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With SAP Profitability and Performance Management, SAP provides a new generation of integrated performance management applications that do not require their own data model but can use and reuse existing data and information models from other SAP and non-SAP applications in the cloud or on-premise.

SAP Profitability and Performance Management is built on the in-memory platform SAP HANA. Using the advanced potential of SAP HANA, SAP Profitability and Performance Management is designed for business and provides an instant insight by using a single source of truth, real-time processes, and agile financial and business modeling capabilities. Thanks to the principles of SAP Fiori user experience, it is designed to run simply and comfortably for business users.

Implementation Considerations

SAP Profitability and Performance Management can be deployed both in the cloud and on-premise and covers various integration scenarios.

SAP Profitability and Performance Management can be used on a separate instance and can still be integrated with other SAP and non-SAP components. We recommend that you implement SAP Profitability and Performance Management as closely as possible to the source data. If other applications that contain relevant data are already installed on SAP HANA, we recommend that you use SAP Profitability and Performance Management on the same SAP HANA platform or even on the same instance to ensure optimal performance and the maximum reuse of existing data and metadata, such as hierarchies, master data, and so on.
Integration

The business data aggregation capabilities of SAP Profitability and Performance Management (abbreviated as “PaPM” in the diagram below) enable the integration of operational systems and data warehouses at high speed with little or no data replication.

The business data aggregation capabilities of SAP Profitability and Performance Management enable the integration of operational systems and data warehouses at high speed with little or no data replication.

SAP Profitability and Performance Management uses the official application interfaces from the SAP or non-SAP applications for data read access, for example CDS views, from SAP HANA or SAP S/4HANA, open ODS views from SAP BW or BW/4HANA, calculation views from CAR, FSDM and BDMA – either locally or remotely via smart data access. If this redundancy-free approach is not feasible, SAP Profitability and Performance Management uses other official application interfaces, such as SAP BAPIs and Web services, or classic file imports of various formats.

SAP Profitability and Performance Management uses the official application interfaces from the SAP or non-SAP application for data write access, for example SAP HANA-based write interfaces like HAP to BW or BW/4HANA, SAP HANA-based PAK functions to BPC and AMDP interfaces to the Results Data component. If this redundancy-free approach is not feasible, SAP Profitability and Performance Management uses other official application interfaces, such as SAP BAPIs and Web services, or classic file exports of various formats.
Features

The simulation application capabilities of SAP Profitability and Performance Management enable the execution of what-if scenarios for business users and the management of assumptions and drivers. Based on the granularity of the financial model, it allows drill-down from high-level to very detailed results and provides transparency by offering traceability and auditability information. In addition, it allows non-SAP and SAP BI tools, like SAP Analysis for Microsoft Office, to access the information or even trigger further calculations.

The calculation engine of SAP Profitability and Performance Management allows business users to design and execute financial and business models by configuring and combining functions across the following areas:

  1. Profitability and allocation
    1. Global transfer pricing
    2. Assessments
    3. Activity-based costing
    4. Top-down distribution
  2. Plan and forecast modeling
    1. Driver-based and deterministic models
    2. Predictive and machine learning models
    3. Stochastic models
  3. Funds and liquidity transfer pricing
    1. Matched maturity approach
    2. Net present value approach
    3. Replication portfolio approach
    4. Further volume and account-based methods
  4. Risk, capital, and solvency
    1. Market risk calculations
    2. Counterparty default risk calculations
    3. Life and non-life risk calculations
  5. Cash flow modeling
    1. Interest, currency, and economic indicator models
    2. Behavior models
    3. Estimated cash flow processing
  6. Data access
    1. Access to local and remote virtual and physical data models
    2. Adapters for files and selected systems
    3. Views, joins, unions and collections
  7. Enrichment
    1. Derivations and lookups
    2. Currency and unit conversions
    3. Calculations and formulas
  8. Processing control
    1. Process and assumption management
    2. Business error and event management
    3. Report management
  9. Analysis and reporting
    1. Analytic queries and reports
    2. Item variance and reconciliation reports
    3. Optional SAP Analysis for Microsoft Office/Excel frontend
  10. Process extensions
    1. SQL, R, Graph Script, Scala Spark
    2. Java and ABAP
    3. Further custom programs via industry standard interfaces like Web services
Main Use Cases and Sample Content

SAP Profitability and Performance Management is a native digital performance management solution that maintains and executes complex calculations, rules and simulations. Built on SAP HANA, it provides breakthrough real-time business data aggregation capabilities for SAP and non-SAP systems, a high-speed finance and risk calculation engine, and comprehensive simulation and scenario management.

Sample content comprises configuration examples made available to customers to demonstrate best practices and ideas on how to model a use case using SAP Profitability and Performance Management.

SAP Profitability and Performance Management provides the following types of sample content:
Related Information

See also ビジネスユーザ向けアプリケーション

For more information about the available functions in SAP Profitability and Performance Management, see モデリング環境.