SAP® Profitability and Cost Management

SAP Profitability and Cost Management (PCM) is a powerful, highly scalable application that provides insights in identification and defining the business drivers of cost as well as allocation of the cost to the activities of business (Activity Based Costing) in a business model.

It is important for any business to understand what drives the costs in a business activity. SAP Profitability and Cost Management (PCM) helps to model your business, defines the activities that it provides, optimizes the resources utilized by using Activity Based Costing approach.

SAP®

Profitability and Cost Management

SAP®

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Key Features

Business Benefits

Resources

Activities

Products,CustomersChannels

Properties

Resourcesand costs

Activities

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RevenuesProduct, Customer,

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ProfitabilityProduct, Customer,

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ResourceDrivers

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CostAssignment

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COSTASSIGNMENT

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DRIVES

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People Capital Technology

What work isperformed?

What ‘s needed to do the work?

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What work isperformed for?

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Activity-based Budgeting

Activity-based Costing

• Activity-based costing – Make informed management decisions that optimize customer and product profitability, reduce the cost to serve and optimize cost of key processes

• Shared-services costing and cross-charging – Align resources and capacities with demand, reduce delivery costs and gain process transparency

• On-demand, what-if scenario analysis – Deliver activity-based and driver-based planning and budgeting models• Dynamic monitoring – Gain visibility into the drivers of cost and profitability

• Visibility into the true drivers impacting cost and profitability, including IT shared services, via a user-friendly interface

• Optimized costs and profitability thanks to a detailed understanding of multidimensional drivers such as product, service, customer and channel

• Alignment by matching of operational capacity and support functions with demand for flawless execution of strategy

• Inclusive decision making based on rapid identification of underlying causes of change in organizational cost and profitability. Client also gains capability to test the impact of potential adjustments

Why MDS ap?

To maximize profit, organizations always look for ways to control cost. SAP Profitability and Cost Management (PCM) allows organizations to allocate cost for various activities such as managing supply chain, delivering products or services to customers and maintain production lines. It helps to establish relationships between these activities, required resources and output.

SAP Profitability and Cost Management (PCM) empowers business users to conduct “What if” scenario analysis to understand potential impact of change in activities and resource allocation on output.

By enabling more accurate cost control, SAP Profitability and Cost Management (PCM) helps organizations improve profit margin for products and services. SAP Profitability and Cost Management (PCM) provides insights into how and where resources are being applied for the current output. The software analyses the cause of optimal or non-optimal resource utilization.

MDS ap is a professional service provider of Enterprise Performance Management and Group Finance. Our areas of work include Strategic Finance, Planning Budgeting & Forecasting, Management Reporting, Analytics, Business Intelligence, Financial Consolidation and Legal Entity Management. Furthermore, we provide automated creation of filings, including annual/quarterly reports and board books with fully incorporated XBRL tagging.

The combination of EPM knowledge and the passion for quality enables our certified consultants to translate the customer’s requirement into optimized business processes using the latest information technology.

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Annual Operating Margin % by Entity

Tuition Fees and Public ContributionTotal ExpenseContributionOperating Margin %

Analysis Dashboard Profitability KPI Analysis Activity Cost Analysis Reassigned Costs

Trended performance Analysis by Entity

Traceback Capacity Management

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For more information about MDS ap please contact our local offices or email us at: epm@mdsaptech.com

Part of the Midis GroupAffiliate of Sybase Products

Copyright © 2014 MDS ap, All rights reserved. mdsap_201410_epm_pcm_4p

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