SAP Profitability Analysis


What Is SAP Profitability Analysis?

SAP Profitability Analysis is SAP’s business analytics solution that helps organizations understand their financial performance and identify growth opportunities. Finance and accounting managers can analyze profitability and performance at the business unit, product line, customer, and supplier levels to make better decisions about allocating resources and how to grow most profitably.

What Is SAP Profitability Analysis?

SAP Profitability Analysis is SAP’s business analytics solution that helps organizations understand their financial performance and identify growth opportunities. Finance and accounting managers can analyze profitability and performance at the business unit, product line, customer, and supplier levels to make better decisions about allocating resources and how to grow most profitably.

The key capabilities of SAP Profitability Analysis include:

  • Comprehensive financial analysis: SAP Profitability Analysis provides a comprehensive view of business profitability, including product-level and customer profitability.
  • Drilldown analysis: SAP Profitability Analysis offers drill-down analysis to help you quickly identify the drivers of profitability at the product and customer levels.
  • SAP Crystal Reports integration: SAP Profitability Analysis integrates with SAP Crystal Reports to provide powerful graphical reporting capabilities.
  • Microsoft Excel integration: SAP Profitability Analysis integrates with Microsoft Excel to provide familiar data analysis and reporting interfaces.
  • Flexible deployment option: SAP Profitability Analysis is available as a hosted solution or on-premise solution.
  • Comprehensive training and support: SAP provides extensive training and support for SAP Profitability Analysis.

When evaluating SAP Profitability Analysis, SAP customers should keep the following key considerations in mind:

Evaluate how migrating to SAP S/4HANA will impact core functionality for SAP Profitability Analysis. Finance and accounting leaders should understand how revenue and cost of goods sold postings in SAP Profitability Analysis for SAP S/4HANA are handled differently after conversion from core SAP ERP. The Universal Journal in SAP S/4HANA provides one source of truth and, during migration, aggregates existing account-based CO-PA data into a single profitability report. This results in the automatic enhancement of journal entries based on the relevant profitability characteristics.

Consider the importance of aligning modern business processes with SAP Profitability Analysis functionality.Globalization, e-commerce, and digital business models will only add to the types of profitability reportingorganizations will require. In addition, the macro-environment for organizations has changed dramatically in recent years, and finance and accounting teams need to adjust business processes to support current needs and future-proof finance functions for what may come next.

Advanced technologies expand the capabilities of SAP Profitability Analysis. Digital transformation powered by cloud computing is driving innovation, and SAP S/4HANA Cloud provides the foundation for advanced technologies, such as RPA and machine learning, to enhance SAP applications. For finance managers leveraging SAP Profitability Analysis, these technologies are helping to boost the performance of profitability analysis functionality.

1226 results

  1. You Are Now a Step Closer to Real-Time Profitability in SAP S/4HANA Finance with Fewer Settlements

    Published: 23/January/2017

    Reading time: 10 mins

    Learn about a new feature in SAP S/4HANA Finance 1610 that helps you avoid a few of the settlements to Profitability Analysis (CO-PA) and yet achieve real-time updates of data to CO-PA dimensions. This is one innovation among many in account-based CO-PA. Key Concept SAP S/4HANAFinance helps you to avoid some settlements without adversely affecting...…

  2. Tips on How to Plan Your Migration from Costing-Based CO-PA to Account-Based CO-PA in SAP S/4HANA Finance

    Published: 28/December/2016

    Reading time: 14 mins

    See what you gain and lose by switching from costing-based Profitability Analysis (CO-PA) to account-based CO-PA in the SAP S/4HANA Finance environment. Review a proposed approach to pull the plug on costing-based CO-PA. Key Concept SAP S/4HANA Finance offers several enhancements in account-based Profitability Analysis (CO-PA), making it on a par with costing-based CO-PA. The...…

  3. Tips on How to Plan Your Migration from Costing-Based CO-PA to Account-Based CO-PA

    Published: 28/December/2016

    Reading time: 14 mins

    See what you gain and lose by switching from costing-based Profitability Analysis (CO-PA) to account-based CO-PA in the SAP S/4HANA Finance environment. Review a proposed approach to pull the plug on costing-based CO-PA.

  4. Gauge a Company’s Risk Exposure Using Market Risk Analyzer

    Published: 19/June/2015

    Reading time: 31 mins

    Learn how to implement SAP’s Market Risk Analyzer. The analysis reports in Market Risk Analyzer help an organization or, more specifically, a treasury department, to assess and quantify the risks of its financial positions. Once the risks of an organization are analyzed and quantified, they can be more easily controlled. The inputs to Market Risk...…

  5. Speed Up Your Profitability Analysis Performance with SAP HANA’s CO-PA Accelerator

    Published: 16/November/2011

    Reading time: 13 mins

    Get a first-hand look at how the CO-PA Accelerator for cost-based CO-PA with SAP HANA replicates data from SAP ERP in real time into SAP HANA for fast access to revenue, cost, and profitability data. Look at some of the most asked-about best practices available now for implementing the CO-PA Accelerator with SAP HANA, including...…

  6. 12 Key FP&A Reports for Improved Business Visibility and Impact

    Published: 31/May/2023

    Reading time: 9 mins

    Financial planning and analysis (FP&A) is a vital component of any organization’s overall economic well-being and success. FP&A is, at its core, a cycle of collecting data, analyzing that information, and making decisions based off of that analysis. Because of this, FP&A teams must be able to provide specific and actionable business insights to empower…

  7. Effectively Manage Your Customer Service Business Function by Using SAP’s Integrated Service Order Functionality

    Published: 17/June/2011

    Reading time: 16 mins

    See how service order functionality integrates with the controlling function to record, track, and manage both costs and revenues resulting from service functions for some of the common customer service scenarios. Key Concept Customer service (CS) order functionality helps you capture the desired level of detail pertaining to activities and resources used to carry out...…

  8. SAP EPM Big Data Use Cases

    Published: 06/March/2014

    Reading time: 37 mins

    This article explores the concept of using Enterprise Performance Management—EPM—to drive big data use cases, primarily focused on integrated strategic, financial, and operational reporting, and analytic capabilities. These big data use cases demonstrate both the business and technical value necessary to justify investments in big data platforms such as SAP HANA. Key Concept Enterprise Performance...…

  9. SAP BI Product Convergence Update: What’s Happening Today, What is Coming Next, and What Does It Mean for You?

    Published: 01/April/2017

    Reading time: 65 mins

    SAP’s BI suite continues its course of ongoing product advancements, and there are significant new product releases on the very near horizon. With the pending SP4 release of SAP BI 4.2 due to impact the full BI suite, and the major new release of SAP BusinessObjects Lumira 2.0 (where SAP BusinessObjects Lumira and SAP BusinessObjects Design…

  10. SAP Simple Finance: New Options in Profitability Analysis

    Published: 29/December/2014

    Reading time: 13 mins

    Discover what changes in profitability analysis (CO-PA) when you use SAP HANA as a database. Learn how to link the general ledger and CO-PA and see what functional enhancements have been made to account-based CO-PA to provide greater transparency. Ensure that you get the best of both worlds: figures in the income statement that match...…