Best Practice for Allocating Fixed Expenses in Administrative Areas – S/4HANA or SAC Planning?

[fsuwong]

Hi everyone,

I have a question regarding the best approach for distributing fixed expenses in administrative areas, both for budgeting and actuals.

1. Budgeting: Is it recommended to handle the allocation logic within the budgeting module in SAP S/4HANA, or would it be more efficient to manage this in SAP Analytics Cloud (SAC) Planning?
2. Actuals: If the allocation drivers are not recorded in the ERP, would it be better to perform the expense distribution in S/4HANA or directly in SAC Planning?

Looking forward to your insights and best practices.

Thanks!

SAP Analytics Cloud SAP S/4HANA Finance SAP S/4HANA

[thomasboerner]

Hi,

As your tagging with SAP Profitability and Performance Management already indicate rightfully, when allocation keys are not stored in S/4HANA and method consistency is needed for planning and actuals, PaPM Cloud is an ideal solution, especially when data volume gets bigger which is very often the case for instance in service industries such as transportation, banking, insurance, retail, telecommunication, utilities, etc. when companies have got millions of customers and products/services.    

Best regards, Thomas.

[fsuwong]

Thanks for your response! On the other hand, don't you think that SAP Analytics Cloud also has advantages since it natively includes distribution functions, scenario creation, and budgeting? If the customer does not have the SAP PaPM module in their licensing, could they still implement the financial plan, including budget and actuals, using SAC Planning? Could you also elaborate further on the advantages of cost allocations in SAP PaPM? Specifically, how does it compare to SAP Analytics Cloud for Planning in terms of complexity, flexibility, and scalability for cost distribution across different business dimensions?