Expert System for Calculating Tariff Profitability, a Basis for SAP Bookkeeping Entries

NatCo of a Leading European Telecom

Business Challenge​

A NatCo of a leading European telecom envisioned implementing a data driven expert system for price allocation that could handle large data volumes. Allocating the total tariff price to individual products and options that a tariff consists of was a key challenge. In addition, billing discounts were to be allocated properly among all tariffs for individual customers.


Our Approach​

We created an advanced profitability system with price allocation algorithms based on business and accounting drivers, managed through a user-friendly GUI. We implemented allocation algorithms covering both static and dynamic distribution rules based on usage and technology cost, and downstream integration of invoice items to accounting categories.



Based on the complex price allocation implemented, the client gained insight into product profitability. By combining that with marketing and technology cost the client was able to determine improvement opportunities. Value allocation data was sent to SAP IS-T for accounting purposes.