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Combined Profitability Analysis (cPA) : Overview

Combined profitability analysis(cPA) is an extended development of the costing-based profitability analysis.

With this new type of profitability analysis SAP promises to provide “the best of both worlds”.it combines the flexibility of the costing-based approach with the adjustability of the account-based type by updating the G/L posting lines that are relevant for the P&L statement in a document in addition to the costing-based value field view.

This means that it is possible to analyze the update of a profit-related transaction (such as the invoicing of a customer or consumption through delivery) both in the structure of a contribution margin scheme divided into value fields and in the form of the accounts to which posting takes place in financial accounting. (SAP Note: 2344093)

In addition to this new functionality for parallel currencies and quantities are also provided by SAP for cPA.

The cPA solves the biggest challenge of costing-based CO-PA i.e. reconciliation with the SAP General Ledger as it has the information from the FI General ledger as well. It uses quantity and value fields and has many more functionality other than functionalities of costing-based CO-PA. we can say that it has all the capabilities to replace the costing-based CO-PA in future.

Combined profitability analysis can be activated using KEA0(maintain operating Concern) or KEKE (CO-PA: Active Flag for profitability analysis)transaction.

KEA0 Transaction

KEKE Transaction

In case you are unable to find the checkbox to activate Combined Profitability analysis in COPA then check and implement 2370649 – cPA: Switch for the combined profitability analysis is missing.

 NOTE :Cross client as well as client specific environment needs to be generated after activation of cPA. The activation of CO-PA structure will generate several new CE9* tables and views used for additional updates of transactions created for Combined profitability analysis.

If the costing-based COPA is already in use then in this scenario, the existing value field structure and the configuration are automatically copied to customizing for the cPA. No setting from a productive account-based profitability analysis are to be copied, if one exists.)

Postings in cPA generates its own documents and the concept of cPA very similar to Costing Based CO-PA i.e. the logic of breaking down the CO-PA transactions into record types. The number ranges must be configured separately in a similar manner for cPA as well. transaction codes for creating are KEN3 and KEN4 for actual and plan line item postings respectively.

Advantages of Combined profitability analysis over Costing based profitability analysis

1:it is integrated with Gl accounting thus the reconciliation issue which was a major challenge in Costing COPA is resolved.

2: We can post to cPA in multiple currency type (we can extend all currency types from company code including the custom currency types (if any).

3: Pivot browser based reporting which is much more useful than the traditional Ke24 reporting.

4: Multiple quantity view i.e. we can update in multiple UOMs.

5: New record type “L” which will post PGI transactions .

In the upcoming blog posts I will share detailed configuration and importance of above points as a comparative difference with existing COPA process and cPA.

Happy Learning 😊

References: SAP NOTE 2344093 (https://launchpad.support.sap.com/#/notes/2344093),

SAP NOTE 2370649(https://launchpad.support.sap.com/#/notes/2370649),

https://blogs.sap.com/2019/07/25/what-is-combined-profitability-analysis/

 

 

 

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