Which functionality should a financial team use to analyze scenarios in SAP Analytics Cloud?

The functionality that a financial team should use to analyze scenarios in SAP Analytics Cloud is What-if analysis. This feature allows users to create various scenarios by changing input values and assumptions, enabling them to see how these changes impact the overall financial outcomes.

What-if analysis is particularly valuable for financial teams as it assists in strategic planning and decision-making. By simulating different scenarios, such as varying sales expenses or adjusting revenue forecasts, financial analysts can better understand potential outcomes and risks. This capability is crucial for making informed decisions about budgeting, forecasting, and resource allocation.

Other options, while useful in their own right, serve different purposes. Allocations focus on distributing costs and revenues among different segments or departments, which does not directly engage with scenario modeling. Rolling forecasts provide a continuous updating approach to forecasting, allowing teams to adjust projections based on recent performance, but they do not facilitate the analysis of multiple hypothetical scenarios. Lastly, private versions allow users to create personal copies of models for experimentation or analysis, but they do not inherently provide the scenario analysis capabilities that What-if analysis offers.

Thus, for scenario analysis specifically, What-if analysis stands out as the most appropriate choice.