Entering content frameFunction documentation Features of the Applications CO-PA and EC-PCA Locate the document in its SAP Library structure

Profitability Analysis (CO-PA)

For detailed information about the scope of functions in Profitability Analysis, see the chapter on Profitability Analysis (CO-PA).

Profit Center Accounting (EC-PCA)

EC-PCA lets you calculate internal operating results for profit centers. A profit center represents an organizational subunit that operates independently on the market and bears responsibility for its own costs and revenues. You organize your organization into profit centers by assigning the master data of each profit-relevant objects (materials, cost centers, orders, projects, sales orders, assets, cost objects, and profitability segments) to a profit center.

All the business transactions in the R/3 System which are relevant for costs and profits are updated in the profit centers at the same time they are processed in the original module, and organized according to cost and revenue elements. This transforms all the flows of goods and services within the company into exchanges of goods and services between profit centers. This profit center structure applies for both actual postings and profit center plan data.

It is also possible to treat a profit center as an investment center. In addition to the flows of goods and services, you can transfer selected balance sheet line items (fixed assets, payables and receivables, material stocks and work in process) to profit centers on a periodic basis. This makes it possible to calculate such key figures as profit on sales, return on investments and cash flow.

The information system provides you with functions for analyzing the posted plan and actual data. You can use the complete standard hierarchy or sub-hierarchies, end nodes or individual profit centers as your selection criteria. It is also possible to expand nodes within a report to display more detailed information. Because profits are displayed by G/L account, you can reconcile your data directly with Financial Accounting by cost element. You can work with the standard reports that are delivered with the R/3 System or write your own reports.

 

 

 

 

 

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