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.

- Premium
Prevent False Conflicts with Supplemental Rules in SAP Access Control

Reading time: 32 mins

SAP Access Control provides you with the option to create a supplementary rule. The rule gives additional information to prevent a false conflict in a segregation of duties (SoD) risk analysis report. Learn the steps you need to complete to enable the supplementary rule. Key Concept A supplementary rule for segregation of duties (SoD) risk...…
- SAP Finance
- Premium
How to Transfer Material Ledger Detailed Actual Costing Results to CO-PA

Reading time: 15 mins

Learn how to configure the transfer of a material ledger total actual cost, actual cost components split, and production quantities in multiple units of measure to Profitability Analysis (CO-PA). Key Concept Activation of actual costing is not a common practice. Typically, there are two main reasons to implement actual costing: a legal imperative to valuate...…
- Premium
Conduct a Workflow-Driven Risk Analysis Across Your Enterprise and Tune It to Your Business Needs

Reading time: 12 mins

Become acquainted with the third of the five-phase enterprise risk management (ERM) process: risk analysis. Step through the configuration to customize the risk analysis to your business needs. Learn how a risk analysis is initiated either directly by a responsible risk owner as a scheduled workflow task or by a key risk indicator (KRI) showing...…
- Premium
Combat Excess Growth in SAP Systems: A Guide to the Custom Development Management Cockpit

Reading time: 17 mins

ManagerThe Custom Development Management Cockpit (CDMC) helps clean up the system by identifying coding that is no longer in use. Armed with this information, you can apply only necessary changes to the system during processes such as an upgrade. Key Concept Frequent SAP ABAP custom developments, enhancements, and even modifications are normal at companies today....…
- SAP S/4HANA Implementation
- Premium
Analyze Your SAP System Readiness for SAP S/4HANA

Reading time: 13 mins

Learn how to check your SAP ERP Central Component (ECC) system’s readiness for SAP S/4HANA using SAP’s free Readiness Check tool. Key Concept SAP S/4HANA has a large effect on organizations that implement it. Areas that SAP S/4HANA affects include the data model, user procedure changes, add-on compatibility, and business processes. Organizations implementing SAP S/4HANA...…
- Premium
Automate Your Business Blueprint Using RBPD and the Solution Documentation Assistant in SAP Solution Manager 7.1

Reading time: 17 mins

ManagerThe 7.1 release of SAP Solution Manager introduces a strategic cooperation between SAP and IBIS to deliver an automated approach to reverse business process documentation (RBPD). With this new release, IBIS provides business content for the Solution Documentation Assistant (SDA). It supports a comprehensive analysis of the functional use of SAP ERP systems based on...…
- Premium
Take Advantage of Association Analysis and See Your Sales Grow

Reading time: 14 mins

Most people are familiar with the “customers who bought this item also bought…” concept popularized by Web giants such as amazon.com. Association analysis, a data mining algorithm available in the Data Mining Workbench, helps you identify these related product sets. Find out how to set up association analysis in three steps. Key Concept The purpose...…
- SAP BusinessObjects
- Premium
What’s New in SAP BusinessObjects Analysis, Edition for Microsoft Office?

Reading time: 13 mins

Learn about enhancements that come with the release of SAP BusinessObjects Analysis, edition for Microsoft Office, versions 2.2 and 2.3. Key Concept SAP BusinessObjects Analysis, edition for Microsoft Office, is the successor to Business Explorer (BEx) Analyzer. It also now combines the enterprise performance management (EPM) plug-in for SAP BusinessObjects Planning and Consolidation (BPC)-based deployments....…
- SAP S/4HANA Finance
- Premium
How to Create a Profitability Report Based on Custom Characteristics in SAP S/4HANA

Reading time: 17 mins

SAP has simplified financial and management reporting with embedded SAP Business Intelligence (BI) content. Learn how real-time transaction and master data updates in BI enable accurate reporting with most updated key performance indicators (KPIs), thus eliminating the need for a data load into the cubes as in the older versions. Key Concept SAP Business Planning...…
- Premium
What You Need to Know About Textbook vs. SAP R/3 Activity-Based Costing

Reading time: 17 mins

The case for Activity-Based Costing (ABC) goes something like this: Traditional accounting methods do a good job of calculating product costs for the purposes of inventory valuation for financial statements, but a poor job of allowing a cost accountant to validate the cause-and-effect relationship assumptions on which managers base their daily decisions. The case for...…