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SAP Note 69384 - Information: Account-based Profitability Analysis

Note Language: English Version: 7 Validity:
Valid Since 02.09.2005

Summary
Symptom
As of Release 3.0, two different types of Profitability Analysis (CO-PA) can be used: costing-based or account-based Profitability Analysis. The differences in function between the two Profitability Analysis types are pointed out in the documentation in the context of the appropriate function. However, there is no summary of the differences in function or the different Customizing settings which are possible or required during an implementation. This note is intended to provide such a summary. The note is intended for all users (users, consultants and so on) who require information on the differences between the costing-based and the account-based Profitability Analysis types. Note: At present this note does not cover all eventualities exhaustively, but it will be updated occasionally with additional information.

Other terms
Customizing, transfer of actual data, sales and profit planning, profitability report, KE093, account-based Profitability Analysis,

Reason and Prerequisites Solution
A. Comparison (overview)

COSTING-BASED PROFITABILITY ANALYSIS -------------------------------OBJECTIVE

ACCOUNT-BASED PROFITABILITY ANALYSIS --------------------------------

o profitability and sales accounting o evaluation of market segments (for example, customers, product groups, sales areas) and corporate units (for example, division, sales organization) with regard to their profit or contribution margins o calculation of profits procedures - cost-of-sales accounting - interim and reconciled sales report - periodic and transaction-based allocation - Profitability Analysis on the basis of full and direct costs o posted and costing-based values o account-based values

o can be reconciled with FI for account groups (revenues, sales deductions, costs of goods
02.07.2013

o always reconciled with FI on account level

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FI CO.forecast procedure .Exporting (Excel.simulation o profit planning . Mail) 02.top-down distribution .) o user-definable summarization levels FUNCTIONS o transfer of profit relevant o business transactions from SD. imputed costs and sales deductions) o sales and profit planning .simulation o profit analysis by means of 'interactive drill-down reporting' .top-down distribution .07. revaluation . database schema .flexible layout .flexible hierarchies . and so on) DATA STRUCTURES o definition of operating concerns with fixed characteristics and user-defined characteristics and value fields o cumulative storage by posting periods and weeks o storage in operating concern currency (as of Release 4. CO.flexible layout .SAP Note 69384 . sales deductions and costs organized by value fields) transfer of profit-relevant activities from SD.object list/ranking lists.0 also optional in company code currency if req.exception reporting . company code currency and transaction currency o Derivation of characteristics from master data or using derivation rules o Realignments also for data that is already posted o Valuation (Costs of goods manufactured.periodic distribution .navigation between reports . MM (revenues.forecast procedure .valuation. MM (revenues.key figure systems .drill-down .2013 Page 2 of 8 . FI.periodic distribution .ABC analyses .Report Painter . sales deductions and costs organized by accounts) o definition of operating concerns with fixed and userdefined characteristics o cumulative storage by posting periods o controlling area currency. Winword.Information: Account-based Profitability Analysis manufactured.

Therefore the primary function of the Costing-based Profitability Analysis is to offer all the information required to make decisions in in the area of sales and profitability accounting. the profitability report is organized according to cost and revenue elements or cost and revenue element groups . Objective The Costing-based Profitability Analysis is primarily intended to provide a short-term profit and loss statement for sales management. in parallel with the costing-based Profitability Analysis. Consequently. Functional differences in detail 2. as a 'reconciliation bridge' between the Financial Accounting and costing-based Profitability Analysis. with costing-based sales deductions and standard cost of goods manufactured). The operating concern determines the characteristics and therefore the structuring of the market segments for the costing-based and the account-based Profitability Analysis. The advantage of this procedure is that the data is always up to date. an invoice that is always reconciled with Financial Accounting at account level is available to the user.Information: Account-based Profitability Analysis B. in particular the cost of sales at goods issue is updated in the Profitability Analysis .1. This means that the account-based Profitability Analysis can be used. If you are using both types of Profitability Analysis you have the option of deactivating individual 02. Values are organizef according to accounts in both the account-based Profitability Analysis and Financial Accounting.07. Using the account-based Profitability Analysis.2013 Page 3 of 8 .1 Definition of the operating concern 2. Explanation of the differences between the costing-based and the account-based Profitability Analysis 1. One of the main functions of the costing-based Profitability Analysis is the valuation of the planned sales volumes or the sales volume transferred from billing or from incoming orders using costing-based values (for example.1. Both account-based Profitability Analysis and the costing-based Profitability Analysis display results differentiated according to market segments that are defined by combinations of characteristics.1 Basic data 2.and therefore at the same time as the posting in Financial Accounting. In the account-based Profitability Analysis. All costs and revenues are transferred to the accounts-based values in the CO-PA system. the controlling area in account-based Profitability Analysis is also subordinated to the operating concern in hierarchical form.1 Relationship between operating concern and controlling area As in the costing-based Profitability Analysis. one or more controlling areas can be assigned to an operating concern.in the same way as Overhead Cost Controlling and Financial Accounting.SAP Note 69384 .1. 2.

the fiscal year variant of the operating concern and the fiscal year variants of all assigned controlling areas must correspond.1.1. If you are only using the account-based Profitability Analysis. Value fields. you have the option of activating the update of data in calendar weeks at totals records level (segment level).3 Determining according to the data structure There are no differences in functions between costing-based and account-based Profitability Analysis as regards the definition of the characteristics which are to be used in Profitability Analysis when planning. 2. you cannot define any value fields when you define the operating concern. an 'operating concern currency' must be determined when you maintain the operating concern.1. data is updated simultaneously in the transaction currency.07.2013 Page 4 of 8 .2 Settings for the operating concern 2. The controlling areas can have different currencies and different charts of accounts. cross-controlling area planning is not supported either. the operating concern currency is unimportant.2 Data retention in calendar weeks In the costing-based Profitability Analysis. 02.SAP Note 69384 .2 Derivation of characteristics For the derivation of characteristics. however. if you are using both types of Profitability Analysis. you can only evaluate data according to calendar weeks in the line item reporting (selection "Date created").1. 2.1. For the account-based Profitability Analysis. In the same way. Here. This means that in the account-based Profitability Analysis.1. you can use it to support a weekly schedule in sales planning. the data in CO-PA is managed both in the period type of the posting periods and according to calendar weeks. The data volume for the account-based Profitability Analysis can be reduced considerably in this way. When you activate this function.1. are only required in the costing-based Profitability Analysis. the same functions are available in the costing-based and the account-based Profitability Analysis. the value fields defined are only relevant for the costing-based Profitability Analysis. as in the costing-based Profitability Analysis. you cannot create cross-controlling area evaluations in the account-based Profitability Analysis. However. in reporting or the direct account assignment. since the charts of accounts may differ.1. In particular. 2.2.1 Currencies For the costing-based Profitability Analysis. This function is not available in the account-based Profitability Analysis. You have the option of entering different settings for actual data and planning data. Unlike in the costing-based Profitability Analysis.1. 2.Information: Account-based Profitability Analysis characteristics for the account-based Profitability Analysis (see the "Usage of characteristics" function in the Customizing). company code currency and controlling area currency.2. Data is stored in this currency in teh costing-based Profitability Analysis.

3 Transfer of billing data When billing in thecosting-based Profitability Analysis (or to be more specific: when the billing document is released to the Financial Accounting).2. In account-based Profitability Analysis. (Problems occur in Release 3.1 Sales order receipts In the costing-based Profitability Analysis.07.2 Actual data flow The costing-based and the account-based Profitability Analysis is generally updated in the case of all actual postings relevant to the profit. sales deductions and imputed costs are transferred. and they are updated in Profitability Analysis. settlements of orders). If the goods issue and the corresponding billing document are in another posting period. See Note 70159). the value that is posted as stock change in FI when the goods are issued for the sales order is transferred simultaneously to Profitability Analysis. the costs of sales are determined by a valuation with a material price and/or a product costing. including ('real') values relevant to Financial Accounting as well as values not relevant to it ('statistical' values). revenues. the posted values are always transferred from the primary document (goods issue posting.SAP Note 69384 . you must create the stock change account as a cost element in CO.2013 Page 5 of 8 . The value of stock change.* for an inter-company business and for goods issue posting for delivery note items for which there are no corresponding sales document items. on the other hand. providing the respective Profitability Analysis type is active.2 Goods issues for the sales order When you transfer billing data in the costing-based Profitability Analysis. you can transfer the sales order receipts to Profitability Analysis so that an early profit forecast can be carried out. For this. can also be transferred to the costing-based Profitability Analysis during billing (by using condition type VPRS).2. The cost of goods manufactured is transferred to the account-based Profitability Analysis when the goods issue value is transferred when the 02. When billing. differences emerge between the FI and CO-PA. This function is not available in the account-based Profitability Analysis.3 Valuation In the account-based Profitability Analysis.1. In these cases. providing the corresponding Profitability Analysis type is active. A valuation does not occur in CO-PA. allocations within the CO system. 2. all data relevent to Financial Accounting is transferred into account-based Profitability Analysis (revenues. billing. 2. 2. A valuation does not take place. updated in the Financial Accounting (FI) when the goods are issued. determine a profitability segment number via a substitution exit. sales deductions relevant to Financial Accounting and imputed costs).2. 2. direct posting from FI/MM. Cost of goods manufactured and other possible imputed costs are now assigned by the valuation in the Profitability Analysis.Information: Account-based Profitability Analysis 2.

amounts and quantities can be entered by cost element for any market segments and user-selectable planning levels.4. the update of the settlement data is carried out under the settlement cost elements which are defined by the corresponding settlement structure. 2.6 Internal activity allocation When you allocate internal activities of cost centers to profitability segments. 2. In the account-based Profitability Analysis. no kind of valuation functions are available.4 Reporting 2.2013 Page 6 of 8 . If you are using both types of Profitability Analysis. 2.SAP Note 69384 .2. in the cycle maintenance you can select whether the distribution base is to be determined from the data of the costing-based Profitability Analysis or from the data of the account-based Profitability Analysis. with (SD) and imputed costs sales and profit planning for the costing-based is the valuation of entered planning values. 2. However.3. 2.2.1 Profitability report 02.3.5 Order and project settlement When you settle orders or projects.4 Assessment of the cost center costs In the costing-based Profitability Analysis. the value fields for updating the costing-based Profitability Analysis are determined by the PA transfer structure which is assigned to the order (see Settlement rule --> Parameter --> PA transfer structure).07. In the account-based Profitability Analysis. The "CO" PA transfer structure is not used for the account-based Profitability Analysis.3 Sales and profit planning 2.2. The update of the values from activity allocation in the account-based Profitability Analysis is carried out under the allocation cost element which is assigned to the corresponding activity type.Information: Account-based Profitability Analysis goods are issued.3 Complete planning (in preparation) 2. In the account-based Profitability Analysis.3. A PA transfer structure is not required for the settlement in the account-based Profitability Analysis.2 Dialog planning (in preparation) 2.1 General functions A main function of the Profitability Analysis the sales volume. such as price lists of the Sales and Distribution system and sales deductions. which you must specify during the cycle maintenance. under which the sending cost center is also credited. the update is carried out under the assessment cost element. the cost center costs are updated in a value field. the value field for updating costing-based Profitability Analysis is defined by the "CO" PA transfer structure.

The following restriction applies to the the account-based Profitability Analysis: In the account-based Profitability Analysis. the detail screens of the costing-based line item are displayed. you must have specified a unique characteristic value for every cell of a report (intervals are not permitted). in the form definition or report definition. for a report in the transaction currency.2013 Page 7 of 8 . The amounts can be displayed in different currencies in a report for the account-based Profitability Analysis: . you can define a hierarchy for the "cost element" characteristic by entering a cost element group (see the "Assign hierarchy" function in the Customizing of CO-PA). a characteristic specifying the currency must be entered as a required entry field for each currency for which you would like a report. the transaction currency (foreign currency) characteristic is required. reports and line item layout each apply to one type of Profitability Analysis. there is no "Cost element" characteristic in the Costing-based Profitability Analysis.company code currency .controlling area currency . you can only report on active characteristics (see 'Usage of characteristics' in the Customizing) (in the costing-based Profitability Analysis.4. whereas in the account-based Profitability Analysis the system goes to the general CO document display. either to the costing-based Profitability Analysis or to the account-based Profitability Analysis. the system uses the standard layout. you must be aware of the following special features when you use account-based Profitability Analysis: o Forms. in other words. the "Company code" characteristic is compulsory. you can also display non-active characteristics in the line-item report). You can define separate line item layouts for the account-based Profitability Analysis.07. o o 2. you can use variables that are only supplied with a characteristic when they are executed. The detail display in the account-based Profitability Analysis now differs from the detail display in the costing-based Profitability Analysis. for example.transaction currency. When you define a form or a basic report.SAP Note 69384 . however. By the time you run the report at the latest.5 Tools 02. However. 2. If you want a report to be made in the company code currency.Information: Account-based Profitability Analysis In the reporting.2 Line-item report You can use the line item list both for the account-based Profitability Analysis and for the costing-based Profitability Analysis. In the costing-based Profitability Analysis. In the In account-based Profitability Analysis. If you do not specify a layout.

5.5.2 Archiving (in preparation) 2.07.1 Authorization check The authorization objects. which are used to assign authorizations for combinations of characteristics.5.2005 13:27:08 German Recommendations/additional info Consulting CO-PA Profitability Analysis The Note is release-independent Related Notes Number 672255 398631 120937 74486 Short Text Shortened fiscal year/changing fiscal periods INFO: CO-PC-OBJ (settlement) EDI:No profitability segmt number for invoice recpt INFO: Overview of consulting notes for CO-PA 02. All FI document line items which have been assigned to a profitability segment. All other Profitability Analysis authorization objects are effective for both types of Profitability Analysis. 2. Header Data Release Status: Released on: Master Language: Priority: Category: Primary Component: Released for Customer 02. automatically generate a line item in the account-based Profitability Analysis as well. must be created separately for the account-based and for the costing-based Profitability Analysis.09.Information: Account-based Profitability Analysis 2. The long text of error message KE093 explains why this restriction applies (=> reconciliation).5.4 External data transfer The only way you can transfer actual external/legacy data into the account-based Profitability Analysis is to post the corresponding data to the Financial Accounting.SAP Note 69384 .3 Allocation changes (in preparation) 2.2013 Page 8 of 8 .