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Combined Profitability Analysis

January, 2020
Agenda

What is Profitability Analysis?

 Profitability Analysis in SAP
Combined Profitability Analysis
 Basics and Table Structure
 Features (Sales Process, Cost Center Allocation)

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What is Profitability Analysis?

Gross List Price

Sales Freight
Revenue
Revenue Promotions
Discounts Loyalty Discount
Volume Discount

Profit
Material input
COGS Labor var.
Labor O/H
Freight
Packing
Costs Shipping
Packaging
Insurance

Sales
Overheads R&D
Administration

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Account- vs. Costing-based Profitability Analysis

Account-based Profitability Analysis Costing-based Profitability Analysis

Row Account Value Row Value Field
Sales VV001 € 1.250.850
Online enrichtment of G/L- postings
Sales 800000 € 1.250.850
with profitability characteristics
(E.g.: Revenue, costs, WIP) Promotions VV020 € 58.668

Discounts 880000 € 175.258 Loyalty Discount VV021 € 36.558

Material Discount VV022 € 80.032
Net Sales € 1.075.592
Commission (estimate) VV030 € 52.326
450001 Material € 524.023
COGS 450000 450002 Manu. (var.) € 127.668 € 675.269 Net Sales € 1.023.266
450003 Manu. (fixed) € 23.578
Raw Material VV100 € 524.023
Trading Goods 451000 € 88.964
Labor (variable) VV110 € 127.668
Gross Profit € 311.359 Labor (fix) VV111 € 23.578

% Net Sales 28,95% Trading Goods VV112 € 88.964

Gross Profit € 259.033
Sales 650010 € 42.487
% Net Sales 25,31%
R&D 650020 € 59.674
Sales VV201 € 42.487
Administration 650030 € 22.526
R&D VV202 € 59.674
Profit € 186.672
Administration VV203 € 22.526
Profit € 134.346
Account-based Profitability Analysis as of SAP S/4 Finance

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Account- vs. Costing-based Profitability Analysis

Account-based Profitability Analysis Costing-based Profitability Analysis

Revenue ② € 1350.00 Revenue ① € 1350.00

COGS ① € 975.25 COGS ① € 975.25

Profit ② € 374.75 Profit ① € 374.75

• Posting of COGS at point in time of goods issue posting • Posting of Revenue and COGS simultaneously with
release of invoice to accounting
• Posting of Revenue with release of invoice
• Hence, profitability can only analyzed continuously for all
• Hence, profitability can only be analyzed when all goods invoiced sales.
issues and invoices of period have been posted.

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Table Structure – Semantical View

Header containing all characteristics

Accounting segment

Value field segment

Quantity segment

• Recording of reconciled account and cost-based value field view in one document. Consistent currency and
valuation views for cost elements and value fields.
• Flexible definition of currency-, valuation- and quantity views at the level of segments. Additionally, flexible
extensibility of data structures by free definition of characteristics and value fields. Enhanced quantity recording
capabilities.
• High performance reporting across cost elements and value fields
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Table Structure – Technical View (1/2)

CE9XXXX_H – Document Header Pre-defined by SAP

Document number with all characteristics of the Operating Concern Customer-defined

Prof.Seg# Doc.# Rec.type Posting day Product Customer Industry SBU Sales rep. …
PAOBJNR DOCNO VRGAR BUDAT ARTNR KNDNR WW001 WW011 WW030 …
156876 132 F 01.05.13 4711 1000 RETAIL SPARES 007

CE9XXXX_IC – Accounting Segment

Curr.type Description

Transaction
Accounting values in currency views 0
currency
Doc.# Curr.type Cost elem. Value Curr. Key Comp. Code FI Doc.# Fisc.year Line-item Company Code
DOCNO CURTP KSTAR VALUE CURRENCY BUKRS BELNR GJAHR BUZEI 10
currency
132 0 800000 1175,79 CHF 1000 10008998 2020 1
20 Controlling Area
132 0 800200 275,23 CHF 1000 10008998 2020 2
currency
132 10 800000 1058,21 EUR 1000 10008998 2020 1
132 10 800200 250,21 EUR 1000 10008998 2020 2 30 Group currency
132 30 800000 1312,18 USD 1000 10008998 2020 1 Operating concern
B0
132 30 800200 341,29 USD 1000 10008998 2020 2 currency

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Table Structure – Technical View (2/2)

CE9XXXX_IV – Value field segment Curr.type Description

0 Transaction currency
Value fields in currency views Company Code
10
Doc.# Curr.type Curr. Key Revenue Discount Mat. input … currency
DOCNO CURTP CURRENCY VV001 VV002 VV010 Controlling Area
20
currency
132 0 CHF 1175,79 275,23 570,23
132 10 EUR 1058,21 250,21 518,39 30 Group currency
132 30 USD 1312,18 341,29 707,09 Operating concern
B0
currency

CE9XXXX_IQ – Quantity segment

Quantity views (logical)
Doc.# Quant. view Cost elem. Sales qty. UoM Billed Qty. UoM … Qty.view Description
DOCNO KSTAR ABSMG ABSMG_ME VVQTY VVQTY_ME
1 Document units
132 1 800000 1250 ST 1000 ST
2 Warehouse units
132 2 800000 13 PAL 10 PAL
3 Reporting units
132 3 800000 625 KG 500 KG

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Sales process in der Combined Profitability Analysis
Delivery ("L") Invoice („F“)
Revenue
C: 800000 – „revenue domestic“
D: 400000 - „COGS“ Discount
D: 880000 – „discount“
COGS (= VPRS)
Costs of Goods Sold Material Costs of Goods Sold Material
(Optional posting of COGS in cost Production Costs (Optional posting of COGS in cost Production Costs
CO-PA component split) Overhead component split) Overhead
Material Material
(combined) Costs of Goods Sold Costs of Goods Sold
Setup Setup
(Optional posting of COGS in cost (Optional posting of COGS in cost
Assembly Assemply
component split) component split)
Quality Quality
GI quantity Invoiced quantity


Invoice flag 

• Recording of consistent currency views Account and Value field view in in one CO-PA document.

• At the time of Delivery, new record type “L” records the value of the goods issue posting with the corresponding consumption account
information. Additionally, customers may record COGS in cost component split views.
The goods issue quantity will be recorded in the quantity segment.
The invoice flag is set to „initial“ which reports this delivery as (yet) unbilled.

• At the time of Billing, revenue and costs are recorded in account and value field format under record type “F”.
Additionally, customers may record COGS in cost component split views.
Billing quantity is recorded in the quantity segments.

• With an update to the invoice flag in the document of record type "L„, the delivery is marked as „billed“. The billing period is also recorded.

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Case Study for Combined Profitability Analysis

A German production company sells special-purpose pumps to a Polish customer.

Special business reporting needs:

• To support group reporting, all transactions of Combined Profitability Analysis must be recorded in parallel in group
currency (currency type 30).
• For logistics controlling purposes, costs of the warehouse are allocated to the number of units shipped.
• The company would like to analyze the actual amount of precious metal sold across all products.
Hence, every sale of pumps must as well be recorded as a sales of precious metal as the data foundation of later
analytics and simulations.

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Document flow– Sales order

Sales Order

CPACUST Poland
Dar pomorze 56
00-493 Warszawa
Poland

Quantity Product
10 pc. pump (100W)

15 pc. pump (250W)

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Document flow – Delivery

Delivery Note

CPACUST Poland
Dar pomorze 56
00-493 Warszawa
Poland

Qty. Product Shipping unit

10 pc. pump (100W) 1 PAL

15 pc. pump (250W) 3 PAL

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Line item „L“ – Characteristics view

Document header with all

characteristics
Accounting segment

Value field segment Characteristics

view
Quantity segment

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Line item „L“ – Value view

Document header with all

characteristics
Accounting segment

Value field segment Accounting

segment
Quantity segment

Value field
segment

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Line item „L“ – Quantity view

Document header with all

characteristics
Accounting segment

Value field segment

Quantity segment Quantity
segment

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Line item „L“ – Reference data

Document header with all

characteristics
Accounting segment

Value field segment

Quantity segment
Reference data

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Document flow – Invoice

Invoice

CPACUST Poland
Dar pomorze 56
00-493 Warszawa
Poland

Menge Artikel Total

10 pc. pump (100W) PLN 102.393,68

15 pc. pump (250W) PLN 154.499,52

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Line item „F“ – Value view

Document header with all characteristics

Accounting segment
Document cur.
Value field segment Comp. code cur.
Group currency
Quantity segment

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Line item „F“ – Quantity view

Document header with all characteristics

Accounting segment

Value field segment

Quantity segment Quantity view

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Line item – Reference data

Document header with all characteristics

Accounting segment

Value field segment

Quantity segment

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Quantity recording in Combined Profitability Analysis

Parallel quantity recording!

Quantity view Quantity Zweck

Document unit Takeover of sold quantity from SD
10 pc.
„“ document
Translation into storage quantity to
Storage quantity
1 pallet record number of units handled and
„1“
shipped to allocation logistics costs
Amount of precious Calculation and recording of amount of
metal 200 g precious metal sold for profitability
„2“ analysis and simulations

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Cost center allocation in Combined Profitability Analysis
Single-level cost center allocation by cost element creates full transparency in profitability reporting.
Case study: Marketing expense are allocated to two divisions.

Cost center report (Marketing)

Division 09 Division 10

Allocation cost Source Source

Value field Value field
element cost elem. cost elem.

KEU5

Division 09 Division 10
Spares Pumps

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Combined Profitability Analysis: Important Notes

For further information please refer to the following notes:

• 2609491 - Ergebnisrechnung in S/4 HANA

• 2344093 - cPA: Kombinierte Ergebnisrechnung – Einführungsleitfaden (inkl. Nachbuchreports)
• 2370649 - cPA: Schalter für die kombinierte Ergebnisrechnung fehlt (Aktivierung zu S/4)

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