Pricing based on custom attributes with SAP Subscription Billing

A short time ago a we delivered new capabilities to define pricing based on custom attributes. With that, you can use either custom references or product configuration attributes of a subscription item to be taken into account for pricing. In this SAP Subscription Billing “How-to” blog, we want to show you how to use this feature to enhance our first “Configuration Example” with an enhanced pricing for the one-time fee and a calculation of a partner share.

It is helpful to either have implemented the use case of the example already, or to check the document for reference purposes. In detail we have made the following changes to the example use case:

  1. Instead of a fixed one-time charge for the installation fee for the X-ray machine, we made the amount of the installation fee dependent on whether a training is booked in addition. The training option is set up as a product configuration and the following options are available:
      • Video training
      • On-site training

    If no training is required, simply do not define a product configuration.

  2. We introduced the calculation of a commission for a partner (partner share) depending on the recurring fee for users. The information if a partner share is calculated is set up as a custom reference in the subscription. Note that the amount of the commision is calculated in SAP Subscription Billing, but further processing and integration into the backend for correct postings in accounting is currently not part of the standard integration.

The following steps are needed to set up this new pricing based on custom attributes:

1. Add new fields for training and partner share
2. Create a new lookup table for the installation fee that incorporates prices depending on the training options
3. Create a new looklup table for the partner share
4. Create new price element specifications
5. Adapt pricing scheme
6. Define a custom reference
7. Maintain the pricing field mapping
8. Make the product configurable
9. Create a subscription with custom reference and a product configuration

Add new fields for training and partner share

In the Manage Field Catalog app within Price Calculation create two new fields. One for “training” and one for “partnerShare”. Both should have a String as “Field Type” and External as “Source”.

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New field for training

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New field for partner share

Create a new lookup table for the installation fee that incorporates prices depending on training options

In the Manage Lookup Tables app within Price Calculation, create a new lookup table as described in chapter 4.2 of the “Configuration Example” using the newly created field “training” as another input parameter (we call it One-Time Table T”). Afterwards, in the Manage Lookup Table Data app, update the lookup table “One-time Table T” with prices as described in chapter 6.1 of the “Configuration Example”. Below, you can find screenshots and the example with values for maintaining the lookup table.Input%20parameter%20for%20lookup%20table

Input parameter for lookup tableLookup%20table%20data

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Detailed example for on-site training

Create a new lookup table for partner shares

Similar to step 2, in the Manage Lookup Table Data app within Price Calculation, create a new lookup table for defining the partner share rates (e.g. 10%).Input%20parameter%20for%20lookup%20table

Input parameter for lookup table

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Lookup table data

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Detailed example for partner share

Create and adapt price element specifications

In the Manage Price Element Specifications app within Price Calculation, adapt the existing price element specification for the installation fee to use the newly created lookup table if a training option is set, and create another price element specification for the calculation of the partner share. Below, you will find examples of what this could look like.

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Adapted Price Element Specification for One-Time Price

In this pricing tree the pricing logic will check, if a value for “training” is set. If yes, and the option is one of existing ones in our lookup table “One-Time Table T”, then this price is applied. If there is another option or invalid option is set, then the lookup table “One-Time Table” is used as a fallback to determine the price. The same happens if no training option was configured in the subscription (lookup table “One-Time Table” is used as a fallback).

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New price element specification for the partner share

Adapt pricing scheme

In the Manage Pricing Schemes app within Price Calculation, add a new step for the partner share calculation to the “Medical_Images” pricing scheme, add a step range so that it is dependent on the recurring fee and make it statistical as the calculated amount should only appear on the bill for your information.

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New step for partner share

Define a custom reference

In the Business Configuration app within SAP Subscription Billing, add a new custom reference “PartnerContract”, select it as valid for subscription items and (optionally) make it manual editable.

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Custom Reference in the Business Configuration app

Maintain the pricing field mapping

In the Business Configuration app within SAP Subscription Billing, add a new pricing field mapping by selecting “Medical_Images” and map the fields from Price Calculation like the following.

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Pricing Field Mapping in the Business Configuration app

Make product configurable

In order to configure our X-ray as-a-service product when creating the subscription, make the product configurable in the Products app within SAP Subscription Billing.

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X-ray-as-a-service product in the Products app

Create a subscription with a custom reference and a product configuration

Create a new subscription (either via Subscription app on the UI or using Subscription API) and

  1. add product configuration for “Training” and “on-site” (or video) to the item if you want the system to trigger an installation fee that considers one of the training optionstest123
  2. and add a custom reference for “Partner Contract” and “yes” if you want the system to calculate the partner share.

Check bills

In the Bills app within SAP Subscription Billing, check the corresponding bills to see if the installation fee shows the expected amount (depending on the training option) and if the partner share was calculated.

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Increased installation fee due to training option

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Recurring fee with partner share calculation

We hope you will find this useful! 🙂

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

Stay tuned and take care!
Christian


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