Enterprise Resource Planning Blogs by SAP
Get insights and updates about cloud ERP and RISE with SAP, SAP S/4HANA and SAP S/4HANA Cloud, and more enterprise management capabilities with SAP blog posts.
Showing results for 
Search instead for 
Did you mean: 
0 Kudos
***********Updated as per 2308 release ******************

In the dynamic landscape of modern business, organizations are continually seeking ways to enhance operational efficiency, improve customer satisfaction, and boost revenue streams. SAP, a global leader in enterprise software, offers a comprehensive solution that seamlessly integrates service orders, subscription billing, and entitlement management. This unified approach not only streamlines business processes but also delivers tangible benefits to both businesses and their customers. In this blog, we will delve into the step-by-step process of SAP's integrated solution and explore the myriad ways it brings value to businesses and enhances the customer experience.

First, let’s see a quick view of these solutions involved:

Solution Order: SAP S/4HANA cloud Solution Order Management (SOM) is an area that enables businesses to manage the entire service lifecycle, from creation to completion, enabling organizations to deliver top-notch service to their customers. Key features include resource management, work order processing, and real-time tracking, ensuring that businesses can meet customer demands efficiently.

Subscription Billing: Subscription billing is becoming increasingly prevalent across various industries, from software-as-a-service (SaaS) providers to media companies. SAP's subscription billing solution automates the billing process, making it easy to create, manage, and invoice subscription-based services. It supports complex pricing models, flexible billing cycles, and seamless integration with other SAP modules.

Entitlement Management: Entitlement management ensures that customers receive the services they have subscribed to while adhering to predefined terms and conditions. SAP's entitlement management module helps businesses define entitlement policies, track usage, and enforce compliance. This ensures that customers receive the value they expect, building trust and loyalty.

Benefits of Integration:

  1. Seamless Customer Experience: Integrating service orders, subscription billing, and entitlement management ensures a seamless and consistent experience for customers. They can initiate service requests, renew subscriptions, and access entitlements without encountering disjointed processes.

  2. Efficient Resource Utilization: By combining service orders with subscription billing, businesses can optimize resource allocation. This integration enables real-time visibility into service demands, allowing organizations to allocate resources effectively and respond promptly to customer needs.

  3. Automated Billing Processes: Subscription billing integrated with service orders automates billing processes. This not only reduces the chances of errors but also ensures that customers are billed accurately and promptly for the services they receive.

  4. Improved Reporting and Analytics: The integrated solution provides a unified platform for reporting and analytics. Businesses can gain valuable insights into customer behavior, service utilization, and billing trends, empowering them to make data-driven decisions.

Let's explore real-world scenarios where the integration of SAP solution orders, subscription billing, and entitlement management can make a significant impact on business.

 Technology Support Services: Imagine a technology company providing support services for its products. With SAP's integrated solution, customers can log service requests, renew support subscriptions seamlessly, and access entitlements based on their service agreements. This not only enhances customer satisfaction but also streamlines internal processes for the service team.


Step-by-Step Process Execution :

To start, the User creates a Solution order from the “Manage Solution Order” app.

Figure 1: Create Solution Order


While creating a solution order, the user adds a Subscription Item (SB Item like CAD_M_GOLD ), service item, subscription plan, etc together.

Figure 2: Solution Order details

Once the solution order has been saved, it generates a solution order ID.

Figure 3: Solution Order ID


Users can view all respective progress details

Figure 4: View progress details


The User creates service confirmation and progresses with other respective processes.

Figure 5: Create Service Confirmation

In the next step, the same has been released for billing purposes.

Figure 6: Release for billing

All respective process-wise progresses are available to view.

Figure 7: Progress View


Next, the User selects the Subscription order in the “Manage Subscription” app.

Figure 8: SB order Selection

Inside the SB order, the system allows you to check “Rate Plan” & Check “Usage-based price”

Figure 9: Open Rate Plan

Figure 10: Usage-based price

To check “Entitle Management”, the User moves to the “entitle management” app and explore all offerings available.

Figure 11: Entitle Management

Figure 12: Explore Offering

After Maintaining customer-specific data in “Maintain Customer Entitlement”, the user Check “Manage Billing data” app to maintain key figures

Figure 13: Manage Customer Entitlement

Figure 14: Manage Billing data

Figure 15: Maintain Key Figure


In the next step, the user navigates to the “Create Billing Document” app and selects all respective billing documents requested to create final billing.

Figure 16: Select all Billing Documents requested

Once the billing document has been created, the user can view the entire progress report.

Figure 17: View Progress

Conclusion :

SAP's integrated solution for solution orders, subscription billing, and entitlement management is a game-changer for businesses seeking to streamline operations and enhance customer satisfaction. With its focus on efficiency, customer experience, revenue optimization, and real-time insights, SAP empowers organizations to adapt to changing market demands and achieve sustainable growth.

In an increasingly competitive and customer-centric world, the ability to deliver tailored services, accurate billing, and compliance management is paramount. SAP's solution provides the tools necessary to meet these challenges head-on, making it an invaluable asset for businesses across various industries.


For more information on SAP S/4HANA Cloud, check out the following links:

  • SAP S/4HANA Cloud release info here

  • SAP S/4HANA Cloud Early Release Series Webinars here

  • Latest 2308 SAP S/4HANA Cloud Release Blogs here

  • Product videos on our SAP S/4HANA Cloud and SAP S/4HANA YouTube playlist

  • SAP S/4HANA Cloud, Public Edition Early Release Series here

  • SAP S/4HANA Cloud for User Experience and Cross Topics, Public Edition Continuous Influence Session here

  • Inside SAP S/4HANA Podcast here

  • openSAP microlearning for SAP S/4HANA here

  • Inside SAP S/4HANA Podcast here

  • Best practices for SAP S/4HANA Cloud here

  • SAP S/4HANA Cloud Community: here

  • Feature Scope Description here

  • What’s New here

  • Help Portal Product Page here

  • Implementation Portal here

Please Check out my latest Blogs on SAP S/4HANA :

Follow me on mrinalkanti.chanda#overview &  LinkedIn