Find the Hidden Condition Technique in CO-PA and Fine-Tune Your Profitability Analysis

  • by Mitresh Kundalia, Director — SAP Practice, Quality Systems & Software
  • February 15, 2003
The CO-PA module has an "if...then" way to say when you want or don't want certain kinds of revenues and costs calculated and posted (i.e., SAP's condition technique). It is called "valuation with costing sheet."

Have you ever wished that the CO-PA module had an "if ... then" way to say when you want or don’t want certain kinds of revenues and costs calculated and posted (i.e., SAP’s condition technique)? Guess what? It does, but in CO-PA, it is called "valuation with costing sheet."

The condition technique has the flexibility to meet specific requirements from basic addition to more complex calculations. FI and CO-PA analysts can use the condition technique to supplement information in the CO-PA ledger with estimated, calculated, and additional values. This leads to more accurate profitability analysis, and thus, to a more accurate decisionmaking process. It is not as easy to achieve the same goal with any other accounting tool, as other tools are based on actual transactions.

This functionality is especially suited for recording accruals into your CO-PA ledger that you might not want recorded yet in your G/L, PCA ledger, or Special Purpose Ledger (FI-SL). They include:

  • Commission payable to sales force
  • Freight costs for shipments
  • Cash discounts payable to customers for early payments
  • Outgoing packaging based on number of parts sold
  • Custom duty payable for cross- border shipments
  • Reserves or administration overheads in insurance companies

Mitresh Kundalia

Mitresh Kundalia heads the SAP practice at Quality Systems & Software (www.QSandS.com), a consulting firm specializing in SAP S/4HANA, SAP General Ledger, and complex System Landscape Optimization (SLO)-type reorganizations. Mitresh is widely acknowledged as a leading SAP expert, with multiple publications and an SAP-PRESS book to his credit. He has published more than 50 peer-reviewed articles and white papers, and he has given presentations at various SAP conferences and events. Mitresh is the chief solutions architect of General Ledger Migration Optimizer (GLMO), a leading product to accelerate and jump-start the SAP S/4HANA and SAP General Ledger initiatives; SAP Data Reorganization Optimizer (SDRO), an SLO-type product for managing complex system landscape reorganizations; and Group Currency Activation and Conversion (GCAC), a product suite to manage introduction of parallel currencies and conversion of data in a live SAP system.

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