COPA – migration to S4HANA & Activation of Account Based COPA.

 Please check SAP Note # 2946436 for technical implications of activating Account Based
COPA.
 Like I said before use of Margin Analysis depends more on Business Requirement rather
technical. So please do consult with your client.
 We have done the project on S4H 1909 . So we followed mostly SAP Simplification. Few
points are given below:

1. Revenue and Sales Deduction are already included within Margin Analysis
incase of real Sales Condition type. Margin Analysis now also includes
statistical conditions. As this was one of the deficiency of Account Based
COPA previously.
2. COGS posting flow into Margin Analysis during PGI.
3. Top down distribution also works with Margin Analysis but you need to
check the allocation part as it needs to be in reference to the Cost Element.

 COGS Split into various accounts like Material L, Labour , O/H. The assignment to multiple GL
account as per cost component structure. You need to create splitting scheme.

Regarding Splitting of Price difference into difference account you need to consider local
(GAAP) about how it is going to be reported. I remember we had to do small enhancement
in order to fetch the value. Unless your business is not too much concerned about Variance
reporting or the occurrence of Price Variance is not so often then you can bypass. You can
also break the variance account to one target account. Well it again depends on the
requirement. Finally during Production Order settlement the entry flows to universal ledger.

Important Configuration in S4HANA to be considered for Account Based:

1. Account Determination for COGS Split
2. Account Determination for Production Variance Split
3. Additional Quantity Fields for Profitability Analysis
4. Transfer of Statistical Condition Types to Account-Based Profitability Analysis
5. Transfer of Incoming Sales Orders to Account-Based Profitability Analysis
6. Derivation of Attributed Profitability Segments
  Following Migration settings :
1. Create separate Document type for COPA Migration
2. Creation of migration G/L Accounts for each value field (There can be many to
many relationship between value fields in Cost based COPA and G/L accounts for
Account based COPA) : Post GL with cost element to post entry in order to
nullify impact to cost based COPA using value fields.
For contra posting to Account Based COPA using cost elements also consider
migration of GL accounts without Cost Element
3. Entries from CE1XXXX table line items need to be migrated by making postings
as below:
Cost Element GL DR/CR (Posting to Cost based COPA)
Migration GL DR/CR (Posting to Account based COPA)
4. In such postings, the characteristics definition can be leveraged from the
profitability segment definition from CE4XXXX matching profitability segment
from CE1XXXX line item. Since we didn’t find any strong SAP solution , so we
developed BAPI to make migration postings in mass in controlled manner.
Please check the data volume company code wise during migration. I think
company code wise migration is recommended for better control over migration
execution. Make sure FI period is opened as on the migration transfer date. Like
I mentioned our previous client wanted to migrate in the middle of the year as a
part of system conversion process so we had to take care additional issues.
Migration during year end is highly recommended.
5. After migration we need to do reconciliation between Cost Based and newly
migrated Account based. You can also check following report for verification.
T Code : S_PLO_86000030 for Balance matching, KE30, KE91 (for line items)
So do extract report before migration and then verify with post migration data.

Conclusion: Please do have you business involvement right through the process involving Data flow
identification ,mapping confirmation, reposting , reconciliation etc…

We also found Note # 2176823 very helpful during our implementation.