Profitability Analysis (CO-PA) in SAP allows evaluation at segments (market). These segments are split based on products, customers or any combination of these, or business units, such as sales organizations or business Segments, with respect to the company's profit or contribution margin.
SAP provides various departments with information to support internal accounting and decision-making. There are two types of Profitability Analysis
In Costing-based Profitability Analysis, SAP groups costs and revenues according to value fields and costing-based valuation approaches. These can be defined by each customer.
In Account-based Profitability Analysis, SAP groups accounts using an account-based valuation approach. The main characteristic of this form is the use of cost and revenue elements. Thus, profitability reporting can be reconciled with financial accounting.
The key advantage is both these types of CO-PA can be used simultaneously. However in the past Companies always preferred to go with Costing based CO-PA. The reason being in Account based COPA the Cost component split as well as variance Analysis was not possible, also Sales Order Information which is not yet Billed or Delivered cannot used in any simulation.
However, with S/4HANA SAP has made certain key innovation in Account Based COPA
Realtime with Accounting
Cost component split is possible
variance Analysis split is possible
After 1809, Sales Order Data can be used for simulation
Other Innovation are in progress to add to automatic postings based on simulated Information.
Also with S/4HANA and Account based COPA, the Operating Concern Currency is not valid any more. The company code and controlling area Currencies are used in reporting.
Courtesy SAP SE
Profitability characteristics at line-item level in real time, over time
Root cause analysis and traceback based on single source of truth
All-in cost transparency for cross charging, process improvements, and pricing
Self-service comparison of performance by customer, product groups, or other dimensions (including flexible hierarchies)
The Analytics aspect still remains same as in ECC, the reports and forms have to be configured from SPRO. There is an APP for KE30 however it is an GUI app and SAP would serve better to have another better app in this space