The Evolution of Profitability Analysis: From CO-PA to Margin Analysis

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Key Takeaways

⇨ Profitability Analysis has evolved significantly since SAP ECC.

⇨ Organizations should understand the differences in functionality between CO-PA and Margin Analysis so they can leverage their best option.

⇨ Companies should also be aware of the outlook for the Roadmap of Profitability Analysis for future releases.

Profitability analysis is a subcomponent of controlling with SAP S/4HANA. Profitability analysis in SAP S/4HANA is used to display the internal view of
accounting that supports managers in their decision-making. The data in profitability analysis is enriched with numerous characteristics derived
from the value flow of predecessor documents and therefore can be displayed and analyzed from various angles. In SAP ERP, there are two types
of Profitability Analysis (CO-PA): account-based and costing-based. In SAP S/4HANA, on the other hand, you’ll find costing-based profitability analysis
and margin analysis. This article describes the differences between costing-based profitability analysis and margin analysis. We will also cover the future of margin analysis with Universal Parallel Accounting, which only allows the activation of margin analysis.

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