Do we have to plan every balance sheet line?

No. Most companies drive ten to fifteen lines and hold the rest flat or as simple inputs.

Can we keep our existing P&L model?

Usually yes. We extend it with the balance sheet and cash logic rather than rebuild it.

How long does it take?

It depends on the number of entities and the state of master data. We scope it in the first workshop and say so plainly.

Planning

Integrated Financial Planning

P&L, balance sheet and cash as one plan

When revenue, cost, working capital and cash are planned in one model, a change in any of them shows in all of them.

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The problem

Most companies plan the P&L carefully and treat the balance sheet and cash flow as an afterthought, often in a separate spreadsheet reconciled at the end. Debtor days, stock and capex timing are typed in rather than derived, so the cash forecast is a guess dressed as a plan. When the bank or the board asks what a ten percent volume drop does to cash in six months, the answer takes a week.

What good looks like

One set of drivers

Volume, price, cost, payment terms and capex assumptions are entered once and flow to all three statements.

Cash you can defend

Cash flow is derived from the P&L and balance sheet movements, not typed in.

Scenarios in minutes

Change an assumption and see the P&L, balance sheet and cash move together.

A plan that matches actuals

Same chart of accounts, hierarchies and entities as S/4HANA, so plan versus actual needs no mapping.

How we approach it

Step 1

Agree the driver model with finance: which lines are driven, which are input and which are derived.

Step 2

Build the three statement model in SAP Analytics Cloud on a Datasphere layer fed from S/4HANA actuals.

Step 3

Add working capital, capex, debt and tax logic so cash derives from the plan.

Step 4

Run the first planning cycle alongside finance, then hand it over.

Built on

SAP Analytics Cloud

Planning model, data actions, versions and scenarios.

SAP Datasphere

Actuals, master data and hierarchies shared with reporting.

SAP S/4HANA

Ledger, fixed assets and receivables and payables at source.

Standard content we start from

SAP ships Integrated Financial Planning for SAP S/4HANA as SAP Analytics Cloud content: cost centre, product cost, sales and profitability, capex, P&L, balance sheet and cash flow planning chained together, with a simulation cockpit. Opex planning gives activity rates to product cost, product cost gives cost of goods to profitability, and the three statements derive at the end.

We install it, keep the parts of the chain the client needs, and fit it to the client's chart of accounts, hierarchies and working capital terms. Most clients do not need the whole chain on day one.