Thursday, August 17, 2017

costing-based Profitability Analysis & account-based Profitability Analysis

Definition: costing-based Profitability Analysis

Costing-based Profitability Analysis represents costs, revenues, and revenue deductions for internal controlling purposes. The direct costs are collected from the relevant material cost estimate for the product sold. All values are stored in value fields.

Two types of Profitability Analysis are supported in the R/3 System:


costing-based
account-based
Costing-based Profitability Analysis represents costs, revenues and revenue deductions for internal controlling purposes using costing principles. All the values are stored in value fields.

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Definition: account-based Profitability Analysis

Account-based profitability analysis reconciles the data between Financial Accounting and Controlling, since all costs and revenues are stored in accounts.



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