Demystifying Sub-Module of Profitability Analysis in Controlling Module of ERP SAP S4 Hana

Abstract

SAP AG, located in Dusseldorf, Germany, is the market leader in ERP systems. It has a very versatile and dynamic Cost and Management accounting module called ‘Controlling’. This module comprises a sub-module called ‘Profitability Analysis’, which is also called Controlling- Profitability Analysis, abbreviated as CO-PA. This is the only sub-module which enables us to match revenue versus cost not only at product and customer level, but also across various parameters/dimensions/characteristics. Having undertaken end-to-end solutioning of Controlling Module including Profitability Analysis for about 30 domestic and international MNCs, I found that most client representatives consider this high-utility module an enigma as they find its scope and specifics rather overwhelming. Hence, there is a clear need to conduct focused workshops for clients to help them understand the solution so that they can support customization efforts to tweak the solution according to their business needs, management vision and mission, and MIS requirements. I share my experience through this article to demystify this sub-module of cost and management accounting such that readers can gain a holistic understanding of the solution fundamentals, and a peek into the advanced features.