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SAP Service Contract, Extended Warranty - BWB - Billing Workbench Solution

SAP Service Contract - Billing Workbench Solution Add-On

SAP Service Contract Workbench Solution Key Features:

  • Service Contract Billing Solution for usage-based and balanced billers
    and pricing tiers 
  • Service contract Billing Workbench
  • Service contract billing fully integrated with aircraft and engine measurements, operating hours and cycles
  • Supporting annual review, COO, TAP,  and financial close-out 

End-to-End Service Contract Management Solution
Simplify Performance-Based Billing in SAP ECC and S/4Hana

Looking for a state-of-the-art service contract and extended warranty solution for your enterprise?

BWB - Billing Workbench Service Contract Management Solution Overview

Service Contract Management Solution Overview (Business)

Service Contracts, extended warranties, aka "Programs", entitle your customers to free spare parts or services. COO - Cost Of Operations, aka vendor-sponsored service administration is also covered in this solution. There are two major service contract types:

Performance and Time-based Billing Contract Types 

Customers pay for service contracts either as a performance - or a time-based billing type. Performance based billing invoices the customer monthly, or however often, based on actual aircraft flight hours. Time-based billing plans invoice the customer periodically. For example on a monthly, quarterly, or bi-annual basis.  During an annual performance review, credits or debits are given to the customer, depending upon whether the aircraft was flown more flight hours or fewer than anticipated. 

Detering Consulting developed an add-on, the Billing Workbench, custom designed to handle complex contract billing requirements.  The custom workbench allows fast and efficient administration of service contract billing and reporting. 

Our powerful performance and date-based billing solution is based on Standard SAP ECC and S/4Hana. The solution adds value in several ways: 

  • Immediate and accurate billing
    Customers can improve their cash-flow because billing is possible immediately after performance data is recorded in SAP.

    For date-based billing, contracts are billed periodically on: monthly, quarterly, yearly, on the billing date. Special one-time fees are also supported.

    Other billing scenarios are possible, such as: contract initiation fee, marketing discounts, also based on hours, e.g. first 100 hrs are free, as well as an annual contract review of credits and debits due for a customer.
     
  • Billing of Multiple Service Contract Types Concurrently

    Improving cash flow, customer service, and improving revenue. 

  • Seamless Quote to Cash - Salesforce Integration

    Start your revenue processes and define contract key data in Salesforce and see the contract details reflected in SAP. Without re-keying information. 

  • Leverage Proven SAP Integration and SAP S4Hana and ECC Concepts
    Billing is accurate, fully integrated with key business areas in SAP: Leveraging key concepts from materials management, equipment counters, contracts, pricing, FICO, reporting and basis. Field equipment,  "installed base", such as aircraft, engine, APU, avionics is mapped in SAP and receives counter usage updates regularly. Thus, master data is meticulously updated, the integrated transactional flow leads to accuracy and prevents clerical errors. with embedded strong business rules
  • Aircraft, engine, APU, avionics equipment sports an innovative counter concept, that is the basis of performance based contracts, such as power-by-the-hour. 
  • Solution for Tier'd Pricing Requirement
    Pricing Tiers is a requirement to tie prices to tiers, which are hourly brackets. Accommodating customers with lower prices during earlier usage during the equipment life-cycle, and more expensive hourly rates when the usage nears major overhauls. Customers pay according to the value they get out of a major equipment 

    Let me give you an example:

    A contract billing rate works as follows: $140/hr for 60 months OR up to 3,000 hours, then $440/hr for 60 months OR up to 5,000 hours, then $794/hr for greater than 5,000 hrs

    but still within the first 60 months from delivery,

    then finally

    $813 for greater than 5,000 hours AND outside of 60 months.

    SAP standard system keeps track of previous billings through cumulative pricing conditions, capturing hourly billing values. 
  • Annual review, true-up, and contract close-out execution across the entire contract population at the anniversary date 
  • Support for special billing processes

     

BWB - Billing Workbench

Like other workbenches, e.g. IWB and RWB, the BWB is a powerful billing workbench with innovative end-to-end billing and reporting functionality, fully integrated into your SAP ERP system (ECC or S/4Hana). 
Programs screenshot unscharf

User View of a BWB- Billing Workbench Screen

Major features:

  • One-stop shopping - highly functional User Interface
    the BWB workbench provides a platform for all contract and billing administration tasks by the billing specialist.
    Base on SAP's proven SAP GUI the workbench is fast, responsive, provides visibility and workflow navigation for all key documents in SAP:  For example: Program coverage, to be billed hours, manual intervention, automatic billing document creation!

  • SAP Integration
    BWB is an integrated solution with other key areas of your enterprise:
    - OTC spare part sales orders
    - Warranty claims
    - MRO/iMRO
    showing all interrelated data from subsequent documents in one place. 

  • Entitlement check
    The BWB supports an automatic entitlement check for a customer spare part order or service order in SAP. The entitlement check is embedded in the CSR (Customer Service Representative) sales order process. Key coverage options are automatically proposed to the CSR or to the customer when ordering parts online through the customer portal:

    Coverage options include:
    • Spare Parts Warranty
    • Service Bulletin 
    • Aircraft Warranties (multiple)
    • Program 

  • Power-By-The-Hour Type Billing Functionality
    Provides automatic Power-By-The-Hour billing system.   

  • Cost Of Operations (COO) coverage
    Annual reconciliation of COO contracts based on minimum hours pre-established and based on total hours billed to customers for those same equipment records.

  • Automation 
    The trend continues. Automation can only be effective in highly organized and standardized organizations. It allows our customers to productize their service offering. That doesn't mean it is easy. We did it. 
    Eliminating errors and reducing administrative overhead.

  • Annual True-Up 

  • Discover and Propose Special Billing Events
    The system reduces revenue leakage. System watches over the billing activities like a hawk and will propose special additional fees and charges easily forgotten. 

  • Reporting

    Run detailed reports on contract performance, pricing, and the plethora of standard reports in SAP. Dashboard reporting is also available conceptually and is adapted to your existing dash-boarding technology platform. To give stakeholders a clear picture of your day-to-day billing progress, as well as trends, and outlier analysis. 

  • Leveraging the Gold Standard in Billing
    The often praised SAP Standard is the gold standard within our customer and consultant community. However, if you are reading this, you most likely have already arrived at the conclusion, that standing up a complex billing solution in SAP requires substantial effort because of white space in the solution. What is white space? It is simply specialized requirements, that go beyond the standard functionality SAP  currently delivers to the market. Because of our advanced consulting expertise, we saw a need to develop and deliver the BWB - Billing Workbench solution to our customers.

  • Any SAP billing solution requires enhancements, FRICE / RICEF objects, advanced consulting know-how, and, ideally, an add-on, or packaged solution that will jump-start your billing solution and implementation project. Our BWB-SAP Billing Solution is such an add-on, based on standard SAP and SAP Best Practices. Leveraging standard SAP to increase the value your organization derives from your SAP licences. Additional licenses are not required.   

    What does all this mean? It means, the advanced BWB - Billing Workbench solution is a combination of packaged software combined with advanced consulting knowledge, providing SAP customers with supreme value. 


Would you like to get a quick overview of the SAP Programs Service Contract solution? Press this button:

 

Download Your Free SAP Service Contract Billing Solution Brief 

 

Take the Next Step

Find out how the BWB - Billing Workbench Solution in SAP streamlines operations, solves typical contract billing issues, and provides real-time insights, boosting productivity and helps grow your service revenue? Have a look at the system, take a 15min. demo of the SAP BWB - Performance Based Billing Solution, let us take care of the rest:

 

SCHEDULE MY SERVICE CONTRACT  DEMO

 

SAP Program Management is an E2E SAP Project Delivery Capability at Detering Consulting 

Who benefits from the Billing Workbench solution? 

Following questions help decide if your organization benefits from a programs/service contracts solution. Do you...

  • ...manufacture and/or sell complex equipment?
  • ...seek to increase revenue opportunities through service contracts?
  • ...offer several service contract types, such as
    • Extended Warranty for parts and labor
    • Require a special solution for major groups of equipments, such as a jet engine, APU, avionics, other type of equipment 
    • 'All-around' coverage programs?  
  • ...capture performance readings from the field,- used in billing? 
  • ...run "power-by-the-hour" type programs? Performance-based billing?
  • ...list can buy part numbers in a can buy list by service contract coverage type? Can-buy parts are parts customers and service centers are authorized to buy if they have entitlement under a valid contract. 
  • ...administer high volume service contracts, invoicing a large number of contracts monthly? 
  • ...work through complex business rules during billing? 
  • ...ship spare parts to your customer or service centers in support of servicing equipment, that are possibly covered by program?
  • ...check entitlement of your customers at the time of ordering new parts or service?
  • ...service your customer's equipment in company owned or Authorized Service Centers (ASC)?  
  • ...already use SAP MRO or SAP iMRO in your service centers or ERP solution? 
  • ...help customers manage costly service events over time? 
    E.g. Engine overhaul cost
  • ...provide services to your customers that in turn need to be reimbursed to your vendors?
  • ...looking for a fully integrated customer support & service, service contracts and billing solution?  

If you answered "yep, we do" to above topics, chances are, your organization will benefit hugely from our Service Contract/BWB - Billing Workbench Solution. Ready to go to the next step? Interested in a system demo? Click this button:

 

SCHEDULE MY SERVICE CONTRACT  DEMO

 

Request Free SAP Programs Demo