SAP Product Lifecycle Costing on Premise and Cloud Edition
Transcript of SAP Product Lifecycle Costing on Premise and Cloud Edition
CUSTOMER
Product Management, SAP SE
June 15th, 2021
SAP Product Lifecycle Costing on Premise and Cloud EditionCalculating future Product Profitability
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The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the
permission of SAP. This presentation is not subject to your license agreement or any other service or subscription
agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any
related presentation, or to develop or release any functionality mentioned therein. This document, or any related
presentation and SAP's strategy and possible future developments, products and or platforms directions and
functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The
information in this document is not a commitment, promise or legal obligation to deliver any material, code or
functionality. This document is provided without a warranty of any kind, either express or implied, including but not
limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This
document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility
for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross
negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
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Agenda
1. Challenges in early product costingChallenges, use cases, and industry relevance
2. Solution Overview & Use CasesSolution Introduction and references
3. Live DemoWhat is New in Cloud Edition 2103 & On Prem 4.3
4. Summary and Roadmap
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Challenges in early costing
01
Challenges, use cases & industry relevance
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Product
Manager
Requirements &
Cost Engineer
Systems
Engineer
Quality &
Compliance Engineer
Production
Engineer
Operations Engineer
Detailed Design OperateProductionEarly EngineeringIdea / Requirements Prototyping
R&D/Engineering - Product Development
Research
Basic Research
Project Management
Costing Templates
R&D Program Management
Project Management for New Products
Resource Management
Budget Costing
Commercial Management
Entitlement Management
R&D Product Management
Product Compliance Quality / Testing
Engineering Engineering Operations
Requirements Management Product Norms Software EngineeringAccess Governance and Identity Management
Market Research Idea Management
Product Standard Compliance
Electronics Engineering Single Sign-on
Portfolio Management Quality AssuranceMechanical / Tools Engineering
Access Monitoring
Product Costing Test & Validation Systems Engineering Data Loss Prevention
Cost TrackingActual vs. Planned Comparison
Lifecycle Costing
Digital Validation Software Operations
Master Data Release Management
Engineering HW / SW / Networks
Master Data Creation
Change / Release Management
R&D/Engineering - Product Development Roles and Responsibilities
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In today´s fast-evolving market, companies are facing increasing pressure to provide innovative, customer-driven products and quotations at competitive prices. Lack of visibility into early product cost hurts profitability downstream.
Companies are challenged by diverse business processes, data and system landscapes making product costing challenging with designs, sourcing, and manufacturing being performed across multiple sites.
Why SAP Product Lifecycle Costing matters
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Innovation Curve
Cost
Doc BOM
eBOM
mBOM
Plant 1
Plant 2
Routing
Start of Production
Concept Design Sourcing Prototyping /
Tool Planning Production
Handover
!
As built
mBOMPlant 1
Plant 2
Ramp Up
Co
st
of
De
sig
n C
ha
ng
es
80% of the product cost are determined during the design stage.
One of the last, untapped cost optimization potentials resides in the early costing process
Requirements
Time
SAP Product
Lifecycle Costing
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Focus use cases for product costing
MOVE DISPOSE
Concept
acquisitionProduction
ramp-upProduction
Start of production
Disposal
Production cost simulation
Engineering or design bill of materials Manufacturing bill of materials
Unstructured data
Pro
duct
matu
rity
Structured data and values available, such as material, bill of materials,
routing, and pricing information
Time
Product or process
development
Inventory valuation (SAP ERP today)Preliminary cost estimate
(new product introduction [NPI] or continuous improvement [CI]
Quotation costing
Lifecycle costing
Concept
acquisitionProduction
ramp-upProduction Disposal
Product or process
development
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High Tech • Contract and Component
Manufacturer• Business and Consumer OEMs
Semiconductor• Medical devices
Industrial machinery and components • Component manufacturer • Project manufacturer • Engineering project Manufacturer
Primary Focus Industries
Aerospace and defense• Aerospace contract manufacturer• OEMs
Mill Products• Metal companies producing metal
products supply automotive
CP / Pharma / Chem• Consumer Products • Pharma • Chem
Automotive• Automotive Suppliers• Automotive OEMs
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Solution Overview
& Use Cases
02
Solution Introduction and references
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SAP Product Lifecycle Costing is a solution to calculate costs and other dimensions for new products
or quotations in an early stage of the product lifecycle, to quickly identify cost drivers along the
lifecycle, and to easily simulate and compare alternatives.
Real timeSAP HANA
User centricMicrosoft Excel–like UI
OpenSAP ERP or S/4HANA,
Microsoft Excel, non SAP
FlexibleCost structure
Two Deployment Options:
On-Premise & Cloud
Integration with SAP ERP or
SAP S/4HANAHigh performance
Boost your company’s profitability in the digital age with SAP Product Lifecycle Costing
Solution Definition
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SAP Product Lifecycle Costing
Costing Model
Quantity
for One
Total
Quantity
10 PC
1 PC 10 PC
4 kg 40 kg
fx 1.1 EA 11 EA
50 min 50 min
10 min 110 min
Total
Cost
Price
per Unit
537.60 € 53.76 € / PC
537.60 € 53.76 € / PC
376.00 € 9.40 € / kg
161.60 € 14.69 € / EA
50.50 € 60.60 € / h
111.10 € 60.60 € / h
Source Seq From Price
ERP 1 1.Jan 60.60 €/h
PLC 2 1.Jul 59.90 €/h
Source Seq From Price
ERP 1 1.Jan 9.50 €/kg
ERP 1 1.Feb 9.40 €/kg
PLC 2 1.Mrz 9.90 €/kg
Any 3 1.Mrz 8.90 €/kg
Any 3 1.Apr 9.20 €/kg
Master
DataSAP ERP
Non-SAPERP
Product
Cost
Estimate 0203
Quantity
Structure
SAP ERP
Non-SAP ERP
01
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Master Data
CostingStructure
Frequent Master Data Replication• Supplier Prices• Hourly Rates• Currency Rates• …
Forecast, Prediction, Machine LearningPrices, Currencies, Volumes, Overheads, …
• Plant• Material• Cost Center• …
AutomationMass Calculation, Integration, Simulations
SAP PLC Costing Model to calculate actual and future cost with volatile, changing, and incomplete information
Reporting, Target Monitoring & Decision Making
Extensions Customer-Specific Logic, Apps & Integrations PLC
Analytics (Embedded & External)
SAP ERP
S/4
HANA
Non-SAP ERP
Bill of
Materials
Production Process (Routing)
Quantity
Structure
Other Cost
Elements
Automation
Extensibility
Machine
Learning
SAP Product Lifecycle Costing
The integrated Costing Hub
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SAP HANA System / SAP Cloud Platform*
C++/AFL
Any Database
SAP ERP or S/4
(on-premise)
HANA Database / HANA Service*
SAP Landscape
Transformation
Replication Server
Transactional Data
optional
Business Logic (Java / JavaScript)
HT
TP
S
Microsoft ®
Excel
optional
Legacy System
optional
Add-In
Framework
REST API
optional
AnalyticsInA
HANA
Analytics
Adapter
SAP Product Lifecycle Costing
High-Level Architecture
Calculation
EngineReplicated Master Data
Analytic Views
XS Advanced / Cloud Foundry*
Local Master Data
SQ
LStored Procedures
(SQL Script)
HTTPS
* Cloud Edition
SAP Product Lifecycle Costing - Frontend Application
(Microsoft Windows application, C#/WPF, auto-updating)
RFC
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Costing Structures
SAP Product Lifecycle Costing Key Capabilities
Flexible, Hierarchical Costing Structures,Roll-Up Capability, Versioning
Variant Matrix, Reference Calculations,Import of BOMs and Routings
Costing
Real-Time SAP ERP Pricing Information,Flexible Price-Determination Logic
Intercompany Costing, Multiple Currencies,Profitability and Margin Calculation
Product Lifecycles
Current and Historic Cost Tracking,Lifecycle Volumes, Surcharges
One-time cost distributionComparison of Current and Historic Costs
Extensibility
Flexible Extensibility Based on APIs, and Add-In Framework
Master Data
Flexible Master Data Creation,Multiple Price Sources, Flexible Costing Sheets,
SAP ERP & S/4HANA Integration,Open Integration to Legacy Systems
User Experience
Spreadsheet-Like Design,Mass Change, Searching, Filtering,
Highlighting, Layouts, Tags, Statuses,Custom Fields and Formulas
Analytics and Reporting
Real-Time Analytic Data, Preconfigured Analytics and Views,
Data for Dashboard Reporting,Simulation of “What-If” Scenarios
SAP Product Lifecycle Costing - Open SAP Course
Advanced Technology
Real-Time Calculation Engine Powered by SAP HANA,Role-Based Authorization,
Multiple Deployment Options,Data Protection and Privacy
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Work with SAP Product Lifecycle CostingCreate Structure – Calculate Parameters – Find Prices – Roll-Up Cost – Simulate Alternatives
Import the costing structure from SAP ERP, Excel or any other data
source such as PTC Windchill or others, or
manually create the costing structure
Simulate cost estimates and create further versions with more detailed and up to date price information
Automatically determine material and activity prices according to a defined
price determination strategy, with SAP ERP, other source or locally maintained
prices, or manually set prices in a calculation
Calculate and save a first cost estimate as initial basis
1
2
3
4
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30+ Customers did and continuously do co-innovate with us
…
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Lifecycle Costing
Preliminary Cost Estimate for
Continuous Improvement
Preliminary Cost Estimate for
New Product Introduction
Quotation Costing
AGCO (agricultural OEM company) improves cost accuracy and profit margins by integrating SAP Product Lifecycle Costing, SAP ERP, and PDM systems to create
one global costing tool. Great user experience and automation increases efficiency and allows cost engineers
to focus on value-added activities. Watch the video
Bühler (special machinery solution provider) manages quote costs in engineer-to-order scenarios faster, with greater cost accuracy, and lower financial risk, by integrating SAP Product Lifecycle Costing with SAP ERP, a quote system, and SAP Configure, Price, and Quote. Watch the video | Read the story
Varian (medical device company) increases product profits and reduces time-to-market by accurately calculating against target costs. Integrated design BOMs authored in CAD design tools and managed in PLM allow full performance traceability for manufacturing, supply optimization steps, and design. Watch the video
Daimler (automotive OEM) improves product margin by costing future product profitability with SAP Product Lifecycle Costing and Machine Learning. Establishing a single costing calculation across all business units has
helped this intelligent enterprise slash product costs for new projects. Watch the video | Read the story
SAP Product Lifecycle Costing Customer Examples
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03Live Demo
What is New in Cloud Edition 2103 & On Prem 4.3
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SAP Product Lifecycle Costing Cloud Edition 2103New Features
• Replicate master data to SAP PLC in a more flexible and automated way
Intercompany Costing
• Different scenarios at the same costing sheet and cost component split
Additional languages
• New language options: Spanish, Italian, French
Side-by-side Comparison
• Compare two calculation versions efficiently and flexibly
Master Data Replication Tool
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SAP Product Lifecycle Costing On Prem Version 4.3New Features
Intercompany Costing
• Different scenarios at the same costing sheet and cost component split
Side-by-side Comparison
• Compare two calculation versions efficiently and flexibly
Additional languages
• New language options: Spanish, Italian, French
Master Data Replication Tool
• Replicate master data to PLC in a more flexible and automated way
Custom fields as links
• Storage external links using custom fields for items and master data
Configure Lifecycle Periods
• Calculate future costs for customizable lifecycle periods
One-time Cost Distribution
• Distribute one-time project costs across the project lifecycle
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Highlights
• Full flexibility in replicating master data from external
systems, including custom defined tables and fields
• Easier maintenance of conversion logic, using the
administration web interface
• Possibility to import data coming from several external
systems
Motivation / Context
• Setting-up replication with SLT is a complex process
• Custom fields and tables are not considered by the SLT
replication
Master Data Replication Tool
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Master Data Replication Tool
Create Configuration
Select the relevant object and click on Configure to configure replication rule
Enable the objects which are relevant for replication
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Master Data Replication Tool
Save Configuration
Input SQL script to define the rules
Preview mapping and data
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Master Data Replication Tool
Schedule Replication
Run replication right away
Define replication frequency on a daily, weekly or monthly basis
See detailed information on scheduled jobs such as status, start time, or end time
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Master Data Replication Tool
Check Logs
Check for moredetailed informationon a replication job
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Master Data Replication Tool
Check Statistics
Check aggregated statistics for replication jobs and the number of replicated records created, updated or deleted for each entry
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Highlights
• Enhancements to Costing Sheet allow now two more costs on
the costing sheet level (beside the Total Cost)
• One cost can contain all the overheads needed for group costing
• Another cost can contain all the overheads needed for
intercompany costing
Motivation / Context
• Requirement to enable to analyse group view and inter-company
view simultaneously
• Requirement to create multiple costing sheet scenarios using a
single costing sheet
Intercompany Costing Scenario (Costing Sheet Enhancements)
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Intercompany Costing Scenario
Set up costing sheet for intercompany costing scenario
Check the boxes to include different rows into costing sheets for different intercompany costing scenarios
Set up rows to calculate different overheads/sums for intercompany scenarios
Use formula to enhance the scenario-specific overhead calculation
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Intercompany Costing Scenario
Choose different scenario at the same costing sheet in a calculation view
Select different scenarios at the same costing sheet
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Intercompany Costing Scenario
Different total cost for a different scenario
Costing sheet is calculating total cost differently according tothe selected scenario
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Intercompany Costing Scenario
Choose different scenario at cost component split
Select different scenariosat cost component split
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Intercompany Costing Scenario
Different scenario presents different cost components
Cost component splitshows total cost according to the scenario
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Highlights
• Leverage a new UI5 application view to:
▪ Select two calculation versions for comparison
▪ Define which fields you want to compare
▪ Create layouts to compare specific fields and
save them for an quick reuse
▪ Export the results of a comparison to MS Excel
Motivation / Context
• Requirement to compare two calculation versions
side-by-side directly in SAP Product Lifecycle Costing
application
Side-by-side Comparison of Calculation Versions
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Side-by-side Comparison of Calculation Versions
Option: select versions to compare directly from Compare Calculation Versions
Find and select calculation versions directly from the comparison screen
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Side-by-side Comparison of Calculation Versions
Save layout for future comparison of calculation versions
Adjust and save layout for future re-use
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Side-by-side Comparison of Calculation Versions
Export results of comparison to MS Excel
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Additional Languages
Motivation / Context• Currently following languages are supported: English, German, Traditional
Chinese, Simplified Chinese, Japanese.
• Business requirement to provide additional languages as well.
Highlights
• Following languages get enabled for SAP Product Lifecycle Costing
solution: Spanish, French, Italian.
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Highlights
• When creating custom fields for items and master data, a new selection called Link is now available in the Data Type dropdown.
• With this you can:
− Create and save custom fields as links in the Administration View
− Visualize, edit, and access custom fields as links in the Calculation View
− Use formulas to create specific custom fields as links
Motivation / Context
• Requirement to store and open external links.
Custom Fields as Links
Store external links using custom fields for items and master data
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Create Custom Fields as Links in Admin View
Maintain a certainlink as defaultvalue
‚Link‘ as data type becomes available
Custom Fields as Links
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Custom Fields as Links
Visualize, edit, and access custom fields as links in the Calculation View
Possible to edit link custom field at calcualtion view
Press ctrl and clickon the link to open it in browser
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Custom Fields as Links
Use formulas to create specific custom fields as links
User formulas to create specific custom fields
Values from custom fieldsCUST_PART1 and ‚CUST_PART2 are concatenated as link
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Highlights
• The Project view got enhanced by two new views.
• You can now:
− Define the frequency of the lifecycle versions generation in the view Lifecycle Periods to: yearly, quarterly, monthly, or custom.
− Users can maintain the name of each lifecycle period.
− Distribute the quantities for each lifecycle period in the view Lifecycle Quantities.
Motivation / Context
• Requirement for calculating the future costs within projects on a more granular level.
Monthly Lifecycle Versions
Calculate future costs for customizable lifecycle periods
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Define lifecycle periods on yearly, quarterly, monthly, or customized basis
Monthly Lifecycle Versions
Lifecycle periods canbe self-defined flexibly
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Maintain lifecycle quantities based on defined lifecycle periods
Monthly Lifecycle Versions
Maintain quantitiesbased on lifecycleperiods
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Calculate future costs based on defined lifecycle periods and lifecycle quantities
Monthly Lifecycle Versions
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Highlights
• You can distribute the one-time costs equally or based on quantity.
• The Project view has been enhanced. Now you can:
− Define one-time costs to be distributed
− Distribute one-time costs equally or based on quantity to selected calculations belonging to the project
− For each calculation, distribute the one-time costs equally or based on quantity throughout the project lifecycle
Motivation / Context
• Requirement to distribute one-time project costs (for example investment cost) across the project lifecycle.
One-time Cost Distribution
Distribute one-time project costs across the project lifecycle
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Maintain and distribute one-time costs for project(s)
One-time Cost Distribution
Costs are distributedbased on user selection
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Assign one-time cost to lifecycle calculations
One-time Cost Distribution
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Assigned one-time costs are included in total cost of lifecycle versions
One-time Cost Distribution
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One-time cost generated as variable item in calculation version(s)
One-time Cost Distribution
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Planned vs actual costs – Analyzing in SAP Analytics Cloud
❑ Calculate early product cost in SAP PLC→ planned cost
❑ Calculate product cost in SAP S/4HANA shortly before SOP (CK11N)→ actual cost
❑ Data from both systems (data sources) will be merged into one story in SAP Analytics Cloud
➔ Compare your initial cost estimation with the final cost calculation
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Summary & Roadmap
04
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Highlights
• Integration capabilities for all enterprise systems, for simplified cost breakdown and business case analysis
• Rich, flexible configuration and extension capabilities
• Simple handling of large and complex costing structures
• Consideration of dynamic volumes and cost factors to calculate entire product lifecycles
• Extensions to support integration with other SAP solutions and legacy systems in your IT landscape
• Timeless, intuitive user interface
• Rich analytics integration with SAP and third-party analytics software solutions
• Early and accurate cost forecasting with temporary or incomplete master data
SAP Product Lifecycle Costing
Differentiate yourself from the Competition
Anderes Bild
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SAP Product Lifecycle CostingStay up to date with our latest innovations in the SAP Roadmap Explorer
Continuous investment in cross topics:
▪ Public backend API
▪ Extensions to add-in-framework
▪ Usability improvements for existing functionalities
▪ Improvement requests from Customer Influence tool
Discover Now
Cloud Edition
Discover Now
On-Premise Edition
Continuous investment in cross topics:
▪ Public backend API
▪ Extensions to add-in-framework
▪ Usability improvements for existing functionalities
▪ Improvement requests from Customer Influence tool
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YouTube Playlist
Where to find more information
Solution in Detail Brochure
SAP Web Site
SAP Help Portal
Free Trial System
Solution Overview Brochure
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Bühler Group AGCO Varian
Customer Stories
Daimler
Contact information:
Katarzyna Maciak
Global Product Manager
SAP Product Lifecycle Costing
Thank you.
Thorsten Mahlenbrei
Presales Support
SAP Product Lifecycle Costing
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In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
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functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
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functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
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