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What is IBP usage in SAP FICO?

Hello Team,

Could please provide elaborate explanation on usage of IBP for SAP FICO.

How it will be beneficial for business.Thanks in advance for your help.

Regards,

Pavan

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1 Answer

  • Best Answer
    Oct 22, 2018 at 02:56 PM

    Hi,

    SAP finance team will play a role in IBP S&OP and supply planning processes.

    SAP ECC currency conversion rates transferred to IBP and calculate the receipts, inventory, inventory holding cost rates. Based on these values actual vs target cost spending on goods manufacture, goods purchases, goods transfer (DC to Customer or Plant to DC or DC to DC), inventory costs.

    Yearly budgets can be uploaded into cost key figures and planning can be executed at cost relevant key figures.

    Financial reports can be generated based on cost key figures and analytics dashboards and charts (revenue, profit) represented at a high level and drill down to lower levels.

    Example:

    Highest demand fulfillment rate associated with the cost at a central location (DC).

    Inventory holding cost rate at a certain location (DC, Plant)

    Budget comparison (Planned vs Actual)

    Actual and forecasted key figures cost

    The optimizer considers the input cost parameters to generate an optimal supply plan (Profit Maximization and Delivery Maximization). Some additional parameters required to set up from the finance side like late delivery cost.

    Best Regards,

    Lingaiah

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