Last Updated on October 26, 2022 by Pradeep
COPA Process Flow in SAP FICO
COPA Process Flow in SAP allows access to the Online Transaction Processing (OLTP) structures or the core SAP database tables. It also allows the creation of a structure that online Analytical Processing (OLAP) applications use later.
This includes generating multidimensional, analytical and reporting components based on OLTP data such as the one that it delivers in SAP NetWeaver Business Warehouse. We also know it as SAP BW COPA.
COPA in SAP FICO
COPA in SAP FICO is a subcomponent of the SAP Controlling in ECC ERP that integrates information coming from different platforms in SAP. Such as Sales & Distribution (SD), Material Management (MM), Financial (FI), CO-Production (PP) and others.
High-level SAP ERP technologies focus on controlling how money flows in the enterprise first. Later on, they focus on how that information will be reported or shared. So, the Controlling Profitability Analysis (CO-PA) interacts with both of these worlds.
CO-PA is the recommended standard practice to link both (OLTP & OLAP). We can share and use OLTP data in SAP NetWeaver BW. Also, we can store data in SAP NetWeaver BW 7.0 inside the core tables of SAP and can use CO-PA to find data inside the SAP database.
SAP Profitability Model
From a profitability point of view, SAP ERP ECC 6.0 is a collection of tables and fields that store data and COPA is the interface to access saved or real-time data. The main element in COPA is called an Operating Concern. We can also understand it as an info cube for those familiar with the SAP data warehouse applications. Further, we can consider it simply as a small group of selected data objects that we can extract from specific SAP tables.
These are a part of what is called Profitability Segments.
Profitability segments are the links between profitability Analysis and Profit Center Accounting. It also connects the complete SAP ERP ECC 6.0 system into a common analysis reporting and displays environment.
SAP System uses two data models:-
- Account-based
- Costing-based
These two data storage or reporting models are the references for any data-sharing applications in SAP. These two models control how the information is posted inside the financial components in SAP and also how COPA accesses and reports the information.
The information transferred into CO-PA can be costing-based, account-based or both formats reported at the same time.
The kind of information that flows from the different SAP components depends on how we define the transactions in the OLTP system. Though it can be slightly different depending on your reporting and planning requirements. It also depends on the account-based or costing-based models that describe how the system stores and generates the data.
Also Read related: SAP CO-PA in S4 HANA Finance
SAP Objects per Component
Objects inside an SAP system are either called characteristics or value fields. Characteristics describe the data stored in the system such as customer id, billing data or product id.
| Component | SAP Objects | Data |
|---|---|---|
| SD | Billing Documents | Quantities, Revenues, Sales deductions, Cost of sales |
| CO-PC | Cost Estimates | Variable and fixed costs of goods manufactured |
| FI | GL Account Postings | Rebate & Freights |
| CO-OM | Cost Center | Sales & administrative costs | Marketing Costs | Variances |
| PS | Work breakdown structure ( WBS) elements | R & D Costs |
| PP | Production Order | Production Variances |
| MM | Material Ledger | Quantity Flows |
COPA in SAP FICO – A tool for Internal Repoting
COPA is also important within the CO component as a tool for internal reporting and interaction with other CO components, such as Profit Center Accounting (CO-PCA), product Cost Controlling (CO-PC), overhead cost Controlling (CO-OM), Cost Center Accounting (CO-CCA), Cost Element Accounting (CO-CEL) and others.
Cost Centers absorb the resources that profit centers generate because their function is limited to supporting the strategic process. It helps to continue generating income or simply being operational.
We can also consider the role of a profit center at a more high level in the company’s structure. Such as the division or business unit that carries a considerable number of resources and generates income from a market segment or an important geographical location.
Components under SAP COPA Process Flow
Structures
As its name implies, structures are the essential components of any CO-PA project that control the implementation. Subsequently, the structure displays different options that control the organization of the CO-PA information.
- Characteristics, which describe the data
- Value Fields that store quantity or amount values
- Operating Concerns that store characteristics and value fields
- Profitability Segment, which limits the characteristics data displayed inside the operating concern and the data to be transferred as account or costing based on the operating concern
COPA Planning
Planning in COPA Process Flow in SAP is done with a planning framework. As mentioned, this framework is similar to other SAP applications (for Example the SAP BW-BPS application) but they run in different environments. CO-PA further allows you to modify and display information from real-time or historical data inside the R/3 or SAP ERP ECC 6.0 system.
Flows of Actual Values in SAP CO-PA
The COPA Process Flow in SAP FICO is about combining the sources of revenue and costs into a common communication, reporting and planning environment. Therefore, we should be able to quantify whether the company is making or losing money at any particular moment. This is because CO-PA allows you to create interfaces to interact with different SAP accounting, financial and operational components and subcomponents.
Flows of Actual Values also show the options to transfer information coming from different components which include:-
- Transfer of Incoming Sales Order
- Transfer of Billing Documents
- Direct Posting from FI/MM
- Settlement of Production Variance
- Transfer of Overheads
Information System in SAP COPA Process Flow
The information system menu can be considered the most important menu beside the Structures menu in COPA Process Flow in SAP. It defines the overall COPA environment. It also enables the execution of variables behind the scenes within the ABAP environment. This further automatically updates and controls the data update to improve reporting performance without coding. You can perform the following in the Information System Menu.
- Create individual components of reports
- Create reports
- Store Report Data
- Define a report tree
- Define authorization objects for the information system
- Reorganize your information system
Once Operating Concern has been created, activated and loaded with data, the Information System menu allows you to use system-specific reports or create your own. You can also create sophisticated reports that allow drill-down and filtering using reports or forms.
What it all says – Summary
This article explains the profitability segments such as characteristics, value fields and data transfer from other modules to COPA. This data transfer may include Controlling Internal Document settlement. It can also include the process flow from Logistics such as Material Management, Sales & Distribution, & Production.
Do Read: SAP Controlling Interview Questions
Whom to understand this COPA Process Flow in SAP
COPA Process Flow in SAP ERP is significant for multiple segments of people working in the SAP domain. This includes the end-users, SAP FICO Consultants, and BW Consultants.
As per the SAP FICO end-users roles, they will post different transactions into the SAP system, then the system will generate the COPA document and update it in the COPA Table.
Further, the SAP FICO Consultants need to map all this COPA Process flow in SAP ERP System.
Similarly, it is also helpful for BW Consultants. This is because they will analyse the COPA reports and submit them to the management.
Hence, if your profile falls in any of these sections in SAP, you surely learn the SAP COPA Process Flow thoroughly in your SAP FICO Training. Even other sections or modules consultants such as Logistics, MM, Production etc. also need to understand this process flow. Since they are integrated with it and have an impact on their processes as described above.
Watch Related Video: Profitability Analysis in SAP CO
