How to handle multilevel inter-company for service contract in public cloud?

[tirupatirk681]

Hi SAP Experts,

We have a requirement to support an intercompany service contract process for capacity-based services.

As per my understanding, the single-level intercompany scenario can be handled using a Royalties Intercompany Condition Contract setup. However, in our case, we need to support a multi-level intercompany chain.

Scenario Example:

• The end customer is located in the USA.

• The USA entity routes the request to the Netherlands entity.

• The Netherlands entity does not have the service available, so it forwards the request to Luxembourg.

• The Luxembourg entity provides the service directly to the end customer.

Our Requirement:

We need to understand how this multi-tier intercompany service fulfillment process can be modeled in SAP S/4HANA Public Cloud (or On-Prem if applicable), especially in the context of:

• Service contract flow

• Intercompany billing and cost flow across all three entities

• Revenue recognition and profitability tracking

• Legal entity compliance

I would greatly appreciate any guidance or recommendations on the best practice approach or supported architecture for such a scenario.

Thanks & Best regards,
Tirupati RK

[jagoda_drwiega]

Hello, 

Solution for what you desribed is covered in SAP CRM solution: 

https://help.sap.com/docs/SAP_CUSTOMER_RELATIONSHIP_MANAGEMENT/cb77bf16eae9401fb7c569c5ac3b4bb6/4655...

It covers mostly Billing and costs. SAP CRM is an additional solution for advanced sales processes. Here you will find general infromation about CRM:

https://help.sap.com/docs/SAP_CUSTOMER_RELATIONSHIP_MANAGEMENT/03612ad9fc684ed292162ffa13861fde/4582... 

Regards, 

Jagoda

[tirupatirk681]

Hi Jagoda,
Thank you for the response. We must deliver in SAP Public Cloud. If have any thoughts please let me know.

[jagoda_drwiega]

Hello,

Thank you for information. Unfortunatelly in SAP Cloud standard the only information I have, is that there is a request on SAP Influence regarding topic of Multi-level support:

https://influence.sap.com/sap/ino/#/idea/331648

But I have no inforation when such solution will be available. The only thing that comes to me is creating an extnsion to cover your requirements.

Best regards, 

Jagoda