Strategic Goal
to centralise and automate the aeronautical and non-aeronautical billing process with a unified platform for greater accuracy, efficiency, and financial transparency.
Challenges
The company faced multiple challenges that complicated its billing and revenue management processes:
- Fragmented Systems and Manual Processes: Billing data was scattered across disconnected legacy systems, requiring frequent manual data inputs and Excel-based reconciliations.
- Invoice Errors and Slow Billing Cycles: The lack of an integrated platform led to frequent invoice mistakes and slow billing processes, delaying cash flow and straining customer relationships.
- Revenue Leakage: Incomplete or inaccurate billing for a wide range of services, such as aeronautical, ancillary, and commercial services, resulted in significant revenue losses.
- Complex Tariff Management: Managing multiple tariff models and pricing schemes across more than 46 airports with different local requirements complicated billing accuracy and delayed tariff updates.
- Regulatory Compliance Risks: Existing billing and revenue recognition processes were not fully aligned with IFRS 15 / ASC 606 standards, exposing the company to audit and compliance risks.
Solution
The company partnered with CLARITY to implement a tailored SAP Billing and Revenue Innovation Management (SAP BRIM) solution. The project focused on integrating billing processes into a single, standardised platform, enabling automation and accurate, real-time data management.
The solution included:
- SAP Convergent Charging (CC): for flexible, rules-based pricing and rating of aeronautical and non-aeronautical services.
- SAP Convergent Invoicing (CI): to consolidate billing data, optimize invoice creation, and reduce processing times.
- SAP Contract Accounts Receivable and Payable (FI-CA): to improve collections, payment tracking, and reconciliation.
- Integration with existing operational systems to ensure consistent and accurate data flow across all billing processes.
Results
The deployment of the SAP BRIM Airport Monetization Engine transformed the company’s billing and revenue management with measurable benefits:
- Real-Time Billing and Revenue Recognition: Event-based monetization and automated revenue posting dramatically reduced billing cycle times from days to near real-time, accelerating cash flow.
- Centralized Control Across Entities: The multi-entity billing solution provided consistent revenue tracking and reporting across all airports, improving financial governance and transparency.
- Improved Invoice Accuracy: Consolidated billing through a unified platform raised invoice accuracy to 99.95%, reducing disputes and customer complaints significantly.
- Substantial Revenue Recovery: Accurate, comprehensive billing cut revenue leakage to less than 0.5%, recovering €10–15 million annually in previously unbilled services.
- Operational Efficiency Gains: Automation reduced the billing team’s workload by 60%, allowing resources to focus on higher-value activities instead of manual corrections.
- Faster Tariff Deployment: The new system enabled tariff launches and modifications in under 5 days versus several weeks previously, enhancing market responsiveness.
- Compliance and Audit Readiness: Automated revenue recognition and reporting aligned fully with IFRS 15 standards, passing external audits with no critical findings.