Skip to Content
Contact Us

Profitability and Cost Management Solutions

Understand business drivers with effective profitability and cost management to align resources and strategy

Enhance profitability and cost management with insightful profitability analysis, effective cost control, and accurate product costing. SAP solutions can help you:

  • Develop and deploy budgeted expenses clearly and effectively 
  • Track budgets against actual spend with the flexibility to adjust to changing business conditions
  • Calculate cost of goods manufactured or cost of goods sold 
  • Simulate alternate scenarios that can optimize overall profitability 

Read the one-pager

Solution Capability

Cost Management

Optimize profitability with organizational cost management

Gain a deep understanding of the drivers of cost and the causes of underperformance by achieving a holistic view with SAP solutions for cost management. Boost results while minimizing disruption to core processing with role-based access to massive amounts of critical financial data.
Product Cost Management

Understand in detail the costs & margins incurred by your products in order to successfully manage your product portfolio.

Product Cost Management calculates cost of goods manufactured (COGM) or cost of goods sold (COGS) as broken down by each step of the production process. It uses cost information gathered about the product automatically in other SAP applications. Period close activities include the calculation of work in progress, variances and scrap and the settlement of product costs. The approach to Product Cost Management in the system is determined by the type of manufacturing process. In an engineer-to-order or make-to-order environment, the focus is on controlling the individual sales order. In a make-to-stock environment, the focus is on controlling the individual production or process order. In a repetitive manufacturing environment a period-based controlling may replace the individual order.

Profitability and Cost Analysis

Optimize profitability and cost analysis of products and partners for better decisions

Reach and exceed performance goals and deliver superior service at lower cost by integrating profitability and cost analysis into all operations. With our software, you can:

  • Use embedded analytics to gain real-time access to financial data with flexible drill-down criteria down to line-item levels
  • Help your users improve decision making with immediate, role-based insight into current statuses and flexibility for ad hoc reporting and analysis
Profit and Cost Simulation

Run profit and cost simulation to optimize profitability and resource allocation

Provide better and more actionable business insights with software for profit and cost simulation from SAP. With our software, you can:

  • Perform powerful what-if analysis and simulation scenarios of price, product, and costs by various dimensions such as customers and products
  • Test the impact of your decisions to find the scenarios that offer the greatest business benefits
  • Optimize profitability and resource allocation

Accelerate accounting processes with SAP Digital Business Services

CFOs today are asked to accelerate financial and regulatory reporting and support more detailed business analysis. However, many operational challenges exist. Receiving timely, accurate profitability information is dependent on long batch runs, manual steps, and other dependencies. Not having accurate information makes it difficult to assess different options and make timely business decisions at a time when the speed of business continues to accelerate. So the demands for information to respond to change is increasing. You now have the opportunity to simplify your business, accelerate reporting, and drive business strategy.

The digital economy is having a profound impact on SAP customers and requires a new level of orchestration to evolve your business, unleash full business value, and ensure business continuity. SAP Digital Business Services brings business and IT together to help you reimagine your business using our digital business framework.

Based on over 40 years of experience working with the world’s most progressive organizations and a robust partner ecosystem, SAP Digital Business Services can guide you on the path to innovation and digital transformation, while securing critical business processes.


Reduce business and operations analysis reporting costs by 15-30%*

Improve profit margins through real-time alert monitoring and detailed analysis, resulting in timely decision-making

61% reduction in finance spending on strategic management when product, channel, and profitability is reviewed

37% increase in revenue per employee in organizations with mature cost accounting and analysis

Back to top