SAP has provided CO-PA (Profitability Analysis) with the two methods of account-based and imputed profitability analysis as an application for profitability and market segment accounting. While account-based CO-PA (Margin Analysis) enables an account-based presentation of profit and loss, costing-based CO-PA (CB CO-PA) uses so-called value fields.
Both methods can be used in parallel and enable an EBIT(DA) presentation according to the cost-of-sales method (UCP or IFRS). In practice and especially in ECC systems, costing-based CO-PA has become widely accepted due to its advantages.
At the moment, it is a very customer-specific decision whether margin analysis already fully covers the requirements - especially in group reporting - or whether imputed profitability analysis will continue to be used. Here, a comprehensive analysis in the Explore phase of S/4HANA transformation projects is essential. We will be happy to support you in the decision-making process.
With S/4HANA, accounting-based profitability analysis gains in importance because it is integrated into the new data model in the Universal Journal (ACDOCA). Thus, every posting in accounting CO-PA is updated directly in the line item table ACDOCA. This ensures the "single source of truth" approach for accounting-based Profitability Analysis as well. In addition to the integration into the Universal Journal, SAP has also enhanced the functionality of account-based Profitability Analysis in S/4HANA and largely eliminated the main disadvantages.
Currently, not all functionalities of costing-based CO-PA are included in Margin Analysis and the flexibility does not yet correspond to costing-based CO-PA either. For customers with a very extensive and customized Profitability Analysis, for example via user exits, it is therefore recommended to use it in parallel when switching to S/4HANA, especially for brownfield projects, and to switch to Margin Analysis as late as possible. The account-based profitability analysis (AB CO-PA) is integrated in SAP S/4HANA in the Universal Journal (ACDOCA).
Both imputed CO-PA and margin analysis are integrated into the S/4HANA system landscape to enable a complete and correct presentation of the P&L according to UKV (IFRS). All sales and associated costs of a reporting period are presented.