2020 will be here before you know it. And if you are looking for options to replace SAP Profitability & Cost Management (PCM), SAP Performance Management for Financial Services (FS-PER) is more than ready to fill the void. Here are some insights on what a tool like FS-PER can do and what ideas we had while building this very powerful solution.

Bigger, Stronger, Faster 

During multiple Proofs of Concept with different customers, FS-PER easily delivered the cost and revenue allocation processes delivered by PCM. But there’s more: Besides the PCM content, FS-PER supports multiple other complex calculations like IBNR and transfer pricing. And due to the power of FS-PER, it can consume and process large volumes of raw data without upfront formatting. Additionally, post PCM processes can be carried out with FS-PER; therefore, simplifying the process and saving time. 

And there’s still more: The FS-PER sample content used for the allocations can do far more than PCM. Since FS-PER has no predefined data model, it can be very flexible. Calculations that had to be done outside of PCM can be included in FS-PER, which allows for a full data trail from source to destination. 

HANA - It’s Built-in 

Since FS-PER can handle data on different levels (company level as well as policy coverage level or deeper), it accommodates complex calculations so easily that the business owners can own the content and easily manage adjustments without IT involvement. By reducing complexity, FS-PER also reduces implementation time and costs. With the HANA native approach, FS-PER is faster than other systems on the market, reducing the time it takes to calculate multiple allocations — for 6.5 billion records — from 40 hours to less than one hour. 

FS-PER is proving a worthy successor to PCM because:

• Source and destination agnostic, it can be fully integrated with SAP and non-SAP applications
• It accommodates large volumes of data and numerous data models
• Fully traceable data trails provides transparency
• Business user design reduces reliance on IT
• It performs other calculations like costing, pricing, or IBNR for insurance customers
• Integrated design includes Investment, Risk, and Capital calculations in the model where the cost allocation takes place. 

Since PCM will be coming out of SAP’s mainstream support in 2020, now is the time to have a look at FS-PER.