This document outlines the steps to generate an account-based profitability analysis report from SAP for a company with four brands. It involves setting up master and transactional data in SAP, including characteristics, cost elements, cost centers, and assessment cycles. Actual sales, cost of goods, administration, and salary data is then posted. A form and report are created to arrive at the brand-wise profitability results requested by finance.

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SAP Profit Center Accounting and Profitibility Analysis
Your company has following four Brands.
Brand 1 = Pfizer, Brand 2 = Roche, Brand 3 = GSK, Brand 4 = Sanofi
Your Company wants to do Account Based Profitability Analysis for the above:
 The total value of the Sales for the Year is CAN$1,000,000.
Sales Brand 1 Sales Brand 2 Sales Brand 3 Sales Brand 4
CAN$400,000 CAN$300,000 CAN$200,000 CAN$100,000
 Costs for Goods Sold is as follows
Costs Brand 1 Costs Brand 2 Costs Brand 3 Costs Brand 4
CAN$150,000 CAN$100,000 CAN$80,000 CAN$30,000
 Administration Costs for the period is CAD$110,000
o Finance Believes they should be assessed and allocated equally
 Salary Costs for the period is CAD$90,000
o Finance Believes they should be assessed and allocated equally for all 3 Brands, but for
Brand 4 It should be 10%
 Finance would also like to review P&L Variance and Variance % - Brand wise
Take Necessary steps to Generate Report from PA (Account Based)
Report Should be well formatted, with clear results, and with correct Profitability.
Use new Master and Transactional Data to arrive at your results.

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Index
1. CO-PAMASTER DATA................................................................................................................................4
1.1. CREATE CHARACTERISTICS .........................................................................................................................4
1.2. MAINTAIN CHARACTERISTICSVALUES ...........................................................................................................5
1.3. ADD THE BRAND CHARACTERISTICTO THE OPERATING CONCERN..........................................................................6
1.4. ADD THE BRAND CHARACTERISTICTO THE CHARACTERISTIC GROUP......................................................................7
1.5. ASSIGN CHARACTERISTICGROUPS TO ACTUAL CYCLES.......................................................................................8
2. PROCESS REQUIRED MATER DATA..............................................................................................................9
2.1. GL ACCOUNTS ........................................................................................................................................9
2.2. REVENUE COST ELEMENTS .........................................................................................................................11
2.3. PRIMARY COST ELEMENTS .........................................................................................................................11
2.4. SECONDARY COST ELEMENTS FOR ASSESSMENT ..............................................................................................13
2.5. COST CENTERS........................................................................................................................................13
2.6. CUSTOMER and Vendor ACCOUNT.................................................................................................................15
3. CREATE ACTUAL ASSESSMENT CYCLES ........................................................................................................17
3.1. ACTUAL CYCLES FOR ADMINISTRATION COSTS ................................................................................................17
3.2. ACTUAL CYCLES FOR SALARY COSTS............................................................................................................ 19
4. POST ACTUAL DATA................................................................................................................................. 20
4.1. POST SALES INVOICE ..............................................................................................................................20
4.2. POST COST OF GOODS ENTRY...................................................................................................................20
4.3. ADNINISTRATION COSTS..........................................................................................................................21
4.3.1. PostAdministrationCostsEntry ...................................................................................................21
4.3.2. RunAssessmentCycle forAdministrationcosts ............................................................................22
4.4. SALARY COSTS ......................................................................................................................................23
4.4.1 PostSalary CostsEntry..................................................................................................................23
4.4.2. RunAssessmentCycle forSalarycosts..........................................................................................23
5. CREATE FORM..........................................................................................................................................25
5.1. INITIAL SCREEN.....................................................................................................................................25
5.2. FORMGENERAL DATA SELECTION..............................................................................................................26
5.3. FORMCULOMNS ...................................................................................................................................26
5.4. FORMROWS ........................................................................................................................................28
5.5. FINAL FORM.........................................................................................................................................30
6. CREATE REPORT.......................................................................................................................................31
6.1. INITIAL SCREEN.....................................................................................................................................31
6.2. CHARACTERISTICS..................................................................................................................................31
6.3. OUTPUT TYPE .......................................................................................................................................31
6.4. OPTIONS.............................................................................................................................................32
6.5. RUN THE REPORT...................................................................................................................................32

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1.1 CREATE CHARACTERISTICS
Menu Path: SPRO
Tcode: KEA5
Due to authority, I pick up the SAP standard one.
Details:

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1.2. MAINTAIN CHARACTERISTICS VALUES
Menu Path: SAP easy access
Tcode: KES1

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1.3. ADD THE BRAND CHARACTERISTIC TO THE OPERATING CONCERN
Menu Path: SPRO
Tcode: KEA0

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1.4. ADD THE BRAND CHARACTERISTIC TO THE CHARACTERISTIC GROUP
Menu Path: SPRO
Tcode: KEPA

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1.5. ASSIGN CHARACTERISTIC GROUPS TO ACTUAL CYCLES
Menu Path: SPRO
Tcode: KEVG4

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2. PROCESS REQUIRED MATER DATA
2.1. GL ACCOUNTS
Menu Path: Sap Easy Access
Tcode: FS00
Sales revenue G/L account
Cost of sales goods G/L account

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Administration Costs G/L account
Salary costs G/L account

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2.2. REVENUE COST ELEMENTS
Menu Path: Sap Easy Access
Tcode: KA01
2.3. PRIMARY COST ELEMENTS
Menu Path: The same as revenue cost elements’.
Tcode: KA01
COGS cost element

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Admin cost element
Salary cost element

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2.4. SECONDARY COST ELEMENTS FOR ASSESSMENT
Menu Path: Sap Easy Access
Tcode: KA06
2.5. CREATE COST CENTERS
Menu Path: Sap Easy Access

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Tcode: KS01

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2.6. CUSTOMER and Vendor ACCOUNT
2.6.1 Create customer account
Menu Path: Sap Easy Access
Tcode: XD01

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2.6.2 Create Vendor account
Menu Path: Sap Easy Access

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3. CREATE ACTUAL ASSESSMENT CYCLES
Menu Path: SPRO
Tcode: KEU1
3.1. ACTUAL CYCLES FOR ADMINISTRATION COSTS

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3.2. ACTUAL CYCLES FOR SALARY COSTS

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4. POST ACTUAL DATA
4.1. POST SALES INVOICE
Menu Path: Sap Easy Access
Tcode: FB70
Remember enter the profit. Segments 80-83
4.2. POST COST OF GOODS ENTRY
Menu Path: Sap Easy Access

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Tcode: FB60
Remember enter the profit. Segments 80-83
4.3. ADNINISTRATION COSTS
4.3.1. Post Administration Costs Entry
Menu Path: Sap Easy Access
Tcode: FB50

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4.3.2. Run Assessment Cycle for Administration costs
Menu Path: Sap Easy Access
Tcode: KEU5

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4.4. SALARY COSTS
4.4.1 Post Salary Costs Entry
Menu Path: Sap Easy Access
Tcode: FB50
4.4.2. Run Assessment Cycle for Salary costs
Menu Path: Sap Easy Access

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Tcode: KEU5

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5. CREATE FORM
Menu Path:
Tcode: KE34
5.1. INITIAL SCREEN

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5.2. FORM GENERAL DATA SELECTION
5.3. FORM COLOMNS

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5.4. FORM ROWS

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5.5. FINAL FORM

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6. CREATE REPORT
Menu Path: Sap Easy Access
Tcode: KE31
6.1. INITIAL SCREEN
6.2. CHARACTERISTICS
6.3. OUTPUT TYPE

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6.4. OPTIONS
6.5. RUN THE REPORT
==============DONE===============