COPA is an important financial tool which can help you with the slice & dice of data based on different characteristics. Since it can give you all the details of your costs and revenue, it is therefore important to reconcile COPA with your GL’s. Controlling Profitability Analysis (COPA) has two forms supported:
Account Based: Based on accounts and uses account-based valuation approach
Costing Based: Groups costs and revenue into Value Fields.
So how does COPA reconcile with my GL’s?
Let’s see how to reconcile COPA-FI with SD
Sales & Cost of Sales
Sales & Distribution is tightly integrated with Financial Accounting and thus with Controlling Profitability Analysis (COPA). Numbers flow in COPA via SD pricing conditions which are linked to value fields in COPA. This can be easily viewed via transaction (KE24) and selecting the appropriate Value Fields available in the layout.
In COPA, Sales and Cost of Sales are updated in value fields when the billing document is posted where as in Financial Accounting, Cost of Sales is posted during the Post Goods Issue (PGI). A possible issue can be if PGI is posted in a month different from the billing month. This will result in a time-lag between FI and COPA and needs to be incorporated either through Assessment Cycle or manually through KE21N.
Cost of Sales Value in KE24, can be tallied from transaction CKM3N (Material Price Analysis)
Also, there is a transaction (KEAT) that performs the same function of reconciliation. This transaction displays the differences between FI, Sales Distribution and CO-PA for sales conditions such as Sales, COGS, commissions, etc. Below is the output of transaction KEAT:
The differences, if any, are highlighted in red and can be clicked to get to the delta values. These differences are mostly due to the rounding effects but these can be further drilled down to find the exact issues.
Another good way of carrying out a reconciliation is to drilldown into a line item of a CO-PA report (KE24) and compare it to the items in the corresponding general ledger account. GL’s can easily be found by clicking Integration button, selecting Display Billing Document, Environment and then Revenue Accounts.
Assessment for GL/Periodic Cost
As we have three major areas for reconciliation beside sales and COGS we have periodic cost which transfers from FI to COPA using Assessment cycle. (Keu5)
This shows that which value field is used for Staff Cost, in this case we have VV900.
Then we check from which cost elements / GL account values are flowing to COPA for Staff Cost. In this case we have values from cost center group 2020 and cost element group 1301. After that we will check cost element group.
Let’s check cost element group 1301 in (KAH3).
Now check amount in FBL3N for all GL in group 1301. Subtotal on Account, Business Area, Value Date, Plant and Amount.
Let’s check amount in KE24 for Staff cost.
Oops! there is a difference in amount of around 15000 USD. It’s very easy to identify where the difference is. Let’s go back to KEU5 and there we will find the date when was my assessment executed.
Here we found that this cycle has been executed at 04.02.2016.
In FBL3N we found that an entry of 15000 USD has been entered after assessment had been executed.
So now we have to Reverse the current assessment cycle and Re-run it so this 15000 amount will also be incorporated in COPA.
PA Transfer Structure/FI-MM
This is one more important aspect for values coming to COPA from FI. We have transaction KEI2 where we can check from where values are flowing to COPA in which Value Field.
Values coming from Revenue cost element group.
Values flowing to Other Income Value field in COPA from Cost element Group “Revenue”
Similar as above, we will check amounts in COPA and FBL3N for this value field and GL Accounts.
FI-COPA Reconciliation is one of the painful area for the business users for which we have provided few tips on how to perform reconciliation.