Use of Billing Plan Cycle in S4CRM SOM

light111Billing Plan Cycle in S4CRM SOM


In SOM, a product can be called pure recurring, pure usage or a mixed product.

A pure recurring product is something where the price condition is recurring and it doesn’t have any associated cross catalog mapping.

A pure usage product is something where there is no recurring price condition but it contains a cross catalog mapping.

A mixed product is something which is both recurring and usage, which means it contains a recurring price condition record and a cross catalog mapping.

In S4CRM SOM, either a billing cycle or a billing cycle determination rule is assigned to the product master. When a subscription order is created with a recurring item,in the subscription order item subscription order specific data section, we can find a billing cycle and a billing plan cycle field.

Create a subscription order-

Case1- Billing cycle found, billing plan cycle is editable, item recurring fee is calculated based on billing cycle. When you submit the order, it creates a SOM contract. A provider contract is created in CI with billing plan.  The CI billing plan item inherits the billing cycle from the provider contract item.

Case2- Billing cycle found, billing plan cycle is editable but business user can assigned cycle , item recurring fee is now calculated based on billing plan cycle. When you submit the order, it creates a SOM contract. A provider contract is created in CI with billing plan. The provider contract item contains the billing cycle but the CI billing plan contains the billing plan cycle.


In CI, the billing cycle are configured. Now for the below use case we have two billing cycle, i.e monthly and 12 monthly(yearly).

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The product master contains monthly billing cycle.

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Create a subscription order and add an item with above shown product. On item level we can see the billing cycle is determined, the billing plan cycle is optionally editable fiedl. 

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The item price condition is monthly recurring.

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The price condition is monthly and the billing cycle is monthly. So the item recurring net value = 100 USD/ Month * 1 Month = 100 USD per month means 100 USD per cycle.

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Submit to create contract. 

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See contact details. It has the same data as in the order item.

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Now check the provider contract in CI in Tx- FP_VT3

The provider contract item has a billing cycle and the same cycle appears in the billing plan item.

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Check the contract item billing plan.

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The billing plan item inherits the cycle from the contract item.

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To demonstrate the case-2, lets create a subscription order with a item for the above shown product. Navigate to the item – subscription specific data and here we can select the a cycle for the billing plan cycle field.

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Here we have selected a billing plan cycle which is 12 Months.

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Now the item recurring fee = 1200 USD.

Price condition = 100 USD per Month

Item recurring fee= 100 USD/Month * 12 Month = 1200 USD per 1 year ( per billing plan cycle)

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Submit to create subscription contract.

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The contract contains below records.

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Now check the provider contract in CI, The contract item contains the billing cycle. 

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The billing plan item for the contract item contains the billing plan cycle.

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