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?

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.

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Financials: Case study: How Stepan Company drove innovation with state-of-the-art EPM systems

Reading time: 1 mins

Learn how Stepan Company, a US-based chemical manufacturing company, implemented driver-based margin planning for budgeting and projection while enabling a rolling forecast. here Adam Robledo If you have comments about this article or publication, or would like to submit an article idea, please contact the editor. Claire Byrne If you have comments about this article...…
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Revealing a New Type of Profitability Analysis (CO-PA): Combined CO-PA

Reading time: 15 mins

Learn how to activate and configure combined Profitability Analysis (CO-PA). Key Concept Combined Profitability Analysis (CO-PA) is a new form of CO-PA that uses value fields that can be mapped back to general ledger (G/L) accounts. SAP is introducing a new form of Profitability Analysis (CO-PA), combined CO-PA. Combined CO-PA reveals a lot of new...…
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SAP S/4HANA: First Steps Toward Real-Time Profitability Analysis

Reading time: 21 mins

As many companies start to reflect on the difference between Profitability Analysis (CO-PA) within the universal journal and the more familiar costing-based CO-PA, it’s time to look at some of the new features that SAP added in the SAP S/4HANA 1610 edition. Key Concept With SAP S/4HANA the familiar concept of real-time postings has been...…