COPA – Profitability Analysis (CO-PA DOC

Title	COPA – Profitability Analysis (CO-PA
Author	Rithi anupa
Pages	45
File Size	267 KB
File Type	DOC
Total Downloads	29
Total Views	450

Summary

COPA – Profitability Analysis (CO-PA) 1. What is CO-PA? Profitability Analysis (CO-PA) enables you to evaluate market segments, which can be classified according to products, customers, orders or any combination of these or strategic business units, such as sales organizations or business areas, wit...

Description

COPA – Profitabiliity Analyiii CCO PA) 1. Whait ii CO PA? Profitability Analyiii (CO-PPA) enablei you to evaluate markeet iegmentis which can be claiiified according to productis cuitomeris orderi or any combinaton of theie or itrategic buiineii unitis iuch ai ialei organizatoni or buiineii areais with reipect to company'i profit or contributon marginn. For each fows you have to do cuitomizing under SPRO/controlling /profitability analyiiin. COPA meani to iee the profit or loii baied on Entty wiie likee producti or cuitomeri or buiineii area or company coden. Purpoie The aim of the iyitem ii to provide your ialeis markeetngs product management and corporate planning departmenti with informaton to iupport internal accountng and deciiion-Pmakeingn. CO-PPA uieful for the companieis you can get the variance COPA iegment reportin. Baied on the uier requirements you can generate variance reportin. CO-PPA uieful for organizaton internal report purpoien. 2. Two formi of Profitabiliity Analyiii are iupporited: coitnn baied and accounit baied. Accounit baied Profitabiliity Analyiii ii a form of profitability analyiii organized in accounti and uiing an account-Pbaied valuaton approachn. The diitnguiihing characteriitc of thii form ii iti uie of coit and revenue elementin. It providei you with a profitability report that ii permanently reconciled with financial accountngn. Coit of goodi iold ii recognized after goodi are ihipped and before being billedn. Coitnn baied Profitabiliity Analyiii ii the form of profitability analyiii that groupi coiti and revenuei according to value fieldi and coitng-Pbaied valuaton approacheis both of which you can define yourielfn. It guaranteei you acceii at all tmei to a completes ihort-Pterm profitability reportn. Coit of Goodi iold ii recognized after goodi are billed and before being ihippedn. If you want more feeible reporti for the organizaton you can follow the coitng baied copan. Account baied COPA: you have to do year end reconciliaton between Finance and controllingn. If you follow the Account baied copas reconciliaton that much not importantn. 3. Acitual poitnni Accounit baied CO PA: The actual poitngi repreient the moit important iource of informaton in CO-P PAn. Both ialei orderi and billing documenti from the Salei and Diitributon (SD) applicaton component can be traniferred to CO-PPA in real-Ptmen. In additons an interface program ii available to tranifer eeternal data to the R/3 Syitemn. Coiti from coit centeris orderi and projectis ai well ai coiti and revenuei from direct poitngi (G/L account poitngi in FIs orderi received in MM and io on) can alio be traniferred or ietle coiti from CO to profitability iegmentin. Coitnn baied CO PA: In coitng-Pbaied CO-PPAs incoming ialei orderi or billing documenti can be evaluated to automatcally determine antcipated ialei deductoni or coitin. The data can alio be revaluatng periodically to adjuit the initals real-Ptme valuaton or add the actual coiti of goodi manufacturedn. 4. Accountnn Meithodi...