Things to Consider Before Activating Account-Based CO-PA

  • by Paul Ovigele, ERP Financials Consultant
  • March 16, 2015
Discover the pros and cons of account-based profitability analysis (CO-PA) and what you need to look out for before implementing it.

As a reporting tool, profitability analysis (CO-PA) is very effective for evaluating the profitability of your market segments according to various dimensions such as geography, customer, or product type.

There are two types of CO-PA: costing based and account based. However, most businesses that use CO-PA implement the costing-based version. In fact when CO-PA is mentioned, that person is usually referring to costing-based CO-PA. This may be because costing-based CO-PA was the first to be introduced by SAP, mainly for sales and contribution margin reporting, whereas account-based CO-PA was subsequently introduced to deal with reconciliation with the general ledger.

Note
In this tip, when I refer to the general ledger, I mean the classic general ledger and the SAP General Ledger. However, Simple Finance only uses the SAP General Ledger. In Simple Finance, you move all data into the same document as you migrate, so you don't need to reconcile data with the classic general ledger anymore.

Paul Ovigele

Paul Ovigele is the founder of ERPfixers, an online micro-consulting platform (http://www.erpfixers.com). He has worked as an ERP financials consultant since 1997 in both North America and Europe, specializing in implementing the FI and CO modules along with their integrated areas for companies in industries such as consumer goods, chemicals, logistics, pharmaceuticals, apparel and entertainment. Paul has delivered numerous training sessions to finance professionals at both the functional and managerial levels, and he has presented at various SAP financials conferences around the world.

 

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