What is scaling in SAP IS-U-BI - Contract Billing?

SAP Term: scaling

• Component: IS-U-BI

• Component Name: Contract Billing

• Description: Certain consecutive quantity areas for demand or energy. When one quantity area is exceeded, a different price applies to the total quantity. In this way, higher consumption can be cheaper than lower consumption.

Smart SAP Assistant

• Key Concepts: 
  Scaling in SAP IS-U-BI Contract Billing is the process of adjusting the amount of a billable item based on the customer's usage. This is done by multiplying the base rate of the item by the customer's usage. For example, if a customer has a base rate of $10 for a service and uses it for 10 hours, then the total cost would be $100. 
  
  How to use it: 
  In SAP IS-U-BI Contract Billing, scaling is used to adjust the amount of a billable item based on the customer's usage. To do this, you must first set up a base rate for each item that you want to bill for. Then, when you create an invoice for a customer, you can enter their usage and the system will automatically calculate the total cost based on the base rate and usage. 
  
  Tips & Tricks: 
  When setting up base rates for items in SAP IS-U-BI Contract Billing, it is important to consider how much usage customers are likely to have. This will help you determine an appropriate rate that will ensure customers are not overcharged or undercharged for their usage. 
  
  Related Information: 
  SAP IS-U-BI Contract Billing also allows you to set up discounts and surcharges based on customer usage. This can be used to incentivize customers to use more or less of a particular service. Additionally, SAP IS-U-BI Contract Billing also allows you to set up billing cycles so that customers are billed at regular intervals.