## 4.2 Create a Formation for SAP Subscription Billing Integration
If you're integrating SAP Subscription Billing with SAP S/4HANA Cloud Public Edition, you can create a formation to automate parts of the integration setup.
A formation is a logical grouping of SAP systems that can be integrated. Formations allow you to combine SAP solution systems and a subaccount in SAP BTP to simplify the connectivity setup and to provide a unified view of all components required for the implementation of your integration.
The formation for SAP Subscription Billing defines connectivity between your SAP S/4HANA Cloud tenant and SAP Subscription Billing tenants.
##  Note
If you want to use direct integration for transferring billing data to Sales Billing in SAP S/4HANA Cloud Public Edition (scope item 57Z), you must use a formation to set up connectivity for that part of the integration. For more information about direct integration, see Transfer of Billing Data to Sales Billing in the Integration Guide .
##  Recommendation
For setting up API and UI integration , we strongly recommend that you use configuration automation via a formation. Formations can be updated easily, either in case of connectivity issues or in case a new configuration is required for new features. You can therefore keep your configuration up to date without manual configuration effort.
## Configurations Automated by the Formation
- Enables API-based integration for the SAP Subscription Billing service by:
- Enabling API Access to SAP Subscription Billing with a service instance and service binding, with the default client certificate of the SAP S/4HANA Cloud tenant. A service instance named subscription-billing-service-integration is created in the subaccount where SAP Subscription Billing is subscribed.
- Configuring a communication system and a communication arrangement SAP Subscription Billing API Integration (SAP\_COM\_0642) in your SAP S/4HANA Cloud tenant.
- Enables UI integration by creating a communication system and a communication arrangement SAP Subscription Billing - UI Integration (SAP\_COM\_0845) in SAP S/4HANA Cloud.
- Enables direct integration of billing data with Sales Billing (scope item 57Z) by:
- Enabling service-based communication by generating a destination certificate, creating a destination for SAP S/4HANA Cloud. A destination named SubscriptionBilling\_S4HANACloud is created in the subaccount where SAP Subscription Billing is subscribed.
- Configuring the communication user, communication system and communication arrangement SAP Subscription Billing with Sales Billing Integration (SAP\_COM\_0095) in your SAP S/4HANA Cloud tenant. Trust is established via the certificate which is uploaded to the communication user.
Configuring the integration using formations creates dedicated artifacts. For example, a new service instance for SAP Subscription Billing API access is created next to other instances that you might have configured manually for integrations with non-SAP applications.
## Prerequisites
- You have Global Account Administrator or System Landscape Administrator authorizations.
- You have registered your SAP S/4HANA Cloud tenant in your global account (see Register Your SAP S/ 4HANA Cloud Public Edition Tenants in Your Global Account [page 14]).
## Procedure
Create a formation of the type Integration with SAP Subscription Billing for each pair of SAP Subscription Billing and SAP S/4HANA Cloud tenants that you use for the same purpose, such as test and production.
##  Note
- A formation can only include one SAP Subscription Billing tenant and one SAP S/4HANA Cloud tenant.
- Each SAP Subscription Billing tenant and each SAP S/4HANA Cloud tenant can only be included in one formation of the type Integration with SAP Subscription Billing .
|   Step | Task                                                                              |
|--------|-----------------------------------------------------------------------------------|
|      1 | In your global account, navigate to System Landscape .                            |
|      2 | On the Formations tab, choose Create Formation .                                  |
|      3 | Follow the guided steps to enter all the required information for your formation: |
## Deleting Formations
When you delete a formation, the systems are excluded from the formation, the subaccount is unassigned, and finally, the formation is deleted from the formations list completely. All artifacts created via the formation in SAP BTP and in SAP S/4HANA Cloud are deleted.