Rating
Rating is the process of assigning a price to a usage event or charge based on the customer's contract and price plan – for example, turning "500 units consumed" into a monetary amount.
Billing
Explanation
Rating considers factors such as:
• the product and price plan,
• tiers and volume discounts,
• included allowances and free units,
• time-based rates, such as peak and off-peak,
• currency and customer-specific conditions,
• minimum and maximum charges.
Rating can happen in real time, for example to enforce usage limits, or in batches. Rated events are passed to invoicing. Corrections may require re-rating when usage data or prices change.
Why It Matters
Errors in rating lead directly to incorrect invoices, customer disputes, and revenue leakage. For revenue accounting, rated amounts are often the basis for usage-based revenue. In SAP BRIM, complex rating is performed by SAP Convergent Charging; simple rating of consumption items can also be done directly in SAP Convergent Invoicing.
Related Terms
SAP Convergent Charging · Usage-Based Billing · Tiered Pricing · Mediation · Revenue Leakage
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