Interview Questions.

Q1. What is SAP COPA?

Ans: SAP COPA isn't just like different modules in SAP.

Profitability Analysis (CO-PA) allows you to assess market segments, which can be classified in keeping with merchandise, clients, orders or any combination of those, or strategic business units, inclusive of income groups or business regions, with respect to your enterprise's income or contribution margin.

Q2.What are the variations among Profit Center Accounting (PCA) and Profitability Analysis (CO-PA)?

Ans:

PCA

PCA is geared toward Profit reporting on inner obligation traces or SBU’s

PCA is restrained to reporting with the aid of the income center hierarchies that you can setup.

PCA can be reconciled effortlessly back to the GL

CO-PA

CO-PA is geared toward outside marketplace segment reporting for instance via client and client groupings (industries), geographical regions.

PCA can slice & dice your records by means of a diffusion of dynamic hierarchies (a ‘Rubik’s’ cube is often used to symbolize this idea.

PCA has 2 ‘patterns’       Account based in order to reconcile to the GL.   Costing Based which Allows approximations, estimations or requirements to be posted, which might also make reconciliation hard to explain to the person

Q3. Why does SAP speak about statistical assignments in CO – why are those one of a kind from actual Cost Accounting assignments?

Ans: The cause is to facilitate reconciliation between FI and CO. The sum of all ‘real’ assignments in CO have to add up to the sum of all expense and sales postings (wherein price/sales factors have been created for the GL account of path) in FI.   A ordinary price invoice posting to price debts / price elements may be a ‘real’ posting. If the device is showing an blunders message insisting on a ‘value accounting challenge’ and you suspect you have got entered one, then probable you've got special a statistical undertaking. A not unusual blunders is in questioning that the commercial enterprise location will do – Business areas are FI factors not CO factors.

Example:

All Profit Center assignments are statistical

Revenue factors assigned to fee centers will continually be statistical

EC-PCA is defined as statistical, therefore if posting to a revenue detail, the gadget will insist on a actual cost accounting task even if earnings center is particular.  A price center will not do, seeing that revenue factors are statistical in fee centers.  The gadget will accept the following as ‘real’: CO-PA profitability phase, income order, consumer venture or a sales bearing order.

‘Revenue’ while described to the machine with the aid of setting up a revenue detail is constantly statistical in a value middle.  If however you have got setup your revenue accounts as number one fee factors then the challenge could be ‘actual’.

Q4. What do you mean by using Period based totally accounting (GL based totally) and cost of income accounting (COPA based totally)?

Ans: Period Based Accounting' is Accrual Accounting and 'Cost of Sales' is 'Cost of Goods Sold' Accounting.

Period based totally Accounting "Period primarily based" approach that during the month or period, all and best real occasions / transactions are posted in the best length.  At the cease of the period anticipated accruals and deferrals are made and posted to that posting period to offer a extra correct view of profit.  IE any anticipated revenues and prices that should relate to the current length are accrued for and equally any prepaid costs or sales are deferred to the subsequent duration.  (Accruals and Deferrals are published quickly, generally to important bills, and reversed prior to the following period quit.)

These accruals and deferrals are commonly executed at a reasonably excessive level of summarization (eg: at employer or commercial enterprise vicinity).  The FI Ledgers and monetary statements etc are always duration based.

Cost of Sales Accounting Cost of Sales in SAP way that we strive to file or instead file the "prices of income" towards the real sale at as low a stage as possible and at some stage in the duration. (In CO-PA this is all the way down to a transaction level.)   This allows the agency to get a fairly accurate view of profitability on a actual time basis.

This is executed by way of the use of both standards or estimates for most of the additives that make up the "fee of products offered".  Any versions from the requirements are normally published through to the price of income gadget both at month stop or when they arise.

For instance: A product value estimate is probably used to calculate and publish a manufactured cost thru to CO-PA when every sale goes thru.  The real manufacturing orders variances from the product fee estimate can then be settled to a separate line in CO-PA. This has the benefits that

a fairly accurate gross profit could be reported in actual time at a transaction degree and of course therefore at all of the function ranges in CO-PA.

The impact of any bizarre variances in production can quite certainly be visible and analyzed one by one from the everyday profitability of a product.

Q5. How information flows from SD to COPA?

Ans: The normal SD file float is as follows:

Sales order

Delivery (the delivery creates the products trouble, which debits COGS and credit Inventory – COGS is updated in CO-PA presently)

Billing Document (the billing document updates A/R, Sales revenue, Discounts, Freight, and many others.)

Q6. How statistics flows from CO to COPA?

Ans: Through Assessments. Allocates prices from value centers to profitability segments.

Q7. How statistics flows thru MM into FI?

Ans: Through Account venture model OKB9. Automatic postings created in materials control, may be passed directly to CO-PA by using automated account task to a profitability segment.

Q8. How statistics flows from PP into FI & COPA?

Ans: Through Production Variances It Posts variances from the manufacturing (product cost) estimates or standards to the GL money owed and to Profitability Analysis if real costs are required (vs popular fees).  Standard fee figures would have been used to update Stock and Cost of Goods bought figures while finished inventory changed into issued from the manufacturing runs.

Q9. What do you suggest with the aid of price area organizations?

Ans: Value Field Groups represent the viable mixtures of value fields in an operating difficulty. Value subject organizations are used to specify:

Which fee need to be made to be had to customers entering or displaying a line item

In what order these value fields must be displayed

Which particular cost fields can be stuffed

You plan your facts for the traits Product, Product institution and Customer institution. You outline 3 making plans stages for which planning records is to be entered: Customer group/product institution (unbiased of the product), product/product organization (impartial of the client organization), and product/product institution/client institution (the bottom, maximum specified level). By the use of transaction-based totally pinnacle-down distribution, you can ensure that each one making plans data is saved at the lowest degree

Q10. What are Characteristics Values?

Ans: Characteristics are aspects on which we want to break down the earnings logically which includes client, area product, sales individual and many others.

Q11. What do you suggest fixed function fields?

Ans: Predefined feature fields in SAP R/3 gadget, which can be obvious, are known as fixed feature fields such as product, sales org and patron

Q12. What are Non-Fixed characteristics or user described traits?

Ans: Up to 50 non-fixed traits may be added to an operating problem. E.G. Bill-to-birthday celebration

Create -> Derived the value from Table PAPARTNER (SD companion that may be utilized in COPA) -> Create consumer described function call WW008 -> Save