For usage-based pricing, the core configuration is done within the price component itself. The rating formula defines the calculation logic (e.g., price per unit * quantity consumed). This formula directly references the usage quantity field to determine the charge. The other options, while potentially part of a broader solution, are not the essential, direct step for configuring the pricing logic.

In SAP Subscription Billing, down payments (often used for one-time fees) are scheduled with specific billing dates within the billing plan. The system only includes them in a billing document when that specific billing date falls within the billing period being processed. If the billing run is for a period after the down payment date but it was missed, or if the run is for a future period, the item will not yet be billed. The billing relevance is typically pre-configured correctly for standard item categories.

Periodic Billing is designed for recurring charges at fixed intervals, such as monthly, quarterly, or annually. It supports billing in advance or in arrears. For an annual in-advance charge that recurs on the subscription anniversary date (regardless of the calendar month), Periodic Billing is the appropriate and standard plan type. Milestone billing is for event-driven charges, and order-related billing ties to sales order schedules.

The Pricing Simulation app (or its classic transaction counterpart) is specifically designed to replicate and display the detailed pricing procedure. It shows all condition types accessed, the values determined, the sequence of calculations, subtotals, and the final price components. This is the primary tool for debugging pricing errors. While VF03 shows the billing document result, it does not show the step-by-step calculation details as comprehensively as a pricing simulation.

A tiered pricing model is the standard and most efficient way to handle included quantities. The first tier is defined from 0 to 100 units with a price of zero (or the base fee allocated across these units). A second tier starts from 101 units with the overage rate. This ensures automatic and accurate calculation within a single billing process. Creating separate components or manual adjustments is error-prone and not scalable.

The standard process involves two key steps. First, billing-relevant items (from billing plans, usage data) are collected in the billing due list based on their billing dates. Second, a periodic billing run (scheduled or manual) is executed to process the items in this due list, performing pricing, tax, and accounting determinations to create final billing documents. Saving a contract or order creates planned data, not the final invoice.

Discounts based on contractual terms (like a commitment period) are best maintained as condition records. A condition type for ‘Term Commitment Discount’ would be set up in the pricing procedure. A condition record is then created linking this discount (e.g., 15%) to the specific product and the 12-month term attribute. This ensures automatic, consistent application throughout the subscription without manual intervention per item or document.

SAP Subscription Billing integrates with Revenue Accounting and Reporting (RAR). When an upfront payment is billed, the system does not post the full amount to revenue immediately. Instead, it posts to a deferred revenue account and automatically generates a revenue recognition schedule (based on the POB – Point in Time or POC – Over Time template). This schedule systematically releases revenue from the deferral account to the actual revenue account over the service period (e.g., monthly over 12 months).

For the system to determine the correct General Ledger accounts (like revenue, receivables, tax), the condition types in the pricing procedure must have an account key (e.g., ERL, ERF). This key is linked to account determination via the account assignment model. If this configuration is missing or incorrect, the billing document may be created technically, but the accounting interface will fail, resulting in no financial postings. The other options are necessary but not the direct cause for missing accounting entries.

For usage-based pricing, the core configuration is done within the price component itself. The rating formula defines the calculation logic (e.g., price per unit * quantity consumed). This formula directly references the usage quantity field to determine the charge. The other options, while potentially part of a broader solution, are not the essential, direct step for configuring the pricing logic.0