1.

How do you perform Profitability analysis in SAP CO? What are the different types of profitability analysis?

Answer»

SAP CO-PA is used to analyze the market segments classified as products, customers, sales area, business area, etc.

SAP CO Profitability Analysis (CO-PA) is used for the evaluation of Market segments, which is classified according to −

  • products, customers, and orders
  • or any combination of these
  • or Strategic business units such as sales organizations
  • or business areas, with reference to company's profit
  • or contribution margin

There are two types of Profitability Analysis are supported −

  • Costing-based
  • Account-based

Costing-based Profitability Analysis

It is used to group the costs and revenues as per the value fields. It is used to ensure that you access at all times to a complete, short-term profitability report.

Account-based Profitability Analysis

It is used to provide you with a profitability report that is permanently reconciled with financial accounting.

It is mainly used for getting information related to sales, marketing, product management and corporate planning departments to support internal accounting and decision-making.



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