Profitability Analysis in SAP S/4HANA and subsequently in Central Finance (CFIN)
In this blogs we will talk about the Profitability Analysis options in SAP S/4HANA and then further we will discuss about the product roadmap and handling COPA in SAP Central Finance.
Traditionally there were TWO forms of COPA (definition taken from online sources)
- Account-based CO-PA: The profitability segment is built out of G/L accounts and characteristics. Account-based CO-PA gained much more importance as well as functionality with SAP S/4HANA Finance. Before, account-based CO-PA was often used to facilitate the reconciliation with the SAP General Ledger. With the integration of account-based CO-PA in the Universal Journal to build one single source of truth, SAP recommends that you activate account-based CO-PA with the implementation or upgrade to SAP S/4HANA Finance.
- Costing-based CO-PA: The profitability segment is built out of value fields and characteristics. Before SAP S/4HANA Finance and the Universal Journal, a lot of organizations were using costing-based CO-PA because of the functionalities it offered, such as the cost of goods sold (COGS) split or the price-difference split. Costing-based CO-PA did not gain any new functionalities with SAP S/4HANA Finance. The storage of data still takes place in separate tables and the reconciliation of costing-based CO-PA with the G/L is still a tough challenge.
Types of COPA in SAP S/4HANA
We all know about Account based and Cost based COPA. Lets talk about new areas
What is Combined COPA
- It can be defined as combination of Account based and Cost based COPA
- This is designed as “best of both worlds”
- Technically this is an enhancement of Costing-based CO-PA with additional persistence considering of 4 new tables CE9XXXX_XX
- It eliminates the shortcomings of previous versions regarding the reconciliation with GL, currencies and quantities
- Combined CO-PA can be run in addition to Account based or Cost based COPA
- cPA can be activated as stand-alone or with Account Based or Costing Based or both activated
- cPA has its own configuration menu which may be called with transaction KEPSL
Simplified Profitability Analysis
- This is also known as Profitability Analysis in Universal Journal
- It’s a new form of profitability Analysis which is part of the new product SAP S/4HANA and is technically based on the former Account based CO-PA
- Reporting not limited by application boundaries
Treatment of COGS in Simplified PA
Before SAP S/4HANA, COGS are posted to one G/L account in accounting only. Details for manufacturing the product such as labor or material costs coming from the costing sheet, were not displayed but now Profitability Analysis has been refined to reflect the standard cost component split on the G/L account
Treatment of Production Variances i Simplified COPA
Before SAP S/4HANA, Product Cost Variances are posted to one G/L account in accounting only. Details of the variances were not displayed.But now Product Cost Variances, e.g. input price, quantity, scrap, can be defined as accounts and can be used in Profitability Analysis in Universal Journal Standard prices are used for produced materials
Path for customers with Active COPA
- Customers using Cost based COPA
- No migration approach for historical data from cost based COPA available
- New GL accounts or sales conditions may be required depending on present status
- Customers using Account based COPA
- Migration approach for historical data from Account based COPA available
- Programs read and migrate profitability segments to the Universal Journal table ACDOCA
This concludes the COPA introduction. In my next blog i will talk about the CO-PA in Central Finance
#centralfinance, #simplifiedpa, #nitingupta, @#s4hana, #sap, #universaljournal
Isn't Account based COPA a default in SAP S/4HANA Enterprise Edition from 1610 onwards ?
Can you please explain - Account-based COPA Discontinued in 1610, replaced by "Simplified PA"
Thx & Regards,
Simplified PA is the new version of Account based COPA in SAP S/4HANA.
In SAP S/4HANA SAP gives option for selecting type of COPA and recommendation as Simplified PA (or Account based) as all future innovations are planned on that but its not mandatory to go for that.
Selection of option is dependent on customer.
Hope that helps.
Thanks Nitin Gupta, nice post!
I’m working on S4 HANA 1809 on Premise, what could possibly be the reason that the option of combine Profitability Analysis and Simplified Profitability Analysis was not showing on the screen when maintain Operation Concern, as you can see in the attached picture.
Please refer to SAP Note 1955893, for details about this. Also check if the development class KEPSL exists in your system (use transaction SE21 to check).
There is a complete implementation guide on this in Note 2344093
Please also go trough this one also, in addition to the ones of Rahul Girdhar & CMA Ramesh Kolluru.
2805090 – Changed display options for types of profitability analysis
It seems that with newer releases, the combined COPA will be disabled.
Root-cause: Program bug
Solution: Note 2370649 (“cPA: Switch for the combined profitability analysis is missing”) resolves the program error i.e., ‘the switch for activating Combined COPA is missing in T.Codes KEKE, KEA0”.
Below is solution:
Step1: Execute T.Codes KEKE or KEA0 as usually and confirm that ‘Combined CO-PA’ option is not visible
Step2: Enter the transaction code "PSL" in the Tcode entry area and press enter.
This will enable ‘Switch for Combined CO-PA’ and now you can see all 3 types of CO-PA as shown below:
Step3: In order to enable this switch permanently, do the below settings.
Goto SAP Easy Access home screen, choose path “System->User Profile->User Data->Parameters tab->Add new parameter “PSL_VISIBLE” with Parameter value as ‘X’
NOTE: This will automatically reflect in both KEA0, KEKE, OKKP etc tcodes.
TIP: Remember ‘PSL’ from Tcode ‘KEPSL’ for easy recollection.
Hope this resolves your requirement.
Thanks & Regards,
CMA Ramesh Kolluru
Thanks for the details
What are the options for reporting of CO-PA in S4HANA? Is there an equivalent to KE30 in Fiori or embedded BW?
Very useful to understand combine CO-PA and related background table for it .
at the end of your blog say there will be another blog handling CO-PA in Central Finance. Does this blog exist ?
It seems that the new brand name for Simplified PA is now Margin Analysis.
Concerning combined COPA, this solution is designed only for SAP ECC.
Great document. Thanks