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In order to create a Subscription product in SAP S/4HANA Cloud, you first need to setup the Product Master data in SAP Subscription billing application using Price calculation. Once the product is successfully created & published in Subscription Billing, then you need to deploy the IFlow to replicate product master data to SAP S/4HANA Cloud. With this IFlow, Material master will be created with Basic data, then you can extend the Sales views of this material & execute the sales transactions like Sales Order, Subscription etc using Solution Order in S/4HANA Cloud.

Now we will understand, how to create a Subscription Product with Price Calculation (PCS).

For this, you first have to create a rate plan template using price calculation.

Click on Rate Plan Template Fiori Tile & Select Create option with Price Scheme.

Then you enter Rate Plan template Description, Billing Cycle, Billing Profile, Currency & the Pricing scheme that you wish to use.

Rate Plan Template

Here you also select what kind of charge you want to create in this rate plan template.

  • One-Time

  • Recurring

  • Usage-Based

You can have all the charges in one rate plan for a product or individual charges as per your product pricing requirements.


Here you have to select the Rate element for each of the charge type that you have defined in the business configurations in Subscription Billing.

And for recurring charge, you also need to select the relevant check boxes.

Once you are ready with your rate plan template, you go back to Product Fiori Tile & Create a Product in Subscription Billing, there you will find an option to choose a Rate Plan.

Product in Subscription Billing

In Rate plan, under a product you need to select the market first & then add your rate plan template you created in above steps.

Finally we save the product & publish it for use.

Then we deploy the IFlow (Replicate Products to SAP S4HANA Cloud) to replicate this product master from SAP Subscription Billing to SAP S/4HANA using SAP Cloud Platform Integration (CPI).


For more details on PCS setup, check out other blogs from my colleagues christian.ilmberger & elodie.denis-mariel

Configuration based on Pre-defined content

Configuration Example

What's new in PCS


I hope you find this useful! 🙂

Please like this post if you found it useful, and don’t hesitate to leave us your feedback in the comment section.

In case of further questions, feel free to ask them in our Q&A section using the tag SAP Subscription Billing.

Stay tuned and take care!

Romit Lakra