Then the move to S/4.
The activation of data transfer for Incoming orders would be done at following transaction,All Cost elements can either group into a cost element group or we can define a number of groups for materials, internal activities, business processes, and other overhead costs elements.If you have some real time incident on product costing and profitability analysis please share..To transfer actual data from Order or Project to costing based CO-PA, we need to do define PA transfer structure as in case of posting from FI/MM, in which we define source cost elements to target CO-PA value field and assigned that PA transfer structure to settlement Profile of an order/project as shown in figure below,ProdA / Customer 2 = Proft seg 3Very well documented. When it comes to assessing the profitability of products, the four steps of documentation, external analysis, design, and distribution can help ensure a consistent and credible outcome. I don’t see this reflected in the article. The deck has 60 slides, detailing step by step analysis through the use of business examples. The structure and assignment of operating concern, controlling area and company code is shown in the figure below, Furthermore, this survey indicates that a These condition types actually populate the value fields with values.Sale deduction like commission, cash rebates which are not available in the invoice and calculated in CO-PA as provision. Create Custom PDF ... Home / Sales Accounting / Reporting and Analysis / Margin Analysis / ... Line items will only be included in the calculation if the journal entry is assigned to a profitability segment and the
By following the Pareto 80-20 Rule, they conclude that they should focus on this smaller group of customers that contribute to a larger share of annual revenue.
Customer Profitability Analysis is a tool from managerial accounting that shifts the focus from product line profitability to individual customer profitability.
They are a mix of high- and low-product-profit-margin. The figure below illustrates the record types for the different transactions in costing based CO-PA.The below figure shows the flow of data from other modules in both types of CO-PA,Calculation condition types is populated through calculations on the lines in the costing sheets that represents subtotals of amounts, such as base amount. The two condition type mainly use are base condition type and calculation condition typeProd B / District North = Proft seg 2Some derivation steps are created by the system at generation time, of which some are modifiable.The data can be analyzed by period, or by order or project.Thank you for a great article, especially the clear definition and comparison between account based and costing based CO-PA. You can create profit center according to region ( branch offices, plants) function (production, sales), or product (product ranges, divisions). This presentation is a training document on how to determine the true profitability of a product line. products designed to earn the bank a profit. But, as for the following paragraph, the suggestion in S/4HANA seems to be “account based”If I have any misunderstanding, please ignore me.><Very useful information, thanks for sharing.Derivation supplements or overwrites certain automatically mapped characteristic values.Value Field (only for Costing based CO-PA) defines the key figure you want to see in the report. In the new architecture that is to be avoided. Here customer is the characteristic and revenue/ cost of sales / profit are the value field.In Cost of sales accounting, we segregate all expenses at time of entry functional area/department wise like Production, Sales and Marketing and Research and Development.
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