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This blog shares highlights on Service in SAP S/4HANA Cloud Public Edition 2408.
- Application for Mass Updates of Service Contracts
- Ability to Add Maintenance Plan Templates in Service Contracts
- Change Process for Entire Service Contract Renewal
- Intercompany Billing for Service Contracts
- Display of Actual Costs, Revenue, and Profitability on Service Contract Headers
- Definition of Periodical Price Increase for Service Contracts: Absolute Amounts
Watch my video to get a glimpse of the new features:
Application for Mass Updates of Service Contracts
A new app Mass Processing of Service Contracts is available. This app addresses a significant customer demand for streamlining service contract updates. This framework encompasses several applications designed to handle various mass update scenarios efficiently. The initial focus is on repricing service contracts, a process that previously involved manual, time-consuming steps. You can run a background job to trigger the mass changes. Billing request lines can be mass updated with the latest pricing information maintained in the master data.
In the past, updating prices in service contracts required identifying affected contracts, manually adjusting prices at the line item level, and ensuring each contract reflected the new pricing. This cumbersome process is now replaced with a seamless, automated solution. Users can update prices across multiple service contracts in just a few clicks using the new app. This app allows for selecting contracts either at the header or item level, triggering repricing actions, and monitoring the entire process through a dedicated monitoring app.
This feature not only simplifies the repricing process but also ensures accuracy and consistency across all service contracts. By leveraging the mass updates framework, businesses can respond swiftly to price changes, improving operational efficiency and customer satisfaction .
For more information, see Mass Processing of Service Contracts.
Watch this demo to have a complete view of the feature.
Ability to Add Maintenance Plan Templates in Service Contracts
You can add maintenance plan templates directly in service contracts. This feature automates the creation of new maintenance plans from a reference template specified in the service contract. When you work with service contracts with maintenance plans, the new feature makes your life much easier.
When you create service contract templates, you can already add maintenance plan templates to service contract items. After creating a service contract from a service contract template, the maintenance plan templates are also copied. When you release a service contract item, a new maintenance plan is automatically created using the maintenance plan template.
If you don’t use service contract templates, you can add maintenance plan templates directly in a service contract.
This automation addresses the need for standardization in maintenance plans, as expressed by customers. Previously, creating a new maintenance plan required manual entry of data, which was repetitive and prone to errors. Now, users can specify a reference maintenance plan template in their service contracts, and the system will automatically generate a new maintenance plan based on this template.
The new maintenance plan inherits relevant data from the service contract, such as equipment details and start dates, ensuring consistency and reducing the manual workload. This feature supports time-based maintenance plans and can be used in conjunction with service contract templates, further streamlining the setup process. The maintenance plan remains inactive initially, allowing users to review and make necessary adjustments before activation.
For more information, see Maintenance Plans for Recurring Service.
Watch this demo to have a complete view of the feature.
Change Process for Entire Service Contract Renewal
In service contracts, you can change process for entire service contract renewal. When you trigger the change process, the service contract will be renewed. A new service contract will be created. The old service contract will be linked to the new one. Every renewal gives you a new purchase order ID. The new purchase order ID is assigned to the new service contract. The feature helps you reduce manual effort with automated change process. Your service contracts can remain light-weight after multiple renewals.
The feature allows users to create new service contracts for each renewal period. This change is driven by customer feedback, highlighting the need to manage service contracts with varying data, such as new purchase order IDs for each renewal period.
Creating a new service contract for each renewal keeps the contract structure clean and manageable. Users can focus on the most recent data without being bogged down by historical information. This approach also simplifies the overview of active contracts and provides a clear distinction between different renewal periods.
The new renewal process involves selecting the option to create a new contract during renewal, specifying the renewal duration, and deciding whether to release the contract automatically. The system then generates a new service contract with updated dates and links it to the original contract in the transaction history. This linkage ensures traceability and easy access to historical data when needed.
For more information, see Contract Renewal for Entire Contract.
Watch this demo to have a complete view of the feature.
Intercompany Billing for Service Contracts
The intercompany billing feature in 2408 enhances the handling of revenue sharing between parent companies and their subsidiaries. This functionality leverages condition contracts to define the criteria for intercompany transactions, such as relevant products and revenue sharing percentages.
Subsidiaries selling products or services to customers can now allocate a share of the revenue back to the parent company seamlessly. The condition contracts facilitate the setup of these intercompany scenarios, ensuring accurate and efficient billing processes. This feature supports various business models where subsidiaries operate semi-independently but need to contribute to the overall financial performance of the parent company.
The intercompany billing process involves defining the condition contracts, specifying the products involved, and setting the revenue share percentages. The system then handles the billing and settlement processes automatically, reducing the administrative burden and improving financial transparency within the organization.
Watch this demo to have a complete view of the feature.
Display of Actual Costs, Revenue, and Profitability on Service Contract Headers
This feature addresses the need for real-time financial visibility into service contracts, enabling better decision-making and financial management.
This enhancement allows service managers and financial analysts to monitor the profitability of service contracts in real-time, ensuring that they can quickly identify and address any issues impacting financial performance. The displayed financial KPIs on the service contract header, include actual costs incurred, total revenue generated, and the resulting profitability, offering a clear and concise overview of each contract’s financial health.
Definition of Periodical Price Increase for Service Contracts: Absolute Amounts
The 2408 release introduces a new feature that allows users to define periodical price increases for service contracts using absolute amounts. This enhancement simplifies the process of adjusting contract prices by enabling straightforward, fixed-amount increases at specified intervals. With this new capability, businesses can ensure consistent and predictable pricing updates, enhancing transparency and ease of contract management. This feature supports better financial planning and contract compliance, ensuring service agreements remain aligned with cost and market changes.
This feature is an enhancement to the 2402 release: Definition of Periodical Price Increase for Service Contracts (Percentage Amounts). Click on the link and see more details.
Discover the comprehensive learning resources for Service:
SAP S/4HANA Cloud Public Edition and Service
The following Resource Map offers you a comprehensive collection of learning materials from business processes and Lines of Business (LoB).
Resource Map
SAP S/4HANA Cloud Public Edition
Recruit to Retire Human Resources
Idea to Market R&D and Engineering | Enterprise Portfolio and Project Management
Acquire to Decommission Asset Management
Source to Pay Sourcing and Procurement
Lead to Cash Sales | Solution Order Management | Service | Professional Services
Plan to Fulfill Manufacturing | Supply Chain
Finance | Governance, Risk, and Compliance (GRC), Trade, and Tax
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📽️ Watch the Replays of Our SAP S/4HANA Cloud Public Edition 2408 Early Release Series!
From July 8 to July 12, we hosted a series of 20 compelling live sessions to highlight the exciting innovations shipped with the SAP S/4HANA Cloud Public Edition 2408 release. Missed the live sessions? We've got you covered! Take advantage of the entire series or pick and choose the sessions most relevant to you. You will find a recording and a presentation for Service as well as 19 other topics of interest. Don't miss this chance and watch them on demand–anywhere, anytime.
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