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SAP – Profitability Analysis – Structure

SAP – Profitability Analysis – Structure

In order to use the Profitability Analysis tool of SAP Controlling Module we need some structure in place. Given below is the list of configuration that is required to start with the CO-PA under SAP.

Operating Concern

This is the basic configuration required for using CO-PA. An Operating Concern is a separate entity that contains data for Profitability Purpose (MIS).

While creation of the Operating Concern we have option to select if we will be using “Costing Based CO-PA” or “Account Based CO-PA“. Before creation of the Operating Concern it becomes important to know the difference between these two.

Once we decide about the method to be used for Profitability Analysis we can create the Operating Concern. This is the first step towards implementing Profitability Analysis.

We can assign multiple Company Codes to one Operating Concern to have a holistic view of the Group profitability.

Characteristics

After creating the Operating Concern, we need to decide upon creation of Characteristics.

Characteristics under CO-PA capture various dimensions which are required for granular reporting. For e.g. Customer, Product Hierarchy etc.

Various Characteristics are already available as a part of standard solution, but we can create additional custom characteristics and write derivation rules for them.

Value Fields

This component of CO-PA comes into picture when we decide to go for “Costing Based PA“.

Under Costing Based PA the Cost Elements are not posted directly to CO-PA (unlike Account Based PA), instead required “Value Fields” area created and a mapped with relevant Cost Elements.

There are various types of values that get generated from various modules and all of them are mapped to Value Fields in some way. This enables system to post the values from FI/CO/SD/MM/PS modules to CO-PA.

Conclusion

This brief information will help you understand about CO-PA in nut shell, please search through the various categories available for further information on SAP.

Have a great day ahead……..

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