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...

Similar Messages

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.

Differance between the Cost based costing and Account based costing

Hi,
What is the Differance between the Cost Based Costing and Account Based Costing ?

You can check sap note 69384
COSTING-BASED PROFITABILITY ACCOUNT-BASED PROFITABILITY
ANALYSIS ANALYSIS
OBJECTIVE
o profitability and sales accounting
o evaluation of market segments (for example,
customers, product groups, sales areas) and corporate
units (for example, division, sales organization) with
regard to their profit or contribution margins
o calculation of profits procedures
- cost-of-sales accounting
- interim and reconciled sales report
- periodic and transaction-based allocation
- Profitability Analysis on the basis of full and
direct costs
o posted and costing-based values o account-based values
o can be reconciled with FI for o always reconciled with
account groups (revenues, sales FI on account level
deductions, costs of goods
Note 69384 - Information: Account-based Profitability Analysis
manufactured, and so on)
DATA STRUCTURES
o definition of operating concerns o definition of operating
with fixed characteristics and concerns with fixed and useruser-
defined characteristics defined characteristics
and value fields
o cumulative storage by posting o cumulative storage by
periods and weeks posting periods
o storage in operating concern o controlling area currency,
currency (as of Release 4.0 also company code currency
optional in company code currency and transaction currency
if req.)
o user-definable summarization levels
FUNCTIONS
o transfer of profit relevant o transfer of profit-relevant
business transactions from SD, FI activities from SD, FI, CO, MM
CO, MM (revenues, sales deductions (revenues, sales deductions and
and costs organized by value fields) costs organized by accounts)
o Derivation of characteristics from master
data or using derivation rules
o Realignments also for data that is already
posted
o Valuation
(Costs of goods manufactured, imputed
costs and sales deductions)
o sales and profit planning o profit planning
- flexible layout - flexible layout
- periodic distribution - periodic distribution
- valuation, revaluation - forecast procedure
- forecast procedure - top-down distribution
- top-down distribution - simulation
- simulation
o profit analysis by means of 'interactive drill-down
reporting'
- Report Painter
- object list/ranking lists, database schema
- drill-down
- key figure systems
- flexible hierarchies
- navigation between reports
- exception reporting
- ABC analyses
- Exporting (Excel, Winword, Mail)

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

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

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

Account-based COPA and having Cost Center as Real Object in Sales Order

Hi,
We have recently activated account-based COPA and in our SO, we realized the Profitability Segment being populated- that is not a problem in normal scenarios.
However, in some cases, we would like to charge to a cost center instead of COPA. We have tried the 2 ways mentioned in the forum/on the web to include Cost Center in Sales Order:
1. Go to OVF3 t-code and configure a default cost center for the order reason
2. Change the SD Document Category under 'Define Sales Document Types' to 'I- Order w/o charge'.
However both ways only open the Cost center field but still populates the COPA. At accounting entries, cost center will become a statistical object and COPA, the real object- which is not what we want.
Is there a way to stop the auto-populating of Profitabiltiy Segment in SO when cost center is being entered?
Thanks very much in advance for any suggestions.
Regards,
Huimin

Solved by myself, with help of OSS Note: 44381 - Profitability Segment Not Required in SD Postings. Have a CO substitution rule to clear away the Profitability Segment number based on certain conditions. Thanks!

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

What is the purpose of account based COPA when we have FSVs

Hi,
I noted the information we can get from account based copa is exactly the same as the information we can get from financial statement version reports. As such why do we need account based copa for?
What info i can get in account based copa that i cannot get from FSV reports?
help.sap.com

Hi,
   Information gets passed to account based COPA if the relevant G/L account is a cost element.
   However account based COPA uses PA segments. This information contained in the PA segment can be viewed via KE24
   To test this post a billing document using account based COPA. After that go to KE24 for account based COPA and check the report. You will see all the details which would not be available in any FI report. Basically the information available for reporting makes it worth using for account based COPA
regards
Waman

COST ELEMENTS IN ACCOUNT BASED COPA

Hi all,
1. I understand that all FI/GL accounts correspond to COST   ELEMENTS in COPA.
2. I also understand that there are NO value fields in an Account Based Profitability Analysis.So there is no VALUE FIELD to KEY FIGURE mapping.
3. My question is: how do we map each individual GL account into BI?
4. If we dont map each individual GL account, how do we report these accounts in BI?
This part of Account based has been very confusing. I have searched numerous posts, but they all have the same answers, none that explains how we handle the numeric fields of account based profitability analysis.
Cheers
TJ

You will have a KF lets say amount
In account based COPA your Cost and revenue elements will identify what does the value in this KF corresponds to.
your report will look something like below:
Ex:
Cost and Revenue Element #     Amount
800 - Revenues                     1,000,000
808 - Sales deductions             100,000
800 - 808 = Net Revenue            900,000
893 - Cost of Sales               90,000
231 - Price Difference              10,000
Total                               1,000,000
You may get amount from source system in 2-3 diff currencies like controlling area curr, transaction curr...
Sometimes range of accounts correspond to a value. Ex: Accounts 800-900 resemble revenue.
In such a case you may create Text node in hierarchy called revenue and use it in report (if no hierarchy available from the source system) or create selection in the report.,

PA - Costing-Based and Account-Based

Hi All,
Please tell me what is Costing based PA and Account-based PA.
Thanks
Vinu

Hi,
Costing-Based Profitability Analysis
This type of Profitability Analysis is primarily designed to let you analyze profit quickly for the purpose of sales management. Its main features are, firstly, the use of value fields to group cost and revenue elements, and, secondly, automatic calculation of anticipated or accrual data (valuation). The advantage of this method is that data is always up‑to‑date and therefore provides an effective instrument for controlling sales.
Account-Based Profitability Analysis
This type of Profitability Analysis enables you to reconcile 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 you 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 and using the same valuation method. This means that the cost of sales is posted to Profitability Analysis at the point of goods issue.
Regards,
Eli

Change COPA from costing based to account based

dear friends,
one of our clients is upgrading from 4.6C to ECC 6.00. as part of this upgrade they want to change the COPA from costing based to account based.
Whether this can be done?
If yes, how it can be done and what all precautions need to be take care of?
If no, what are the reasons due to which it should not be done?
thank you for the help.
bajee prasad

Hi,
Let me try to answer to get full points from you. It is a very tricky question.
You can add Account based COPA in addition to Cost based COPA. It is advisable not to delete Cost Based COPA.
Go to Tr. Code KEA0. In the Data Structure Tab, click the change button. Now you can tick the Account based type of PA.
Then go to Environment tab, click the activation button. System will run for some time and both the types of PA gets the environment. These changes are not transportable. You need to do it by opening the system. You can test this in your quality system and then try in Production. I caution that you need to take a backup of the system so as to meet any worst scenario. All the best.
Cheers,

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.

Difference Between Cost and Account Based COPA

Hi
What is the difference between Cost and Account based COPA from a BI perspective ( both functionally and technically)
Thanks
Rashmi.

Hi Rashmi,
Greetings.
There is lot of reading material available on forums and help.sap.com
For start you can try with this:
Link:[http://help.sap.com/saphelp_46c/helpdata/en/7a/4c37ef4a0111d1894c0000e829fbbd/content.htm]
Thanks
Sachin

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

What is Account-Based Costing ?

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