Profitability analysis
is useful for management decisions making and reporting purpose to know
profitability as per product wise, sales organization wise and other key
criteria. Profitability analysis gives ability to analyze your profitability on
many different segments and characteristics.
Operating
concern:
It is highest hierarchy
in COPA. All controlling areas can be assigned to operating concern. The
operating concern may be used with multiple controlling areas and chart of
accounts.
Costing based
profitability analysis:
This type of
profitability analysis is primarily designed to let you analyze profit quickly
for the purpose of sales management. Its main feature is the use of value
fields, which represent cost and revenue element groups, and automatic
valuation of data using costing methods. The advantage of this method is that
data is always current and therefore provides an effective instrument for
controlling sales.
Account based
profitability analysis:
This type of
profitability analysis enables you to reconcile cost and financial accounting
at any time using accounts. In contrast to costing based profitability
analysis, this type used cost and revenue elements, which gives you a unified
structure for all of accounting. The system posts all revenues and costs to
both financial accounting and profitability analysis at the same time and using
the same value approach.
Key Components in SAP CO-PA
The key components in SAP CO-PA are
as follows −
Actual Posting
It allows you to transfer sales orders and billing
documents from the Sales and Distribution application component to CO-PA in
real time. You can also transfer costs from cost centers, orders and projects,
as well as costs and revenues from direct postings or settle costs from CO to
profitability segment.
Information System
It allows you to analyze existing data from a
profitability standpoint using drill down function in the reporting tool. It
allows you to navigate through a multidimensional data cube using different
functions like drill down or switching hierarchies. The system displays data in
either value fields or accounts, depending on the currently active type of
Profitability Analysis and the type to which the report structure is assigned.
Planning
This allows you to create a sales and profit plan.
Whereas both types of Profitability Analysis can receive actual data in
parallel, there is no common source of planning data. Consequently, you always
plan either in accounts (account-based CO-PA) or in value fields (costing-based
CO-PA). The manual planning function allows you to define planning screens for
your organization. With this you can display reference data in planning,
calculate formulas, create forecasts, and more. You can perform planning at any
level of detail.
Example
You can plan at a higher level, and
have this data distributed top-down automatically. In automatic planning, you
can copy and reevaluate actual or planning data for a large number of
profitability segments at once.
For SAP ERP Training or SAP Profitability Analysis Module Training please visit the links.
For SAP ERP Training or SAP Profitability Analysis Module Training please visit the links.
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