With the SAP Business ByDesign You can create and manage customer contract management business scenario as part of support claims or managed services.

The scenario includes functional areas from related areas that directly support the provision of services for contracts, for example the processing of due items and payments in financial management.

The “Create Sales Orders” business process enables you to create a sales order with fixed prices and conditions when a customer orders products or services. You enter the required details in the order, for example customer, products or services, desired date and customer information as additional text.
If a contract is to be sold (e.g. together with a physical product, an extended warranty or if a maintenance contract is sold) a specific position can be entered in the sales order. A contract can be generated automatically from this position using a contract template.
The sales order can optionally be approved.

In the Create Customer Contract business process, you create a customer contract for services, expenses, or entitlements. This can be done on the basis of a contract template, the data of which is copied into the new contract. When a contract is sold through a sales order, a contract template is required. You can also manually enter details such as start and end dates, renewal and termination rules, service level and the service, expense or entitlement you are selling. When a customer needs support and a service request is created, the system checks whether the product in question is covered by a contract, whereby relevant information such as service level is then taken into account. Contract items sold at an expense are processed at a later point in time using standardized service feedback functions.
The cancellation and deletion of positions is carried out in accordance with the rules specified by you in the contract.

In the Execute Services business process, the service provider drives (after the order has been released for execution and the preparations have been made) to the customer and provides the desired service, or he performs the service at his location or in a repair shop.

With the business process Confirm Service Execution, the service provider can complete the order after the execution of a service by creating a service confirmation directly from the contract to confirm actual times.
This service notification also contains additional information about the work performed, the cause of a product problem, information about the warranty or feedback. The aim is to improve product quality.

When the service confirmation document has been released, the system automatically triggers customer accounting and transfers the necessary information to financial management. In the case of fixed-price services without a service confirmation, the completion is confirmed directly in the customer contract.

In the Create Customer Invoices business process, the system automatically creates invoice requests after services have been performed or products have been delivered. You need to translate these requirements into an invoice that is sent to the customer and passed to cash flow management. This is done manually or during an invoice run. It is possible to combine different requirements in one invoice or to split them over several invoices.

The business process Process incoming externally initiated payments by bank transfer enables customer invoices whose payment is initiated externally to be settled by bank transfer.

The Create Down Payment Request – Customer business process enables you to request down payments from the customer before services are performed. For this purpose, the sales employee creates a down payment request and releases it.

The Process Receivables and Payments business process enables you to process incoming payments that were initiated either internally by your company or externally by your customers. Country-specific payment methods are used in this process.
Payments can be made manually or automatically during a payment run in which the system proposes open items for payment. You then release the payments and the system posts them to accounting. You create the payment medium manually or as part of an automatic run and use files for payments by direct debit or credit card. Credit card statements can also be uploaded to pre-confirm payments. When the payments are credited to the company’s account, the bank statement is either uploaded electronically to the system or entered manually before confirmation. If payments are initiated externally by the customer, the bank statement informs about the payment. The payments are matched with the open invoices in the system before they are cleared.

Source: help.sap.com, as of March 2017