Difference: Accounting Based & Costing Based OH

Hello Everyone,
What is the difference between Accounting Based OH & Costing Based OH?
Thanks,
Sneha
Edited by: Sneha Latha on Sep 16, 2009 8:56 AM

It has been asked dozens of time. Please, search SDN or lookt in http://help.sap.com
http://help.sap.com/saphelp_erp60_sp/helpdata/en/7a/4c37ef4a0111d1894c0000e829fbbd/frameset.htm

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Rule based & Cost based optimizer

Hi,
What is the difference Rule based & Cost based optimizer ?
Thanks

Without an optimizer, all SQL statements would simply do block-by-block, row-by-row table scans and table updates.
The optimizer attempts to find a faster way of accessing rows by looking at alternatives, such as indexes.
Joins add a level of complexity - the simplest join is "take an appropriate row in the first table, scan the second table for a match". However, deciding which is the first (or driving) table is also an optimization decision.
As technology improves a lot of different techiques for accessing the rows or joining that tables have been devised, each with it's own optimium data-size:performance:cost curve.
Rule-Based Optimizer:
The optimization process follows specific defined rules, and will always follow those rules. The rules are easily documented and cover things like 'when are indexes used', 'which table is the first to be used in a join' and so on. A number of the rules are based on the form of the SQL statement, such as order of table names in the FROM clause.
In the hands of an expert Oracle SQL tuner, the RBO is a wonderful tool - except that it does not support such advanced as query rewrite and bitmap indexes. In the hands of the typical developer, the RBO is a surefire recipie for slow SQL.
Cost-Based Optimizer:
The optimization process internally sets up multiple execution proposals and extrapolates the cost of each proposal using statistics and knowledge of the disk, CPU and memory usage of each of the propsals. It is not unusual for the optimizer to analyze hundred, or even thousands, of proposals - remember, something as simple as a different order of table names is a proposal. The proposal with the least cost is generally selected to be executed.
The CBO requires accurate statistics to make reasonable decisions.
Even with good statistics, the complexity of the SQL statement may cause the CBO to make a wrong decision, or ignore a specific proposal. To compensate for this, the developer may provide 'hints' or recommendations to the optimizer. (See the 10g SQL Reference manual for a list of hints.)
The CBO has been constantly improving with every release since it's inception in Oracle 7.0.12, but early missteps have given it a bad reputation. Even in Oracle8i and 9i Release 1, there were countless 'opportunities for improvement' <tm> As of Oracle 10g, the CBO is quite decent - sufficiently so that the RBO has been officially deprecated.

What is Account-Based Costing ?

Hi,
Can anyone tell me, what is Account-based costing? What is role of it ?

Hi,
Two forms of Profitability Analysis are supported: costing-based and account-based.
Costing-based Profitability Analysis is the form of profitability analysis that groups costs and revenues according to value fields and costing-based valuation approaches, both of which you can define yourself. It guarantees you access at all times to a complete, short-term profitability report.
Account-based Profitability Analysis is a form of profitability analysis 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 you with a profitability report that is permanently reconciled with financial accounting.
http://help.sap.com/saphelp_46c/helpdata/en/7a/4c37ef4a0111d1894c0000e829fbbd/content.htm
Have many thread for you:
COPA - Account Based & Costing Based clarification required...

COPA -Acccount based and cost based

Hi ,
I want to know from BW Point of veiw ,
what is the difference betwee costing based Ectractor and account based Extractor .
Can some body explain me .
Regards

Data Source-Accounting Base:
When we generate CO-PA Data Source select accounting based option.
Fields KOKRS, BUKRS, KSTAR are compulsory.
There are no Characteristics available for line Items because accounting based data sources do not contain characteristics.
There are no value fields or calculated key figures available
KOKRS and PERIO must be selected as selection fields.
To Provide Data Source for BW all CO-PA Data Sources must be generated in the Source System.
Data Sources can be defined at Operating Concern and client level.
Data Source Contains the following Information
Name of the Operating Concern
Client
Subset of the Characteristics
Subset of the Value fields
Time Stamp which data has already been loaded in to BW.
Cost based:
Cost based CO-PA is the form of Profitability Analysis that groups costs and Revenues according to value fields and costing based valuation approaches,both of which you can define your self.
It gaurentees you can access at all times to complete,short-term profitability report.
In Overhead cost controlling primary postings are made to objects in overhead cost controlling and assigned to relevant cost object. Actual cost of goods manufactured also assigned to cost objects and at the same time performing cost centers are credited
Hope it will helps you........

Differences between Costing based COPA and Account based COPA

Hi,
I wanted to know the main differences between Costing based COPA and Account based COPA?
For which scenarios account based COPA used and for which scenarios costing based copa used.
please guide me
sateesh

HI
Costing-based Profitability Analysis is the form of profitability analysis that groups costs and revenues according to value fields and costing-based valuation approaches, both of which you can define yourself. It guarantees you access at all times to a complete, short-term profitability report.
Account-based Profitability Analysis is a form of profitability analysis 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 you with a profitability report that is permanently reconciled with financial accounting
Regards,
Vijayanand Sankaran

What is CoPA , what is the difference between Cost based, Account based

Hi
what is Copa, what is the difference between cost based , Account based copa, where we can use.
can you send me please related document.
Thank you
Anil

Hello
Profitability Analysis (CO-PA) enables you to evaluate market segments, which can be classified according to products, customers, orders or any combination of these, or strategic business units, such as sales organizations or business areas, with respect to your company's profit or contribution margin.
The aim of the system is to provide your sales, marketing, product management and corporate planning departments with information to support internal accounting and decision‑making.
Two forms of Profitability Analysis are supported: costing-based and account-based.
· Costing-based Profitability Analysis is the form of profitability analysis that groups costs and revenues according to value fields and costing-based valuation approaches, both of which you can define yourself. It guarantees you access at all times to a complete, short-term profitability report.
· Account-based Profitability Analysis is a form of profitability analysis 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 you with a profitability report that is permanently reconciled with financial accounting.
You can also use both of these types of CO‑PA simultaneously.
Check this link for more help
http://help.sap.com/erp2005_ehp_02/helpdata/en/7a/4c48c64a0111d1894c0000e829fbbd/frameset.htm
reg
*assign points if useful

Difference between account based and cost based in co-pa

hi friends,
what is main deffirencebetween account based and cost based in co-pa. what scenerio we use account based and what scenerio we use cost based.
Thanking u
suneel.

Hi,
It all depends on the OPerating oncern which you are going to use for the CO-PA implementaion.
For a account based Operating concern you can define accopund based copa.
For a Cost Based Operating concdern you will have tp define account based Copa.
You can create account based Copa on cost based operating concern and vice versa.
In most of the FI implemntaion is done before BW inplemetation and therefore Operating concerns are already defined by the FI people.
Thanks
Message was edited by:
Ajeet Singh

OKB9 - Account based costing

Hello All,
Which all set of cost element generally we link in OKB9 in Account based costing.
Do I need to link all my Revenue accounts / Sales reduction / COGS / Materials. Please guide me.
Best Regards
Vijay Purohit
Moderator: Please, search SDN

Hi,
The major difference between Account Based CO-PA and Costing Based CO-PA is in transferring the Cost and Revenue from Billing.
Cost of Goods Sold will be transferred to Account based CO-PA while delivery is done against the Sale Order as the FI entry is generated and the value will flow via Cost Elements. Revenue will flow to CO-PA at the time Billing is done same way as FI entry is generated and via Cost Element. (No seperate mapping is required to transfer the Cost and Revenue)
Whereas in case of Costing Based CO-PA both the COGS and Revenue will be transferred at the same time when Billing is done as the values flows via Condition type in Sales Order. (Condtion type are mapped to Value flows in CO-PA)
Other than these, if you want to transfer other costs, you can do so using OKB9, Cost Center cycles to CO-PA etc.,
Hope this helps in understanding the difference.
Kind Regards
Umapathi G

Account based costing types

What are all the types of Account based costing? And differences?

hi jp,
check this out
http://help.sap.com/saphelp_46c/helpdata/en/7a/4c37ef4a0111d1894c0000e829fbbd/content.htm.
reward points if help ful.

Costing based and account based

HI All
Kindly let me know difference between costing based copa and accounting based copa with examples
Thanks & Regards
Phaneendra

Two forms of Profitability Analysis are supported: costing-based and account-based.
Costing-based Profitability Analysis is the form of profitability analysis that groups
    costs and revenues according to value fields and costing-based valuation approaches,
    both of which you can define yourself. It guarantees you access at all times to
    a complete, short-term profitability report.
Account-based Profitability Analysis is a form of profitability analysis 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 you with
    a profitability report that is permanently reconciled with financial accounting.
You can also use both of these types of CO-PA simultaneously.
(courtesy: help.sap.com)
It is strongly recommended, however, that you do not activate both types of CO-PA. The
major reason being is that you will have significant table size impacts. You must be careful
with account based CO-PA as this creates additional line items in the existing CO tables of
COEP (actual), COEJ (plan), COSP & COSS (summary records). Hence if you want to do any
cost center reporting, say, from any of these existing tables you will run the risk that
performance will be degraded by these additional and unnecessary records.
The only advantage of account based over costing based CO-PA is it's ability to
automatically reconcile back to FI, in much the same manner as you would reconcile
cost center accounting back to FI. However you don't have the flexibility in account
based CO-PA to perform valuations using product cost estimates etc. as you do in
costing based CO-PA. If the reason you were advised to turn on account based CO-PA
as well as costing based was to facilitate reconciliation, it is suggested that you look
at alternatives that won't have the same negative impacts that turning on account
based would have. In addition to the serious table space issues, it is not that easy to
turn on and off account based at will (especially in production).
Instead what you should look at doing is creating a series of reports that enable you to
reconcile costing based CO-PA back to CCA/PCA and FI, if this is required. The complexity
of the costing based functionality you have used will determine the complexity of the
reports that will be needed to reconcile back, but it can be done without turning on
account based CO-PA.

COPA extractor : account based vs cost based

Hello
Can you please give me an example of typical extractor output for account based and cost based models.
Wha are the difference between different model types? Please answer with your own words rather then with copy-paste.
Is it the same principle like account based and key figure based in planning?
Edited by: Comandante Che Guevara on Jun 1, 2009 10:43 AM

no answer

COPA (Cost based & Account Based)

Hi Gurus;
Can some share me the documents for cost based & account based extraction of COPA.
I am looking for differences and how exactly do you do extraction for the both(Step-by-step).
I am also looking for which model should we use if COPA is not implemented in R/3 and otherwise.
Thanks in advance!

Hi,
chk this:
https://www.sdn.sap.com/irj/servlet/prt/portal/prtroot/com.sap.km.cm.docs/library/biw/g-i/how%20to%20co-pa%20-%20retraction
https://www.sdn.sap.com/irj/servlet/prt/portal/prtroot/docs/library/uuid/fb07ab90-0201-0010-c489-d527d39cc0c6
https://www.sdn.sap.com/irj/servlet/prt/portal/prtroot/com.sapportals.km.docs/documents/a1-8-4/how%20to%20set%20up%20connection%20co-pa%20-%20extraction
https://www.sdn.sap.com/irj/servlet/prt/portal/prtroot/com.sap.km.cm.docs/library/biw/g-i/how%20to%20upload%20co-pa%20hierarchies.pdf
https://www.sdn.sap.com/irj/servlet/prt/portal/prtroot/com.sap.km.cm.docs/library/biw/g-i/how%20to%20co-pa%20extraction%203.0x
Thanks,
Raj

Costing Based And Account based COPA - Need Assistance

Hello All,
In our project, with no other option we are planning to implement both costing based and account based COPA. I have been told that it is not recommended by SAP because for every entry there will two line items, one in cost based and another in account based (Correct me if I am wrong). But I could not understand why it is creating 2 line items in COPA. - Please help to understand this concept with an Example.
Thanks
PM

Hi
Costing based and account based COPA serve the same purpose... analyze profitability of the product ....
Costing based COPA should always be preferred over account based COPA, as it provides greater flexibility, some extra features, some extra planning mechanism and faster reports
Following are the point of differences between Costing based vs. Account based copa (ABC)
1. Account based copa uses transaction tables (COEP, BSEG) and hence affects performance of CO transactions.CBC takes values from CE1XXXX to CE4XXXX tables. XXXX means Operating Concern name.
2. Estimated / Statistical values not possible in ABC, say, calculating frieght upon invoice on a thumb rule basis to have better view of profitability per customer.. no valuation strategy in Accounts based COPA..
3. Reports based on line items not possible in ABC.. possible in CBC.
4 Actual Top Down distribution only available in CBC not in ABC .
5. Revaluation of actual data to plan data is not available in ABC
6. No key figure schemes are available in ABC
7. In ABC, settlement cost elements are used to settle values to prof segments unlike value fields in CBC
8. Production variance / COGS accounts shud be defined as cost element in ABC.
System creates a document for each type of COPA as it stores values in different tables and what you can do with this data also differs like you can do TOP down in Costing Based Copa..
Hence, you will have two COPA documents always......................
Fot further clarifications .. please revert back..
Regards
Sarada

Activating Account based Copa in the existing Cost-based COPA

Hi Sap CO gurus!
Please advise me for the following issue.
Presently, My client using Cost-based COPA for segment wise reporting.( Already activated).
Now they wanted the reports in Account Based. Is it possible to activate the Account based now? Will the system allow us to activate or not?
If yes, What will be the implications? I want to know the pros and cons for that.
If not, How Can I edit the COPA settings( Operating concern)? Or shall I delete the Operating concern and create one new one?
Can you please explain the impact of each situation?
Thanks a lot in advance
Rama

Hi Joe
You can deactivate Account Based COPA, but you will have to do a thorough testing so that you are aware of the issues that can crop up
The IMG Menu is SPRO > Controlling > Prof Analysis
You will have to do a testing of how the open sales orders would behave... The open sales orders mean Sales Orders where PGI has been done, but billing is pending AS WELL AS Sales orders which are just created, but no Logistics movement (PGI) has taken place... You will have to do testing on both types of sales orders
- When you do PGI after deactivating the account based COPA, you may face error. Because, COGS GL account is a cost element in Account based COPA, where as in Costing based COPA, it is usually not a Cost Element
- Also do a billing from an open sales order and see if you get any error there...
Similar issue can arise during variance settlement also, because the variance account is not a cost ele in Costing Based COPA.
Test out the above scenarios and do share your experiences
Regards
Ajay M

Reconciliation of costing based COPA and account based COPA

hi experts,
I want reconciliation statement of A/c based copa and costing based copa through SAP. we have not configured any account based copa reports. now we are manually doing the reconciliation. Please tell me the configuration.
Thanks & regards
jay

HI
Costing-based Profitability Analysis is the form of profitability analysis that groups costs and revenues according to value fields and costing-based valuation approaches, both of which you can define yourself. It guarantees you access at all times to a complete, short-term profitability report.
Account-based Profitability Analysis is a form of profitability analysis 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 you with a profitability report that is permanently reconciled with financial accounting
Regards,
Vijayanand Sankaran

Difference: Accounting Based & Costing Based OH

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