Integrated Financial Planning (4RC)

This process supports detailed financial planning to set operational targets and to provide a baseline for the valuation of operational processes. It includes:

• Cost and activity planning to determine cost flows and activity rates

• Sales and profitability planning to determine volume and price targets, expected discounts, and cost of goods sold 

• Product cost simulation to determine raw material prices and activity usage

• Project planning to provide a baseline for revenue recognition and for capital expense projects

• Financial statement planning, including profit and loss, balance sheet, and cash flow

Key Process Steps Covered

• Access reference data relevant for planning
• Capture planning assumptions from key stakeholders
• Aggregate plan as basis for financial statement

Benefits

• Calculate activity rates for production and service activities including all relevant cost inputs and activity flows
• Calculate product rates for manufactured products, leveraging detailed information from cost estimates
• Calculate sales profitability including detailed quantities, prices discounts, and cost of goods sold
• Calculate capital expenses

Where is Integrated Financial Planning(4RC) being used?

This Scope item is used in the following way:

• As a support function of Accounting and Financial Close within Finance Scope Item Group
• As a management function of Cost Management and Profitability Analysis within Finance Scope Item Group

Process flow of Integrated Financial Planning (4RC)

• Best Practices of SAP S/4HANA On Premise *1
• Best Practices of SAP S/4HANA Cloud *2
• Best Practices of SAP Analytics Cloud *2
• Best Practices of Robotics Process Automation(RPA) with SAP Leonardo *2

• RISE with SAP
• SAP S/4HANA Cloud
• SAP on Azure
• Business Process Management