Customer Contract Management SCENARIO EXPLORER Introduction Close Introduction The Scenario Explorer provides you with comprehensive information about the various aspects of a scenario. Use the navigation pane to learn more about the following: Scenario and Processes (details about the scenario, processes, and process steps – click here) Business Areas (details about where in the system you perform specific tasks – click here) Business Value (details about the major benefits of using the SAP Business ByDesign solution for the scenario – click here) Scenario Flow (graphic depicting the entire scenario flow – click here) The Scenario Explorer is highly interactive – you are able to focus on the topics you are most interested in, navigate to related documents (such as process demos), or display mouse-over information for specific elements. Basic Design Scenario Graphic Navigation Pane Content Area Interactive Design Use the navigation pane to select major topics Click chevrons for process details Click area icons to focus on specific areas Use the Info buttons for more information Handling Service Requests

Customer Contract Management Scenario Overview Click process chevrons for details Request-to-Resolve Creating a Customer Contract Executing Services Confirming Service Execution Creating Customer Invoices Processing Receivables and Payments Creating Down Payment Request - Customer Processing Receivables and Payments Procure-to-Pay (Services) Expense Reimbursement Scenario Explorer Scenario Description Open Legend The Customer Contract Management business scenario enables you to create and manage contracts related to services in the framework of your support entitlements or managed services. In addition, the following features are provided: Seamless integration with service request and service confirmation processing, allowing you to fulfill and confirm services carried out for a contract. Invoice schedules for contract items Price agreements for items sold on a time and material basis The scenario incorporates business functions from related areas that directly support service delivery for contracts, such as processing due items and payments in Financial Management. Scenario & Processes Business Areas Business Value Scenario Flow The following business roles are involved in this scenario: Sales/Customer Service Representative Service Planner/ Dispatcher Service Performer Accounts Receivablbes Accountant

Customer Contract Management Scenario Overview Click process chevrons for details Request-to-Resolve Creating a Customer Contract Executing Services Confirming Service Execution Creating Customer Invoices Processing Receivables and Payments Creating Down Payment Request - Customer Processing Receivables and Payments Procure-to-Pay (Services) Expense Reimbursement Scenario Explorer Scenario Description Legend Open Legend Close Legend The Customer Contract Management business scenario enables you to create and manage contracts related to services in the framework of your support entitlements or managed services. In addition, the following features are provided: Seamless integration with service request and service confirmation processing, allowing you to fulfill and confirm services carried out for a contract. Invoice schedules for contract items Price agreements for items sold on a time and material basis The scenario incorporates business functions from related areas that directly support service delivery for contracts, such as processing due items and payments in financial accounting. Scenario & Processes Process mainly driven by the user Process mainly driven by the system Manual process not supported by the system Process that communicates with third-party software (mouse-over for details) Process with relevance to Financials Related scenario Info button with more information Business Areas Business Value Scenario Flow The following business roles are involved in this scenario: Sales/Customer Service Representative Service Planner/ Dispatcher Service Performer Accounts Receivablbes Accountant i <Role Name> <Role Name>

Customer Contract Management Process Details: Creating Customer Contract Click process chevrons for details Request-to-Resolve X Creating a Customer Contract Expense Reimbursement Create a contract Executing Services Confirming Service Execution Creating Customer Invoices Processing Receivables and Payments Creating Down Payment Request - Customer Processing Receivables and Payments Procure-to-Pay (Services) Expense Reimbursement Scenario Explorer Process Description Further Information In the Creating a Customer Contract business process, you create a customer contract for services, expenses, or entitlements. Here, you enter details that are relevant in follow-up processes. For example, when an account requires support and a service request is created, the system checks if the affected product in the service request is covered under contract, and relevant information such as service levels are then taken into account. Contract items sold on time and material basis are later processed using standard service confirmation functions. Cancellation and renewal of items are handled according to rules that you define in the contract. Scenario & Processes Performed by Sales/Customer Service Representative Business Areas Business Value In the Work Centers Service Entitlements Sales Orders Scenario Flow

Customer Contract Management Process Details: Executing Services Click process chevrons for details Request-to-Resolve X Executing Services Expense Reimbursement Creating a Customer Contract Travel to a service location Execute a service Confirming Service Execution Creating Customer Invoices Processing Receivables and Payments Creating Down Payment Request - Customer Processing Receivables and Payments Procure-to-Pay (Services) Scenario Explorer Process Description Further Information In the Executing Services business process, once the order has been released for execution and preparations made, the service performer travels to the customer to perform the requested service, or performs the service working remotely or in a repair center. Scenario & Processes Performed by Service Performer Business Areas Business Value Scenario Flow

Customer Contract Management Process Details: Confirming Service Execution Click process chevrons for details Request-to-Resolve X Confirming Service Execution - With a Service Confirmation Creating a Customer Contract Executing Services Document work, track actuals and release a service confirmation Creating Customer Invoices Processing Receivables and Payments Creating Down Payment Request - Customer Processing Receivables and Payments Click here to display process variants Procure-to-Pay (Services) Expense Reimbursement Scenario Explorer Process Description Further Information The Confirming Service Execution business process enables the service performer to complete the job, after executing the service, by creating a service confirmation directly from the contract to report back actual times. This service confirmation is also used to record additional information about the work performed, the root cause of a product problem, warranty information, or feedback with the aim to increase product quality. After the service confirmation document has been released, the system automatically triggers customer invoicing and passes necessary information to Financial Management. For fixed price services, where there is no service confirmation, completion is confirmed directly in the customer contract. Scenario & Processes Performed by Service Performer Business Areas Business Value In the Work Centers Service Entitlements Sales Orders Scenario Flow

Customer Contract Management Process Details: Confirming Service Execution Click process chevrons for details Request-to-Resolve X Confirming Service Execution - With a Service Confirmation Creating a Customer Contract Executing Services Document work, track actuals and release a service confirmation Creating Customer Invoices Processing Receivables and Payments Creating Down Payment Request - Customer Processing Receivables and Payments Click here to hide process variants Procure-to-Pay (Services) Expense Reimbursement Expense Reimbursement Expense Reimbursement Confirming Service Execution - With a Contract Scenario Explorer Process Description Further Information The Confirming Service Execution business process enables the service performer to complete the job, after executing the service, by creating a service confirmation directly from the contract to report back actual times. This service confirmation is also used to record additional information about the work performed, the root cause of a product problem, warranty information, or feedback with the aim to increase product quality. After the service confirmation document has been released, the system automatically triggers customer invoicing and passes necessary information to Financial Management. For fixed price services, where there is no service confirmation, completion is confirmed directly in the customer contract. Scenario & Processes Performed by Service Performer Business Areas Business Value In the Work Centers Service Entitlements Sales Orders Scenario Flow

Customer Contract Management Process Details: Creating Customer Invoices Click process chevrons for details Request-to-Resolve X Creating Customer Invoices Creating a Customer Contract Executing Services Confirming Service Execution Create an invoice request Release an invoice Processing Receivables and Payments Creating Down Payment Request - Customer Processing Receivables and Payments Procure-to-Pay (Services) Expense Reimbursement Scenario Explorer Process Description Further Information In the Creating Customer Invoices business process, the system automatically creates an invoice request after services have been performed. You must transfer these invoice requests to an invoice which is sent to the customer and passed to Accounts Receivable Management . You can do this manually or with an invoice run. It is possible to combine several invoice requests into one invoice or split them into several invoices. The contract can be invoiced in a one-time invoice or using an invoice schedule. Scenario & Processes Performed by Accounts Receivables Accountant Invoicing Clerk Business Areas Business Value Scenario Flow In the Work Center Customer Invoicing

Customer Contract Management Process Details: Processing Receivables and Payments Click process chevrons for details Request-to-Resolve X X Processing Externally-Initiated Payments by Incoming Bank Transfer Confirming Service Execution Creating Customer Invoices Enter a remittance advice Process a bank statement Allocate a payment Clear a payment … Creating Down Payment Request - Customer Processing Receivables and Payments Click here to display process variants Procure-to-Pay (Services) Expense Reimbursement Scenario Explorer Process Description Further Information The Processing Externally-Initiated Payments by Incoming Bank Transfer business process enables customer invoices, for which payment is initiated externally, to be paid by bank transfer. Scenario & Processes Performed by Accounts Receivables Accountant Business Areas In the Work Centers Receivables Payment Management Liquidity Management Business Value Scenario Flow

Customer Contract Management Process Details: Processing Receivables and Payments Click process chevrons for details Request-to-Resolve X Processing Externally-Initiated Payments by Incoming Bank Transfer Confirming Service Execution Creating Customer Invoices Enter a remittance advice Process a bank statement Allocate a payment Clear a payment … Creating Down Payment Request - Customer Processing Receivables and Payments Click here to hide process variants Procure-to-Pay (Services) Processing Externally-Initiated Payments by Incoming Check Processing Externally-Initiated Payments by Incoming Check with Lockbox Processing Externally-Initiated Payments by Multiple Incoming Checks Processing Incoming Payments by Bill of Exchange Processing Incoming Payments with Petty Cash Processing Internally-Initiated Payments by Credit Card Processing Internally-Initiated Payments by Direct Debit Processing Receivables and Payments with Accounts Maintenance Scenario Explorer Process Description Further Information The Processing Externally-Initiated Payments by Incoming Bank Transfer business process enables customer invoices, for which payment is initiated externally, to be paid by bank transfer. Scenario & Processes Performed by Accounts Receivables Accountant Business Areas In the Work Centers Receivables Payment Management Liquidity Management Business Value Scenario Flow

Customer Contract Management Process Details: Creating Down Payment Request Click process chevrons for details Request-to-Resolve Creating a Customer Contract Executing Services Confirming Service Execution Creating Customer Invoices Processing Receivables and Payments X Creating Down Payment Request - Customer Procure-to-Pay (Services) Expense Reimbursement Processing Receivables and Payments Create and release down payment request Processing Receivables and Payments Scenario Explorer Further Information The Creating Down Payment Requests - Customer business process enables you to request down payments from the customer, before services are performed. The sales representative creates and releases a down payment request for this purpose. Scenario & Processes Performed by Sales/Customer Service Representative Business Areas Business Value In the Work Center Customer Invoicing Scenario Flow

Customer Contract Management Process Details: Processing Receivables and Payments Click process chevrons for details Request-to-Resolve Creating a Customer Contract Executing Services Confirming Service Execution Creating Customer Invoices Processing Receivables and Payments X X X Processing Externally-Initiated Payments by Incoming Bank Transfer Creating Down Payment Request - Customer Enter a remittance advice Creating Customer Invoices Process a bank statement Processing Receivables and Payments Allocate a payment Clear a payment Expense Reimbursement Click here to display process variants Scenario Explorer Process Description Further Information The Processing Receivables and Payments business process enables the processing of incoming payments, initiated either internally by your company or externally by your customers. The process uses country-specific payment methods. Payments can be made manually, or automatically via a payment run in which the system proposes open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run, using files for direct debit or credit card payments. When the payments are credited to the company's bank account, the bank statement is entered in the system, either uploaded electronically or entered manually, before being confirmed. If payments are initiated externally by the customer, the bank statement provides notification of payment. The payments are matched in the system to the open invoices before being cleared. Scenario & Processes Performed by Accounts Receivables Accountant Business Areas In the Work Centers Receivables Payment Management Liquidity Management Business Value Scenario Flow

Customer Contract Management Process Details: Processing Receivables and Payments Click process chevrons for details Request-to-Resolve Creating a Customer Contract Executing Services Confirming Service Execution Creating Customer Invoices Processing Receivables and Payments X X X X X Processing Externally-Initiated Payments by Incoming Bank Transfer X Creating Down Payment Request - Customer Enter a remittance advice Process a bank statement Allocate a payment Clear a payment Click here to hide process variants Scenario Explorer Process Description Processing Externally-Initiated Payments by Incoming Check Processing Externally-Initiated Payments by Incoming Check with Lockbox Processing Externally-Initiated Payments by Multiple Incoming Checks Processing Incoming Payments by Bill of Exchange Processing Incoming Payments with Petty Cash Processing Internally-Initiated Payments by Credit Card Processing Internally-Initiated Payments by Direct Debit Processing Receivables and Payments with Accounts Maintenance Further Information The Processing Receivables and Payments business process enables the processing of incoming payments, initiated either internally by your company or externally by your customers. The process uses country-specific payment methods. Payments can be made manually, or automatically via a payment run in which the system proposes open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as part of an automatic run, using files for direct debit or credit card payments. When the payments are credited to the company's bank account, the bank statement is entered in the system, either uploaded electronically or entered manually, before being confirmed. If payments are initiated externally by the customer, the bank statement provides notification of payment. The payments are matched in the system to the open invoices before being cleared. Scenario & Processes Performed by Accounts Receivables Accountant Business Areas In the Work Centers Receivables Payment Management Liquidity Management Business Value Scenario Flow

Customer Contract Management Business Areas Click area pictograms for details Request-to-Resolve Creating a Customer Contract Executing Services Confirming Service Execution Creating Customer Invoices Processing Receivables and Payments Creating Down Payment Request - Customer Processing Receivables and Payments Procure-to-Pay (Services) Expense Reimbursement Scenario Explorer Business Areas Business Area Description The SAP Business ByDesign solution gives you comprehensive access to customer- related information about opportunities, quotes, orders, customer contracts, and invoices. The SAP Business ByDesign solution enables your employees to verify product availability, perform accurate forecasting, predict future sales, and identify cross-selling and up-selling opportunities. The solution helps your sales staff focus on the most promising leads and accelerate the sales process. You can also use the software to: Generate a sales opportunity, create a quote, calculate pricing, enter payment and shipping information, create a sales order , create a contract, and invoice in a single integrated process Maintain an online portfolio of your products and services and define price lists with flexible pricing policies Obtain a comprehensive, 360-degree view of your customers and make effective decisions by using the provided reports and metrics Sales Scenario & Processes Service Business Areas Cash Flow Management Business Value Scenario Flow

Customer Contract Management Business Areas Click area pictograms for details Request-to-Resolve Creating a Customer Contract Executing Services Confirming Service Execution Creating Customer Invoices Processing Receivables and Payments Creating Down Payment Request - Customer Processing Receivables and Payments Procure-to-Pay (Services) Expense Reimbursement Scenario Explorer Business Areas Business Area Description The SAP Business ByDesign solution offers service that differentiates your organization from the competition and increases customer satisfaction. The SAP Business ByDesign solution gives your employees a comprehensive view of customers, enabling them to deliver excellent service and meet customers’ expectations. This paves the way to follow- on sales and encourages your customers to promote your company to others. You can also use the software to: Quickly answer customer queries and respond with instant access to information and expertise originating from multiple internal and external sources Create and process a wide range of service documents, including service requests, service orders, customer contracts, and service confirmations. Help ensure that customer commitments are adhered to and service delivery tasks are completed on time Register and track your customers’ entitlement to product warranties and facilitate customer service according to legal requirements and customer expectations Sales Scenario & Processes Service Business Areas Cash Flow Management Business Value Scenario Flow

Customer Contract Management Business Areas Click area pictograms for details Request-to-Resolve Creating a Customer Contract Executing Services Confirming Service Execution Creating Customer Invoices Processing Receivables and Payments Creating Down Payment Request - Customer Processing Receivables and Payments Procure-to-Pay (Services) Expense Reimbursement Scenario Explorer Business Areas Business Area Description Nearly every business process involves the flow of cash within your company and between your company and its external business partners and customers. The SAP Business ByDesign solution integrates and takes into consideration the financial aspect of each step of your business processes, enabling you to gain control over your cash inflow and outflow. You can also use the software to: Centrally manage and control your payables and receivables, automate payment and clearing processes, and valuate payables and receivables in multiple foreign currencies Quickly create tax returns using centrally managed corporate data and report declarations – and pay taxes if required Set up expense and reimbursement policies, monitor employee expenses, and reimburse approved expenses Sales Scenario & Processes Service Business Areas Cash Flow Management Business Value Scenario Flow

Selling and Managing Contracts Business Value Define Contracts Manage Service Execution Financial Release Development Project Release Development Project Define Entitlement and Service Create Customer Contract Create Service Request Create Service Confirmation Invoicing Manage Receivables and Payables Scenario Explorer Overview Key Benefits Selling and Managing contracts in SAP Business ByDesign® Contributes to new revenue streams from managed service operations and support activities Manages all aspects of the contract through creation, service provisioning, renewal and cancellation, invoicing, and financial consistently to ensure the operating efficiencies Avoids off-line contract management and information silos by this being a standard part of the business systems. Provides complete profitability analysis of contracts so that their future pricing and Service Level Agreements can be managed for profitability. Provides a continued relationship with the customer for service which can help increase loyalty and provide stability to financial flows for the company. This scenario enables service contracts to be offered to customers. This is applicable for companies that may be dedicated to the managed service business, or for companies that may provide contracts after the sale of a product or project. This enables a long term revenue stream and consistent relationship with the customer. Examples of managed services include software as a service, telecommunication services, meeting hosting services, etc. Support contracts are offered in many industries and for many types of services. Scenario & Processes Business Areas Business Value Scenario Flow

Customer Contract Management Scenario Flow for Variant: With Support Entitlements Service Entitlements Service Desk Field Service and Repair Customer Invoicing Receivables / Cash & Liquidity Mgt Creating a Customer Contract Creating Customer Invoice Processing Receivables and Payments With entitlement(s) Processing externally-initiated payments by incoming bank transfer Processing externally-initiated payments by incoming check … (7 more variants) Request-to-Resolve Expense Reimbursement Confirming Service Execution using a service confirmation Scenario Explorer Scenario & Processes Business Areas Business Value Scenario Flow Legend & Variants Variants of the Scenario: Optional process Optional process Process variant1 Process variant 2 Process mainly outside of the system Work center Additional application Process related to Financials Work center in which process is performed With services and expenses With 3rd party With down payments Process mainly driven by the user Process mainly driven by the system Related scenarios Business document flow

Customer Contract Management Scenario Flow for Variant: With Managed Services Sales Orders A2X Service Customer Invoicing Receivables / Cash & Liquidity Mgt Creating a Customer Contract Creating Customer Invoice Processing Receivables and Payments Processing externally-initiated payments by incoming bank transfer Processing externally-initiated payments by incoming check … (7 more variants) With service(s) and expense(s) Expense Reimbursement Executing Services Confirming Service Execution using a service confirmation Scenario Explorer Scenario & Processes Business Areas Business Value Scenario Flow Legend & Variants Variants of the Scenario: Optional process Optional process Process variant1 Process variant 2 Process mainly outside of the system Work center Additional application Process related to Financials Work center in which process is performed With services and expenses With 3rd party With down payments Process mainly driven by the user Process mainly driven by the system Related scenarios Business document flow

Customer Contract Management Scenario Flow for Variant: With Third Party Sales Orders / Service Entitlements Customer Invoicing Receivables / Cash & Liquidity Mgt Creating a Customer Contract Creating Customer Invoice Processing Receivables and Payments With entitlement(s) With service(s) and expense(s) Processing externally-initiated payments by incoming bank transfer Processing externally-initiated payments by incoming check … (7 more variants) Procure-to-Pay (Services) Scenario Explorer Scenario & Processes Business Areas Business Value Scenario Flow Legend & Variants Variants of the Scenario: Optional process Optional process Process variant1 Process variant 2 Process mainly outside of the system Work center Additional application Process related to Financials Work center in which process is performed With services and expenses With 3rd party With down payments Process mainly driven by the user Process mainly driven by the system Related scenarios Business document flow

Customer Contract Management Scenario Flow for Variant: With Down Payment Request Sales Orders / Service Entitlements Customer Invoicing Receivables / Cash & Liquidity Mgt Creating a Customer Contract Creating Customer Invoice Processing Receivables and Payments With entitlement(s) With service(s) and expense(s) Processing externally-initiated payments by incoming bank transfer Processing externally-initiated payments by incoming check … (7 more variants) Customer Invoicing Receivables / Cash & Liquidity Mgt Creating Down Payment Request Processing Receivables and Payments Scenario Explorer Scenario & Processes Business Areas Business Value Scenario Flow Legend & Variants Variants of the Scenario: Optional process Optional process Process variant1 Process variant 2 Process mainly outside of the system Work center Additional application Process related to Financials Work center in which process is performed With services and expenses With 3rd party With down payments Process mainly driven by the user Process mainly driven by the system Related scenarios Business document flow