SAP BRIM Subscription Order Management (SOM):

SAP Billing and Revenue Innovation Management (SAP BRIM) Subscription Order Management (SOM) is designed to help businesses efficiently to manage the complete lifecycle of subscription-based services. It plays an important role in managing all aspects of subscription orders, from initial creation of subscription order to billing and then revenue recognition.

SAP BRIM Subscription Order Management is a solution that streamlines subscription management, improves billing accuracy, and supports revenue optimization through effective pricing, discount management, and revenue recognition.

SAP BRIM SOM is typically used in industries such as telecommunications, utilities, and media.

SAP Subscription Order Management (SOM) Configuration Steps:

SAP BRIM Subscription Order Management (SOM) involves the following configuration steps to set up subscription order process. Some of the configuration steps may vary depending on the business requirements, here is a general information of the key configuration steps:

Master Data:

1. Business Partner:

The following role assignments are suggested:

• Customer Role FLCU01 – For business partners to be used as contract partners in subscription order processing.
• FI Customer Role FLCU00 – For business partners to be a part of sales processes carried out within SAP S/4 HANA.
• Contract Partner Role MKK – For business partners involved in provider contracts within SAP Contract Accounts Receivables and Payable (FI-CA).

2. Create Product:

In SAP BRIM Subscription Order Management (SOM), product types are defined based on subscription-based products or services.  These product types help to define the attributes, pricing, and billing rules specific to each type of product or service.

The following are the different product types:

Standard Product SUBS – SUBS is a Standard Products that are offered to customers as part of the standard service catalog. It is including predefined features, pricing, and billing terms.

Partner Agreement Product SUBP – SUBP is a Partner Agreement Products that are associated with partner agreements or partnerships.

Sharing Product SUBC – SUBC is a Sharing Products that involve sharing or collaboration between customers or entities for example shared subscriptions, shared access, or any offerings that involve multiple users or entities sharing the same product or service.

The following are the different Product Item Category Groups.

These item categories help to categorize and manage different types of charges and line items within subscription orders.

Subscription Usage Product PRRP – This Product Item Category Groups used for subscription services such as data usage, call minutes, or other consumption-based charges.

Subscription Recurring Product PRSR – This Product Item Category Groups used for Subscription Recurring Products such as monthly subscription fees, service charges, or any other regularly occurring charges used for subscription service.

Subscription Fee PRSV – This Product Item Category Groups used for fixed fees, periodic charges, or other flat-rate costs associated with the subscription service.

3. Subscription order Item Categories:

In SAP BRIM Subscription Order Management (SOM), item categories are PROR, PROP, PROF and PROS which are used to identify different types of line items or charges within subscription orders. These item categories determine the different types of charges and line items associated with subscription orders.

Here is a brief overview of these item categories:

Recurring PROR – The item category PROR is used for recurring charge within a subscription order such as monthly subscription fees, service charges, or fixed periodic charges.

Usage PROP – The item category PROP is used for usage-based charges such as data usage charges, call minutes, or data overage charges.

One-off PROF – The item category PROF is used for one-time charges or fees that are not part of the recurring subscription costs such as setup fees, activation charges, installation fees, or any other one-time costs.

Sales Item PROS – The item category PROS is used for sales-related items which are not the core subscription charges such as accessories, add-ons, or complementary items.

4. Create Contract Account:

In SAP BRIM Subscription Order Management (SOM) contract is used to set up agreements or terms between the service provider and the subscriber for the delivery of subscription services. These contracts specified with the specific conditions, pricing, and other details related to the subscription. Standard transaction code /nCAA1 is used to create contract.

5. Subscription Transaction (Order) Types:

In SAP BRIM Subscription Order Management (SOM), different order types are used for various types of subscription orders and transactions.

Subscription Order PRVO – The order type PRVO is used for subscription services, and it is involving the creation or modification of subscription agreements. These orders specify the terms and conditions of the subscription such as start date, end date, pricing, and services.

Pattern Agreement Order PRPO – The order type PRPO is used for managing pattern agreements and it is recurring contractual agreements with customers. These agreements include regular deliveries, services, or other recurring transactions.

Solution Quotation SRVP – The order type SRVP is used to provide quotations to customers for solutions or services. This order type is frequently associated with sales and quoting process, their associated costs, and terms to potential customers.

Subscription Contract PRVC – The order type PRVC is used for subscription contracts which is used to decide and manage agreements between a service provider and a customer for subscription-based services. These contracts describe the terms and conditions of the subscription, such as pricing, duration, service levels, and any additional details relevant to the subscription.

6. Subscription Contract: Subscription contract is used to manage subscription-based services. Subscription contracts help service providers and customers to define their mutual obligations and ensure that services are delivered and billed accurately. Standard transaction code /nFP_VT3 is used for Subscription Contract.

7. Copy Control for Transaction Types and Item Categories:

Review copy control setting for the subscription order Transaction Types and Item Categories in Implementation Guide (IMG)  – Service. 

8. Integration with SAP Convergent Invoicing (CI):

Discount and Charges –

Contractual discounts are the discounts agreed upon in contracts with specific customers or groups of customers. They are usually based on negotiated terms and conditions. It can be discount on Master Agreement or Provider Contract.

Charges in SAP BRIM SOM include various types of fees and costs associated with subscription.

Billing Plan –

When creating the provider contract, we determine the right billing plan type based on the transaction type and item category of the subscription contract item, which in turn helps identify the assigned billing plan and item type.

You can set up the following configuration in the Implementation Guide (IMG) for the billing plan.

• Define the billing plan.
• Define the billing plan item type.
• Maintain the settings for the Billing Cycle.
• Maintain the settings for Recurring Fees.
• Assign Billing Plan Types and Billing Plan Item Types to Transaction Types and Item Categories

9. Implementation Guide (IMG):

Refer Implementation Guide (IMG) for the details of Subscription Order (SOM) configuration.

SOM Subscription Order – SPRO → Service →

CI Billing Plan – SPRO → Financial Accounting → Contract Accounts Receivable and Payable → Convergent Invoicing

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