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How to Calculate Operating Income in SAP S/4Hana

Making the most of your SAP S/4Hana data

What is Operating Income?

Operating income is the profit your company makes from its core business. It is calculated by subtracting operating expenses from operating revenue.

Operating income is a good metric to use when you are trying to determine the health of your company's core business. It is also a good metric to use when you are trying to determine if your company is making a profit or a loss.

For example, if your company's operating income is $10,000,000, your company is making a profit of $10,000,000. If your company's operating income is $5,000,000, your company is making a loss of $5,000,000.

How do you calculate Operating Income in SAP S/4Hana?

It can be difficult to calculate Operating Income directly inside of SAP S/4Hana; that's where Causal comes in.

Causal is a modelling tool which lets you build models on top of your SAP S/4Hana data. You simply connect Causal to your SAP S/4Hana account, and then you can build formulae in Causal to calculate your Operating Income.

What is Causal?

Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.

In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like Operating Income. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.

A comparison of formulae in Excel and Causal

When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.

A gif showing how users can adjust model inputs, and how they're reflected in dashboards

Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like Operating Income.

A gif showing how you can build visuals in Causal

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SAP S/4Hana


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