Profitability Analysis with SAP S/4HANA

Kathrin Schmalzing

• Publisher: SAP PRESS
• Year: 2020
• Print ISBN: 9781493219810
• eBook ISBN: 9781493219827
• Edition: 2
• Topic: Computer Science
• Subtopic: Computer Science General
• Index: Computer Science

Whether you're running account-based or costing-based CO-PA, this is your one-stop shop for profitability analysis with SAP S/4HANA! Get the step-by-step instructions you need for configuring master data, operating concerns, value flows, and setting up your system. From planning to reporting, this guide has the key to each step of your profitability operations. With this guide to CO-PA, you're ready for SAP S/4HANA!

a. Configuration
Customize CO-PA to your business needs! Configure your operating concerns and characteristics. From actual data flow to data enrichment, learn how to set up account-based (now known as margin analysis) or costing-based in SAP S/4HANA work for you.
b. User Operations
Once your system is set up, you can get down to business. Follow detailed steps and screenshots for sales, COGS, and overhead cost planning in SAP S/4HANA. Get the details you need, for account-based planning and costing-based planning, this guide has you covered.
c. Reporting
Master the basics of profitability reporting. Then learn how to utilize tools like predictive accounting for your profitability analysis, and explore CDS views, ABAP reports, and SAP HANA Live.

1) Master data
2) Organizational data
3) Planning
4) Reporting
5) Actual value flows
6) Cost center assessment
7) Data enrichment
8) Account-based CO-PA (margin analysis)
9) Costing-based CO-PA
10) SAP Fiori and SAP GUI

1 Introduction to Profitability Analysis

Profitability analysis in SAP S/4HANA has been revolutionized. In this chapter, you’ll get an overview of the latest changes and all the information you need to understand the different types of profitability analysis.

Profitability analysis is a subcomponent of controlling with SAP S/4HANA. Profitability analysis in SAP S/4HANA is used to display the internal view of accounting that supports managers in their decision-making. The data in profitability analysis is enriched with numerous characteristics derived from the value flow of predecessor documents and therefore can be displayed and analyzed from various angles. In SAP ERP, there are two types of Profitability Analysis (CO-PA): account-based and costing-based. In SAP S/4HANA, on the other hand, you’ll find costing-based profitability analysis and margin analysis. This chapter describes the differences between costing-based profitability analysis and margin analysis both from functional and technical viewpoints. You’ll learn which type of profitability analysis is your go-to for the future.

1.1 Purpose of Profitability Analysis

Processing and analyzing data is one of the most important tasks in a company. Data is required to know how a company is doing and to make both short-term and long-term decisions. There are two recipients for data who have different interests, which is why there are two data different views as well:

• External view
  Defined by the commercial law and accounting principles, the external view gives an overview of the company’s assets (e.g., cash, inventory, accounts receivables), liabilities (e.g., accounts payable, loans payable, accruals), and the owner’s equity.
  Recipients include executive management, owners, banks, and investors.
• Internal view
  Defined by management requirements for the evaluation of business areas and profit centers, the internal view assigns costs to the responsible cost objects and identifies the most profitable products and services, as well as areas where overspending occurs.
  Recipients include executive management, business area owners, and product owners.

Traditional data models in enterprise resource (ERP) systems generally focus on the collection of data, aggregations, and reporting for the external view of profitability.

Today, the need for information in real time as well as flexibility in profitability continues to increase. Enterprises have different requirements now as they face a more competitive and innovative market. Profitability is measured at the lowest possible level to improve decision-making processes, to react quickly to changes in the market, and to even be a step ahead. Those new requirements are reasons for the recent developments and changes in the profitability analysis. Thanks to real-time analytics, this instant market information gives you better and faster insights and allows for better de...

Table of contents

• Dear Reader
• Notes on Usage
• Table of Contents
•   Introduction
• 1   Introduction to Profitability Analysis
• 2   Configuring the Operating Concern and Basic Settings for Profitability Analysis
• 3   Configuring Characteristics
• 4   Configuring Value Fields and Quantity Fields for Costing-Based Profitability Analysis
• 5   Configuring Value Flows for Margin Analysis
• 6   Configuring Value Flow for Costing-Based Profitability Analysis
• 7   Planning
• 8   Reporting
• A   Changes to the Data Model
• B   Additional Sources of Information
• C   The Author
• Index
• Service Pages
• Legal Notes