SAP Subscription Billing: Key Features and Benefits

Optimized subscription billing management is an essential part of success across multiple business fields, including music & video streaming and software services. Automation of the billing process helps companies accelerate the routine workflow and improve customer retention.

How to choose the right software? How do businesses benefit from a partnership with a SAP Subscription Billing provider? These and other questions are answered below.

SAP Subscription Billing: What Is It?

As the name implies, subscription billing represents recurrent billing for clients subscribed to specific products and services who are charged a predetermined amount weekly, monthly, or yearly. In other words, subscription billing software is an automated solution that can handle generating invoices, charging clients, and dealing with delayed payments. Besides eliminating errors and minimizing costs, the technology saves time and human resources that can be dedicated to more strategic tasks.

E-commerce and OTT platforms, B2B SaaS, gaming apps, entertainment, and media portals widely use subscription systems to deliver their services and products.

Key Features and Functionality

The cloud-based solution from SAP can help enterprises across diverse sectors automate all aspects of the billing process. The solution simplifies and accelerates the processing of customer-related data and allows companies to adapt faster to the continuously evolving business environment.

  • Intelligent automation. The subscription lifecycle can be managed automatically, including upgrades, renewals, cancellations, and extensions. The system automatically generates and adjusts invoices based on schedules and pre-set rules. Manual effort is minimized and invoices are delivered to customers on time. As a result, overall performance is improved.
  • Flexibility. The technology allows the creation of flexible rate plans, such as one-time, recurring, or usage-based plans. Additionally, companies can select a pricing model that addresses their needs: fixed, percentage-based, or tiered pricing. This feature allows enterprises of any complexity to adapt to a quickly changing market and customer demands while keeping accurate invoicing.
  • Multiple payment options. Enterprises can select payment types, including installment, “buy now and pay later”, payments “in advance” or “in arrears”
  • Real-time change support. Whenever customers modify, add, remove, and switch products, the system will process changes in real time and update billing data.
  • The software allows the creation of custom-tailored packages that combine products and additional services into a personalized offering.
  • User-friendly platform. Clients manage their subscriptions, check & pay invoices directly via the platform.
  • Comprehensive reporting. Sales and marketing teams can see trends in customer lifetime and revenue and adjust marketing campaigns and offers accordingly. Prompt reports can be used for data-driven strategic planning and pricing policy optimization to ensure a competitive edge in the market.
  • Compliance with accounting standards.
  • Integration. SAP solutions can be seamlessly integrated with other SAP systems and third-party financial and CRM platforms to ensure uninterrupted data flow.
  • Scalability. The customizable nature of the software allows enterprises to scale up with the business expansion.

Benefits of SAP Subscription Billing

SAP solution is flexible and can be adapted to different subscription models. Intelligent automation ensures improved business productivity and enhanced customer loyalty.

  • Billing and payment automation. The software automates and accelerates the billing workflow, including invoice generation and credit card charges.
  • Improved billing management. Streamlined billing operations help to centralize and efficiently manage revenue models.
  • Enhanced customer service. An automated payment process with no hassle and delays helps to retain customers and increase client lifetime value. 
  • Real-time tracking and reporting. Companies receive detailed reports on payments and even sales trends. Provided with valuable insights, sales teams are empowered with insights for future marketing campaigns and customer acquisition.
  • Revenue growth. With subscription-based pricing, companies can estimate their future revenues more accurately and plan expenses and investments strategically. Automated billing accelerates the back office operational processes and saves employees’ time for tasks that require human attention.
  • Integration with third-party platforms. The software can be seamlessly integrated with other SAP solutions and various third-party platforms, including e-commerce, CPQ, and CRM platforms.

SAP Subscription Billing Use Cases

As the world transforms to become more digital, subscription-based services & products spread out to embrace more industries.

  • Software. Customers pay to get access to online products & services.
  • Telecom. Voice and data services can be paid on a subscription or usage basis.
  • Educational services. Professional and language courses are usually based on subscription.
  • Publishing and media. Customers pay to access the content.
  • Entertainment. Video and TV streaming (Netflix) services charge a time- or volume-based subscription fee.
  • Retail beauty sector. People subscribe to get samples of cosmetic products.

The subscription models vary and can be usage-based, per-user, or time-based (weekly/ monthly/yearly). A standard subscription means a set monthly/yearly fee.

Why Choose CLARITY as Your SAP Solutions Provider?

The rising popularity of subscription-based revenue models increases the market uptake for SAP Subscription Billing solutions and reliable service providers. At CLARITY, experienced pros can customize the solution to meet niche-specific requirements and integrate it seamlessly into the existing IT landscape. As a result, your business will benefit from streamlined billing processing and increased overall operational efficiency.

Why Partner with CLARITY?

CLARITY is the expert SAP partner. This means deep expertise and vast experience in SAP solutions implementation.

Superior customer service. The CLARITY team provides continuous support and training for the responsible staff at your organization.

Custom-tailored scalable SAP solutions to address the unique requirements of your organization.

Hands-on trial (Demo) gives a real feel of the solution functionality and its performance within a specific industry.

Implementation of SAP Subscription Billing software fosters the adaptability of organizations and enables them to seize new opportunities in the increasingly dynamic market.  It isn’t just a technological solution but also a strategic investment in future success that encompasses operational optimization, greater efficiency, and revenue growth.

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