COPA

[Former Member]

In Copa, while creating operating concern, In type of profitability analysis why we click both the check box of..

(1) Costing based

(2) account based

Where it effects....

Plz

Regards,

Assign points

[Former Member]

Hi Bhaskar , in addition to the notes given by our forum friends.. this basics also useful to u.

Books of accounts in any organisation are to be kept according to the legal requirements like companies act or IT or any labour laws, AS etd.. this is called Financial books. But in the case of manufacfuring organisation, for some specified companies costing books are also maintained in addition to the regualr financial books.

In the case where the cost accounts also follwoing, there will be two Profit and loss accounts. one is regular P&L account which is prepared according to regular financial books and another one is Costin P & L Account.

Here i need to expalain about Costing based.... the main object of Costing/cost accounting is to cost calculation and cost controlling. Then in order to fulfill the forst one i. e. Cost calculation cost accountant must maintain the costing records. in the sense in costing records total costs only taken in to cosideration and such cost is devided in to defferent catageries as direct/indirect and FOH, ooh, sdoh or variable and fixed costs ... etc.,,,

What ever may be the cost clasification, total cost is calculated and it includes cost of Opening material and WIP and cost of F/G

But in the costing records no incomes are taken in to account other than Sales (And the sales also taken to know the profit by deducting the total cost from total revenue earned by the way of sale of F/G.). other incomes like scrap sales, interest received etce.. are not considered in the Costing records. and some of the expenses like interest paid on loans are not taken in Costing records as loan is not a compalsery obligation to run busines.

Because of these variations the profit derived under Costing records is differes from that of the from finance....

So we need Costing based and Account(Finance) based..

If u satisfied.. award me points...

Dasharathi

[Former Member]

hi bhaskar,

based on your ? there is two options but you are selecting only one option either account based r costing based

costing based CO-PA is long run usage (in this cost up dated in Value Fields)

in cost based co-pa your are not assign any accounts in your configuration

account based CO-PA is short run usage (in this cost up dated in Accounts)

but your client is Maufacturing Co. , 95% co.s use Costing based CO-PA

if it is Server based Co. there are Using Account Based Co-PA

Regards

radha

[AKLone]

Following are the main difference b/w costing base and account base:

In Costing base: All revenue stored in value field

Account base : All revenue stored in account field

regards,

AK Lone