High speed profitability & cost analysis

Supports all major allocation methods for revenues, costs, capital, reserves or any other type key metrics including:

• Global recharges and expenses
• Assessments
• Top-down allocations and distributions
• Activity-based costing
• Revenue splitting

State-of-the-art functionality for industry-specific static, dynamic and risk-adjusted costing and pricing models. Model views and tables act dynamically for real-time calculations, valuations and transfer pricing.

Powerful calculation functions for retrospective and prospective (projections, forecasting and planning) mass computations, including:

• Generic calculations allow relative algebraic computations
• Workbook calculations allow absolute algebraic computations
• R Language calculations allow stochastic computations
• Iterations and default calculations allow the discrete calculation repetition

Reconciliation and update functions for real-time and batch synchronizations between two or more systems. The reconciliation function supports quantitative and qualitative reconciliations. Further functions can be used to re-sync the systems by constructing and delivering posting or transaction records.

Incorporates the consolidation functions for the major business ownership hierarchy models including:

• Currency conversions
• Intragroup transaction
• Adjustment recalculations
• Funds calculations
• Specific account-based calculations
• Carryforwards

Models can be reused for actuals, planning, forecasting, and simulation purposes both prospectively into the future and retrospectively into the past. Model management functionality includes:

• Input and output management guarantees clear separation and maintenance of assumptions and parameters.
• Run management allows the user to manage calculations in single or multi-steps, depending on the client requirements for production runs, simple simulations or sophisticated waterfall scenario sequences.
• Traceability and auditability management records “who did what and when” for model configuration changes, model execution, and input assumptions and parameters.

With SAP Profitability and Performance Management, companies can reduce costs, optimize effort, eliminate waste, and decrease their ecological footprint. At the push of a button, measure financial impact, and simulate scenarios to optimize your entire value chain.

• Determine supplier and customer resource usage throughout the entire product and service life cycle.
• Analyze raw material requirements and cost scenarios around product manufacturing.
• Calculate resource consumption at any point in the product life cycle: transport, packaging, services, and product disposal.

Integrates seamlessly with Business Warehouse and Business Planning & Consolidation to leverage metadata, master data, and data models as well as provide ready-to-go planning functions.

Integrates seamlessly with ERP‘s and SAP S/4HANA to leverage metadata, master data and data models including:

• Data element synchronization can make meta and master data information available together with all specified search helps in FS-PER.
• SAP HANA Live and other ERP Data models can be utilized via model views within PaPM for data reading.
• The remote function adapter can deliver update postings or transactions to non-SAP and SAP general ledgers.

Delivers all major funds and liquidity pricing approaches of the international banking sector into one solution. PaPM is designed to work with huge volumes of data at high speed and allows for configuration of event-based product dependent FTP/LTP-component calculations as well as the periodic funding and liquidity contribution using several approaches including:

• Matched maturity
• Strip funding
• Net present value
• Replicating portfolio
• Breakfunding
• Other volume and account-based approaches, which can use historical, weighted, or predictive data

Result verification is easy with relevant tracing information and interim results, including margin spreads, effective yields, capital growth rates, effective capital and others.

Can be used as an integrated forecasting platform to model and orchestrate the complete end-to-end process flow for regulatory P&L, balance and capital stress-testing with complete transparency and drill-down from final results through computations back to source data.

Can be used as a risk and solvency platform to model and orchestrate the complete end-to-end process flow for regulatory Solvency II, ORSA and risk-based capital calculations with complete transparency and drill-down from final results through computations back to source data.

The ideal candidate to replace PCM, it includes similar functionality but is designed, built and runs entirely in SAP HANA, resulting in greater synergy with the in-memory platform.