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✦   Master Thesis  ·  SAP × TH Ingolstadt

Reactive to Proactive
Project Billing

Intelligent and Automated Billing Workflows in SAP S/4HANA Public Cloud for Professional Services Automation — using AI (SAP Joule) and a rule-based framework to shift billing specialists from reactive firefighting to proactive, guided decisions.

Researcher Ritvik Kolhe
Programme M.Sc. User Experience Design
Industry Partner SAP SE — Business Suite UX
Presentation Date June 2, 2026
7
Usability test participants
22
Customer Council responses
4.42
Value rating (avg, out of 5)
−5.7
NASA-TLX time-pressure drop

Human-Centred Design Process — ISO 9241-11

Exploratory design research focusing on experience and workflow automation using a mixed-method UX approach across four iterative phases.

1

Understanding & Defining Context of Use

  • Preliminary literature review
  • SAP internal research & documentation
  • User interviews (4 participants)
  • Project set-up in S/4HANA Public Cloud
  • Business process flow mapping
  • E2E process documentation
2

Defining User Requirements

  • Discovery workshop (7 participants)
  • Synthesis of findings into opportunities
  • User journey mapping
  • Summary & clustering of pain points
  • User requirements definition
  • User stories & use case creation
3

Developing Design Solution

  • Ideas exploration,7 feasible & futuristic concepts
  • Weighted decision matrix
  • High-fidelity Joule prototype
  • 2 finalized use cases selected
4

Evaluating the Design

  • User recruitment & screening
  • Online usability testing (4 sessions)
  • User Feedback Day, Walldorf (3 in-person)
  • Customer Council, Berlin (22 customers)
  • Concept refinement

What Is Project Billing?

Project Billing is the process of reviewing, validating, and preparing project-related billing elements for customer billing based on contractual agreements, recorded time, expenses, and project activities.

Time Recording
Expense Recording
Data Reviewed & Adjusted
Billing Request Created
Invoice Generated & Sent
👨‍💼

Bill Now, 30 — Billing Specialist

Primary Persona  ·  SAP S/4HANA Public Cloud
"My job is to bill as much as possible accurately, timely regarding the project situation."

Main Goals

  • Bill correctly and on time
  • Maximise revenue and cash flow
  • Avoid rework and invoice rejection

Needs

  • One place for all billing info
  • Early detection of risks and issues
  • Clear guidance on what to fix
  • Faster, more confident decisions

Pain Points

  • Issues found too late in the process
  • Manual checks across multiple systems
  • High rework due to rejected invoices
  • Lack of clear overview and guidance

Six Core Pain Points of a Billing Specialist

Discovered through day-in-the-life sessions, user interviews, Customer Councils, Qualtrics surveys, and cloud reporting data.

🎯

Lack of Prioritisation and Focus

Billing Specialists struggle to determine what to work on first. High-value and overdue items are not clearly highlighted, leading to inefficient task prioritisation and delayed billing.

🔀

Fragmented Process & App Switching

The billing process requires navigating multiple applications and business objects without a clear starting point. This fragmentation leads to confusion, redundant steps, and higher effort.

Late Discovery of Issues & Rework

Critical issues such as invoice splitting and billing errors are often discovered only at very late stages, forcing users to cancel submissions and repeat the entire process.

🔍

Limited Transparency & Explainability

Key figures, columns, warnings, and aggregated numbers in billing apps are not clearly explained. Users do not understand how values are calculated or what actions are required next.

🔁

Manual Effort & Repetitive Actions

Users repeatedly perform the same actions and data inputs across different steps and apps, increasing effort and frustration while providing little added value.

📋

Incomplete Billing Readiness & Preview

Billing Specialists lack early visibility into billing readiness, including the inability to preview invoices during PBR creation. Approved time and expenses can remain unbilled for long periods.

Current vs. Proposed Billing Workflow

The core design thesis: surfacing billing issues at the data-review stage eliminates the costly rejection-rework loop between specialist and clerk, reducing BDR rejection rates and manual back-and-forth.

Rejected ⟳ Resolve & Re-Edit Re-Edit Data Check Billing Data Review billing items Edit Billing Data Correct, postpone, write-off Submit BDR Create billing request Clerk Reviews BDR Validate & approve Invoice Generated Send to customer ⚡ Issues flagged here Current Workflow Proposed · Joule Workflow
💡

Key Insight: In the current workflow, issues surface only when the Billing Clerk rejects the BDR — triggering a costly rework cycle. Joule moves issue detection to the data review step, eliminating the rejection loop and lowering BDR rejection rates.

SAP S/4HANA Cloud · Home
My Home  /  Project Billing
To-Dos   ·   Situations (1)
⬤   High Priority
2 Billing Elements Overdue
Project: ABC GmbH – IT (R1299)
Customer: Inlandskunde DE
To Bill: € 30,800.00 EUR
Earliest Billing Due Date: 12.02.2026
Recommended Apps
📋 Manage Project Billing
📄 Prepare Billing
📑 Create Preliminary Billing
📊 Manage Billing Documents

Project Billing as a Joule Workflow

SAP Joule is the AI-powered copilot embedded in SAP applications. It provides contextual insights, prioritised situation cards, and guided actions, directly within the user's workflow, without forcing them to switch between multiple apps.

The design concept uses Joule's Situation Handling framework to proactively surface billing risks before they become costly errors, ranked by urgency and financial impact.

  • Proactive Situation Cards — Surface billing risks and overdue items with priority badges, financial context, and one-click actions before the user begins their workflow.
  • Guided Resolution — Each situation card offers contextual action buttons (Use Joule / Open App) and tracks resolution status ("notified" vs "resolved").
  • AI-Powered Risk Analysis — Joule analyses billing elements, detects invoice split risks, price discrepancies, and missing cost centres before PBR creation.
  • End-to-End Workflow — From billing readiness check through issue resolution, to billing request creation and invoice submission, all within one guided experience.

Watch the Joule Billing Workflow in Action

A walkthrough of the high-fidelity Joule prototype — from the situation card on the S/4HANA launchpad through risk analysis and billing request creation.

Joule · Project Billing Prototype — Screen Recording
🔬

Lab Preview Only — This is a high-fidelity research prototype created for academic evaluation purposes. It does not represent a released or committed SAP product feature.

Quantitative Analysis

7 moderated usability sessions + 21 Customer Council responses using UEQ-S, NASA-TLX, PSAT, and UX Lite instruments.

User Experience Quality — UEQ-S (scale −3 to +3)

Current System
Joule Prototype
Pragmatic Quality How well the system supports task completion
Current System
1.07 Excellent
Joule Prototype
0.89 Excellent

Both systems scored Excellent. Slight decrease with Joule, users need more practice to fully leverage AI-guided actions.

Hedonic Quality How enjoyable & stimulating the experience feels
Current System
0.25 Good
Joule Prototype
1.39 Excellent

Biggest gain (+1.14). Joule's conversational, guided experience is perceived as significantly more engaging and stimulating.

Overall UEQ-S Combined user experience score
Current System
0.66 Excellent
Joule Prototype
1.14 Excellent

Overall UX improved by +0.48. Both systems rated Excellent, Joule's score is driven primarily by its superior hedonic quality.

💡

Key Insight: Hedonic quality gains outpaced pragmatic gains, Joule's improvement is primarily experiential. Users find the AI-driven interface more enjoyable and engaging, even as task-completion efficiency continues to mature.

Cognitive Load — NASA TLX (lower = better)

Current System
Joule Prototype
Mental Demand
21.4
27.1
Time Pressure
42.8
37.1
Effort
24.2
26.4
Frustration
16.4
15.7

Pattern: faster triage, but more thinking/verification.

Perceived Usability & Satisfaction (1–5 scale)

Current System
Joule Prototype
Overall Satisfaction
3.7
Current
3.8
Joule
Does What I Need
3.8
Current
3.5
Joule
Easy to Use
3.5
Current
3.7
Joule

Joule scored higher on ease-of-use and satisfaction; current system led on "does what I need" due to missing billing summary and unclear actions.

Customer Council Sentiment (N=21, 1–5 scale)

Value for improving billing efficiency & reducing errors
4.42
Investment opportunity for SAP and customers
4.14
Comfort with AI guiding billing decisions
4.00
Likelihood of company adoption
3.90

"Billing is too complex, guiding & prompting potential issues sooner is better"

"This solution would give the chance to distribute responsibility in the future"

What the Research Revealed

Six findings distilled from qualitative and quantitative analysis across all study streams.

01

Earlier Issue Detection & Prioritisation

Situation cards reduce searching and highlight what matters first. Users clicked directly on high-priority prompts and valued quick visibility into overdue items and key risks.

02

Lower Time Pressure, Smoother Flow

NASA-TLX pace/temporal demand dropped by 5.7 points. Users reported feeling less rushed during the triage phase of billing preparation.

03

Usability Improves — Especially for Non-Experts

More intuitive onboarding. Joule scored higher on ease-of-use. Complex billing cases and newer users benefited the most from guided guidance.

04

Cognitive Effort Not Yet Reduced

Users still verify AI suggestions in the app. Mental demand rose by 5.7 points. The concept currently serves as an assistive layer, not a replacement for expert verification.

05

Trust & Actionability Limit Adoption

Missing billing summary before submit, unclear "Send email" actions, and lack of deep links to exact items reduce perceived functional sufficiency and trustworthiness.

06

Best Fit Today: Assistive Layer

Joule augments the workflow rather than replacing it. For clean cases, the current system is faster. AI delivers more benefit for complex billing or less-experienced users.

Qualitative + Quantitative Synthesis

Pace (NASA TLX) → Users feel less rushed. Guided flow via situation cards reduces scanning.
Mental Demand & Effort (NASA TLX) → More thinking required. Users verify in app; low trust in AI outputs initially.
Satisfaction & Ease of Use (PSAT/UX Lite)"Cleaner", "more intuitive", better guidance were the most frequent qualitative codes.
"Does What I Need" (PSAT)Missing billing summary, unclear actions ("Send email"), need deep links to exact items.
UEQ-S: Hedonic > Pragmatic GainsExperience improves more than end-to-end task completion.
Joule improves how users navigate and understand the work, but not yet how fully they can complete it without leaving the app.

Did the Study Hypotheses Hold?

Three hypotheses were tested across the within-subjects usability study.

⚠ Partially Supported

H1 — Higher Usability

Discovery improved; resolution and submission are gated by trust and action clarity. Users found risks faster but needed app verification before committing to billing decisions.

⚠ Partially Supported

H2 — Lower Perceived Complexity

Cognitive load reduced for issue identification. Adding billing summaries and progressive disclosure would fully realise this hypothesis. Mental demand increased slightly due to verification.

✓ Supported

H3 — Greater Risk Confidence

Users found billing risks faster and with greater clarity using Joule situation cards. Full confidence to submit without verification still requires improved transparency and data source explainability.

Refined Concept Prototype

A second-iteration prototype addressing the key trust, clarity, and actionability gaps surfaced in the usability study. Each improvement directly targets a validated finding from evaluation data.

What Has Been Improved?

🔍 Explainability

Joule now explains how it fetched potential billing issue information — surfacing data sources and reasoning inline. A Billing Summary is presented before the Billing Document Request is submitted, giving specialists a consolidated view of totals, groupings, and expected invoice structure.

🖱️ In-Card Actions

Action buttons are now placed directly within the expanded issue card, adjacent to the issue description. This eliminates the need to navigate away or search for actions, reducing context-switching and the number of steps to resolution.

🚪 Entry Points & Labels

Joule entry points are clearer and more consistently labelled throughout the workflow. Users no longer need to discover how to invoke Joule — triggers are visible, contextual, and use plain-language labels aligned with the billing task at hand.

👤 Authorship on Notes

Notes and comments now display the team member or consultant name alongside the content. This restores accountability and traceability — specialists can immediately identify who flagged an issue or added context without leaving Joule.

🔄 Human-in-the-Loop

Joule offers a persistent "View in App" option at any point during the workflow, preserving specialist control and trust. Users can drop into the S/4HANA app to verify data or complete edge-case actions, then return to the Joule flow — without losing context.

💡

Design rationale: Each iteration targets the three root causes identified in the evaluation — lack of trust in AI-generated data, incomplete in-Joule resolution paths, and unclear workflow ownership. The refinements collectively reduce the need for app verification while preserving full specialist control via human-in-the-loop affordances.

Joule · Refined Concept Prototype — Screen Recording
🔬

Lab Preview Only — This is a high-fidelity research prototype created for academic evaluation purposes. It does not represent a released or committed SAP product feature.

Study Constraints to Consider

Results indicate clear direction and value but require validation in a real, integrated environment with larger samples.

👥

Small Sample Size (N=7)

Findings are indicative, not statistically generalizable. Larger samples with diverse experience levels are needed.

🖥

Prototype Fidelity

The Joule prototype was not fully integrated with live S/4HANA apps. Real integration may surface additional usability gaps.

Short Exposure

No longitudinal trust or learning effects could be measured. Trust in AI typically builds over weeks of repeated use.

📍

Scope Constraint

Focus was limited to Project Billing (not the full E2E sales billing chain), which constrains generalizability.

No Objective Time Metrics

Task efficiency was inferred from self-reported data and think-aloud sessions. Time-on-task logging was not captured.

🏢

Organisational Factors

Varied workflows, billing models, contract types, data quality, and authorization constraints across organisations.

Where This Research Leads

Five strategic directions that build on this thesis toward a fully autonomous, intelligent ERP billing experience.

🏢 Shift Billing Ownership to the Front Office

  • Enable Project Managers to take a more active billing role
  • Reduce dependency on back-office handoffs
  • Support distributed responsibility with guided AI workflows

🤖 Towards an Agentic Billing Experience

  • Evolve from assistive AI → AI that can execute actions with human oversight
  • Automate repetitive decisions (standard corrections, validations)
  • Introduce human-in-the-loop approval mechanisms

⚡ Foundation for an Agentic ERP (Joule Vision)

  • Position Joule as a bridge towards a fully autonomous ERP experience
  • Extend AI support beyond billing to cross-functional workflows
  • Enable context-aware, end-to-end process orchestration

🔗 End-to-End Project Workflow Automation

  • Connect: Time recording → Approvals → Billing → Invoicing
  • Reduce manual handoffs and fragmented workflows
  • Provide one coherent, guided experience across all steps

📈 Scalability for Enterprise Use

  • Support high-volume, multi-project month-end scenarios
  • Introduce prioritization, filtering, and batch processing
  • Ensure performance with large datasets and complex billing structures

🔬 Validated with Real Users

  • Longitudinal study with integrated S/4HANA environment
  • Objective time-on-task and completion rate measurement
  • Larger sample across billing models and organisation types

How Does It Help the PSA Team?

Beyond the research findings, this thesis delivered concrete, strategic value to the SAP Professional Services & Billing product team, across discovery, design, and product direction.

🧠

Deep understanding of user expectations & interactions with Joule

🤝

Organisation & execution of customer and user workshops

🗺️

Exploration of multiple solution & navigation approaches in Project Billing

🚀

Enhanced our flagship lighthouse product — S/4HC Public Cloud

Impact 01

Shifted Billing from Reactive to Proactive

Provided a clear blueprint for transforming Project Billing so AI can anticipate billing discrepancies and unbilled revenue before they become critical issues, not after.

Strategic Direction
Impact 02

Validated the AI Approach with Evidence

A direct comparison between the existing solution and the AI-enhanced prototype provided data-backed proof of improvements in billing accuracy, efficiency, and reduced manual effort.

Product Confidence
Impact 03

Championed Modern, User-Centric Design

Demonstrated how to build a more intuitive, guided billing process, significantly lowering the learning curve and reducing human error, especially for users new to the system.

UX Quality
Impact 04

Provided Strategic Clarity for the Roadmap

Delivered crucial insights into real user needs and pain points, giving the product team greater confidence to make informed roadmap decisions and justify an AI-first strategy.

Roadmap Clarity
Impact 05

Reduced Onboarding Time & Boosted Adoption

By intelligently guiding new users through complex billing processes, the solution helps employees become productive faster, reduces training overhead, and fosters greater adoption.

User Adoption

Joule Shifts Billing from Reactive to Proactive

What Improved
  • Early identification of billing issues
  • Better prioritisation and workflow clarity
  • Higher usability, especially for less experienced users
  • Lower time pressure during triage
What Remains
  • Cognitive effort still required (verification, trust)
  • Limited actionability and app integration
  • Trust is the main barrier to adoption
  • Billing summary and deep links still missing
Final Insight
  • AI in billing today works best as a decision-support layer, not full automation
  • Concept received 4.42 / 5 value rating at Customer Council
  • Builds the foundation towards an agentic ERP experience
  • Clear investment signal from 22 enterprise customers
AI in billing today works best as a decision-support layer, not full automation. The next step is making Joule not just a guide, but an agent that executes with oversight.