About SAP PaPM
SAP Profitability and Performance Management solution (SAP PaPM) is used to perform very detailed calculations and simulations on the collected numerical data.
It can be integrated with many different data sources: SAP systems, data warehouses, xls files, or other non-SAP external sources of data. The system works in real time. Based on the user-defined selection criteria or key parameters, it performs calculations according to the adopted assumptions. At each stage of the process, the calculations can be verified in the form of a report or chart.
One way of using the tool is support in closing a reporting period. Based on the collected financial and quantitative data from the specified period of time and data sources, the system performs calculations, whose final step is posting the financial documents.
However, its capabilities do not end there. SAP PaPM allows you to manage costs, increase profitability, and carry out multi-level allocations. It is also possible to perform non-financial calculations. For example, SAP PaPM enables car manufacturer to check the CO2 emissions of a single car from a specific production line in a specific factory.
SAP Profitability and Performace Management entered the SAP family to remedy some of the shortcomings of the financial systems in SAP S/4 HANA. In combination with standard SAP applications, the tool covers 100% of any company’s needs in such areas as IT cost management, business modeling, or corporate tax settlements.
It is a best practice to install SAP PaPM on the S/4 HANA system and connect it to the SAP HANA database.