Real-Time Margin Analysis

   Real-Time Margin Analysis
  • Group-Reporting

In a highly competitive business scenario, organizations leave no stone unturned that provides valuable insights to improve their profit margins and stay ahead of the curve. With volatility being constant in the global economy and increasing complexities in doing business, profit margin analysis has become an integral job responsibility of the finance team. Best-in-class organizations recognize it as a decision-making tool that helps to maximize their profit potential.

Furthermore, the margin pressure is higher than ever now largely due to market instabilities and ever-increasing competition. Businesses require finance solutions that enable them to respond proactively to changing market scenarios and improve margins.

The traditional approaches to margin analysis may not be adequate to gain insights into the profitability of market segments. It is no news that automation can dramatically improve the efficiency, speed, and transparency of close processes in large organizations. But to gain deeper insights about margins and get a comprehensive view of the financial health of the organization, businesses need to deploy advanced technological tools with features like embedded analytics, real-time data integration, etc.

VisionTree deploys SAP S/4HANA for Finance Experts to ensure the smooth functioning of finance processes in the intelligent era. It addresses the functional gaps between account and cost-based COPA further through Universal Journal that combines financial and management data.

Since account-based profitability analysis is natively embedded into Universal Journal in S/4HANA, users get access to consistent financial information on margins without any reconciliation efforts. As a step closer to facilitating intelligent financial processes, S/4HANA offers enhanced real-time visibility on margin analysis by:

1)    Allowing split of labor and other cost categories to be directly reported in the profitability analysis without the need for reconciliation at period end

COGS Profitability Analysis

2)    Inclusion of statistical sales conditions to accommodate various costs or discounts during the period and add them to the ledger in line with financial regulations

Sales conditions in profitability analysis

3)    Applying predictive accounting logic to simulate financial posting based on confirmed incoming sales orders

Future Sales order in Analysis

With these functionalities, enterprises get instant, complete and granular profitability analysis, directly integrated with all other financial information specific to the business.

VisionTree works with businesses to turn the challenges of the complex business environment into brand-new opportunities for business growth by leveraging the power of SAP S/4HANA. Our team of experts assists global organizations to deploy these advanced solutions and drive operational excellence and achieve business growth. We help you migrate from the traditional approach of spreadsheets and financial checklists to a single-source-of-truth that unifies financial information.

If you are contemplating strategies to take the close process to the next level and gain valuable insights to improve profit margins, let’s talk! Call us now for a quick consultation on deploying SAP S/4 HANA.

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2019-10-14T16:41:09-06:00By |Categories: Finance Experience|

About the Author:

Vinay Ahuja
More than 22 years of Professional Experience contributing to Enterprise Customers across 18 Countries in the position as Sales Director, Consulting Director, Management Consultant, CIO Advisory, Risk Management Expert & Strategic Investor.