This blog lists the KEY SAP NOTES for SAP S/4HANA Margin-Analysis, PA (Profitability Analysis) , cPA, Account-Based COPA. Cost-Based COPA
|Costing-Based COPA||Account Based Copa||Combined COPA||Simplified Profitability Analysis (PA)||MARGIN-ANALYSIS|
|Cost-Based COPA||Account-Based COPA||Combined-COPA||Simplified Profitability Analysis (PA)||Margin-Analysis |
(SAP S/4HANA 1909)
|2344093 – cPA: Combined profitability analysis – implementation guide|
cPA: The combined profitability analysis
FAQ on Combined Profitability Analysis (cPA)
2251257 – PIVB: Overview
|Definition||Costing-based CO-PA : |
Groups revenues and costs according to value fields and applies costing-based valuation approaches. Data is recorded in a dedicated persistency apart from external accounting.
a lot of organizations were using costing-based CO-PA because of the functionalities it offered, such as the cost of goods sold (COGS) split or the price-difference split.
The profitability segment is built from(out of) value fields and characteristics.
|Prior to S/4HANA, in ECC-World, account-based CO-PA was often used to facilitate the reconciliation with the SAP General Ledger|
The profitability segment is built out of G/L accounts and characteristics
|* It can be defined as combination of Account based and Cost based COPA|
* This is designed as “best of both worlds”
Technically this is an enhancement of Costing-based CO-PA with additional persistence considering of 4 new tables CE9XXXX_XX
It eliminates the shortcomings of previous versions regarding the reconciliation with GL, currencies and quantities
Combined CO-PA can be run in addition to Account based or Cost based COPA
cPA can be activated as stand-alone or with Account Based or Costing Based or both activated
cPA has its own configuration menu which may be called with transaction KEPSL
|This is also known as Profitability Analysis in Universal Journal|
It’s a new form of profitability Analysis which is part of the new product SAP S/4HANA and is technically based on the former Account based CO-PA
Reporting not limited by application boundaries
|Margin Analysis : PA within the Universal Journal addressing the needs of internal and external accounting, supporting real-time derivation of reporting dimensions and embedded analytics.|
Margin Analysis is integrated in the universal journal
Margin Analysis now have 99% of costing based functionality + much more, eg same currencies as GL, shares table with GL, ie no reconciliation. Universal Journal: Single source of truth
Concept: “take the best of all worlds” (eg ledger, market segment, coding block, etc.)
One line item table with full detail for all applications – for instant insight & easy extensibility (entry extension or ACDOCA derived)
Data stored only once: no more reconciliation needed – by design Reduction of memory footprint through elimination of redundancy Fast multi-dimensional reporting without replicating data to BW If BW is in place anyway, only one single extractor needed Secondary cost elements are now G / L Multi-dimensional GL accounts
Extension ledger allow you to catch posting related to predictive accounting coming from Sales Order into “Margin Analysis” solution
|ECC||Available||Available||Combined COPA – Solution available only for SAP ECC. |
Available for Migration
|cFIN||Costing-based CO-PA did not gain any new functionalities with SAP S/4HANA Finance. The storage of data still takes place in separate tables and the reconciliation of costing-based CO-PA with the G/L is still a tough challenge||Account-based CO-PA gained much more importance as well as functionality with SAP S/4HANA Finance|
|Treatment of COGS in Simplified PA in cFIN||Before SAP S/4HANA, COGS are posted to one G/L account in accounting only. Details for manufacturing the product such as labor or material costs coming from the costing sheet, were not displayed but now Profitability Analysis has been refined to reflect the standard cost component split on the G/L account|
|Treatment of Production-Variance in Simplified PA in CFIN||Before SAP S/4HANA, Product Cost Variances are posted to one G/L account in accounting only. Details of the variances were not displayed.But now Product Cost Variances, e.g. input price, quantity, scrap, can be defined as accounts and can be used in Profitability Analysis in Universal Journal Standard prices are used for produced materials|
|S/4HANA Cloud||Margin Analysis Mandatory|
|1610||maintenance mode||Discontinued. Replaced by Simplified PA||Available||Available Subsequent Enhancement|
|1709||Maintenance Mode||Discontinued. Replaced by Simplified PA||Available||Available, Subsequent Enhancement|
|1809||1) Statistical sales condition in Account Based COPA in 1809, SAP uses the extension ledger functionality in order to do this|
2) Reporting based on incoming sales orders together with predictive reporting functionality available in account based COPA in 1809. it uses extension ledger
3) COGS split calculation with actual costing available in any ledger for fixed and variable values. (Actual-Costing is OPETIONAL in S/4HANA)
4) Activate Derivation for Items without Profitability Segment for the following account assignments:
(a) Cost Center, (b) Internal Order
(c) Project (d) Sales Order (e) Production Order (f) Maintenance Order
Each-one is a TOPIC in itself and “Key Finance – What’s new in S/4HANA 1809, can be found here
reporting on statistical conditions was one of the final gaps between costing based and account based COPA. With release 1809 this functionality is included, making “account based COPA” even better
Statistical condition values are posted during invoicing. If one has also activated accounting entries for incoming sales order active (Predictive accounting for incoming sales orders in S/4HANA), we wont see the statistical condition values until we post the invoice.
Entries are statistical, they will only show up in reports and apps if we select the appendix ledger.
The provision side of the posting (balance sheet) will carry the material as dimension but not the sales order
|Margin Analysis Recommended|
|1909||Available||Not-Available||Not-Available||Margin Analysis |
|Key SAP-NOTES||2344093 – Implementation Guide on Combined PA|
1955893 – cPA: Die kombinierte Ergebnisrechnung
2349278 – S4TWL – Profitability Analysis
|ECC Customers using COPA||No migration approach for historical data from cost based COPA available|
New GL accounts or sales conditions may be required depending on present status
|Migration approach for historical data from Account based COPA available|
Programs read and migrate profitability segments to the Universal Journal table ACDOCA
|There is no direct migration from costing-based CO-PA to Margin Analysis. Please bear in mind the following general principles as you consider a conversion. These principles may result in a change in the valuation approach and the value flows compared to systems working only with costing-based CO-PA|
1) Revenues and sales deductions are included in Margin Analysis whenever the price conditions are mapped to an account and result in postings to Financial Accounting. Statistical price conditions are included from SAP S/4HANA 1809
2) Cost of goods sold (COGS) postings are assigned to an account/cost element at the time of the goods issue from the warehouse. New functions are available to split the COGS posting to multiple accounts in accordance with the relative weight of the assigned cost components. This split can be updated with the results of actual costing from SAP S/4HANA 1809. Functions to support the matching principle between revenues and COGS are available. In sell-from-stock scenarios the COGS valuation is based on the material’s valuation price at the time of the goods issue. In drop-shipment scenarios the COGS valuation is based on the amount in the supplier invoice
3) Production order variances can be split to multiple accounts to separate scrap, price variances, quantity variances, and so on
10) Variances for production orders are inherently available within Margin Analysis (optionally including a split into variance categories; see above), without any further configuration in the settlement profile
4) Assessment cycles and settlement will update under secondary cost elements. Depending on how many value fields you used before, you may need to define additional cost elements and adjust your cycles/settlement profiles to give you the required detail
5) You may be able to replace some assessment cycles and settlements by having the system derive the characteristics at the time of posting instead of moving them from the cost center, order or project at period close
6) Top-down distribution works in Margin Analysis, but you must include the account/cost element in the selection criteria. Reference data for the distribution must be account-based
7) New fields are included in the universal journal for the invoice quantities. BADIs can be used to convert e.g. the quantity from the invoice to a base unit of measure and from there to a reporting unit. Note that only three additional quantity fields are supported, though convertible quantities (e.g. grams to kilograms) can be handled in the same field
8) It is not possible to summarize G/L fields such as profit center, partner profit center, etc, and account assignments such as WBS element and internal order
9) In many processes the system automatically sets an account assignment to a profitability segment. The availability of this account assignment may prevent the system from deriving default account assignments e. g. from OKB9 or may change the behavior by following the substitutions defined in OKC9. Please refer to note 2516083 for further information
Costing-Based COPA to —> Margin-Analysis
Table of Correspondence of Functions of “Costing-Based” historical-solution COPA & S/4HANA’s Margin-Analysis
|KE28||–>||New top-down Distribution|
|KE24N||–>||CDS based Reporting|
|KE30 (Report Painter)||–>||pre-delivered margin analysis report|
if the customer’s needs are too specific, build a custom report based on a CDS view, CDS based reporting
|CO-PA Field Cat.||–>||ACDOCA Field Cat.|
|Moving from Costing-Based COPA to Margin-Analysis||Analyze existing reporting requirements to understand how market segment reporting is handled today. Also include transfer of profitability information to other systems, including data warehouses and consolidation. During conversion, the system will create columns in the universal journal for all characteristics in the operating concern.|
If costing-based CO-PA is currently used, analyze what workarounds are being used to reconcile the profit and loss statement with costing-based CO-PA to determine whether these will be required in the future. Check whether the functions available with Margin Analysis can already satisfy your reporting requirements or whether you will continue to need costing-based CO-PA for an interim period. If combined Profitability Analysis is currently used, check whether the functions available with Margin Analysis can already satisfy your requirements.
Existing reporting transactions, such as KE30 and KE24, will continue to work, but also investigate possible usage of the Fiori apps to display information by market segment, including additional currencies and data from the extension ledgers
|Things to consider prior to Conversion from Costing-based COPA to Account based COPA||If you only used costing-based CO-PA but no Margin Analysis before the conversion you need to understand when a profitability segment is created in the sales process and how COGS are posted during the delivery. In Margin Analysis the billing and the delivery are recorded as separate documents and both journal entries are assigned to a profitability segment. This means a change to include the assignment to a profitability segment in the COGS posting and the need to change the account determination to select an account/cost element.|
The profitability segment is always derived for the sales order item and referenced during the delivery. Since the delivery document is now assigned to a profitability segment, you will need to ensure that you are updating an account of type P (primary costs and revenues) rather than an account of type N (non-operating expenses) . Check the account determination for transaction GBB (Offsetting Entry for Inventory Posting) and account modification constants VAX and VAY. COGS posted before the conversion are posted without a cost element (type N), but after the conversion with a cost element (type P). To avoid issues, assign an account of type N to account modification VAX and an account of type P to account modification VAY (Margin Analysis works with VAY as a default).
If you only worked with costing-based CO-PA and did not use incoming sales orders (record type A) prior to the migration, you will have open sales order items and delivery documents with no assignment to a profitability segment, even though this is required once Margin Analysis is active and the system will issue a message that the assignment to a profitability segment is missing if you reschedule the sales order item or post a goods issue after the migration. You can use transaction KE4F to derive the missing profitability segments for a small numbers of sales order items, but the use of this transaction is not recommended for large volumes of data. You can run the transaction in parallel over multiple packets of different sales orders (see SAP Note 2225831).
Where sales orders are partially delivered at the time of conversion, it is recommended to cancel the deliveries and create new ones as this will result in the profitability segment being selected with reference to the sales order during delivery. However, this solution is not practical where goods movements have already been posted with reference to the delivery. The COGS for these goods movements will not be visible in Margin Analysis.
If you chooose to use the same G/L account for account modification constants VAX and VAY, you should also cancel all deliveries posted prior to the conversion and create new ones to ensure that the assignment to the profitability segment is correct.
Simplified PA / Combined PA
The reason that the option of combine Profitability Analysis and Simplified Profitability Analysis was not showing on the screen when maintain Operation Concern
- 1955893 –
- 2344093 – Implementation Guide on Combined PA
- 2370649 (“cPA: Switch for the combined profitability analysis is missing”)
- 1955893 –
- 2805090 – Changed display options for types of profitability analysis
- 2805090 – Changed display options for types of profitability analysis
- It seems that with newer releases, the combined COPA will be disabled
- check if the development class KEPSL exists in your system (use transaction SE21 to check).
Check this :
Root-cause: Program bug
Solution: Note 2370649 (“cPA: Switch for the combined profitability analysis is missing”) resolves the program error i.e., ‘the switch for activating Combined COPA is missing in T.Codes KEKE, KEA0”.
Below is solution:
Step1: Execute T.Codes KEKE or KEA0 as usually and confirm that ‘Combined CO-PA’ option is not visible
Step2: Enter the transaction code “PSL” in the Tcode entry area and press enter.
Step3: In order to enable this switch permanently, do the below settings.
Goto SAP Easy Access home screen, choose path “System->User Profile->User Data->Parameters tab->Add new parameter “PSL_VISIBLE” with Parameter value as ‘X’
NOTE: This will automatically reflect in both KEA0, KEKE, OKKP etc tcodes.
TIP: Remember ‘PSL’ from Tcode ‘KEPSL’ for easy recollection.