profitability analysis

[Former Member]

Hi

There are two procedures for profitability analysis: costing-based and account-based.

What are theri functions and when they are used?

[Former Member]

costing-based lets you post imputed values which can't be reconciled to FI. You also can do revaluations for distributuing production variances. Preferred for MFR

account based makes it possible to reconcile to FI. All values come from an FI account. You can't do revaluation.

The use is for revenue and cogs analysis.

pls assign pts to say thanks.

[Former Member]

For profitability analysis, both procedures can be used in parallel. However, before drill-down reporting you must set it to either costing-based or account-based.

Order processing is the focal point of SD activities and contains three principle stages: Ÿ Order entry, delivery with goods issue, and billing.

In costing-based profitability analysis, data is transferred to CO-PA as soon as an order is entered. The system generates a line item with a profitability analysis document for each sales order item. In

the same way, the billing data are also transferred online. The system generates a line item for each billing item.

In account-based profitability analysis, data is transferred to CO-PA when it is posted to FI from SD. This means that when the financial accounting documents are generated for goods issue and in

billing, the system creates line items in CO-PA and transfers the data to the accounting valuation base. Data is not transferred when a sales order is entered because nothing is posted to FI at that stage.

Hope this answers your question.