SAP Cost and Revenue Allocation for Financial Products offers specific functions to structure complex and decoupled allocations models in large organizations and to make them reusable.
Environments
Environments are used to separate one data and calculation model from another. This is typically the case if the models are used for different purposes, or to separate productive and test models. An environment comprises the necessary fields and parameters as well as all functions. An environment can also be used to separate models for several Business Units, for example, Sales-Controlling and Risk-Controlling.
Calculation Units
Calculation units are used to group data and calculation models into logical entities. This is typically the case for closing units like assets, insurance, and so on, which are run by different departments in an organization. It is also used to make data and calculation models reusable, because users can create their own sets of parameters and assumptions per calculation unit and use models for specific scenario calculations without changing the model itself.
Calculation units are tightly connected to the concept of Input, Run, and Output.
Input Templates and Input Sets
In the modeling environment, the modeling user defines, in so-called input templates, which input parameters and input tables are available for the execution in a calculation unit. Typically, these are cost rates or assumed business model points, including default values, and they influence or even control the calculation of the model. The default values can be used as well to test and validate the model. In the execution environment, the user can reuse the defaults. In addition, he can define own so-called input sets, in which the values deviate from the default input set (the input template), for example, increase the cost rate or change the assumed business model points, which then lead to different results.
Run Templates and Run Sets
In the modeling environment, the modeling user creates the complete allocation model and, based on that, he defines in “run template“ the functions that are available for execution in a calculation unit. Typically, these are preconfigured reports or important calculation steps, which should be calculated sequentially on demand. Also, result buffering is automatically enabled for these functions, which is a prerequisite for waterfall calculations.
In the execution environment, the user can run these calculations. By default, the function will use the default input set when executed. In addition, the user can define his/her own Run Sets, which use different input sets (and output sets, see below) for execution.
Output Templates and Output Sets
In the modeling environment, the modeling user defines in so-called output templates, which function and its output is available for analysis in a calculation unit. Typically, these are functions that provide important (interim)-results and thus are relevant for reporting.
In the execution environment, the user can reuse the default output results and analyze their results. In addition, the user can define own output sets and fill them by a run (see run sets above). So he/she can produce different output results using different input sets in a run set.
In the analysis environment the user can use the default reporting functions to analyze output results or to create own reporting functions to use the output results in a different way and format.