INDUSTRIES

Telecommunications

Telecommunications providers combine devices, connectivity, content, and services in bundled offers – for consumers and for enterprise customers. Enterprise contracts often include network equipment, managed services, and infrastructure provided on customer premises. Billing volumes are among the highest of any industry.

High Volume, Bundled Offers, Constant Change

Revenue recognition requires allocating bundled prices correctly, handling frequent contract changes, and connecting high-volume billing with accounting.

Typical Challenges

• Device and service bundles: Subsidized devices combined with service plans require allocation based on standalone selling prices, often resulting in contract assets.

• Enterprise solutions: Managed networks, connectivity, and equipment on customer premises may contain lease components.

• Lessor and lessee leasing: Equipment provided to customers, and infrastructure such as towers, sites, or fiber leased in from third parties.

• Contract changes: Plan changes, upgrades, add-ons, and early terminations at very high volume.

• Usage and variable consideration: Roaming, data overages, and usage-based enterprise services.

• Billing integration: Connecting high-volume billing and receivables with revenue accounting and the general ledger.

Typical Scenarios

• Mobile plans bundled with devices on installment or subsidized pricing

• Enterprise connectivity contracts with equipment and managed services

• Leasing of network equipment to business customers

• Plan changes and device upgrades during the contract term

• Usage-based charges for data, voice, and enterprise services

• Contract costs such as sales commissions to be capitalized and amortized

Typical SAP Products and Modules

• SAP Revenue Accounting and Reporting (RAR): allocation for device and service bundles; contract modifications; lessor accounting for equipment

• SAP BRIM: subscription order management, SAP Convergent Charging, and Convergent Invoicing for high-volume billing

• SAP FI-CA: receivables, payments, and collections at scale

• SAP Contract and Lease Management (CLM): lessee accounting for leased-in infrastructure

• SAP S/4HANA Finance: general ledger, asset accounting, and reporting

Related Solutions

• Intelligent Billing and Monetization

• Agentic SAP RAR Leasing Rapid Deployment

Related Articles

• Contract Modifications: Prospective vs. Cumulative Catch-up

• Leases in Bundled Contracts: Separating Lease and Non-Lease Components

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