copa and contribution margin

[Former Member]

Hi All,

May I know what is the relationship between copa and contribution margin?

Not all expenses and cost reported in contribution margin will be updated in copa?

Thanks

[iklovski · Accepted solution]

Hi,

Contribution margin is a costing term which also refers to Banking profitability analyis (Bank PA). Do you mean this or just the contribution calculation in CO-PA? If the latest is true, then answering your question, not all the costs flow automatically to CO-PA, only the ones linked to costs of goods sold. But, with cost allocations, you will be able to distribute your overhead costs in CO-PA.

Regards,

Eli

[Former Member · Accepted solution]

Hi,

thanks for the reply.

I am not referring to banking contribution margin.

in kch3, there are different level of contribution margin.

i think contribution margin is not in sap so i may need to know what is the relationship of contribution margin with copa.

thanks

[iklovski · Accepted solution]

Hi,

KCH3 is used for grouping profit centres. So, someone called a certain group 'Contribution Margin'. They could have called it 'Empire State Building' and to establish any connection to any module would be quite a task

Regards,

Eli

[Former Member · Accepted solution]

Hi sir,

so may i know what is the connection between copa and contribution margin? just forget about kch3.

thanks

[iklovski · Accepted solution]

Hi,

As I said, contribution margin is a costing term (not IT term of SAP). You can calculate your margins while performning costing analysis in CO-PA.

Regards,

Eli