try it out? Do you need more information? Do you want to discuss with others?
Explorer
Self-Enablement Systems More Details Forum
If you want to try out the business SAP provides a complete product Get in touch with experts to
Scenario/Processes scenario, click here.* documentation, covering all discuss your specific
aspects of the business scenario. requirements. To enter the
For more details, click here. community, click here.*
Business Value
WIKI
Scenario Flow VV In addition to the product
documentation, SAP provides
+ Further Information Wikis that describe additional
aspects of SAP Business
ByDesign.
To access the WIKI, click here.*

* Note that to access the links above you need to have a user in SAP Business Center. If you cannot access the page directly and if you are using Microsoft Internet Explorer®, please
check http://support.microsoft.com/kb/890474.

Customer Contract Management EN

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Customer Contract Management

Scenario Scenario Description Open Legend

Sales/Customer Service Accounts

Scenario Scenario Description Legend Open

i Info button with more information

Creating a Sales Order

Scenario Process Description Further Information

Optionally, the sales order can then be approved.

©© 2012 SAP AG. All rights reserved.

Scenario Process Description Further Information

Scenario Process Description Further Information

©© 2012 SAP AG. All rights reserved.

Confirming Service Execution

Click here to display process variants

Scenario Process Description Further Information

©© 2012 SAP AG. All rights reserved.

Confirming Service Execution

Click here to display process variants

Scenario Process Description Further Information

©© 2012 SAP AG. All rights reserved.

Creating Customer Invoices

Scenario Process Description Further Information

Business Value In the Work Centers

+ Further Information See also

©© 2012 SAP AG. All rights reserved.

Processing Externally-Initiated Payments by Incoming

Click here to display process variants

Scenario Process Description Further Information

©© 2012 SAP AG. All rights reserved.

Processing Externally-Initiated Payments by Incoming

Click here to hide process variants

+ Further Information See also

©© 2012 SAP AG. All rights reserved.

Creating Down Payment

Scenario Process Description Further Information

In the Work Center

©© 2012 SAP AG. All rights reserved.

Scenario Process Description Further Information

©© 2012 SAP AG. All rights reserved.

©© 2012 SAP AG. All rights reserved.

Define Contracts Manage Service Execution Financial

Scenario Overview Key Benefits

Service Field Service Customer Receivables /

Scenario Flow Legend & Variants Variants of the Scenario:

©© 2012 SAP AG. All rights reserved.

Service Field Service Customer Receivables /

Scenario Flow Legend & Variants Variants of the Scenario:

©© 2012 SAP AG. All rights reserved.

©© 2012 SAP AG. All rights reserved.

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