Page 5 - SAP Universal Allocation

Motivation of Universal Allocation
Problem Statement - Why do we need a Change?
Organizations struggle to understand their allocation process:
▪ Complex organization structures requiring multiple views (stewardship vs business unit)
▪ Legal and industry challenges
▪ High number of cycles &
segments (copy plan to actual)
▪ Long cycle runtime
▪ Complex knowledge required
▪ Dynamic organization
boundaries
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Analysts struggle to answer allocation questions:
▪ How did this cost get allocated to my area? (Traceability – billed in vs allocated)
▪ How do amounts flow across the chain of cycles and segments?
▪ Are the tracing factors reliable? (SKF/activity type)
▪ Why am I accountable for this? (controllable drivers)
Tools lack simulation capabilities:
▪ How would the result look like in case we merge two legal entities?
▪ Customers want to understand and identify possible financial effects of changed allocation rules on their financial data
▪ Tools are bound by operational requirements (year-to-date problem)
Tools lack state of the art visualizations:
▪ Limited standard reporting ▪ ERP transactions only
based on one cycle at a
time
▪ Difficult to explore the
allocation structure
holistically
▪ Simplify process with guided
procedures, reducing effort of knowledge transfer
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