What is predictive accounting in SAP FI-PRA - Predictive Accounting?

SAP Term: predictive accounting

• Component: FI-PRA

• Component Name: Predictive Accounting

• Description: A process for forecasting accounting figures based on the data from source documents in Sales or other lines of business. The forecasts can be used for reporting and analysis, for example, in the P & L statement. Predictive accounting uses the source document data in the originating line of business to simulate and create predictive journal entries in a prediction ledger. In the case of Sales, sales orders are the source document. Their data is used to create predictive journal entries throughout the process for goods issues, billing documents, reversals, and other changes to these follow-on documents.

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• Key Concepts: 
  Predictive Accounting is a component of the SAP Financials (FI) module. It enables companies to use predictive analytics to identify and analyze patterns in their financial data. This helps them to make better decisions and improve their financial performance. Predictive Accounting also provides insights into the future, allowing companies to plan ahead and anticipate potential risks. 
  
  How to use it: 
  Predictive Accounting can be used to identify trends in financial data, such as sales, expenses, and profits. It can also be used to forecast future performance and identify potential risks. The component provides a range of tools for analyzing data, such as predictive models, machine learning algorithms, and data visualization tools. 
  
  Tips & Tricks: 
  When using Predictive Accounting, it is important to ensure that the data being analyzed is accurate and up-to-date. It is also important to ensure that the predictive models are properly calibrated and that the results are interpreted correctly. 
  
  Related Information: 
  Predictive Accounting is part of the SAP Financials (FI) module. Other components of this module include General Ledger (GL), Accounts Payable (AP), Accounts Receivable (AR), and Cash Management (CM).