Revenue and Spend Insights%V3a Analyzing Gross-To-Net Profitability Using SAP HANA
SAP Profitability and Performance Management (PaPM)
31
SAP Profitability and Performance Management (PaPM) 22 October 2020
Transcript of SAP Profitability and Performance Management (PaPM)
SAP Profitability andPerformance Management(PaPM)
22 October 2020
What if we could create aflexible modelling platformin SAP where most businessscenarios could bemodelled, calculated andsimulated real-time?
Significant benefits using a flexible modelling platform
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Improvingefficiency
Forex implications of makingthe adjustments in the later
periods₤6mn
Auditexposure₤ 25mn
Reducing cashleakage
Potential TP exposure in terms of unpaid tax(not including penalties or interest)
₤7mn
TP provision€ 140mn
€ 3m saving inFTE across thegroup on inter-
co services
9900Hours
reduction
Customs Impact$6mn
FX Impact€2.9mn
TP Audits€2mn
43,700hours
reduction
Net benefitvalue
€23.8mn
Net benefit value₤37mn
Compliance &risk
Positivebusiness
case fromyear 1
*Numbers quoted are based on EY experience of many projects over the past decade.
Net benefit value€42mn
€ 500K R&Dpenalty risk
What are the typical use cases for these multipurpose and intelligent platforms…
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Business and financialmodelingHigh-speed processing and analysisof big data volumes providingtraceability and what-if simulationcapabilities
Agile plan and forecastmodelingRun sophisticated driver-based,predictive and stochasticmodels based on BPC and SAC
Funds and liquiditytransfer pricingRate modeling, cashflowdynamics, funds and liquiditytransfer pricing
Transfer pricing& tax reportingTax compliant revenue and costtransfer for intermediates, licenses,services and products betweenlegal entities (OECD Transfer PriceGuidelines, BEPS)
Profitability and costmanagementOptimize profitability and coston product & service, channeland customer level
Allocation simulationsRun simulations based onS/4HANA and ERP allocationrules and data
IT cost managementIT cost transparency,financial management andautomated bill of IT, cross-charging of shared services
Value chain sustainabilitymanagementOptimize economic, environmentand social impact of your company,products and services
Product and priceForecastForecast and optimization ofproduct profitability
PaPM October 2020
…leveraging much of the same dimensions
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Tax/TPsegmented
reporting
G/L account
Value byCurrency
Cost Center/Profit Center
Period
Volume/units
Project code
Supplier
Channel
Customer
Water use
Geography
Tax mark ups
land (M2)
Legal Entity
Integrated P&L
Headcount
Cost elements
Benchmarks
TP Methods
Brand
tCO2 equivalent
VAT code
Customs/HScode
Inventory val.method
Plant
Budget/Forecast
Producthierarchy
Local GAAP
Stat P&Lmapping
TP Function
ManagementP&L mapping
BOM
Group GAAP
CbCrclassification
Functional area
Transactionaldata
Master dataand hierarchies
Management /performance
reporting
Financial /regulatory
reporting
Integratedprofitability
reporting
What is PaPM
Best in class calculation and allocation
No data redundancy & fast processing
Integration SAP S/4HANA,ERP, BPC,BW and SAC
Embedded reporting capabilities
Simulation capabilities
Next generation Integratedperformance management solution
Agile financial and business modellingcapabilities
Built on SAP HANA for instant insight
SAP Fiori user experience
Business focused
SAP PaPMThree main components - A perfect combination
Business data aggregatorIntegrates with your operational
systems and your data warehouseat high speed − without copying
data
Calculation engineProcess high volumes of data
Simulation applicationProvides real-time data insights
with end-to-end traceability.
Scenarios Forecasting Drill-Down Auditability
Allocation
Assessmentand GlobalRecharges
Top-DownDistribution
Activity BasedCosting
Planningsupport
Integrationwith SAP BPC
Cost planning
Sales planning
Enrichment
Derivation
Lookup
Currencyand Unit
Conversion
Calculations
Driver andmodel-basedCalculations
PredictiveAnalytics
library
R Language
SimulationApplication
CalculationEngine
Business DataAggregator
Databases
• SAP HANA• IBM• MSQL Server,
Teradata, Hadoop,etc.…
SAP applications
• SAP S/4HANA• ERP, SAP BW, SAP
BPC, finance risk dataplatform etc.
Functions
• Web Services• Micro Services• R Language• …
Other Apps and Data
• Microsoft Excel• CSV• Other files• …
Data Review and Input - Creating reports
ITFM – PaPM clarifications 19 October 2020Page 12
16 August 2019 PS&I MASTER SLIDESPage 20
16 August 2019 PS&I MASTER SLIDESPage 21
16 August 2019 PS&I MASTER SLIDESPage 22
1 November 2020 Presentation title
Thank you.
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