SAP Overview for CRM

and Utilities – CS101

 Overall Agenda

SAP for Utilities and CRM components

High level Business Process in Utility industry
Business Objects & Master Data in SAP IS-U
High level overview of few important processes in SAP IS-U
Detailed overview of each module & their Integration (DM,BI,CS,FI-CA)
Additional Topics

2
 The Broad Picture of Energy & Utility Industry
ISU

Customer
Generation Transmission Distribution Service
& Billing

Electricity •Device Management

Gas •Work Management
Processes
Water •Move In / Out
•Measuring Consumption
•Billing & Invoicing
•Collections
•Customer Service
3
 Modules in SAP IS-U & CRM

 CS / CRM: Customer Service / Customer Relationship

Management
 FI-CA: Finance & Contract Accounting
 DM: Device Management
 BI-IN: Billing & Invoicing

4
 Modules in SAP IS-U & CRM contd.
 CS / CRM:
SAP front-end for managing contacts, providing information to customer, managing customer request
and complaints
 FI-CA: Finance & Contract Accounting
Managing & controlling the Revenue generation in SAP IS-U
 DM: Device Management
Managing full life cycle of Devices (like Meters) & recording utility consumptions.
 BI-IN: Billing & Invoicing
Facilitates billing & invoicing functionalities for Business Partners (customers) based on
their utility consumption.

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 High Level Business Processes in SAP IS-U / CRM

6
 Business Objects in SAP IS-U

7
 Classic IS-U View, data objects

Business Name
Partner Address

Contract Posting Control

Account Correspondence

Invoice Option

Move-In
Contract Move-in date
Document

Rate Category

Point Price Term

Installation Facts
of Delivery

Meter Reading Consumption /

Unit Demand
Connection
Premise Service
Object
Address
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 Simplified CRM View

Name
Business Address
Partner
Account

Contract Business
Account Agreement

Move-In Start Date

Contract Contract Line Item
Document Product
per PoD
Attributes

Service Location
Rate Category

Point Point
Installation Facts Premise
of Delivery of Delivery

Meter Reading Consumption /

Unit Demand Connection
Object
Connection
Premise
Service Object
9 Address
 Sample Data Model

10
 Business Objects in SAP IS-U

ISU Terminology Description

Person or Organisation with which company will maintain

Business Partner
business relations

Contract Account Contains business data of Business Partner

Device Used to measure energy consumption

Premise Enclosed unit e.g. flat, factory etc

Group of all devices, registers and rate billing values that

Installation
are allocated to premise and grouped together for billing

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 Business Objects in SAP IS-U

ISU Terminology Description

Contract Link between Contract Account and Installation

Connection Object This is usually a building, structure, or construction site etc.

Device Location Location at which device is installed

Record of interaction between Business Partner and

Contact log
company

Order Document for initiating and executing work

Document for recording activities performed during order

Notification
execution

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 Additional Process Terminology

ISU Terminology Description

Process by which Business Partner and premise are linked

Move in
with each other

Process by which link between Business Partner and

Move out
premise is terminated

Dunning Follow up for payment recovery

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 Master Data in SAP IS-U

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 Business Master Data

Business
Master
Data A person or a legal entity with whom
Business Partner you have a business relationship – e.g.,
(BP) SP Customers

The customer’s account: the management

Contract Account of the customer is driven by the contract
(CA) account (billing method, payment method,
collection method)

Contract An agreement between the business partner

and the utility company

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 Technical Master Data

Technical The installation stores the billing properties for

Master Installation one or more devices at a premise
Data

The device location provides information on the

Device physical location of the device
Location

A premise is an enclosed spatial unit that is

Apartment 1 Premise supplied with energy, such as an apartment or a
factory.

Connection Object is a building, piece of

Connection Object property or other facility that is connected to
the supply grid.

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 Business and Technical Master data link

Business
Master Business Partner
• The business master data
Data and the technical master data
exist separately
Contract Account
• They are linked with the
creation of a contract when
the customer moves in (the
Contract
contract stores the installation
Technical number, Move-In date as well
Master
Installation
as the contract account)
Data
• When a customer moves out,
Apartment 1 Premise the link is broken; the
customer master and
technical master data
Connection Object continue to exist separately

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 The SAP-IS-U House Overview

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 SAP IS-U CS / CRM
CRM and Customer Service Overview
 CRM & Customer Service – Overview Topics

The Broad Picture

Front Office Process
Scenarios
Tasks
Interaction Centre Web Client (ICWC)

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 CRM & Customer Service – Broad Picture
Customer services supports……
Customer
information (e.g.
account
Invoicing cost
enquiries, meter
that arise from
reading results)
service
provision (e.g.
create sales
order)

Execution of
Logging and
processes and
managing
workflow (e.g.
customer
new connection
contacts (e.g.
move-in,
complaints and
disconnection)
appreciations)

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 CRM & Customer Service – Broad Picture

 Contact Management
 Provide Information (Query Handling)
• Account Balance
• Payment Status
• Rates

 Execution of Requests from Customers

• Changes in Business Data
• Move-in/Move-out
• Installment Plans

 Inquiries and Complaint Management – through Service Request

Management

 Other Services’ Requests – through Service Notifications

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 CRM & Customer Service - Front Office Overview

Process
Identifications transaction
Information/
-Customer (if required)
-Premise Consultation
-Contract account - Create new
-Key Customer Connection
-Violation -Payment
- Bill dispute - Create
-Account Class various requests

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 Customer Service - Activities

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 Process Flow of a Customer Contact

Examples of Standard Components Integrated into IS-U

Process / Workflow Standard Component
Create New Service Connection Service Management/ Sales & Distribution
Disconnection / Reconnection of an Service Management / Sales & Distribution
Installation
Collection Procedures FICA
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Process Execution

 This component contains predefined processes that occur very frequently in a

utility company, such as move-in, move-out and device disconnection
 The customer is identified using the search function

a) Move-In / Move-Out
 One uses the move-in function to carry out most of the activities required to
begin providing a business partner with a utility service
 One create new, or change existing business master data and a contract is
allocated to an installation
 In move-in processing, one establishes whether a contract can be billed. From
the move-in charges levied at the commencement of a utility service are
triggered.
 Reversal of the move-in can be carried out incase due to some mistake, move-
in has occurred

Exists before Move-In Is Created during Move-In

Business Partner, Contract A/c, Installation Contract
Business Partner, Installation
Installation
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  One uses the move-out function to carry out most of the activities
required to terminate a business partner’s utility service
 One make changes to the business master data of the business partner
as necessitated by the move-out
 The most important change is that the allocation of a contract to an
installation is terminated on the move-out date
 SMS to customer (if mobile number is updated)
 Reversal of the move-out can be carried out incase due to some mistake,
move-out has occurred and the following activities occurs:
- Changes that were automatically made to the contract data during
creation of the move-out are reversed during move-out reversal
- Meter reading orders and meter reading results that were created in the
move-out are automatically deleted
- Changes that were made during move-out to the business partner and
contract account data are not automatically reversed during the move-out
reversal

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 b) Disconnection / Reconnection Transaction Code – EC85
 It enables to manage disconnections and reconnections
 One needs to use it if he wants to temporarily interrupt supply to customers
(especially within the bounds of a legal dunning procedure)
 A disconnection is a temporary interruption in the supply of a utility service
that does not entail the removal of the device. It may result from one of the
following scenarios:
- Instigation of collection procedures against a customer who refuses to pay
his bill
- Technical disconnection at the request of the customer or utility company
In the first instance, the service is resumed (reconnection) when the customer
has paid the outstanding bill; in the second at the request of the customer
This component is optional
Overview of disconnection reasons is depicted in the table below:

Disconnection Reason Triggering Triggered by

Type
Disconnection dunning level reached Automatic Dunning Run
in accounts receivable and payable
Vacant Status Automatic Move-Out without Move-In
Customer Request Manual Front Office
Technical Causes Manual Front Office
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 The Reconnection process:

 Wait for the reconnection to be triggered In this step, one waits for the event
(depending on the disconnection reason) that triggers the reconnection
 Create reconnection order
 Alternatively one can also generate a corresponding SM service order
 Enter reconnection and confirm reconnection order
 Following reconnection, one enters the reconnection data in the system. You
can also generate a customer contact, adjust the budget billing plan, post charges,
and enter meter readings for the reconnection

Overview of Triggering of the Reconnection is depicted in the table below:

Disconnection reason Events that terminate the disconnection

Disconnection dunning level reached Clearing items, move-out
in accounts receivable and payable
Vacant Status Move-In
Customer Request Customer Request
Technical Causes Technical Problems Solved

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 CRM Service Request Management for Inquiries & Complaints

• The Service Request document will help the Customer Service Agent
(representative) capture any inquiries and complaints from customers through the
Web UI. Since the complaints will typically be handled by the back-end technical
teams, the information must be made to flow to the technical teams concerned
through a Service Notification in the system.
• If any updates happen in the text on the Service Notification and the corresponding
Service Order or the status is updated on any of the documents, a corresponding
status message is passed back to the service request as a text append.
• Further, if a Service Notification is closed or a Service Order is TECO, the
corresponding Service Request status should also be updated as ‘Completed’.
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 Integration with CRM
 The integration of the BW, CRM and IS-U systems makes it possible to model and
analyze all customer service processes
 CRM is the front-end system used for interaction with the customer

 Data Synchronization between CRM und IS-U

 Both IS-U and CRM can operate independently and in combination with
external systems
 This necessitates the existence of central objects in both systems
 In an integrated scenario, there are a few objects that are synchronized via the
Middleware since they must be available in both systems
 The integration scenario of the latest version of CRM and IS-U automatically
synchronizes the following objects:
• Business partners and their contract accounts • Contracts
• Connection objects • Points of delivery
 To ensure data consistency and transparency, changes to objects in one
system are immediately synchronized in the other system.

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 Move-in / Move-out Process [CRM Contract Start and End]

Initial
Service Device
Data Move-In Move-Out
Connection Installation
Creation

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 One Business Partner with Multiple Contract Account

Business
Partner

Contract Account Contract Account

Contract Contract
(Electricity) (Electricity)

• One customer can have multiple properties

• The contract account defines how the customer’s account is treated; in
this example the customer’s home and business’ accounts would have
different billing and credit terms and therefore have different contract
accounts

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 Move-In Process / Contract Start

Move-in
Link

* Move in can be
performed for
each installation
separately or
together

34
 Customer Billed

Business
Partner

Contract Account Contract Account

Contract Contract
(Electricity) (Electricity)

• The meter is read at the property

• The customer is billed (via the contract account)

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 Move-out process / Contract End

Customer Move-Out Move-Out

requests to Process commences complete
terminate when final
contract bill issued

 Confirm customer  Create Move-Out document  Issue final bill

information
 Perform move-out meter  Terminate contract
 Determine Move-Out date reading, etc.
 Clearance Certificate

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SAP IS-U
Device Management Overview
 Device Management - Overview Topics
Components of Device Management
Integration with Logistics
Master Data of Device, Device Category & Register
Measuring Consumption –Meter Reading
Plausible/Implausible Meter Read

38
 Device Management

Internal to the Utility Company

 Classification
 Device Life Cycle Management
 Inspection
 Certification

At Customer Location

Install

Replace

Remove

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 Integration with SAP Logistics

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 Device Management – Device Category->Device->Register

Device Category

Device
Groups together
devices with the same
feature
Is an instrument used Register
for measuring
consumptions,
processing data or
controlling and
protecting other Used to meter consumption, energy etc. Is
equipments the actual equipment or the display of the
electronic device
Identified as a register number in the device

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 Device Management – Device and Device Category

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 Measuring Consumption – Meter Reading

Meter Reading Organization: Street Route

Meter Reading Unit

Meter reading unit
City district
Street
Connection object
Device location
Device

Street route defines the sequence in which the devices in a service

territory are to be read. Doing this can optimize the meter reader’s route.

43
 Measuring Consumption - Portions and Meter Reading Units

44
 Device Management –Measuring Consumption Process

Meter read schedule Create Meter Download to MR read

reached Reading Order handheld

Corrections

Validations Fast entry / Upload

45
 Measuring Consumption Tasks

 Classification of Area of Operation

for Meter Reading
♦ Portion
♦ Meter Reading Unit

 Meter Reading Plan

 Meter Reading Schedule
 Meter Reading
 Recording of Results
 Validation of Results
 Correction of Results (if needed)
 Send Consumption for Billing

46
SAP IS-U
Billing & Invoicing Overview
 Billing & Invoicing- Overview Topics

The Process & Procedure of Billing

Billing Master Data
Rate Structure & Component
Invoicing Introduction
Document Flow & task of Invoicing
Special Billing features as Joint Invoicing

48
 Billing & Invoicing

Meter Reading

Billing

Invoicing

49
 Billing – Process Overview

Billing and Invoicing Process

Create
Enter
Meter Printing
Meter
Reading
Readings Billing Invoicing
Order

Billing Billing Print

Order Document Document

50
 Billing / Invoicing

Billing Invoicing
• Consumption and bill • Process contract billing
amount calculation process to contract account
receivable and prepare
• Performed at Contract level printout
• Determine billing periods • Performed at Contract
• Determine tariff (rate) data Account level

• Consolidate energy and

non-energy charges, e.g.
late payment fee

Billing Invoicing

51
 Billing Steps Overview

52
 Billing Requirements

Determination &
Determination of
conversion of
Billing periods
quantities

Determination of
Valuation of
change date and
proration to that Billing quantities with
prices
date

Determination of Creation of billing

•Rate Data documents for
•Price Data invoicing

53
 Billing types

 Periodic Billing
♦ Including Screening

 Unscheduled Billing (manual & not dependent on scheduling)

♦ Bill Amendment and Adjustment-Correction
♦ Interim Billing
♦ Final Billing

54
 Billing Procedures

 Periodic billing
 Regularly (1-, 2-, 3-, 4-, 6-monthly or annually)
 Bill cycle controlled from scheduling in portion
 Sequence determined by scheduling
 Interim billing
 Not bound to scheduling
 Can be initiated manually
 Next periodic billing begins at time of interim billing.
 Final billing
 Created when customer moves out
 Can lead to automatic switch of dunning procedure

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 Billing Procedures

 Period-end billing
 Carried out separately after a billing cycle
 The billing cycle is usually a year, but could also be a period of
2,3,4 or 6 months
 Periodic billings can, if necessary, be recalculated and back billed
 Manual billing
 Mainly used for corrections of bills
 Triggered manually at any time
 Independent to master data e.g. adjusted consumption as well as
price could be entered directly in the manual bill

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 Billing Master data

57
Billing Master data – Rate type

• Rate type is commonly allocated to register to classify the register type

such as on-peak, off-peak etc.
• It could also be allocated to device or installation level for use as a
classification of flat rate or be a classification of reference value.
• In conjunction with rate category, it determines rates to be applied
during rate determination.

58
Billing Master data – Rate

• Rate stores billing rules which are executed during billing run.
• It consists of steps and values of how to calculate billing quantity and
amount.
• Each step is executed with variants program.
• Values of input and output parameters of rate steps (e.g. quantity, price,
factor, amount etc.) are determined historically at runtime.

59
 Invoicing Introduction

 Invoicing links contract billing to

contract account payable and
receivable, and prepares bill printout.
 The bill sum total is determined after
clearing billing documents against the
budget billing already paid, and against
the taxes, charges, and duties that are
due.
 Flexible clearing options, such as
payments for open items, reduce the
amount of manual processing required.
 The bill sum total is calculated as
follows:
Bill sum total = Total receivables from billing – paid
budget billings - other credits (credit memo,
payment on account) + other receivables
(backbilling, dunning charge)

60
 Document Flow in Invoicing

61
 Tasks of Invoicing

 Integrates Contract Billing with FI-CA

 Groups billing documents of contracts for same Contract
Account
 Posting of documents in FI-CA
 Supplying bill printout documents

62
 Joint Invoicing

Billing
Contract 1 Invoice 1
Document 1

Billing
Contract 2
Document 2

Billing
Contract 3
Document 3

Billing
Contract 4 Invoice 2
Document 4

63
 Joint Invoicing - Mandatory & Optional: Scenario 1

Contract Billing Invoicing

Account
Contract 1 Document 1
Mandatory
Joint Invoice
Mandatory

Contract 2
Mandatory
Joint Invoice

Contract 3
Mandatory
Document 3
Joint Invoice Mandatory

Contract 4 Document 4 Document

Optional Bill
Joint Invoice
Optional Optional

Contract 5 Document 5 Document

Bill
Exclusive Invoice Exclusive Exclusive

64
 Joint Invoicing - Mandatory & Optional: Scenario 2

Contract Billing Invoicing

Account
Contract 1 Document 1
Mandatory
Joint Invoice
Mandatory

Contract 2 Document 1
Mandatory Document Bill
Joint Invoice
Mandatory (Joint Invoice)

Contract 3
Mandatory
Document 3
Joint Invoice Mandatory

Contract 4 Document 4
Optional
Joint Invoice
Optional

Contract 5 Document 5 Document

Bill
Exclusive Invoice Exclusive Exclusive

65
 SAP IS-U
Finance & Contract Account Overview
 Finance & Contract Account – Overview Topics

FI-CA Introduction & Integration with

SAP ECC Modules
Central Objects in FI-CA
Document Structure in FI-CA
Basic Business Transaction in FI-CA
Payment Collection & Dunning Process

67
 SAP IS-U Finance & Contract Accounting - Overview

 The Contract Accounts SAP ECC

Receivable and Payable
component is a sub-ledger General
developed for industries with Ledger
General Ledger
a large customer base and a
correspondingly high volume FI-CA
of documents to post.
 This includes insurance
companies, utilities, Sub Ledger
telecommunication, and
• Customer account
public service companies. Summarised
balances are Accounting
maintained Postings
• Transactions are (No customer
posted (automatically) detail)
at the customer level

68
 Central Objects in FICA

 Business Partner
• It contains central data, such as names, addresses,
communication data and bank details.
• It represents a natural or legal person with whom business
relationships can be conducted.

 Contract Account
• It Contains control data, such as payment methods, terms of
payment and dunning procedures.
• An Object, for which open items accounting is managed in
Contract Accounts Receivable and Payable
• It usually represents a group of contracts (industry/division -
specific).
BP FICA
 Contract (industry/division - specific).
 Documents and items CA CA

Contrac
Contract t

Contract
ISU

69
Transfer to G/L Accounting in FI-CA

FI-CA documents
G/L140000 $ 100
Recon key 090704 Summary record
Document G/L140000 $ 100
posting G/L170000 $ 200
FI-CA documents Recon key 090704
G/L170000 $ 200
Recon key 090704
Generate
posting

FI Documents
40 1400000 $ 100
50 1700000 $ 200
Reference key 090704

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 Finance Contract Accounting - Basic Business Transactions

• Document posting • Incoming • Refunds

Payments
• Account maintenance • Interest
• Document reversal
• Security Deposit • Returns processing
• Dunning
• Installment Plan • Write-off
• Deferral

71
 Collections

 Receive Payments
 Clear Payments against Outstanding
 Dunning

72
 Dunning Proposal and Activities

73
SAP IS-U
Work Management Overview
 Work Management – Overview topics

Work Management – Types of Work Orders

Work Management – Processes

75
 SAP IS-U Work Management – Order Types

 External work orders relating to the customer ("services")

♦ Creation and amplification of service connections
♦ Unplanned meter readings
♦ Disconnection and reconnection (electricity, water)

 Internal work orders

♦ Maintenance
♦ Repairs
♦ Installation, modification or removal of technical equipment

76
 Work Management Process

Creation

Planning

Release

Printout

Execution

Confirmation

Monitoring Technical completion

Reschedule & Dispatch

Reporting

77
SAP IS-U
Additional Topics
 Additional Topics

 Scheduling & Portion Components in detail

79
 Scheduling & Portion – Regional Structure

• SAP IS-U supports Central management of address data

arranged according to postal and political regional structure
• Scheduling of activities at the meter reading unit and portion levels

Standard
Address
defined and
Scheduled stored in
reading date central
for route database

80
 Scheduling & Portion – Regional Structure
• The regional structure is a database of standard addresses; usually
based on an address file that is published by the post office
• Regional Structure in SAP consists of three main objects: -
• City (and District)
• Street (assigned to City & District)
• Postal Code
• The main usage of Regional Structure is to provide address validation.
Validation is performed at different levels, as below: -
• Ensuring correct spelling, i.e. only one version of a district is stored in
Regional Structure
• Ensuring a proper link exists between a given street and city, for
example, the street ‘Mahatma Gandhi Road’ in Fort should only exists in
the city ‘Fort’
• This helps to prevent different versions of the same street being created in
the system due to difference in spelling.

81
 Scheduling & Portion – Regional Structure Address Types
• Each address can have multiple views; Postal, Political and Company
• This allows the company to divide one area into multiple different ways – for
example the works management division of areas may be different to postal
division of areas or the power bureau division of areas

POSTAL POLITICAL COMPANY

POSTAL CODE STATE MGMT AREA

CITY DISTRICT DISTRICT OFFICE

CITY DISTRICT COUNTY BRANCH OFFICE

STREET MUNICIPALITY

STREET SECTION CITY DISTRICT

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 Scheduling & Portion – Regional Structure Street

 The street definition is only configured once and is then available for
selection by users during the creation of new Connection objects in the
system.
 The definition for the street will have associated Regional Structure
Group, District and Political Regional Structure.
 The user therefore does not have to choose the correct address
characteristics – these are defined in advance by a data team

83
 Scheduling & Portion – Regional Structure Address types

Via the
connection
object, the
property
belongs to
three different
views of
regions

Postal District

Regional
Structure Group
Work Mgmt Area 1 Work Mgmt Area 2
Political Regional
Power Bureau 1 Power Bureau 2 Power Bureau 3
Structure

84
 Scheduling & Portion – Scheduling

Scheduling models the sub-division of the service territory into portions

and meter reading units in the system, and generates dates for the
following functions:
• Meter reading
• Billing
• Creation of budget billing amounts

To generate dates for meter reading and billing, these scheduled master
record must be created:
• Portions for billing
DistrictUnits (MRUs) for meter reading
• Meter Reading

Power Bureau 1

85
 Scheduling & Portion – Elements of Scheduling

Schedule records

Portion Billing dates Budget billing

dates

Parameter record

District

Meter reading
MR Unit
Power Bureau 1 dates

86
 Scheduling of Portion & MRUs
Portion Meter Reading Unit (MRU)
 Control billing schedule.
• Meter reading units group together
 Determines frequency of the
installations according to regional criteria.
periodic billing.
 Group of contracts to be billed on • Contains all the data relevant to the
the same day. scheduling of the meter reading.

 Possibly assigned to several

• Can only create meter reading units if a
meter reading units.
portion already exists.
Portion 1 Portion 2
Billed 25/7/04 Billed 26/7/04

Reading Unit
MRU 1 MRU 3

Meter

MRU 2 MRU 4

87
 Portion & MRUs Link to Master data
Link to master data BMD TMD
Portion could be allocated in one of the
following ways
Indirectly via the meter reading
Contract Installation
units defined in the installation that
corresponds to the contract
Directly in the contract
Control of the meter reading is linked to Device
the technical master data by means of
the installation. All devices (registers)
installed in the installation are allocated
to this meter reading unit automatically.
Register

Portion MR Unit

88
 Scheduling & Portion– Generation of Schedule Records

 Schedule records can be Schedule Schedule records

generated for portions and master record
meter reading units MR unit_Year 1
separately, or they can be
generated together for all MR Unit MR unit_Year 2
meter reading units of a
portion. MR unit_Year n
 Time period for which dates
are required must be
specified while generating the Portion_Year 1
schedule records.
Portion Portion_Year 2

Portion_Year n

89
 SAP CRM and SAP IS-Utilities Integration - revisited

SAP CRM SAP Utilities

Business Business
partner partner

Business Contract Bill

agreement account

Contract Billing
Contract

Point of Connection
delivery object Installation Premise

Point of Connection
delivery object

90
 The IS-U House Revisited

91
92