<![CDATA[Space for SAP enthusiasts - Profitability Analysis (CO-PA)]]>Mon, 14 Mar 2016 19:52:05 +0530Weebly<![CDATA[Characteristics]]>Tue, 09 Jun 2015 18:33:26 GMThttp://mentorsap.weebly.com/profitability-analysis-co-pa/characteristicsDefinition

As the name suggests, this field represent various characters (Criteria) in Profitability Analysis. Characteristics help us to plan data, book actuals and present both of them in Profitability Analysis.

The Characteristics with Value Fields form Profitability Segment.


Characteristics play a very important role when it comes to reporting of corporate profitability at dimension which are not possible in various Financial Reports available. For e.g. The financial reports can give you profitability at Profit Centre, Business Area and Company Code level, but these three dimensions do not suffice when it comes to Management Information System reports (MIS). 

The reports required by management require far more details than what financial reporting system can provide. For e.g. the management may want to see the budget versus actual sales for a particular region for a period. Then going further may want to compare the same over last year and find the variance in order to take decisions related to the marketing strategy to be devised.

In order to fulfill many such requirement of management, SAP has provided Characteristics in Profitability Analysis.

Now we will see how to create the Characteristics.

Implementation Consideration

IMG Path: Controlling > Profitability Analysis > Structures > Define Operating Concern > Maintain Characteristics

The screen looks like shown below:
Create Characteristics - 2
PictureCreate Characteristics - 1
Existing Characteristics

Here on the screen you can see that SAP has provided Display and Change button under Choose Characteristics. This is because SAP comes with standard characteristics. There characteristics can be assigned to your operating concern. In addition to the existing Characteristics if any characteristic is required, we will have to create the same.

Before we create a new characteristics, please go through the complete list of available characteristics and see if they can fulfill your requirement. In order to view the characteristics follow

Select option: All Characteristics and click on Display
   This will give you the list of all available characteristics

Select Option:  Chars from operating concern and enter your operating concern and click on display
   This will give you the list of characteristics extended to your operating concern

Once you are through with the available characteristics and are sure that the existing characteristics may not help you in the matter, then go for customised characteristic. 

Enter the code for new Characteristics (The code for customised characteristics has to start with WW, so here we will try to create a new Characteristic WW100) and click on Create/Change and the system will show an information, click on OK and go ahead and the system will look as shown below:

Click on OK and the system will navigate you to the following screen where we can enter the information about this customised characteristic:
Enter the description, text, heading for the characteristic. 

Select Data Type "CHAR" which is Alphanumeric and enter the length for the characteristic. The maximum length allowed by the system is 18 characters.

Now click on Activate and the system will ask you to confirm the following
Click on Automatic and the system will create new check tables for this field and at the same time system will create data element and domain for the same:
Here you can see that the system has created new characteristic with all the relevant check tables and data related things.

Now once we have created the custom characteristic, it will start appearing in the list of total characteristics
Now we are through with one part of the customising. 

The next part is to assign the newly created characteristic to Operating Concern.

IMG Path: Controlling > Profitability Analysis > Structures > Define Operating Concern > Maintain Operating Concern

This is the crucial part of this customising, so please take utmost care in this.

Enter into maintain operating concern and click on the pencil button which will make the operating concern available for change. The system will show a warning "Caution! You are changing/deleting cross-client settings" this is a warning from SAP that the part what we are going to touch may have serious impact if not configured properly.  Click on OK and the system will allow you to do modifications in operating concern as below:
Click on change button under Data structure and system will show you the the fields unassigned to this operating concern in BLACK colour and the assigned fields in GREY colour. Please assign the fields carefully as it becomes difficult (almost impossible to remove this assignment later and is not advisable as well).
Select the new characteristic WW100 and click transfer the same to Data structure by click on the arrow pointing to left side.

This will assign the characteristic to the operating concern and it will change to grey colour. Now click on activate and the changes will be saved and activated. Now click on back button and the system will take us back to the operating concern

But here the system will ask us whether we want to generate the environment. Generation of environment in CO-PA takes place when any changes are done to the data structure. Click yes here and the system will take some time to generate the environment (PLEASE DO NOT INTERRUPT THE SYSTEM) let the generation get over completely.

Once environment is generated, we are done with the creation and assignment of characteristic to operating concern

The changes done by us include some changes which are specific to the client and some cross client. Hence, visit all the clients and check if the operating concern has status as active at both cross client and specific client level. If the status is not active, kindly activate the same and start working on COPA.

Hope this has helped you to understand how characteristics creation works in SAP.


<![CDATA[Value Fields]]>Tue, 09 Jun 2015 16:39:47 GMThttp://mentorsap.weebly.com/profitability-analysis-co-pa/value-fieldsDefinition

The name in itself suggests, Value fields contain values which flow from various modules during document posting.

Value fields are only required in costing-based Profitability Analysis. These are the fields that contain the currency amounts and quantities that you want to analyze in CO-PA. They represent the structure of your costs and revenues. 

The Characteristics with Value Fields form Profitability Segment.

We have already  gone through how Characteristics under CO-PA helps management get various reports which are not possible with Financial Reporting.

This report (CO-PA) has various dimensions recorded using Characteristics like Profit Centre, Customer, Sales Organisation, Product Hierarchy etc. Value Fields in this reporting help us by recording various values like Sales Quantities, Revenue, Discounts allowed, COGS etc.

The value fields by storing all the values help us draw the profitability report as per our requirement. We can also match the CO-PA Profit & Loss with Finance Profit & Loss for instance.

Implementation Consideration

Creating Value Field

SAP comes with standard Value Fields already provided by SAP, many of these help us in mapping many fields from Sales & Distribution and also for Assessment from Cost centre to CO-PA. Some of the standard Value Fields are like Sales Quantity, Revenue, Variance etc.

If above Value Fields are not sufficient for the mapping of various values, we can always go for creation of a new Value Field. The customised Value Field has to begin with "VV" this is SAP requirement.

So now we will go ahead with creation of new Value Fields

IMG Path: Controlling > Profitability Analysis > Structures > Define Operating Concern > Maintain Value Fields

SAP navigates you to the following screen:
Create Value Fields
Here you can see that the system allows us to view the existing Value Fields. The value fields are stored at client level, hence, once value field can be used in more than one operating concern, if any. But it is always advisable to first go through the available Value Fields. Hence, select "All Value Fields" and click on Display, this will present you the list of all available Value Fields. 

Once go through the available Value fields and verify if any of the value fields can help you. If yes, then we need to assign the same to the Operating Concern. We will see how to assign value fields to an Operating Concern in this post later.

As said earlier, we will first go through how to create a new Value Field.

Enter the name of New Value Field (as said earlier start the name with VV) so here we will create a Value Field VV901 and click on Create/Change button and the system will show you warning "Caution: You are processing cross-client data structures" accept this warning and proceed further. The system will navigate you to the following screen:
Value Field
Enter the Description and Short Text for the Value Field.

Here we can define how aggregation is done. 

In the information system and in planning for Profitability Analysis (CO-PA), period values are usually added together. That is, the aggregation rule is SUM. Maintain Sum here.

Apart from this, we have to specify if  this Value Field will store Amounts or Quantities. Select the appropriate type of Value Field and we are done with this part.

Now next step in this process is to Activate the Value Field, so click on Activate Button and the system will activate and the system will create the Value Field and relevant Data Element for the same.

We can see how various information appears in the Value Field after creation:
Value Field
Once we have created a Value Field, the next step is to assign the same to the Operating Concern.

IMG Path: Controlling > Profitability Analysis > Structures > Define Operating Concern > Maintain Operating Concern

Every Operating Concern has a Data Structure (Field Catalogue) which contains list of all the available Value Fields, these can be assigned to the Operating Concern.

System will navigate you to the following screen:
Value Field Assignment
The screen will appear with display, click on pencil button and the system will show you warning "Caution! You are changing/deleting cross-client settings" click on OK and the system will allow you to do changes to the Data Structure. 

Click on Change button and the system will  navigate you to the following screen:
Value Field Assignment
Here we have to select the newly created Value Field i.e. VV901 and click on the left arrow button, this will assign the Value Field to the operating concern.

Note: Value Fields not assigned to the Operating Concern appear in black colour, and the value fields assigned appear in grey colour. After clicking on the left arrow button, the field turns grey. 

Now once the value field is assigned to the Operating Concern, click on Activate button and system will activate the Data Structure. Please make sure that you activate the Data Structure, as non activation will deactivate the operating concern. The system shows the message that the Operating Concern is activated.

Now click on back button and the system will ask you if you wish to Regenerate the operating concern environment, Click YES and the system will regenerate the operating concern environment. This process regenerates various tables of Profitability Analysis.
After regeneration of Operating Concern Environment, the Value Field is ready for use for us.

After regeneration of operating concern environment, please ensure that the status of operating concern is Green it means no errors. If there is any error, please go through the log and resolve the error and regenerate the environment again. As without the status being no error, system does not allow you to post any document in COPA.

Reference Material
Value Fields
<![CDATA[Operating Concern]]>Thu, 14 May 2015 07:15:46 GMThttp://mentorsap.weebly.com/profitability-analysis-co-pa/operating-concernDefinition
Operating concern represents a part of an organization for which the sales market is structured in a uniform manner. It is an organization unit in accounting which structures an enterprise from the Profitability Analysis point of view.

An operating concern is divided logically into two parts viz. Characteristics and Value Fields. 

Before we go ahead on Operating Concern, I would brief you about the two parts involved:

In this, the Characteristics store the various dimensions of a transaction like Customer Code, Sales Organisation, Distribution Channel, Profit Centre. In other words, we can say that the characteristics store various master data involved and numbers like Sales Order, involved in the transaction. The characteristics in the end act as a criteria to analyse reports.

Value Fields
As suggested by the name itself, the value fields store values involved in the transaction. It contains for e.g. the Basic Price, discounts, quantities etc. for sales invoice and in case of production order it contains the value of production variance.

Implementation Consideration

Defining Operating Concern
IMG Path:  Enterprise Structure > Definition > Controlling > Create Operating Concern

Here we create a new operating concern and enter the description for the same.

The operating concern is not linked directly to any company code. It links itself to a company code through Controlling area. In other words we may say that the Operating concern and Company codes are linked to Controlling area and Controlling Area acts as an organisational unit which links both operating concern and company code.

IMG Path:  Enterprise Structure > Assignment > Controlling > Assign controlling area to operating concern

Under this step we enter the corresponding controlling area for the operating concern

Once we have assigned the Operating concern to controlling area, we should move ahead into operating concern configuration:
IMG Path:  Controlling > Profitability Analysis > Structures > Define Operating Concern > Maintain Operating Concern

In this activity we define and maintain the operating concern we are going to use.

The configuration involves following:

Data structure
The data structure determines the structure of the profitability segments that you can analyze and how costs and revenues are organized. All information in the data structure definition is valid for all clients. If you use the operating concern in more than one client, you still only need to define the data structure once. You then need to set the attributes in each client individually. In data structure we can maintain Value Fields and Characteristics.

Costing Based CO-PA or Account Based CO-PA
Here we can select if this is Costing Based CO-PA or Account Based CO-PA.

Under attributes we maintain the Operating Area currency. Here we can maintain the currency that we want CO-PA reporting in. With the operating area currency we also have an option to activate company code currency as well.

Note: Whereas actual data can be updated simultaneously in all the combinations of currency type and valuation that are described below, planning data is always updated in one currency only - the currency specified for that particular plan version. Note also that updating actual data in multiple combinations of
currency and valuation significantly increases your data volume with each additional combination.

Posting Period Variant
Here we assign the posting period variant to the operating concern. 

Allocation control requires the same number of posting periods in the company code and in the assigned controlling area. This means that the number of posting periods in the fiscal year variants must be the same in the company code and in the controlling area. The period limits for the two fiscal year variants must also coincide.

2nd period type - weeks

Update actual data in the second period type
Update plan data in the second period type
If you set this indicator, the system will store the actual or plan data in costing-based Profitability Analysis in weeks as well. This increases the data volume in Profitability Analysis significantly, which could lead to significantly slower response times in the information system.

There is no alternative period type available in account-based Profitability Analysis.


Status of the Cross-Client Part of the Environment
The status indicates whether the cross-client part of the operating concern environment (that is, the programs, screens, and other objects generated for an operating concern) can be used.

"Green light": The environment is active. No further actions are required for the cross-client part of the environment.

"Amber light": Either a system upgrade has occurred or corrections (support packages) have been imported into the system. Before you can work with the operating concern, any changes need to be copied to the operating concern environment. No further actions are necessary because the system transfers any changes automatically during the first transaction that accesses the operating concern. The automatic transfer takes a few minutes. To avoid delays in a productive system, SAP recommends that you activate the transfer manually using the Customizing activity Maintain Operating Concern.

"Red light": The environment is not active. This situation arises either after the data structures have been activated or if errors occurred during activation. If the latter applies, analyze the action log and try 
to remove the cause of the error. Use the Customizing activity Maintain Operating Concern to activate the environment.

"Extinguished lights": No environment has been activated for the operating concern. You need to use the Customizing activity Maintain Operating Concern to activate the environment.

This way we can configure the Operating Concern and embark our journey onto the amazing world of CO-PA.