This document provides instructions for configuring profitability analysis in SAP. It includes steps for defining operating concerns, characteristic derivations, valuation setup using cost estimates, assigning costing keys and value fields, configuring the flow of actual values through billing documents and direct postings, settling production orders, assigning transfer structures, and defining forms and reports.

1. 1 Access the activity using one of the following navigation options:
IMG Menu Controlling  Profitability Analysis  Structures
 Define Operating Concern  Maintain
Operating Concern
Transaction Code KEA0
Click on Display button to View Characterstics and Value Fields
Example Of Costing and Account based profitability Analysis:

4. Come back and Click on Attributes button :

5. Click on Environment

6. Whenever new Characteristics or value fields are added, we need to reactivate by
clicking the Pencil buttons
Assign Controlling Area to Operating Concern
Use
In this activity, you allocate the controlling areas that you want to be able to analyze together in
Profitability Analysis to an operating concern.
Procedure
1. Access the activity using one of the following navigation options:
IMG Menu Enterprise Structure  Assignment  Controlling 
Assign Controlling Area to Operating Concern

7. DEFINE CHARACTERSTIC DERIVATION :
1.
Transaction Code KEDR
IMG Menu Controlling  Profitability Analysis  Master Data  Define
Characteristic Derivation
Click on Magnifier glass to view the characteristics source and target

8. Click on

9. 1 :
Transaction Code SPRO
IMG Menu Controlling  Profitability Analysis  Master Data
Valuation  Set Up Valuation Using Material Cost
Estimate  Define Access to Standard Cost Estimates

10. ASSIGN COSTING KEYS TO MATERIAL TYPES :
Transaction Code SPRO
IMG Menu Controlling  Profitability Analysis  Master Data
Valuation  Set Up Valuation Using Material Cost

11. Estimate  Assign Costing Keys to Material Types
ASSIGN VALUE FIELDS:
Transaction Code SPRO
IMG Menu Controlling  Profitability Analysis  Master Data
Valuation  Set Up Valuation Using Material Cost
Estimate  Assign Value fields

12. FLOW OF ACTUALS :
TRANSFER OF BILLING DOCUMENTS :
IMG Menu Controlling -> Profitability Analysis -> Flows of Actual
Values -> Transfer of Billing Documents -> Assign Value
Fields- Maintain Assignment of SD Conditions to CO-PA
Value Fields
DEFINE PA TRANSFER STRUCTURE :

13. Direct Postings from FI
IMG Menu Controlling -> Profitability Analysis -> Flow of Actual
Values -> Direct posting from FI/MM -> Maintain PA
Transfer structure for Direct postings

15. SETTLEMENT OF PRODUCTION ORDERS:
IMG Menu Controlling -> Profitability Analysis -> Flows of Actual
Values -> Settlement of Production variances -> Define
PA Transfer structure for variance settlement

17. ASSIGN PA TRANSFER STRUCTURE TO SETTLEMENT PROFILE :
IMG Menu Controlling -> Profitability Analysis -> Flows of Actual
Values -> Settlement of Production variances -> Assign
PA Transfer structure to settlement profile.

19. DEFINE FORMS FOR PROFITABILITY REPORT
1
IMG Menu Controlling -> Profitability Analysis -> Information
System -> Report Components -> Define Forms ->
Define Forms for Profitability Reports
Transaction code KE34
Double click on each of the field names to view the details as shown below

24. DEFINE PROFITABILITY REPORT :
Transaction Code KE31
IMG Menu Controlling -> Profitability Analysis -> Information System
-> Create Profitability Report
Go to Change mode and pick the following report to view the details