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Function documentationDifference Calculation

 

The difference calculation is used for royalties items with usage-dependent license fees, which are billed periodically using billing request items (BRIs).

To determine royalties due for a settlement period, license fees can be calculated as follows:

  • a) Calculated on the basis of ITD data that has been cumulated since the contract start or to the end of the current settlement period

  • b) Calculated on the basis of PP data that is cumulated for each settlement period and is due for a specific period.

  • c) Calculated on a per billing period (PBP) for settlement without differential billing.

When calculating ITD data-based royalties for a specific settlement period, the system always first extracts the licensee fees that are produced from the ITD data at the end of the previous settlement period. The business partner is therefore only billed the difference between the total amount calculated on the basis of the current ITD data and the amount that has already been paid.

Example Example

Example of ITD-Based Royalties Calculation:

License fees to the value of 10% of the sales volume, which increase to 12% for sales volumes of over $10 000, are agreed in the sales contract. Sales volumes of $6000 are reported for the first and second settlement period.

This determines the following ITD royalties:

  • Period: 10% of $6000 = $600

  • Period: 10% of $10 000 + 12% of $2000 = $1240, minus $600 produces a delta of $640.

End of the example.

Example Example

Example of PP-Based Royalties Calculation:

The PP-based royalties calculation only uses the values from the current period when starting from the situation described above.

  1. Period: 10% of $6000 = $600

  2. Period: 10% of $6000 = $600

Since cumulation is not performed across periods, the agreed scale jump is not applied here.

End of the example.

Example Example

Example of PBP-Based Royalties Calculation:

You agree to a scale-based variable royalties payment of 10% of the sales up to 9,999 units sold, and 15% for 10,000 or more units sold. In the first period, you sell 4000 units. In the second period, you sell 7500 units.

  1. Period: 4000 units at 10%

  2. Period: 6000 units at 10% and 1,500 units at 15%

End of the example.

Prerequisites

Perform the following Customizing activities so you can choose between ITD and PP-based royalties calculation:

Activity

Menu Path

Define Settings for IPM Item Categories

Start of the navigation path SAP Implementation Guide Next navigation step Customer Relationship Management Next navigation step Industry-Specific Solutions Next navigation step Media Next navigation step Intellectual Property Management Next navigation step Transactions Next navigation step Settings for IPM Transactions Next navigation step Define Settings for IPM Item Categories End of the navigation path

Select the value ITD or PP in the DiffRel. field for the item that is assigned above the billing request items (refer to the example Customizing settings).

Assign the billing plan to the relevant item category.

Activity

Menu Path

Assign Billing Plan Type to the Item Category

Start of the navigation path SAP Implementation Guide Next navigation step Customer Relationship Management Next navigation step Transactions Next navigation step Basic Settings Next navigation step Billing Plan Next navigation step Assign Billing Plan Type to Item Category End of the navigation path

Caution Caution

PP-based license sales contract items are only admissible if the IPM_CUMGRP feature has been activated in the IPMI Billing Engine application. This feature is activated as a default setting.

This feature must be activated in the IPMO Billing Engine application for PP-based license acquisition contract.

End of the caution.

Note Note

The statistical condition type 17RI is defined as a cumulation condition in the sales contract, so that all PP-valued billing request items (BRIs) can be transferred to subsequent processes (CO-PA, SAP BW).

End of the note.

Features

If complete confirmations are received for a billing request item and this BRI has the Transaction-Related Billing after Completion billing relevance, the BRI is transferred to the Billing Engine. The system makes an entry in the Difference Group Number field during this transfer. This field applies to all BRIs that are found below a difference calculation-relevant royalties item or combined rights/royalties item, and contains the item number for this royalties item.

The system uses this to identify which BRIs in the contract were listed under an item. The difference calculation is applied to these BRIs if an ITD-based royalties calculation is available.

BRIs that were settled using the difference calculation are sorted according to their billing creation date within the difference group. You must therefore specify the date information correctly in the billing plan. You can subsequently modify this sorting principle if necessary by changing the meta data (DG_SORT usage) and generating the IPMI application again. However, these changes also require additional modifications to be made to the SAP CRM contract pages coding, in conjunction with generating the correction BRIs for delayed confirmations.