Profitability Analysis

Two Tools
1 Profit Center Responsibility area wise determination of profit
2 Profitability Analysis This market segment are called Profitability segment
Profitability segment Market segment
1 Sales data
2 COGS (Thro Product Costing)
3 Overheads
Sales data
1 Financial A/cing (F-22)
2 SD (Billing Document)
It may segment is south or north what is my profitability to sales (Karnataka, AP, TN ie., Region wise)
We have to specifiy
for Sales We have to arrive COGS
in Pricing Procedures - Condition Type VPRS
PROO Basic Price
K007 Customer
VPRS Cost
Price update in the product costing
1 Using Pricing procedure COGS
2 Using Costing Key COGS
Overheads
We can update - directly post in the posting
Eg Advertisment cost
How to allocation to market segment using assessment cycle among the region wise can be distributor
Transfer Cost center
or
Profit Segment
Market segment We have to store the data
Data Base Table is called Data Structure
That is called
Operation concern
Data Base Table we have to define
Containt
Characterstis
Value Field
Profitability segment
Product
Region
Country
Co. Code
Wholesaler wise
C & F Wise
(through Sales Group) Marketing Officer
Charactersis =
Product
Customer
Region
Country
Company Code
Wholesaler wise
C & F Wise
(through Sales Group) Marketing Officer
Value Fields
Sales Qty 1. For this sales Data we have to collect
Revenue 2. COGS
Material Discount
Advertisement
Sales & Marketing Exp
Other Discount for that systme maintain value fields
Cost of Goods Sold
Profitability Segemet
Single
Multiple
Single One Product Each customer Wise
Multiple One customer - Product wise , Region wise, Country wise, Marketing Officer wise
Data to be maintain Company code currency
Profit center currency
That is call Attributes
R/3
Operating Concern
We can maintain number of Client
Client Client level one COA for all company code & all controlling area)
Controlling area Can used for all company code
Company
Company Code
Plant Profitability
We can maintain
1. Cost Base Profitability
Assumed value
Sales commission to get the order
2. Accounting Base Profitability
Actual figure to analysis profitability
It may segment is south or north what is my profitability to sales (Karnataka, AP, TN ie., Region wise)
How to allocation to market segment using assessment cycle among the region wise can be distributor
1. For this sales Data we have to collect
for that systme maintain value fields
One customer - Product wise , Region wise, Country wise, Marketing Officer wise
We can maintain number of Client
Client level one COA for all company code & all controlling area)
Sales commission to get the order
Actual figure to analysis profitability
1 First need to define operating concern this we need to define to our controlling area
2 Whether
Costing Profitability analysis
Account Profitability
3 While doing billing that billing value qty / Discount
We need to setup link SD & operating concern
What value we have to update to do this
4 Preparing billing document - Pricing Prodcures
PROO Price condition
Discount condition
Cost Condition
5 Billing document - which condition type field need to be update
6 Overhead in posting in final A/c update the value fields
7 While positing it self we are giving cost center
Create only assessment cycle
The cost need to be allocation for profit segment ( Value Base filed)
8 Transfer cost from One segment
to another segment
9 Profitability is a Reporting Tools
If we want to collect the all data through Profitability
for that to collect all information
Operating concern we need to maintain