SAP Margin analysis allows business to analyze profitability of specific market segments such as products, customers, material group and their summarization. The goal is to provide management with contribution margin information to aid in the decision-making process. With S/4HANA, you can perform contribution margin reporting in CO-PA using both costing-based and accounting-based. SAP recommends account-based CO-PA as the default solution, however, both costing-based and account-based CO-PA can co-exist. Only account-based CO-PA updates the universal journal (ACDOCA), and all future innovations will happen with account-based CO-PA. Customers considering both CO-PA approaches may find it difficult to justify costing-based COPA in S/4HANA since most costing-based functionality is now available with accounting-based CO-PA.
Attributed profitability segment feature was introduced in account-based COPA in S/4HANA 1610. With this feature, characteristics from a profitability segment can be read and posted to income statement line items based on the best guess principle. Furthermore, you can use drill-down reporting on posted data. Without attributed profitability segments, you must wait until month-end activities such as settlement, allocation and top-down distribution. With this new CO-PA feature, you can achieve real-time profitability reporting during the month.
In this session, we will cover:
Anand Seetharaju is an SAP S/4HANA Financial and Controlling certified consultant and CPA with more than 20 years of experience including global SAP transformation projects for central finance, profitability analysis, project system, product costing, SAP Material Ledger, cash applications, capital asset management, leasing, global tax, management, and legal reporting.