Profitability Analysis - Overview

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, with respect to your company's profit or contribution margin.

To use Profitability Analysis (CO-PA), you have to create structures first. The possible valuation levels are determined in the creation of structures.

To create the structures, you need to define the operating concern as well as the characteristics and value fields belonging to the operating concern.

Characteristics are the criteria in Profitability Analysis (CO-PA) according to which you can analyze your operating results and perform differentiated sales and profit planning.

Value fields are only required in costing‑based Profitability Analysis. These are the fields that contain the currency amounts and quantities that you want to analyze in CO‑PA. They represent the structure of your costs and revenues.

The combination of the values for the characteristics in an operating concern is called a Profitability Segment.

The aim of the system is to provide your sales, marketing, product management and corporate planning departments with information to support internal accounting and decision‑making.

Planning 
Planning in Profitability Analysis allows you to plan sales, revenue and profitability data for any selected profitability segments. You can display the entire planning process of your company in different ways, depending on your business demands.
Flows of Actual Values 
The system uses the flows of actual values to transfer data from other applications to Profitability Analysis (CO-PA). The data is grouped together into operating results.
CO-PA lets you assign all primary, profit-related postings and activities from the FI (G/L account postings), MM (invoice receipts, purchase orders) and SD (sales orders) application components to profitability segments. In addition, you can assign internal activities, assess cost center costs and settle orders, projects and cost objects to profitability segments.

We will create profitability segments after receiving requirements and information.