Sign Handling in CO-PA (SAP Library - Profitability Analysis (COPA))

Sign Handling in CO-PA

For actual data as well as for planning data, Profitability Analysis (CO-PA) generally stores all values as positive in the individual fields. If you use a Key Figure Scheme to define your contribution margin scheme appropriately, sales deductions can be subtracted from revenues in the net revenue in the information system, just as costs can be subtracted from it, and this involves multi-leveled contribution margin accounting. Revenues, sales deductions, and costs should therefore be entered into separate value fields.

Negative values generally only occur for business transactions (such as reversals, credit memos or returns) that revise the business transaction results when claims are processed or errors are corrected.

This applies to all revenues, sales deductions, and cost of goods manufactured, as well as to the different period costs, that flow into CO-PA during Order Settlement or Periodic Overhead Allocation.

This is an important principle, particularly for the purposes of comparing actual values and planning values, because the logic in the information system for calculating the contribution margin lines for planning and actual values must be consistent.

How all this is related is depicted in the following graphic:

The cost element categories should correspond to those recommended by SAP. This is the prerequisite for producing a true representation of the +/- signs in the transfer of actual data to CO-PA ( Flows of Actual Values). SAP recommends the following cost element categories:

Revenues: Cost element category 11

Sales deductions: Cost element category 12

Costs: Cost element category 01

In rare instances, you might not be able to keep to the rule of having all values updated as positive in CO-PA. This can be the case with special settings in Sales and Distribution (SD). For this reason, you have the option of setting the indicator Transfer values with +/- signs when assigning value fields for the transfer of billing documents and Incoming sales orders.

However, you should only use this indicator in the following exceptional circumstances:

If several condition types in a value field need to "balance out" with different signs.
If a condition with different signs flows into a value field.
If anticipated and actual rebates need to balance in rebate processing.

By setting this indicator, you can transfer values with their +/- signs from condition types and thereby always be in a position to display a correct total value, even in the case of positive and negative condition values.

For planning (which you may intend to implement at a later date), you should nevertheless ensure that at least the balance of these condition types can be planned positively.