Usage-Based Service Contract
Processing 
Purpose
You can use this process to manage service contracts depending on quantity used. You can use this method to bill your customers for services with a certain usage volume (of copies, for example) after you have defined a service contract. This allows you as the service provider to react more flexibly to customer demands while reducing costs for the end customer.
You can model the entire usage-based service contract process in SAP CRM, including creating a service quotation and contract, entering and calculating the usage volume through counters and readings, right through to billing.
For usage-based service contract processing, a quantity consumed is agreed upon in the service contract, and the services for the quantity consumed are defined under certain conditions.
You can link various contracts together with a pool contract for pricing and billing purposes in usage-based billing. You can use pool contracts to periodically recalculate the usage of all assigned contracts (single pool contracts) or perform consumption billing for all assigned contracts in the pool contract (aggregate contract).
Volume determination can occur in the following ways:
● Recording counter readings
● Estimation
● Period-end closing
● Manual entries
● External use entry via an interface
Usage-based billing occurs on a periodic basis. You can bill the service contract separately from usage-based billing.
For example, if customers pay the contractual services monthly, but the usage-based component quarterly, several different billing plans are available.
There is also a schedule for pool redistribution. This schedule exists as long as a contract is assigned to a pool contract.
Prerequisites
You can make the necessary settings for usage-based billing in the Implementation Guide (IMG) in Customizing for Customer Relationship Management (CRM) by choosing Usage-Based Billing.
You can make the appropriate settings for counters, readings, and usage entry to meet your needs in the IMG in Customizing for CRM by choosing Master Data ® Counter.
Process Flow
Usage-based service contract management is made up of the following process areas:
● Usage-Based Service Contract Processing