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Free Book Excerpt: Introduction to Reconciling SAP CO-PA to the General Ledger by Paul Ovigele
Costing-based CO-PA is the form of CO-PA that groups costs and revenues into value fields. The groupings of these cost and revenue items into value fields can be accomplished in a variety of ways depending on the source of the data.
In fact, it is this inconsistent mapping of various SAP objects into CO-PA value fields that is one of the key reasons why the reconciliation of costing-based CO-PA with the general ledger is not very straightforward. As we all know, most accountants think in terms of general ledger accounts and if you give them a report, they will never feel satisfied until they are successfully able to reconcile the numbers back to the general ledger. This trait (which I believe is fully justified) causes a lot of angst with other members of the organization because it means that every report that contains financial information needs to be scrutinized and verified before it is accepted by the finance team. The value fields that are available in costing-based CO-PA take the place of general ledger accounts, therefore it is very important that the mappings to these value fields are well-defined and that there are no gaps in the setup process.
Advantages and disadvantages of costing-based CO-PA
The advantages of costing-based CO-PA are as follows:
The disadvantages of costing-based CO-PA are as follows:
SAP HANA addresses speed but not reconciliation
The speed issue is being addressed with new SAP technologies such as HANA, however, the reconciliation issue is still yet to be addressed, hence the need for this book!
As costing-based CO-PA uses value fields and the value fields are not always directly related to a single general ledger account, any discrepancies between CO-PA and the general ledger are very difficult to unravel.
Keep reading in Reconciling SAP CO-PA to the General Ledger by Paul Ovigele.
Paul Ovigele is the Founder & CEO of ERPfixers. He has worked as an SAP consultant since 1997. He has delivered numerous training sessions, spoken at major SAP conferences around the world and written 2 bestselling SAP books. Having identified an imbalance in SAP consulting over the past decades, Paul founded ERPfixers to help clients access quality, skilled and immediate solutions for their most pressing SAP issues. Learn more about http://www.erpfixers.com/.