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Combined Profitability Analysis (cPA) : key differentiators with existing CO-PA

Profitability analysis (CO-PA) is very effective tool for assessing the profitability of the customer’s market segments according to various dimensions such as Country, customer, or product ,hierarchy etc. , it plays a  huge role in our clients making key business decisions.

In my previous blog post I already written  about the cPA overview . in this  blog post I will cover the key differentiators between the existing CO-PA  and Combined profitability analysis(cPA) . I have also included the relevant settings in cPA wherever possible.

You can read the previous blog post on https://blogs.sap.com/2019/09/25/combined-profitability-analysis-cpa-overview/.

When cPA is compared with account-based CO-PA and Costing based CO-PA, the major differences are:

1: Account-based CO-PA is based on G/L accounts, costing-based CO-PA is based on value fields whereas cPA is based on value fields and it updates Cost elements as well.

2: Account-based CO-PA allows the use of attributed profitability segments, whereas cPA does not support the use of attributed profitability segments. You can read more about this on blog post https://blogs.sap.com/2019/09/06/attributed-profitability-segment-in-co-pa-concept-and-int.-order-scenario-in-s4-hana-1809/

3: Currency Types and Translation:

–         In account-based COPA currencies will be updated as per the settings of posting the financial documents

–         In Costing based CO-PA, we can update up to 3 currency types as defined in operating concern setup.

–         Combined profitability analysis provides much greater flexibility in terms of updating currency (from currency types such as 10,20,custom etc.), valuation(legal , group , profit center )  and exchange rate type(M, G,B , custom etc).  The settings for same can be made using Tcode KEPLC04 or using below menu path

Currency setup is a 3-step process as described and highlighted in below screenshot:

1: Make and entry for currency type to be updated.

2: Navigate to currency translation tab and generate an entry for each record type

3: Finally specify how the system should carry out the translation in specified sequence.

For  the sake of clear understanding the above setting will update the cPA in group currency for record type “F” . Currency translation will happen using exchange rate type “M” and source currency will be document currency.

With the above settings it will be possible to update currency types with different exchange rate types, making it possible to eliminate exchange rate impacts on profitability reports in the cPA tables

4: Integrated with the GL

As discussed in point 1, that only cPA uses both value fields and cost elements, by this way cPA removes the biggest challenge of costing based copa i.e. reconciliation with GL accounting. cPA achieves the integration by assignment the value fields to GL account thus making it feasible for comparison and reconciliation of GL with value fields amount. The Assignment can be made using T-code KEPLC08

5: Multiple quantity View

This is a new feature with cPA with which we can have multiple quantities (Unit of measure ) updated from various sources such as material master , Converting all quantities to a fixed/uniform unit of measure , from the source document or even using some calculation via BAdI implementation .

6: Copa Postings for PGI transactions

In Costings based CO-PA no entry is posted for goods issue transactions. in cPA a new record type “L” is created which will record all the PGI transactions in COPA.  All other records types (i.e. record type A,B,C,D,E,F,G,H,I) will be used exactly as in costing based CO-PA.

7: Pivot browser-based reporting

Pivot browser-based reporting is again an powerful reporting capability available in cPA which provides a much needed flexibility in reporting on the go. These reports can be accessed by transaction KE24N. These reports can be used to access reports of all 3 types of CO-PA . additionally we can access both actual and plan data at same time .

Hope you liked this blog post. Happy learning  🙂

References:

1: https://blogs.sap.com/2019/09/25/combined-profitability-analysis-cpa-overview/

2:https://launchpad.support.sap.com/#/notes/2344093

3:https://blogs.sap.com/2019/09/06/attributed-profitability-segment-in-co-pa-concept-and-int.-order-scenario-in-s4-hana-1809/

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