Question: What is predictive accounting in SAP?

SAP Predictive Accounting for sales orders provides an overview of sales orders and their values regardless of billing status. Incoming sales orders are translated into predictive revenue.

What is predictive accounting?

Predictive accounting projects future financial performance using a statistical understanding of an organization’s processes. Predictive accounting seeks to understand the future. … It is based on the observation that much of an organization’s work is repeatable.

What is predictive ledger in SAP?

In the release of S/4HANA 1809, SAP introduced the Prediction and Commitment Extension Ledger, which enables the posting of Sales Orders (before delivery or billing) to the Universal Journal to aid Revenue and profitability Forecasting (which is traditionally accomplished in Costing Based CO-PA, using Record Type A).

What is predictive ledger?

It Provides a comprehensive overview of all sales orders and their values for the time period regardless of billing status. Predictive goods issue and billing documents are posted in prediction ledger. … Any entries posted to prediction ledgers will not be reflected in the Actuals reports.

What is the shift to predictive accounting?

The widening gap between what accountants report and what decision makers need involves the shift from analyzing descriptive historical information to analyzing predictive information, such as budgets and what-if scenarios.

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