What is SAP PaPM ?

What is PaPM SAP Profitability and Performance Management?

PaPM is a business data aggregator created with the main objective to integrate at high speed different data sources, actually you can integrate entire data warehouses and data from various ERP systems, so that you can clean, enrich, transform and run calculations to create forecasts, simulations and reporting.

Because PaPM is a data aggregator gathering and processing data happens at high speed and because of that replication of the data is avoided.

To accomplish this PaPM uses :

CDS Views for SAP S/4HANA

Open ODS Views for BW

Calc Views for FSDP ( SAP Financial Services Data Platform )

The advantages you get when you are Certified are clear:

  • You will have better job opportunities

  • Differentiate yourself in the labour market

  • Higher wages

  • Access to the international market demanding skilled SAP consultants

  • Access to some projects that require certified-only consultants

Who created PaPM Profitability and Performance Management? (History of SAP PaPM)

It is important for you to know that PAPM was created not by SAP but by MSG Global and the first first customer was an insurance company.

The main request made by this customer was that the software was capable of performing high-speed allocations of costs and revenues to more than 31,000,000 contracts which translates to billions of records.

This first customer participates then in the financial services industry and as you know financial services is all about data. With customers in the millions the data records hit billions and because of that it was necessary a solution with the possibility to process billions of records at high-speed so it is possible to calculate profitability but there was much at stake and actually this insurance company asked for the possibility to calculate profitability not only that the customer level but at the contract level so as you can imagine the tool had to be really powerful.

How can I become an SAP PaPM Consultant ?

To become an SAP PaPM Consultant you need to learn how to carry out Modeling tasks such as the creation of Environments, of PaPM Functions to read data, then you should be able to create functions to enrich and join data so that all the "raw data" can be then processed with calculations, derivations and allocations to produce reports, forecasts and queries that can be consumed by end-users such as managers. You can start learning today for free if you enroll using the next button or contact us for more information using help.sapexperts@gmail.com.

What are the main components of PaPM?

The three main components of PAPM are the business data aggregator, the calculation engine and finally the simulation application.

One of the biggest selling points of the tool is the capability to load data from different sources. So it is not limited to SAP software you can really bring data from any source:

Non-sap ERPs

Web Services

Remote databases (Oracle, Apache HADOOP, Teradata, etc.)

Even flat files such as a CSV file with important data you might want to use for your scenarios

SAP Consultants are in charge of modeling activities. If you are an SAP Consultant or you want to become an SAP PaPM consultant you have to focus on becoming an expert at creating environments and functions.

The function types that you will have to master are:

  • Allocation

  • Calculation

  • Calculation Unit

  • Conversion

  • Description

  • Derivation

  • File Adapter

  • Flow Modeling

  • Funds Transfer Pricing

  • Join

  • Model BW

  • Model Table

  • Model View

  • Model RDL

  • Query

  • Remote Function Adapter

  • Transfer Structure

  • Valuation

  • View

  • Writer

Will SAP offer PaPM templates?

Yes, actually for each template (sample content) we have SAP Notes such as:

SAP Note 2615001 - Sample content for Agile Plan and Forecast Modeling

SAP Note 2650880 - Sample content for Airline Profitability and Cost Management

SAP Note 2650984 - Sample content for Chemicals Profitability and Cost Management

SAP Note 2650985 - SAP Note for Sample Content for Consumer Products Profitability and Cost Management

SAP Note 2614017 - SAP Note for Sample Content for Funds and Liquidity Transfer Pricing

SAP Note 2650979 - High Tech Profitability and Cost Management Template

SAP Note 2614974 - Sample content for IT Cost Management

SAP Note 2650986 - Sample content for Life Sciences Profitability and Cost Management

SAP Note 2614930 - Profitability and Cost Management

SAP Note 2650987 - Railways, Travel and Transportation Profitability and Cost Management

SAP Note 2650980 - Telecommunication Profitability and Cost Management

SAP Note 2650694 - Product and Service Costing with Operational Transfer Pricing

SAP Note 2650964 - Value Chain Sustainability Management

Useful acronyms for SAP PaPM

PaPM - Profitability and Performance Management

RDL - Results Data Layer

SAP FSDP - Financial Services Data Platform

SAP FSDM - Financial Services Data Management

SAP FRDP - Finance and Risk Data Platform

BA - Bank Analyzer

IA - Insurance Analyzer

BECF - Best Estimate Cash Flow

FS-PER - Financial Services Performance

SAP PaPM release

  • PaPM release 3.0 SP11 was released in the second half of 2020.

  • SAP PaPM is built on SAP HANA.

Is it really that hard to become an SAP consultant?

No, you can start you career right now if you enroll in our training and start learning right away at your own pace. Just click the Enroll now button:

What are the main apps for PaPM?

My Environments Fiori app - With this app you will create your own Environments. Later you can edit them and create all the functions you might need:


Start learning SAP PaPM for free. Click here

SAP Profitability and Performance Management

Start learning SAP PaPM for free. Click here