Standard Profitability focuses on contribution analysis, following the flow of cost and revenue funds through all stages of the process to determine where funds are coming from, and where they are going.
A Standard Profitability and Cost Management model enables you to monitor and control direct contribution data for your entire model. The input amounts, the flow of cost and revenue, and the final destination of the funds can be tracked for both cost and revenue to ensure the resources are used to best advantage, and profitability can be easily demonstrated. Calculation results are posted to individual cost centers or accounts.
Data for the Standard Profitability model is housed in both Essbase multidimensional databases and relational databases. You create the model in Performance Management Architect, and define the hierarchy of accounts, activities and operations within your organization using dimensions and dimension members. An AllocationType dimension is imported from Performance Management Architect. This dimension is used to correctly allocate costs and revenue, and store direct allocations and allocation genealogy.
For more information on working with Standard Profitability, see Working with Standard Profitability.