SAP Profitability and Performance Management Reviews & Insights

SAP Profitability and Performance Management is used in our organization to optimize our business performance and grow our profitability. It's cost-effective and it has been valuable to use in cost estimation, and planning [for] future through its simple to analyze costing models and allocations. The platform is at the root of our financial planning and helps us execute sound plans that assure our productivity.

SAP Profitability and Performance is well suited in an organization/scenario where it aims to grow their profitability and optimize their business performance. It will offer strong financial analytics that are applicable in modern organizations and it will assure improved performance and enable purposeful marketing of your goods/services at prevailing profitable rate.

Currently, we use it to perform complex step down cost allocations, create complex profitability models, and detailed calculations for warranty reserve management and transaction-based accruals. We use the tool to address allocations required to support management reporting and to automate certain business transactional postings that we have done offline in the past. It is used by finance and IT currently. We plan to expand the number of use cases for PAPM in the next year.

PAPM is well suited for use cases requiring complex profitability and cost modeling where large volumes of detailed data are required. It executes calculations and allocation very rapidly at whatever level of detail is required (customer, product number, etc.). PAPM is not a reporting tool. Although it has some basic reporting functionality, the results of the models executed in PAPM need to be written to a HANA database to be accessed by reporting and analytics tools such as SAC, Tableau, or Business Objects.