“Integrated Financial Planning for SAP S/4HANA and S/4HANA Cloud” is the content package for SAP Analytics Cloud that covers the complete area of financial planning. The blog post Integrated Financial Planning – An Overview provides a single entry point for all information (documentation, presentations, videos, blog posts) around this topic.
With this blog post now, I want to outline the mathematical background of this content package and help to create a deep understanding of the ideas behind it. “Integrated Financial Planning” is not only called “integrated” because it integrates with SAP S/4HANA, SAP IBP and other business planning related content packages. It is integrated in itself because it brings together several SAC models (OPEX planning, Product cost planning, profitability planning, CAPEX planning, financial statement planning) in a consistent way. As an example, the costs within the different models sum up into the respective cost lines in the aggregated P&L model.
Integrated Financial Planning is based on input-output relations in a network of objects: A unit of a finished product needs a certain unit of semi-finished goods, a unit of a semi-finished good needs some machine hours from a production cost center to be produced, for each machine hour the production cost center needs some kWh electricity from a supporting cost center and so on. In the same way as quantity flow backwards in this network of objects, the costs flow in the opposite direction.
Linear algebra with matrix and vector calculations is a suitable instrument to describe and calculate these kinds of network models. In the attached document I will demonstrate this in detail and provide a homogeneous and consistent framework as the basis for financial planning. This background information also could help customers, partners and consultants to implement and potentially adapt the content package in a consistent way.
“Integrated Financial Planning for SAP S/4HANA and S/4HANA Cloud” is the content package for SAP Analytics Cloud that covers the complete area of financial planning. The blog post Integrated Financial Planning – An Overview provides a single entry point for all information (documentation, presentations, videos, blog posts) around this topic.With this blog post now, I want to outline the mathematical background of this content package and help to create a deep understanding of the ideas behind it. “Integrated Financial Planning” is not only called “integrated” because it integrates with SAP S/4HANA, SAP IBP and other business planning related content packages. It is integrated in itself because it brings together several SAC models (OPEX planning, Product cost planning, profitability planning, CAPEX planning, financial statement planning) in a consistent way. As an example, the costs within the different models sum up into the respective cost lines in the aggregated P&L model.Integrated Financial Planning is based on input-output relations in a network of objects: A unit of a finished product needs a certain unit of semi-finished goods, a unit of a semi-finished good needs some machine hours from a production cost center to be produced, for each machine hour the production cost center needs some kWh electricity from a supporting cost center and so on. In the same way as quantity flow backwards in this network of objects, the costs flow in the opposite direction. Linear algebra with matrix and vector calculations is a suitable instrument to describe and calculate these kinds of network models. In the attached document I will demonstrate this in detail and provide a homogeneous and consistent framework as the basis for financial planning. This background information also could help customers, partners and consultants to implement and potentially adapt the content package in a consistent way. Read More Technology Blogs by SAP articles
#SAP
#SAPTechnologyblog
