LEVERAGING SAP ANALYTICS CLOUD FOR FINANCIAL PLANNING: BEST PRACTICE FOR PREDICTIVE P&L AND CASH FLOW FORECASTING

Abstract

The notion of cash flow modeling and profitability planning has evolved since the incorporation of SAP Analytics Cloud (SAC) into the planning of financials. Due to the increased pressure to implement adaptive financial strategies, predictive technologies are now at the forefront of scenario analyses and real-time optimization of operations. This review examines the predictive capabilities of SAC, weighs the pros and cons of traditional versus machine learning-based forecasting models, and provides best practices for actionable implementation. The areas of data integration, model explainability, and system expansion were some of the highlighted challenges of using SAC. Research demonstrates that the exhibits SAC has developed have shown a measurable improvement in the ability to forecast in a responsive manner and in predictability. The review concludes with recommendations for the future development of SAC-based frameworks, as well as a research agenda for future research.