This page is to be used to collect all information related to Account Based Profitability Analysis
This form of profitability analysis is 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 a profitability report that is reconciled with financial accounting.
This type of Profitability Analysis enables reconciliation of cost and financial accounting at any time using accounts. In contrast to costing-based Profitability Analysis, this type uses cost and revenue elements, which gives a unified structure for all of accounting.
The system posts all revenues and costs to both Financial Accounting and Profitability Analysis at the same time. This means that the cost of sales is posted to Profitability Analysis at the point of goods issue.
Account-based CO-PA stores all transaction in three currencies, the transaction currency, the local currency, and the controlling area currency.