As a prerequisite you have to setup user provisioning from SAP Marketing Cloud to SAP Identity Authentication Service as explained in this blog post.
Setup in SAP Analytics Cloud
The following steps show the setup in an SAC system version 2020.2.0 with screenshots. You find the official documentation here.
Logon to your SAC system with a user that has administration authorization.
Go to (Main Menu) System AdministrationApp Integration.
Under Configured Clients, select Add a New OAuth Client.
In the dialog, add a Name and an OAuth client ID. Select API Access as Purpose and User Provisioning as Access. In the security part select Client Credentials and mark confidential. Maintain a secret. You will need the OAuth client ID and secret later on the in the IPS setup.
After saving keep the OAuth Client Token URL in the upper part in mind for setting up SAC in Identity Provisioning Service.
Setup SAC in IPS
The following steps show the setup in an IPS system 2019 with screenshots. You find the official documentation here.
Logon to your IPS system. Open the tile “Target Systems”.
Create a new target system. Save the following coding as json file and upload the file under Define from File. In the coding you will have to exchange <<SAC Host Name>> with your SAP Analytics Cloud Host Name and <<SAC Token URL>> with your OAuth Client Token URL.