Since we started with SAP Subscription Billing, we have often heard from our customers and prospects, but also from our partners, that they would like to see more functionality in the area of pricing to make it more complex and flexible as they know it from other SAP products. That’s why we decided to completely rework our pricing and build an own service, which is integrated into SAP Subscription Billing. This is how Price Calculation was born, a service that is built on SAP Business Technology Platform (SAP BTP) and delivers configurable and extensible pricing maintenance, and scalable pricing calculation for solutions supporting quote-to-cash processes like SAP Subscription Billing.

What is Price Calculation:

Price Calculation is a cloud native service, designed for managing and calculating prices. Based on concepts which have proven their efficiency within SAP, Price Calculation improves business model flexibility, enabling customers to configure multistep pricing schemes, for example based on pricing trees and rule engines.

Price Calculation complements SAP Subscription Billing with a new set of applications, allowing customers to manage all the pricing configuration aspects in a single place. This includes:

• Designing and configuring pricing rules
• Managing price master data

How does it work in the context of SAP Subscription Billing?

Price Calculation integrates seamlessly into SAP Subscription Billing. Once subscribed to both in the cockpit you can start working without doing additionally steps to integrate the components. As a part of SAP Subscription Billing there are no extra costs for using this new service.

Important to know is that you must create new products with new rate plans (and rate plan templates) if you want to use the new pricing functionalities.  Two examples (plus one extension) how to setup a product from scratch you can find here:

SAP Subscription Billing with Price Calculation – A Configuration Example

SAP Subscription Billing with Price Calculation – Configuration Example based on predefined content

Pricing based on custom attributes with SAP Subscription Billing

From now on all newly developed functionality in SAP Subscription Billing related to pricing will work exclusively with Price Calculation. Therefore, we strongly recommend using this functionality going forward.

What new features does Price Calculation bring to SAP Subscription Billing?

Price calculation brings the following features to SAP Subscription Billing:

• Multi factor pricing, stored in tables
• Prices calculated based on configurable building blocks
  (functions, operators, comparators) in a decision tree
• Interdependent pricing elements allowing discount computations

You can find out more about our detailed features by consulting our documentation.

Use Cases SAP Subscription Billing can cover now

• Apply discounts for one or many rate elements
• Enable flexible pricing based on custom attributes stored in the subscription
• Define validity periods for prices
• Overwrite prices and complete price model for subscriptions, e.g.
  • Apply subscription specific price
  • Switch from simple single pricing to complex tiered or volume pricing
  • Change ranges and/or their prices of tiered or volume pricing

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

More information about SAP Subscription Billing