The current economic situation has led customers across different industries to bring in the huge opportunity to remodel and transform their business models. At the same time, their solution should support digital transformation and conversion of products to higher-margin services. It would substantially let customers transform their solutions to subscription finance.

The SAP S/4 HANA Cloud supports the integration of end-to-end processes from order-to-cash and the profitability of the combined solution. Solution Order Management application was introduced by SAP S/4 HANA because of the high market demands for a merged hybrid solution for sales and services. It enables customers to grow their margins by transforming selling individual products and services to giving out bundled business solutions that include products, one-time services, and recurring service subscriptions.

The useful features that are incorporated in this application include Situation Handling that sends notifications if any notable situation occurs and alarms the solution order specialist to conduct necessary actions. The Solution Order Progress tracks the status of the solution order and its progress throughout the cycle, and Item Relationship and Orchestration follows-up documents for its smooth operation.

The key attributes of this application are,

Manage solution order: Develop new business models based on solution offerings to differentiate from competitors.

Manage subscriptions: Explore new business models including subscription and pay-per-use offers to bill customers for them in a variety of different ways.

Solution Billing: Easily combine billing data from different sources including orders, contracts, deliveries, and external data into a single invoice.

Revenue recognition: Automate revenue recognition and analyze revenue and cost by solution order.

The professional services offered through the solution order management application mainly focuses on the real-time configuration and adaptability of the services on the go.

Fixed-price items for services

This enables the billing of service products which consist of various items without requiring sales confirmation for the individual item. These items will generate the corresponding order’s fixed price once the solution order items are released.

Configurable products

The variant configuration enables the definition of characteristics and values of individual service products directly from the Manage Solution Orders application and executes to configure them in accord to that service product description.

Create Memo Requests

Create invoices with sales order items, service orders items, service contracts items, and subscription items to create credit memo requests. These memo requests will be visible on solution order progress and give a full overview of the solution order process.

Integrate subscription billing

The newest update for working with SAP Subscription Billing in Solution Order Management brings greater flexibility, allocation of manual adjustments to subscription billing items directly within the solution order management application.

The Solution Order Management application offered by the SAP S/4HANA as a cloud service supports customers across various sectors to have a profitable service delivery and billing environment. This would broaden the scope for solution order as it encompasses a wide set of features and billing options.

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