Answer / aris

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.

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.

Two forms of Profitability Analysis are supported: costing-
based and account-based.

Costing-based Profitability Analysis is the form of
profitability analysis that groups costs and revenues
according to value fields and costing-based valuation
approaches, both of which you can define yourself. It
guarantees you access at all times to a complete, short-
term profitability report.
Account-based Profitability Analysis is a form of
profitability analysis organized in accounts and using an
account-based valuation approach. The distinguishing
characteristic of this form is its use of cost and revenue
elements. It provides you with a profitability report that
is permanently reconciled with financial accounting.
You can also use both of these types of CO-PA
simultaneously.

Answer / vinodkumar

copa means particular entity wise see the profit or loss.
entity means product wise,or customer wise,or business area
wise,or company code wise.

Answer / hannah

Hi,
COPA is not similar to other modules in SAP. You may look at
it as a database or even a table with certain
characteristics and key figures.

Several financial and logistic flow arrive in COPA:

* Sales order (if you have activate the uptade in the
custo) : document generate in COPA with document type A.
Every time you have a forecast in a sales orders
* Customer invoice : document type F: every time you
have a billing in SD
* settlement of the cost center : document type D : the
COPA document is generated when you execute the KEU5 transaction
* Settlement of the internal order : document type C :
the COPA document is generated when you execute the KO88
transaction
* direct posting from FI to COPA : document type B

For each flow, you have to do customizing uder SPRO/
controlling / profitability analysis.

Thank You.

Answer / sreeram

CO-PA useful for the companies, you can get the variace
COPA segment reports.
Based on the use requirement, you can generate variance
reports.
CO-PA usefull for organization internal report perpose.
There are two type of COPA's one is account based COPA
Second one is Costing based COPA.

IF you want more flexible reports for the organization you
can follow the costing baded copa.
There you have to at year end reconcillation between
Finance and controlling
If you follow the Account based copa, reconcillation that
much not importent.

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