Simple concept of CO-PA
Let say my company wants to analyse sales values from different countries in Asia Pacific Region for a new product launched recently; PA module can be configured in such a way to integrate billing document posting from SD into CO-PA in real time. Direct G/L posting such as non-trade revenue from FI as well as material cost from MM can also be transferred to CO-PA.
Profit analysis (CO-PA) supports cost-of-sales method of accounting.
In Profitability Analysis (CO-PA) you can analyze contribution margin (sales – cost of goods sold) according to market segments; A market segment can comprise of product and customer, customer and region, customer and country, sales region and material group or product brand.
Master data in CO-PA :
1. Operating concern currency = SGD (assuming group consolidated reporting currency is Singapore dollar)
2. Cost elements – are profit and loss accounts which will be mapped to the CO-PA value fields mentioned below.
3. Profit segment corresponds to market segments such as South East Asia Sales Region, Japan Sales Region and North Asia Sales Region.
4. Characteristics and value fields
– Characteristics are already exist in the R/3 System such as customer, product, sales organization, product brand and so on.
– Values fields correspond to sales, discounts, COGS which are actual posting amount transferred from SD, FI and MM.