Overview

Profitability AnalysisProfitability analysis enable us to analyze the profitability of market segments according to multiple characteristics like:· Customers· Regions· Products etc.Market segment is the level where we are going to analyze the profits. It is combinations of characteristics values.In profitability analysis we can analyze contribution margin (Sales - Cost of good sold) as per multiple market segments. Market segment can comprise of product and customer, customer and region, customer, and country etc.Costing Based COPAIn costing based COPA we can evaluate incoming billing documents to automatically determine projected sales deduction and estimated cost estimates.Account Based COPAProfitability analysis will be updated upon posting in general ledger account.CharacteristicsCharacteristics are the reporting dimensions where we want to analyze the profitability like customer, product, or region. Characteristics contain characteristic values, and they are defined at client level.Maximum 69 characteristics can be assigned to one operating concern. (50 - non-fixed and 19 - fixed).Fixed characteristics are company code, controlling area etc.Non-fixed characteristics are region, product group, customer group etc.Value FieldsValue fields represents the key figures like sales quantity, discount, rebate etc. Value fields are required only in costing based Copa. Maximum 200 value fields can be assigned to one operating concern.Profitability Analysis PlanningProfitability analysis planning is used for the creation of sales plan using planning level and packages.Operating ConcernOperating concern is the highest organizational unit in the controlling module which is required for profitability analysis. It records, tracks, and analyzes market related activities and we can do profitability analysis for the market segments.Fiscal year variant should be the same for controlling area and operating concern.TablesCE1: Actual line itemsCE2: Plan line itemsCE3: SummarizationCE4: SegmentDerivationDerivation lets us to find values for certain characteristics automatically based on known values of other characteristics. Derivation strategies are defined to assign characteristics. Derivation types are:· Derivation rule· Table lookup· Move· Clear· User exit / EnhancementRecord TypesA: Incoming sales orderB: Direct posting from FIC: Order settlementD: OH allocationF: Billing document transfer

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