Profitability Analysis
Encyclopedia
Profitability Analysis (CO-PA) is a module of the enterprise resource planning (ERP) software SAP that allows users to report sales
and profit
data using different customized characteristics (such as customer, country, product) and key figures (such as number of units, price, cost, etc.)
CO-PA derives its data from the SD (Sales and Distribution), MM (Materials Management), and CO (Controlling) modules of SAP, and as such its configuration is closely tied to those modules.
CO-PA was originally designed as a strategic reporting tool rather than as a financial reporting
tool, but soon it began to be used for financial reporting. Because CO-PA recognizes sales differently than the CO and GL modules, this caused some reconciliation issues.
In response, SAP enhanced CO-PA to derive data from the CO and GL modules. This "flavor" of CO-PA is known as "account-based CO-PA", while the original functionality is known as "costing-based CO-PA".
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
and profit
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
data using different customized characteristics (such as customer, country, product) and key figures (such as number of units, price, cost, etc.)
CO-PA derives its data from the SD (Sales and Distribution), MM (Materials Management), and CO (Controlling) modules of SAP, and as such its configuration is closely tied to those modules.
CO-PA was originally designed as a strategic reporting tool rather than as a financial reporting
Financial statements
A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...
tool, but soon it began to be used for financial reporting. Because CO-PA recognizes sales differently than the CO and GL modules, this caused some reconciliation issues.
In response, SAP enhanced CO-PA to derive data from the CO and GL modules. This "flavor" of CO-PA is known as "account-based CO-PA", while the original functionality is known as "costing-based CO-PA".