Profitability Analysis (CO-PA)

A consequence of the separation between accounting and logistics, and also of the distribution within sales and distribution, is that sales functions are executed in several logistics systems. This means that distribution within the profitability analysis is also necessary.

The profitability analysis initially runs locally in all the sales systems. This means that local profitability analyses can be made in the sales systems (local contribution margin calculations).

One of the distributed systems can take on central functions for the distributed profitability analysis:

  1. The individual results of the distributed profitability analysis can be combined centrally. Thus the overall results of a company can be determined both for the actual data and for the planning data.
    The reporting can be defined differently in the central system and in the decentral systems.
  2. The profit planning may be carried out as a concurrent planning activity between the central and decentral organizations in a company.
    Planning is done both centrally and locally. The central planning and the decentral planning can be compared and adjusted so that they match.
  3. The actual data can be updated centrally. This means that there are assessments from cost centers and direct account assignments from FI documents.
    If necessary, these updates can be sent to the corresponding decentral profitability analysis where they will enter the results.

Distribution of Profitability Analysis

Restrictions

  • Distribution takes place within a single operating concern only:

All profitability analyses that need to work together must belong to the same operating concern.

This means that within an operating concern all the generated structures in the individual R/3 Systems must have the same characteristics and value components.

  • The line items of the profitability analysis are distributed between the R/3 Systems.

Examples:

    • An invoice causes an actual line item to be created in the decentral system. A "copy" of the line item is sent to the central system, where it causes a parallel update to be made.
    • Planned line items are created in the course of central planning. Copies of these line items are sent to the decentral system specified in the customer model and cause a parallel update to be made there.
  • The line items created in the central system can be accumulated there before they are sent. This reduces the subsequent communications overhead.
  • Objects are normally summarized before they are updated in the central R/3 System.
  • Concurrent planning in the central system and the decentral R/3 Systems is usually implemented using differing plan versions.

Example:

The central system performs planning in plan version 0001, the decentral systems use plan version 0002.
Comparison reports are produced covering the different plan versions.

Comparison reports are produced covering the different plan versions.

  • If the profitability analysis needs data from a PPS that is located on another system, the data is sent using IDocs.

The Model Used in the Scenario

Distribution Reference Model for Profitability Analysis

Line items are posted as originals in the logical system in which the "profitability analysis" function type runs.

The "CO-PA reporting" function type is the profitability analysis in a logical system in which a copy of the line item is posted.

The Cpxxxx (xxxx denotes the operating concern) message type flows between "profitability analysis" and "CO-PA reporting".

The "profitability analysis" can specify the postings for which it is responsible by using the plan version and sales organization filter object types.

The "CO-PA reporting" uses the filter object types to specify the postings for which it should receive a copy.

The filter object types for profitability analysis are:

  • operating concern
  • sales organization
  • plan version
  • planning and actual indicators

Various levels of profitability analysis may be performed in a scenario in which the sales activities are distributed. In this example, the central functions are the responsibility of the Hamburg system.

In the simplest case, the system is supplied with the actual data from the decentral sales in Stuttgart. The line items are posted as originals in the decentral system and are sent to the central system in Hamburg in a message. The copy posting is carried out in Hamburg, covering all the sales organizations.

Customer distribution model

There is a second system in Berlin. Central updates to the actual data are sent to this system in addition to the decentral actual data. Thus the system in Berlin gets an overview of the actual data that is entered centrally, such as cost center assessments for rent or electricity.

In this case, Hamburg is doing the "profitability analysis", whilst Berlin is responsible for the "CO-PA reporting".

In addition to these movements of actual data, planning data is also exchanged between the systems in Hamburg and Walldorf. The planning is done in different plan versions, as specified in the reference model:

  • centrally in Hamburg in the plan version 001,
  • decentrally in Walldorf in the plan version 002.

This planning data is then synchronized between the two systems. The systems exchange the "profitability analysis" and "CO-PA reporting" functions with each other.

Master Data to be Distributed

  • The material master (core data)
  • Customer master (core data)
  • The results of the product costing

Control Data to be Distributed

The control data that has to be distributed for this scenario is detailed in the ALE Implementation Guide.