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Activating Profitability Analysis for Sales Orders
by Paul Ovigele
September 25, 2011
Paul Ovigele, Ovigele Consulting
Controlling Profitability Analysis (CO-PA) allows you to analyze the profitabili
ty of your organization according to various internal and external characteristi
cs. For example you can analyze the profitability according to profit centers (w
hich are usually internally driven) or customer regions (which are usually exter
nally driven). You can also combine these characteristics together so that you c
an analyze (say) the profit center profitability for a certain customer in a cer
tain region. When characteristics are combined for profitability reporting, ther
e are referred to as profitability segments. CO-PA can be updated from various s
ource modules such as the General Ledger, Materials Management, Overhead Cost Ac
counting, Cost Object Controlling, Material Ledger and Project Systems; however,
the main module that is used to update CO-PA is the Sales and Distribution (SD)
module. There are two ways that CO-PA is updated from the SD module:
Billing Documents: This is the most common way of updating CO-PA: When a billing
document is posted, the revenue, cost of sales, surcharges and other values are
posted to CO-PA at the same time, even if the posting in the general ledger occ
urs at a different point (i.e. in the case of cost of sales, where the general l
edger is posted during the post goods issue process).
Sales Orders: This approach is not used very widely; however it is very useful w
hen you want to display expected profitability from sales orders which have not
yet been billed. In order to set this functionality (assuming that you have alre
ady set up the functionality for posting billing documents to CO-PA) you need to
go to transaction KEKF or access the following menu path:
Controlling -> Profitability Analysis -> Flows of Actual Values -> Transfer of I
ncoming Sales Orders -> Activate Transfer of Incoming Sales Orders
For the relevant controlling area, enter one of the activation settings listed b
elow:
1
Active with date of entry
2
Active with Deliv.Date/Billing Plan Deadline (Using KWMENG)
3
Active with Deliv.Date/Billing Plan Deadline (Using KBMENG)
The option that you choose depends on which date you want to register as the pos
ting date on the CO-PA document. When you made the activation, you can go back t
o previously posted sales orders and post them retroactively to CO-PA by using t
ransactions KE4F and KE4T.
One important thing to note is that every CO-PA posting from a sales order is up
dated with record type A . This is the only way that you can distinguish a po sting
from a billing document (which uses record type F ) from a posting from a sales or
der in CO-PA reports. Since a billing document is created from a sales order (an
d hence contains the same characteristics and value fields), you will need to di
stinguish the two by specifying the record type in the General Data Selection of t

he respective report form (transaction KE34/KE35). In fact, if you already have


CO-PA reports created you will need to go back to these reports and specify reco
rd type F for your billing document-based reports otherwise the values in these re
ports will be duplicated (with sales orders and billing documents).
For more information on how to optimize your SAP Financials landscape, I've put
together my top tips in the book 100 Things You Should Know About Financial Acco
unting with SAP.
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