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profitability

Former Member
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Hi all,

i want to map profitability for each customer wise. how that can be mapped in sap.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi Pavan,

1) The Customer Profitability can be done in COPA. Just find out if your client is using COPA to calculate customer Profitability. If so, then you can use the COPA data to build the report on customer Profitability.

If Not then...

2) Find out from the Business as to what are the different costs that need to be attributed to the Customer to Calculate Customer Profitability . Based on the clients inputs you could come to the Formula :

Sales Revenue - Cost1 -Cost 2 - Cost 3 etc.

Costs could be Sales & Distribution Cost, Freight Costs , Godown Charges etc.

Most of these Charges, will have to be Statistically Costs Calculated and Attributed to the Customer, while some costs can be directly attributed to the Customer.

One way of attributing Costs to the Customer is Making changes to the Pricing Procedure and at the time of billing attribute the Various costs to the Customer. And along with the billing Information extract the data into BW and report on customer profitability.

Another way of attributing costs could be is by maintaining a ODS in BW where i maintain the Various costs which can be attributed to the Billing Record which is extracted into BW. The Basis for attributing the costs need to be arrived at with the help of Business Users.

if you give me brief i can help you out more.

Thank you .

Regards

Ram

Answers (2)

Answers (2)

Former Member
0 Kudos

Hi,

You can do it through KEDR transaction.

Coordinate with your CO colleagues.

Regards,

Chandra

Former Member
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hi

can any body pl elaborate further on this regarding pricing part.

Regards

mandar

Edited by: Mandar Deshpande on Jan 7, 2008 5:45 PM