Monday, 04 July 2022
Think180 were engaged to simplify the Finance SAP Cost Model including a complex and detailed cost allocation process for a leading Australian Power Company, in alignment with their SAP S/4HANA transformation and integration with Australian Energy Regulator (AER) compliance and reporting.
The existing SAP Cost Model presented a number of challenges that were constraining their capability to generate accountability based management reports across both operating and capital expenditure (incl. revenue). The management team in particular were challenged with the cost allocation processes.
The existing cost allocation process was extremely detailed and granular, and driven by the need to accommodate the complex reporting requirements of the AER, of which the business needs to comply with various service regulations. The original Cost Model that was implemented in the 90’s, presented a number of complexities, including:
In short, it wasn’t fit for purpose.
If you’re facing these same challenges, or are struggling to meet SAP AER regulatory compliance, reach out to us today. We have a proven track record of helping businesses and utilities with our Intelligent Regulatory Compliance offering.
Think180 developed the following guiding principles for the new cost model:
Finally, the most important objective was to find a solution that aligned all transactions and reporting with four key pillars:
Think180’s approach was simple and straightforward.
The new SAP Cost Model was significantly simplified and delivered a new level of capability for the Finance and Regulatory Teams:
The key objective of aligning reporting attributes across planning, budgeting and actuals as well as enabling drill-down reporting was successfully achieved.
The Executive Team, Finance and the AER reporting team now have the visibility and foundational toolset to drive the business into the future.
If your SAP Cost Model and Cost Allocation Processes are not meeting your desired business outcomes, reach out to us. We would love to discuss your challenges and help you to achieve better outcomes.