What is Margin Analysis in COPA?

With S4HANA SAP is recommending to use Accounting based COPA and mention that Costing base COPA will not be developed further.

Now if you refer latest SAP documents it mentioned only “Margin analysis” will be supported for S4HANA Cloud and its recommended for S4HANA On-premise in addition to Costing based COPA option. Now question arise what happened to account based COPA?

SAP defines “Margin analysis- Profitability Analysis within the Universal Journal addressing the needs of internal and external accounting, supporting real-time derivation of reporting dimensions and embedded analytics.” and also mentions that “Margin Analysis is active if there is an activation flag for ‘account-based’ in the IMG procedure mentioned above.”

Now, do you know what is “Margin analysis”? Its just SAP rebranding exercise.

Margin Analysis covers record types F (billing documents), B (direct FI postings), C (settlement) and D (assessment) in costing-based CO-PA.
For record type A (incoming sales orders) SAP recommends to use “predictive accounting”, that creats predictive documents to represent the sales order prior to delivery and invoicing.

There is no direct migration from costing-based CO-PA to Margin Analysis.

Reference: support.sap.com