Strategic Goal

to automate and standardize intercompany billing and revenue recognition processes across global operations by deploying a unified Order-to-Cash platform that improves financial transparency, accelerates billing cycles, and eliminates manual overhead.


Challenges

The company faced several key operational hurdles across its global billing and financial workflows:

  • Complex billing operations: Manual and fragmented invoicing processes made it difficult to accurately bill across regional and country levels.

  • Intercompany agreement bottlenecks: Management of agreements between Service Centres of Excellence (S-CoE) and Regional Sales Entities (RSE) was highly time-consuming.

  • Inconsistent service compensation: The absence of standardization in managing different service rate cards for S-CoE reimbursements.

  • Lack of validation transparency: The need to generate proforma invoices (excluding taxes) for bill validation with regional entities added further delays.

Limited financial visibility: Inability to access real-time analytics on service performance at client and regional levels.

Solution

The company partnered with CLARITY to deploy a comprehensive SAP Billing and Revenue Innovation Management (BRIM) solution. This implementation addressed key operational issues and included the following components:

  • SAP Subscription Order Management (SOM): Enabled the orchestration of complex service subscriptions across business entities, managing order lifecycles and intercompany service contracts efficiently.

  • SAP Convergent Charging (CC): Provided a dynamic pricing engine capable of handling multiple service rate cards, supporting real-time service usage rating and flexible charge calculation across geographies.

  • SAP Convergent Mediation (CM): Aggregated and normalized data from multiple service sources, ensuring accurate and timely charging input across the global billing landscape.

  • SAP Convergent Invoicing (CI): Centralized invoicing activities, allowing the generation of both proforma and final invoices, and enabling transparent and compliant billing across regions and entities.

Results

The successful SAP BRIM implementation delivered measurable improvements in billing accuracy and operational efficiency:

  • Standardized Order-to-Cash Processes: Automated and unified billing operations across regions and business units, ensuring consistent invoicing and revenue recognition for services like Uptime, PSS, and SDI.

  • Simplified Intercompany Agreement Management: Optimized the management of intercompany agreements between Service Centres of Excellence and Regional Sales Entities, reducing time spent on manual contract handling.

  • Accurate and Transparent Billing: Implemented Convergent Charging and Convergent Invoicing, ensuring accurate rate card management and invoicing based on real-time usage data for all regional and country-level services.

  • Enhanced Financial Transparency: Real-time reporting on client and regional P&L, enabling clear visibility into asset counts, service plans, and the financial impact of each service delivered.

  • Eliminated Revenue Leakages: The integration of Subscription Order Management and Convergent Mediation ensured no misclassification of revenue, preventing revenue leakages across the Quote-to-Cash process.

  • Increased Efficiency and Accuracy: Automated the proforma invoice generation process, reducing manual errors and speeding up the invoicing workflow, ensuring faster and more accurate billing cycles.