SAP Profitability & Cost Management (PCM): Providing a 3-D View of the Activity Drivers that Maximize Success

PCM makes a great complement to BPC to advance the capabilities of your EPM deployment

PCM Column5Traditional income statements provide at-a-glance visibility on revenues and expenses, but they're not the proper tool to explore the enterprise end of the business. Column5 uses SAP Profitability & Cost Management (PCM) to align your organization's operational resources and capacity with demand.

PCM's activity-based costing (ABC) empowers executive and manager decision making by providing rich insights into enterprise performance and action-oriented information. PCM takes the guesswork out of resource allocation and enables you to focus on the products, customers and distribution channels that are most profitable—based on reliable, on-demand scenario modeling for local, regional or global entities.

Clients find that they gain rapid ROI—and facilitate adoption—from a solution investment with an application that is used and owned by business users, not IT. And not only is PCM built to be user-friendly, it integrates seamlessly with SAP and non-SAP solutions for maximum cost effectiveness and swift, hassle-free implementation.

Functional Capabilities

Cost and profitability analysis
  • Model costs and profitability across multiple dimensions via an intuitive interface
  • Analyze complex cost allocations
  • Support large data volumes needed for accurate costing and profit analysis
  • Work with heterogeneous data sets from SAP and non-SAP sources
Costing and allocation
  • Use advanced costing methods – including activity-based costing – to achieve profit targets and comply with various statutory requirements
  • Use multiple drivers to model and allocate costs to products, channels, distribution centers, and legal entities based on actual consumptions of resources
Reporting and simulation
  • Define business reports and dashboards with built-in multi-dimensional analysis and simulation capabilities
  • Leverage flexible options for reporting with high data volumes
  • Simulate a particular legal entity’s impact on profitability, including changes in multiple variables

Technical Capabilities

  • Seamlessly integrate with SAP ERP and other ERP systems


Webcast: Increase Profitability Across the Retail Value Chain w/ PCM
In the intense arena of retail competition, safeguarding your profitability through innovation and differentiation is a major priority. The bottom line is under extreme pressure as prices erode and costs fluctuate. Find out how retailers use SAP PCM (Profitability & Cost Management) to make better bottom line decisions using operational P&Ls (Supplier, SKU, Warehouse, Channel, Store, Customer). Watch a short demonstration of how PCM is creating value in the retail industry. 

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Interested in learning more about PCM and how it can add value to your organization? Contact us!