SAP PaPM
SAP Profitability and Performance Management — real-time multi-dimensional profitability analysis and cost allocation on the HANA in-memory platform.
Platform Overview
The HANA-Native Allocation Engine
SAP PaPM is built natively on HANA in-memory — delivering real-time simulation of any allocation scenario in seconds, not hours.
Traditional cost allocation using CO-PA, BI tools, or spreadsheets cannot handle the complexity and speed that modern management accounting demands. SAP PaPM processes millions of allocation steps in real time using HANA's parallel processing — giving CFOs instant answers to "what if we changed this allocation method?"
Real-Time
Results in seconds on HANA
Multi-Dimensional
Any combination of dimensions
Simulation
What-if scenario analysis
Connected
S/4HANA, BW, CO-PA integration
Business Scenarios
What We Implement with PaPM
Profitability Cost Allocation
Allocate shared service, IT, overhead, and support costs across business units, products, customers, and channels using any method.
Global Transfer Pricing
Calculate and document intercompany transfer prices aligned with OECD arm's length principles and local tax requirements.
Pillar Two / BEPS Tax Reporting
Country-by-Country Reporting (CbCR), Pillar Two GloBE calculations, and BEPS compliance reporting with automated data collection.
Plan and Forecast Modelling
Forward-looking profitability simulations with driver-based planning — instantly see the profit impact of operational decisions.
Risk / Capital / Solvency
RAROC, regulatory capital allocation, and solvency modelling for financial institutions — real-time on HANA.
Carbon Footprint Management
Allocate carbon costs across business units, products, and processes to support ESG disclosure and net-zero planning.
Implement SAP PaPM
Our PaPM specialists will assess your profitability and allocation requirements and design the right implementation approach.