SAP Profitability Analysis:
Profitability analysis is useful for management decisions making and reporting purpose to know profitability as per product wise, sales organization wise and other key criteria. Profitability analysis gives ability to analyze your profitability on many different segments and characteristics.
It is highest hierarchy in COPA. All controlling areas can be assigned to operating concern. The operating concern may be used with multiple controlling areas and chart of accounts.
Costing based profitability analysis:
This type of profitability analysis is primarily designed to let you analyze profit quickly for the purpose of sales management. Its main feature is the use of value fields, which represent cost and revenue element groups, and automatic valuation of data using costing methods. The advantage of this method is that data is always current and therefore provides an effective instrument for controlling sales.
Account based profitability analysis:
This type of profitability analysis enables you to reconcile cost and financial accounting at any time using accounts. In contrast to costing based profitability analysis, this type used cost and revenue elements, which gives you a unified structure for all of accounting. The system posts all revenues and costs to both financial accounting and profitability analysis at the same time and using the same value approach.
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