hi kis,
Pls see the below link for the more info
http://help.sap.com/saphelp_47x200/helpdata/en/7e/cb7d4f43a311d189ee0000e81ddfac/frameset.htm
rofitability Analysis (CO-PA) enables you to evaluate market segments, which can be classified according to products, customers, orders or any combination of these, or strategic business units, such as sales organizations or business areas, with respect to your company's profit or contribution margin.
The aim of the system is to provide your sales, marketing, product management and corporate planning departments with information to support internal accounting and decision-making.
Two forms of Profitability Analysis are supported: costing-based and account-based.
Costing-based Profitability Analysis is the form of profitability analysis that groups costs and revenues according to value fields and costing-based valuation approaches, both of which you can define yourself. It guarantees you access at all times to a complete, short-term profitability report.
Account-based Profitability Analysis is a form of profitability analysis organized in accounts and using an account-based valuation approach. The distinguishing characteristic of this form is its use of cost and revenue elements. It provides you with a profitability report that is permanently reconciled with financial accounting.
You can also use both of these types of CO-PA simultaneously.
Integration
Profitability Analysis, alongside Profit Center Accounting (EC-PCA), is one of the application components for profitability accounting.
Features
In the application component CO-PA, you can define your master data, the basic structures of this form of profitability analysis. This includes both units you want to evaluate (characteristics) and the categories in which you analyze values. In costing-based CO-PA, you define "value fields" in which to store your data for analysis. In account-based CO-PA, the values are structured by account.
Using the SAP master data (customer, product, customer hierarchy) or CO-PA derivation rules, the system can derive additional characteristics based on the ones entered manually or transferred from primary transactions. The combination of characteristic values forms a multidimensional profitability segment, for which you can analyze profitability by comparing its costs and revenues.
If you reorganize parts of your company, such as your sales districts or customer hierarchies, you can change the assignments between characteristics for data that has already been posted.
The actual postings represent the most important source of information in CO-PA. You can transfer both sales orders and billing documents from the Sales and Distribution (SD) application component to CO-PA in realtime. In addition, an interface program is available to let you transfer external data to the R/3 System. You can also transfer costs from cost centers, orders and projects, as well as costs and revenues from direct postings (G/L account postings in FI, orders received in MM, and so on) or settle costs from CO to profitability segments.
In costing-based CO-PA, you can valuate incoming sales orders or billing documents to automatically determine anticipated sales deductions or costs. You can also revaluate your data periodically to adjust the initial, realtime valuation or add the actual costs of goods manufactured.
In CO-PA Planning, you can create a sales and profit plan. Whereas both types of Profitability Analysis can receive actual data in parallel, there is no common source of planning data. Consequently, you always plan either in accounts (account-based CO-PA) or in value fields (costing-based CO-PA). In costing-based CO-PA you can use automatic valuation to calculate planned revenues, sales deductions and costs of goods manufactured based on the planned sales quantity.
The manual planning function lets you define planning screens for your organization. With this you can display reference data in planning, calculate formulas, create forecasts, and more. Planning can be performed at any degree of detail. For example, you can plan at a higher level, and have this data distributed top-down automatically.
In automatic planning, you can copy and revaluate actual or planning data for a large number of profitability segments at once. You can also transfer planned sales quantities from (costing-based) CO-PA to Sales and Operations Planning (SOP) for the purpose of creating a production plan there.
The Information System lets you interactively analyze existing data from a profitability standpoint using the functions of the drilldown reporting tool. There you can navigate through a multidimensional "data cube" using a number of different functions (such as drilldown or switching hierarchies). The system displays data in either value fields or accounts, depending on the currently active type of Profitability Analysis and the type to which the report structure is assigned. (Each report structure is assigned to either costing-based or account-based CO-PA.)
SAP Product Costing deals with Plan Costing + Actual Costing of Finish products or Services.
CO comprises Product Costing + cost accounting integrated with FI.
It uses Integrated Cost Accounting.
Product costing also has 2 phases depending on the Mfg Scenarios. If you are a normal mfg comp, making goods to stock & sale, you have to first do planning of the costs of products initilally as a STD COST of a product. This is used in many phases in SAP CO acounting. In simple terms, you cost a product by different methods depending on different LIFE CYCLE phases of product. These are Development of new product. Growth stage by modifying it. Mature stage (mass prod). Decline Retirement of that product from Mfg+Mktng)
The whole CO process starts with this PLANNED costs of products & ends with totalling the STD Costs for Actual Production.
This is a simple Std cost Accounting system, in which the end result is calculating Variance bet Planned & Actual & analysing those for further corrective actions.
Product costing is well integrated to FI, but only where overhead cost accounting is used. Otherwise normally it used only for settlement
check out this link
http://www.sap-topjobs.com/SpecialPP/samplepc.doc
Assign points if useful
Ranjit
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