Purpose
Profitability Analysis
provides a costing system that enables you to assign income and costs to single transactions or positions. The results can be summarized according to various criteria within Profitability Analysis. This includes summarization according to market segmentation with the following evaluation parameters:and according to organizational units with the evaluation parameters:
SAP Banking makes it possible to cost products, customers, and profit centers, among others.
Profitability Analysis provides functions that enable:
Features
Profitability Analysis
is split into the following sub-systems:The following provide the basis for single transaction- and single position costing:
The term Single Transaction Costing includes both single transaction and single position costing in this documentation. Single Transaction Costing uses a costing sheet that incorporates the following costing components:
Which costing components are calculated for particular single transactions depends on the assigned costing rule. The results of the individual costing components are summarized into a user-defined contribution margin scheme in Bank Profitability Analysis so that the surplus cover/short cover or the net margin can be determined.
You are able to define additional costing components as well as the costing rules required for calculation. The costing components for which no fixed procedures are set, are defined using flexible procedures. Flexible procedures are summarized into valuation strategies.
The costing procedures for the above mentioned costing components rely on a number of base values, such as:
You can either let the system calculate these base values or define them in the costing rule.
SAP Banking supports both periodic margin calculation and the determination of net present values. A prerequisite for the calculation of net present values, is that the cash flows for future payments are known. The system is able to calculate cash flows for transactions with fixed terms.
Bank Profitability Analysis helps you make judgments about the profitability of market segments organized according to product, business partner, and bank transaction, or even according to business units such as company code or operating concern. The main goal is to provide the different areas - management, marketing, product management, and customer relations - with controlling and decision making information. The data can be displayed by period or by transaction.
In determining profits, Bank Profitability Analysis can be used with costing results, as well as with direct assignments to profitability segments and directly transferred values. By integrating Controlling, overhead costs can augment profit determination. This allows you to use phased contribution margin accounting.
Profitability Analysis also enables planning. The system is very flexible with regard to planning time frames and planning objects (planning level, costing components, margins, etc.). Planning supports bottom-up, top-down, or mixed planning systems, and plan version management. Overall planning and projection functions are also provided.
Bank Profitability Analysis (Bank PA) replaces the standard Profitability Analysis (CO-PA) module in the organizational structure of a bank. The same reporting and planning tool is used. You can therefore use the standard Profitability Analysis documentation to a large extent with Bank PA.
The following diagram provides an overview of Profitability Analysis:
