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

2. Customer Contract Management Scenario Overview
Request-to-Resolve
Click process chevrons for details
Creating a Sales Order
Creating a Customer Contract
Executing Services
Confirming Service Execution
Creating Customer Invoices
Processing Receivables and Payments
Creating Down Payment Request - Customer
Processing Receivables and Payments
Procure-to-Pay (Services)
Expense Reimbursement
Scenario
Explorer
Scenario Description
Legend
Close Legend
The Customer Contract Management business scenario enables you to create and manage contracts related to services in the framework of your support entitlements or managed services.
In addition, the following features are provided:
Seamless integration with service request and service confirmation processing, allowing you to fulfill and confirm services carried out for a contract
Invoice schedules for contract items
Generation of standard contracts from sales orders, using contract templates
Price agreements for items sold on a time and material basis
This scenario incorporates business functions from related areas that directly support service delivery for contracts, such as processing due items and payments in Financial Management.
Process mainly driven by the user
Process mainly driven by the system
Manual process not supported by the system
Process that communicates with third-party software (mouse-over for details)
Process with relevance to Financials
Related scenario
Info button with more information
Scenario/Processes
Business Value
Scenario Flow
Further Information
The following business roles are involved in this scenario:
Sales/Customer Service Representative
Service Planner/ Dispatcher
Service Performer
Accounts Receivablbes Accountant
<Role Name>
<Role Name>

3. Customer Contract Management Process Details: Creating a Sales Order
Request-to-Resolve
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Creating a Sales Order X
Create a sales order
Approve a sales order
Creating a Customer Contract
Executing Services
Confirming Service Execution
Creating Customer Invoices
Processing Receivables and Payments i i
Creating Down Payment Request - Customer
Processing Receivables and Payments
Procure-to-Pay (Services)
Expense Reimbursement
Scenario
Explorer
Process Description
Further Information
The Creating a Sales Order business process enables you to create a sales order with fixed terms and price conditions when a customer orders products or services. You enter the necessary details in the order such as the account, the products or services, the requested 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 this item, a contract is generated automatically using a contract template.
Optionally, the sales order can then be approved.
Performed by
Sales/Customer Service Representative
Scenario/Processes
Business Value
In the Work Center
Sales Orders
Scenario Flow
Further Information
See also
Sales Orders Quick Guide
Approval for Sales Order

4. Customer Contract Management Process Details: Creating a Customer Contract
Request-to-Resolve
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Creating a Customer
Contract X
Creating a Sales Order
Create a contract
Executing Services
Confirming Service Execution
Creating Customer Invoices
Processing Receivables and Payments i
Creating Down Payment Request - Customer
Processing Receivables and Payments
Procure-to-Pay (Services)
Expense Reimbursement
Scenario
Explorer
Process Description
Further Information
In the Creating a Customer Contract business process, you create a customer contract for services, expenses, or entitlements. This can be done on the basis of a contract template whose data is copied to the new contract. If a contract is sold via a sales order, a contract 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 affected product in the service request is covered under contract, and relevant information 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.
Cancellation and renewal of items are handled according to rules that you define in the contract.
Performed by
Sales/Customer Service Representative
Scenario/Processes
Business Value
In the Work Centers
Service Entitlements
Sales Orders
Scenario Flow
Further Information
See also
Customer Contracts Quick Guide
Price Agreements for Customer Contracts

5. Customer Contract Management Process Details: Executing Services
Request-to-Resolve
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Executing Services X
Creating a Sales Order
Creating a Customer Contract
Confirming Service Execution
Creating Customer Invoices
Processing Receivables and Payments
Travel to a service location
Execute a service i i
Creating Down Payment Request - Customer
Processing Receivables and Payments
Procure-to-Pay (Services)
Expense Reimbursement
Scenario
Explorer
Process Description
Further Information
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 requested service, or performs the service working remotely or in a repair center.
Performed by
Service Performer
Scenario/Processes
Business Value
Scenario Flow
Further Information
See also
Execute Very High Priority Service Order

6. Customer Contract Management Process Details: Confirming Service Execution
Request-to-Resolve
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Confirming Service Execution - With a Service Confirmation X
Creating a Sales Order
Creating a Customer Contract
Executing Services
Creating Customer Invoices
Processing Receivables and Payments
Document work, track actuals and release a service confirmation i
Click here to display process variants
Creating Down Payment Request - Customer
Processing Receivables and Payments
Procure-to-Pay (Services)
Expense Reimbursement
Scenario
Explorer
Process Description
Further Information
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 the contract to report back actual times.
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 aim to increase product quality.
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.
Performed by
Service Performer
Scenario/Processes
Business Value
In the Work Centers
Service Entitlements
Sales Orders
Scenario Flow
Further Information
See also
Create a Service Confirmation

7. Customer Contract Management Process Details: Confirming Service Execution
Request-to-Resolve
Click process chevrons for details
Confirming Service Execution - With a Service Confirmation X
Creating a Sales Order
Creating a Customer Contract
Executing Services
Creating Customer Invoices
Processing Receivables and Payments
Document work, track actuals and release a service confirmation i
Click here to hide process variants
Creating Down Payment Request - Customer
Processing Receivables and Payments
Procure-to-Pay (Services)
Confirming Service Execution –
With a Contract
Expense Reimbursement
Scenario
Explorer
Process Description
Further Information
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 the contract to report back actual times.
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 aim to increase product quality.
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.
Performed by
Service Performer
Scenario/Processes
Business Value
In the Work Centers
Service Entitlements
Sales Orders
Scenario Flow
Further Information
See also
Quick Guide for Service Order Processing

8. Customer Contract Management Process Details: Creating Customer Invoices
Request-to-Resolve
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Creating Customer Invoices X
Creating a Sales Order
Creating a Customer Contract
Executing Services
Confirming Service Execution
Processing Receivables and Payments
Transfer invoice requests
Release an invoice i i
Creating Down Payment Request - Customer
Processing Receivables and Payments
Procure-to-Pay (Services)
Expense Reimbursement
Scenario
Explorer
Process Description
Further Information
In the Creating Customer Invoices business process, the system creates invoice requests automatically after services have been performed or products delivered. You must transfer these requests to an invoice which is sent to the customer and passed to Cash Flow 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.
Performed by
Accounts Receivables Accountant
Invoicing Clerk
Scenario/Processes
Business Value
In the Work Centers
Customer Invoicing
Scenario Flow
Further Information
See also
Customer Invoice Processing

9. Customer Contract Management Process Details: Processing Externally-Initiated Payments
Request-to-Resolve
Click process chevrons for details X X
Processing Externally-Initiated Payments by Incoming Bank Transfer
Creating a Sales Order
Creating a Customer Contract
Executing Services
Confirming Service Execution
Creating Customer Invoices
Enter a remittance advice
Process a bank statement
Allocate a payment
Clear a payment i i i i
Click here to display process variants
Creating Down Payment Request - Customer
Processing Receivables and Payments
Procure-to-Pay (Services)
Expense Reimbursement
Scenario
Explorer
Process Description
Further Information
The Processing Externally-Initiated Payments by Incoming Bank Transfer business process enables customer invoices, for which payment is initiated externally, to be paid by bank transfer.
Performed by
Accounts Receivables
Accountant
Scenario/Processes
In the Work Centers
Receivables
Payment Management
Liquidity Management
Business Value
Scenario Flow
Further Information
See also
Allocate a Payment Manually

10. Customer Contract Management Process Details: Processing Externally-Initiated Payments
Request-to-Resolve
Click process chevrons for details X X
Processing Externally-Initiated Payments by Incoming Bank Transfer
Creating a Sales Order
Creating a Customer Contract
Executing Services
Confirming Service Execution
Creating Customer Invoices
Enter a remittance advice
Process a bank statement
Allocate a payment
Clear a payment i i i i
Click here to hide process variants
Creating Down Payment Request - Customer
Processing Receivables and Payments
Procure-to-Pay (Services)
Expense Reimbursement
Processing Externally-Initiated Payments by Incoming Check
Processing Externally-Initiated Payments by Incoming Check with Lockbox
Processing Externally-Initiated Payments by Multiple Incoming Checks
Processing Incoming Payments by Bill of Exchange
Processing Incoming Payments with Petty Cash
Processing Internally-Initiated Payments by Credit Card
Processing Internally-Initiated Payments by Direct Debit
Processing Receivables and Payments with Accounts Maintenance i i i i
Scenario
Explorer
Process Description
Further Information i
The Processing Externally-Initiated Payments by Incoming Bank Transfer business process enables customer invoices, for which payment is initiated externally, to be paid by bank transfer. i i i
Performed by
Accounts Receivables
Accountant
Scenario/Processes
In the Work Centers
Receivables
Payment Management
Liquidity Management
Business Value
Scenario Flow
Further Information
See also
Allocate a Payment Manually

11. Customer Contract Management Process Details: Creating Down Payment Request - Customer
Request-to-Resolve
Click process chevrons for details
Creating a Sales Order
Creating a Customer Contract
Executing Services
Confirming Service Execution
Creating Customer Invoices
Processing Receivables and Payments
Creating Down Payment Request - Customer X
Processing Receivables and Payments
Create and release down payment request
Procure-to-Pay (Services)
Expense Reimbursement i
Scenario
Explorer
Process Description
Further Information
The Creating Down Payment Requests - Customer business process enables you to request down payments from the customer, before services are performed. The sales representative creates and releases a down payment request for this purpose.
Performed by
Sales/Customer Service Representative
Scenario/Processes
Business Value
In the Work Center
Customer Invoicing
Scenario Flow
Further Information
See also
Quick Guide for Payment Clearing (Payables)

12. Customer Contract Management Process Details: Processing Receivables and Payments
Request-to-Resolve
Click process chevrons for details
Creating a Sales Order
Creating a Customer Contract
Executing Services
Confirming Service Execution
Creating Customer Invoices
Processing Receivables and Payments X
Processing Receivables and Payments X
Creating Down Payment Request - Customer
Procure-to-Pay (Services)
Expense Reimbursement
Enter a remittance advice
Process a bank statement
Allocate a payment
Clear a payment
Procure-to-Pay (Services)
Expense Reimbursement i i i i
Click here to display process variants
Scenario
Explorer
Process Description
Further Information
The Processing Receivables and Payments business process enables the processing of incoming payments, initiated either internally by your company or externally by your customers. The process uses country-specific payment methods.
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 to accounting. You create the payment medium, either manually or as part of an automatic run, using files for direct debit or credit card payments. It is also possible to upload credit card statements to pre-confirm payments. When the payments are credited to the company's 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 customer, the bank statement provides notification of payment. The payments are matched in the system to the open invoices before being cleared.
Performed by
Accounts Receivables
Accountant
Scenario/Processes
In the Work Centers
Receivables
Payment Management
Liquidity Management
Business Value
Scenario Flow
Further Information
See also
Quick Guide for Payment Clearing (Receivables)

13. Customer Contract Management Process Details: Processing Receivables and Payments
Request-to-Resolve
Click process chevrons for details
Creating a Sales Order
Creating a Customer Contract
Executing Services
Confirming Service Execution
Creating Customer Invoices
Processing Receivables and Payments X
Processing Receivables and Payments X
Creating Down Payment Request - Customer
Procure-to-Pay (Services)
Expense Reimbursement
Enter a remittance advice
Process a bank statement
Allocate a payment
Clear a payment
Procure-to-Pay (Services)
Expense Reimbursement i i i i
Click here to display process variants
Processing Externally-Initiated Payments by Incoming Check
Processing Externally-Initiated Payments by Incoming Check with Lockbox
Processing Externally-Initiated Payments by Multiple Incoming Checks
Processing Incoming Payments by Bill of Exchange
Processing Incoming Payments with Petty Cash
Processing Internally-Initiated Payments by Credit Card
Processing Internally-Initiated Payments by Direct Debit
Processing Receivables and Payments with Accounts Maintenance
Scenario
Explorer
Process Description
Process Description
Further Information i
The Processing Receivables and Payments business process enables the processing of incoming payments, initiated either internally by your company or externally by your customers. The process uses country-specific payment methods.
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 to accounting. You create the payment medium, either manually or as part of an automatic run, using files for direct debit or credit card payments. It is also possible to upload credit card statements to pre-confirm payments. When the payments are credited to the company's 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 customer, the bank statement provides notification of payment. The payments are matched in the system to the open invoices before being cleared. i
Performed by
Accounts Receivables
Accountant
Scenario/Processes
In the Work Centers
Receivables
Payment Management
Liquidity Management
Business Value
Scenario Flow
Further Information
See also
Automatic Incoming Payments

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

15. Customer Contract Management Scenario Flow Variant: With Support Entitlements
Sales Orders
Service Entitlements
Field Service
and Repair
Customer Invoicing
Service Desk
Customer Invoicing
Receivables / Cash & Liquidity Mgt
Creating a Sales Order
Creating a Customer Contract
Creating Customer Invoice
Processing Receivables and Payments
With entitlement(s)
Processing externally-initiated payments by incoming bank transfer
Processing externally-initiated payments by incoming check
… (7 more variants)
Scenario
Explorer
Confirming Service Execution
Request-to-Resolve
Expense Reimbursement
Scenario/Processes
using a service confirmation
Business Value
Scenario Flow
Legend & Variants
Variants of the Scenario:
Further Information
Dotted line = optional
Dotted line = optional
Scenario Variant: With Support Entitlements
Scenario Variant: With Managed Services:
Process variant1
Process variant 2
Process mainly driven by the system
Process related to Financials
Work center in which process is performed
Process mainly driven by the user
Process mainly driven by the system
Work Center
Additional Application
Related scenarios
Business
document flow

16. Customer Contract Management Scenario Flow Variant: With Managed Services
Receivables / Cash & Liquidity Mgt
Sales Orders
Service Entitlements
Field Service
and Repair
Customer Invoicing
Creating a Sales Order
Creating a Customer Contract
Creating Customer Invoice
Processing Receivables and Payments
With entitlement(s)
Processing externally-initiated payments by incoming bank transfer
Processing externally-initiated payments by incoming check
… (7 more variants)
Scenario
Explorer
Executing Services
Confirming Service Execution
Expense Reimbursement
Scenario/Processes
using a service confirmation
Business Value
Scenario Flow
Legend & Variants
Variants of the Scenario:
Further Information
Dotted line = optional
Dotted line = optional
Scenario Variant: With Support Entitlements
Scenario Variant: With Managed Services
Process variant1
Process variant 2
Process mainly driven by the system
Process related to Financials
Work center in which process is performed
Process mainly driven by the user
Process mainly driven by the system
Work Center
Additional Application
Related scenarios
Business
document flow

17. Customer Contract Management Further Information
Scenario
Explorer
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