Professional Services with S/4HANA

Professional Services with S/4HANA – SAP in use at Consulting Companies

Digitization also affects consulting. In addition to the changed consulting portfolio, consulting companies also have to deal with the digitization of internal processes in order to accommodate the increased expectations of customers (such as e-invoicing, electronic activity reports, integration of partners), and remain competitive as well as take advantage of new opportunities, turning them into market-relevant benefits. 

S/4HANA offers highly developed and stable professional service processes as standard. One of the core processes is “invoicing according to effort” (effort-based invoicing with account assignment to projects (WBS elements)).


System Parameters

This requires some prerequisites or settings in S/4HANA:

  • Mapping of contracts for the management of customer orders (including all necessary functions, such as partner determination via BP, pricing, account assignments...)
  • Implementation of business partners for customers, contact persons, project managers, consultants, key accounts, and so on)
  • Automatic creation of analog projects (by activating the “Professional Services” business function) including corresponding WBS elements for account assignment and time recording
  • A mobile time recording app (ideally implemented using Fiori) with direct access to CATS (see example of XEPTUM time recording app)
  • Defined approval procedures and workflows
  • Setup of dynamic item processor profile (DIP) for effort-related invoicing The time confirmations are condensed and transferred to SD order items.
  • Setup of collective processing for invoicing, as well as transfer of values to FI and CO
  • Development of Adobe Forms invoice forms and time statements for the customer (for printing or mailing)


XEPTUM Time Recording App 


Core Process: “Consulting according to Effort” 



Of course, the “classic” invoicing options are also possible, such as fixed price, payment agreements (milestone billing), as well as the further invoicing of document-related travel expenses to the customer.

Results

Once you have set all this up, you can benefit from the following:

  • Integrated ERP system, with continuous value stream flow, from hourly feedback, to invoicing, to financial accounting and controlling without manual intervention (except approval or correction of human errors)
  • Simple and timely monitoring of recorded hours and idle times
  • Massive load relief for the accounting department through almost fully automated invoicing processes, as well as reporting available at the push of a button
  • High acceptance by consultants through simple entry and, if necessary, reduction of multiple entries of data
  • Better feedback quality and lower error rate through automatic validations and system-internal checks (for instance, whether project has already been released or is already overbooked)
  • Possible Cost Object Controlling using the project system 


XEPTUM was one of the first consulting companies in Germany to introduce S/4HANA for its professional service processes and can therefore support you not only as an SAP consultant for this solution, but also as a user.