Subscription billing - One-time setup and configuration

 Step 1: Enable Subscription Billing Solution

Subscription billing solutions can be enabled through Feature management. This solution cannot be enabled with the Revenue recognition feature. Therefore, it must be disabled before enabling subscription billing. 

Once revenue recognition is disabled, filter the Subscription billing and enable the feature from Feature management.

Step 2: Item deferred by default:

The items that are in scope for the billing subscription module needs to e determined in order to setup default deferral schedules.

This can be done based on the following options:

• Table (If single item needs to be assigned for deferral)
• Group (If specific item group needs to be assigned for deferral)
• Category (If specific category needs to be assigned for deferral)

Below and example is used for a Table item code to specify a single item. 

Step 3: Deferral defaults:

Based on the item relation, its need to define deferrals in the posting profile. Main reason of this step is to dictate the system that in which main accounts the deferral has to be recorded.

Step 4: Deferral schedule groups:

The billing schedule group will be the default billing schedule for an item relation.

The billing schedule group consist of a lot of options. For example, using billing frequency as monthly for the running the example scenario:

Step 5: Define Released product:

Select relevant released product which needs to be used for subscription billing scenario:

Path:  Go to Product information management > Products > Released product

Step 6: Create trade agreements and select the related item number based on the underlying contract

Select the relevant trade agreement journal or create a new one if needed.

On the Action Pane, select Lines in order to provide the details of the trade agreement.

Provide relevant information from contract in Trade Agreement 

1. In the party code type field, select Table. To update the price for a specific customer.
2. In the Account selection field, select the drop-down button to open the look-up list, find and select the desired record.
3. In the Product code type filed, select Table. when entering Trade Agreement of type Price (sales),   must select Table in the Product code type field. This is because a price is an absolute value and can't be the generic for al products or a group of products. 
4. The Item relation field, select the the drop-down button to open the look-up in the list, select the which product to be included in the Agreement. Make a not of the selected product.
5. In the Amount in currency field, enter a price. Under the Details section, in the Form date field, enter a date from which this agreement will be valid.
6. Select Save and validate the selected lines and select Post button

Select customer via account selection, determine quantity and price per quantity.

Once agreed upon the trade agreement can be posted accordingly.

Validate and post Trade Agreement:

Select View trade agreements. Review the details of created Trade Agreement, and post accordingly:

 

Step 7: Automatic index rate contracts on the periodic basis:

Escalation and discount option on the Billing schedule lines can be used for index purpose. Frequency of the contract can be defined as Monthly/ Quarterly/ Semi annually and Annually along with the index percentage or Amount bases. i.e. Monthly -- 10%, Quarterly - 12% and Annually - 15%