CO-PA Vs PCA

[Former Member]

Hi Guru's,

What is the Advantage of using CO-PA insteed of Profit Center A/cing ?

Can u give the detailed answer?

Thanks in Advance for reply.

[Former Member]

Hello Saida Rao

Interesting question;

These two u2013 PA and PCA are not mutually exclusive.

In fact PCA is not a profitability tool; as such any attempt to get detailed profitability by defining too many profit centres will do more harm than any meaningful help.

On the other hand PA will be able to provide profitability at any user defined segment level. (which can be 100s if not 1,000s)

In view of the above & in the absence of complete scenario, my suggestion would be to go for both PCA as well as CO-PA. However be careful in defining number of PCAs.

Enjoy SAP

Ambadas

[iklovski]

Hi,

The purpose of these two modules is different. PCA gives an analysis of the profit centres as orgnizational units within your company, while CO-PA answers more on the questions of profitability of specific customer, product, sales point, etc.

Regards,

Eli

[Former Member]

Another difference is that it is not possible at all in PA to include balance sheet information. With classic PCA it is possibe to include (typically) current assets and liabilities. With the new version of Profit Centres, it is possible to do a full balance sheet and income statement, and the system will enforce postings to profit centres. Incorrect postings will also error, no more "dummy" profit centre.

[Former Member]

Thank u for Quick reply.

[Former Member]

COPA and CO-PCA can be used in combination. For instance you can get a ROI and profit data for your plant in PCA but if you want to furhter get details about the profits say marketing chanel wise or product wise or division wise you can get that in COPA. COPA as stated above does not provide balance sheet information.

In actual practise balance sheet data is not allocated at all the characteristics (product/channel/division) level, so it does not make meaning to have balance sheet data at characteristic level.