SAP Profitability Analysis


What Is SAP Profitability Analysis?

SAP Profitability Analysis is SAP’s business analytics solution that helps organizations understand their financial performance and identify growth opportunities. Finance and accounting managers can analyze profitability and performance at the business unit, product line, customer, and supplier levels to make better decisions about allocating resources and how to grow most profitably.

What Is SAP Profitability Analysis?

SAP Profitability Analysis is SAP’s business analytics solution that helps organizations understand their financial performance and identify growth opportunities. Finance and accounting managers can analyze profitability and performance at the business unit, product line, customer, and supplier levels to make better decisions about allocating resources and how to grow most profitably.

The key capabilities of SAP Profitability Analysis include:

  • Comprehensive financial analysis: SAP Profitability Analysis provides a comprehensive view of business profitability, including product-level and customer profitability.
  • Drilldown analysis: SAP Profitability Analysis offers drill-down analysis to help you quickly identify the drivers of profitability at the product and customer levels.
  • SAP Crystal Reports integration: SAP Profitability Analysis integrates with SAP Crystal Reports to provide powerful graphical reporting capabilities.
  • Microsoft Excel integration: SAP Profitability Analysis integrates with Microsoft Excel to provide familiar data analysis and reporting interfaces.
  • Flexible deployment option: SAP Profitability Analysis is available as a hosted solution or on-premise solution.
  • Comprehensive training and support: SAP provides extensive training and support for SAP Profitability Analysis.

When evaluating SAP Profitability Analysis, SAP customers should keep the following key considerations in mind:

Evaluate how migrating to SAP S/4HANA will impact core functionality for SAP Profitability Analysis. Finance and accounting leaders should understand how revenue and cost of goods sold postings in SAP Profitability Analysis for SAP S/4HANA are handled differently after conversion from core SAP ERP. The Universal Journal in SAP S/4HANA provides one source of truth and, during migration, aggregates existing account-based CO-PA data into a single profitability report. This results in the automatic enhancement of journal entries based on the relevant profitability characteristics.

Consider the importance of aligning modern business processes with SAP Profitability Analysis functionality.Globalization, e-commerce, and digital business models will only add to the types of profitability reportingorganizations will require. In addition, the macro-environment for organizations has changed dramatically in recent years, and finance and accounting teams need to adjust business processes to support current needs and future-proof finance functions for what may come next.

Advanced technologies expand the capabilities of SAP Profitability Analysis. Digital transformation powered by cloud computing is driving innovation, and SAP S/4HANA Cloud provides the foundation for advanced technologies, such as RPA and machine learning, to enhance SAP applications. For finance managers leveraging SAP Profitability Analysis, these technologies are helping to boost the performance of profitability analysis functionality.

885 results

  1. Improve the Auditability of Your SAP S/4HANA for Central Finance Foundation Solution

    Reading time: 11 mins

    SAP S/4HANA for Central Finance foundation (Central Finance) is the least disruptive deployment option for SAP S/4HANA adoption in finance, especially for enterprises with a heterogeneous landscape consisting of multiple SAP and non-SAP finance transactional systems. Figure 1 provides a high-level overview of Central Finance in SAP S/4HANA along with its architecture. Figure 1 —…

  2. SAP Planning and Analytics Leader, Analysis Prime, joins the CENIT Group

    Reading time: 3 mins

    CENIT Group expands its North American presence by acquiring a 60 percent stake in SAP analytics leader Analysis Prime, enhancing its SAP portfolio and aiming to achieve significant growth by 2025.

  3. Unilever Goes Global with a Transformative SAP HANA Project

    Reading time: 9 mins

    SAP S/4HANA offers enterprises tremendous potential to go beyond performance and simplicity and deliver significant business value as part of an enterprise-wide digital transformation, but this approach must be understood, considered and incorporated into by SAP and Partners SAPinsider - 2006 (Volume 7), January (Issue 1) by SAP and Partners SAPinsider - 2006 (Volume 7),…

  4. How to “Stay Clean” (for Now) with Risk Terminator

    Reading time: 11 mins

    To realize all the business benefits of SAP BusinessObjects Access Control, it is important that you implement compliant user provisioning and enterprise role management (formerly Access Enforcer and Role Expert). However, if you are not ready to do that, Risk Terminator provides a very good interim solution. You can follow these step-by-step instructions for configuring...…

  5. Test Scope Optimization for Large SAP Change Events Using BPCA of SAP Solution Manager 7.1

    Reading time: 17 mins

    ManagerCompanies deploying SAP Support Package Stacks or SAP enhancement packages to their SAP solutions need to perform regression tests for their business processes. In general a lot of effort goes into setting up and performing the necessary regression tests. See how you can facilitate this testing process using the Business Process Change Analyzer (BPCA) of...…

  6. Integrate Access and Process Controls in the Latest Releases of SAP BusinessObjects Solutions for GRC

    Reading time: 11 mins

    SAP BusinessObjects Access Control’s Risk Analysis and Remediation (RAR) capability generates the rule library for segregation of duties and performs the access risk analysis for the user. SAP BusinessObjects Process Control manages the controls for each business process. Integrating the two applications allows you to control both of these functions from SAP BusinessObjects Process Control....…

  7. Handling Analysis Process Designer (APD) in BW/4HANA Conversion

    Reading time: 5 mins

    The article outlines the conversion process of Analysis Process Designers (APD) to process chains during the BW/4HANA migration, emphasizing the use of the APD Conversion Tool in BW 7.X to analyze, modify, and transfer APD processes efficiently. Membership Required You must be a member to access this content.View Membership LevelsAlready a member? Log in here

  8. Use Templates to View Costs in Different CO Applications

    Reading time: 11 mins

    The Activity-Based Costing (ABC) module was first introduced in R/3 with Release 4.0 to allow users to access data in several other modules and to transfer costs or quantities from one to the other. This is accomplished with templates. Many users think that templates can only be used in the ABC module. However, from Release...…

  9. Improve Your Cost Center Planning with Driver-Based Planning

    Reading time: 16 mins

    See how to plan cost center activities automatically with driver-based planning. Learn how it works in both manufacturing and service departments. Key Concept Driver-based planning is a best practice in the manufacturing industry, in which companies often use the sales plan as a starting point for the production plan and the production plan to determine...…

  10. Maintain Data Integrity by Implementing Profit Center Planning in the New General Ledger

    Reading time: 8 mins

    Find out how to implement profit center planning in the new General Ledger and how to transfer planning data from Cost Center Accounting and Profitability Analysis to profit centers. Key Concept For SAP ERP 5.0 and 6.0, SAP integrated Profit Center Accounting into the new General Ledger (new G/L), so the profit center planning functionality...…