From the system SD (Sales and Distribution) the profitability analysis gets the actual revenue information of the sold products. If you create a sales order or billing the system automatically creates a profitability segment with the defined characteristics and a CO-PA document with the corresponding characteristic values and values.

The SD interface can be activated both for the billing and additionally for the incoming sales order. With the interface to the incoming sales order you get information about the profitability analysis at an early time. The profitability analysis differentiates between the billing documents and the incoming order documents with help of the record type (F or A).

If you do not need real-time revenue information you must not transfer incoming sales orders to the profitability analysis, but only billings.

The AFS System and the R/3 Standard System support the SD interface of the profitability analysis in the same way. That means that the revenue information and the belonging characteristic values can be transferred to the profitability analysis during the incoming sales order and the billing.

Referring to the incoming sales order interface the following special feature is important:

If you defined one or more of the following AFS characteristics in your operating concern, you must activate per Customizing the interface with value 2 (active with date of delivery), (AFS Customizing: Product Controlling):

• Grid value
• Category
• Season at schedule line level
• Valuation type

The reason for this is that these characteristics can deviate per schedule line of a SD order item. Therefore it is important that you create a CO-PA document per schedule line of an order item. Via the activation of the interface with value 2, you effect the document creation at schedule line level.

If you do not use one of the characteristics mentioned above, you can activate the interface with value 1 (active with date of entry).

Analogous to the incoming sales order interface, the billing interface can be activated at SKU level as well. Here the system also creates a separate CO-PA document per billed batch (stock keeping unit).

If you use one of the mentioned AFS characteristics, you have to activate the billing interface at SKU level (AFS Customizing: Product Controlling).

If you do not use one of the characteristics mentioned above, you should not activate the SKU interface. All characteristics that are not AFS-specific can be used with a deactivated SKU interface.

In the AFS System the sales conditions (for example revenue) can have deviating values per sold stock keeping unit of a sales order item. For example the revenue condition J3AP is defined, so that every grid value of a product can have a different sales price.

The SD interface (incoming sales order and billing) considers these grid-dependent conditions and determines the correct values per schedule line/ billing item.

The activation of the interface at schedule line level or SKU level can negatively affect the performance of the sales order entry and the billing entry.