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Contract-Based Revenue Recognition

joanabezerra
Discoverer
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173

Hi experts, 

We are currently working on implementing Contract-Based Revenue Recognition (CBRR), based on Scope Item 3L3 (Contract Accounting - Contract-Based Revenue Recognition). As prerequisites of this scope item, we also are considering the following scope items mentioned in the test script:

  • 2AR: Contract Accounting - Master Data and Basic Functions
  • 2T3: Convergent Invoicing - Recurring and One-Off Items
  • 3KK: Contract-Based Revenue Recognition - IFRS 

    Our issue is regarding Provider Contracts, mainly with step 4.1.4 ("Create Provider Contract via API") of Scope Item 2AR Test Script. It appears that creating a provider contract directly within S/4HANA Cloud may not be possible without involving an external system. It seems we can only have provider contracts to be created via API or they should be replicated as Provider contracts via Subscriptions from Subscription Billing Tenant.

    Could you kindly confirm the following points:

    1. Is it mandatory to have a provider contract from an external system to implement CBRR in S/4HANA Cloud?
    2. Do you confirm if there is any way to create a provider contract directly within the S/4HANA Public Cloud?
    3. Can Contract-Based Revenue Recognition be used for contracts created entirely within S/4HANA Public Cloud without the need for external systems?
    4. Is the Contract-Based Revenue Recognition scenario only designed to work with external interfaces?

      Thanks,

      Joana

Accepted Solutions (0)

Answers (2)

Answers (2)

Xin1
Associate
Associate
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Hi Joana, 

The provider contract can not be created directly. It must be created via Subscription Billing.

Now Contract-Based Revenue Recognition(CBRR) can have standard integration with Subscription Billing. Technically, the subscription billing creates the provider contract, And the provider contract further integrates with CBRR. Therefore you will have a E2E integration from Subscription Billing to CBRR. 

In addition to S/4 HANA Cloud standard integration, CBRR can also integrate with external interface via the API in api.sap.com

Best Regards

Xin

AndreasMuno
Product and Topic Expert
Product and Topic Expert
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Thank you for your set of questions, @joanabezerra ,

let me get a stab at the first two: According to the SAP Help documentation for S/4HANA Cloud Public Edition,

  • "[P]rovider contracts are not created and changed in S/4HANA Cloud" 1.  
  • "You use an API to create provider contracts in the S/4HANA Cloud system" 2.

That said, it looks like there is no other way to create provider contracts, using the SOAP APIs appears to be the only way.