CO-PA: Performance of Account-based + Cost-based

[Former Member]

Dear CO gurus.

In my client, they are discussing whether to activate only Cost-based COPA

or both of Account-based/Cost-based.

Do you have any idea which is best practice?

Yoshi

[Former Member · Accepted solution]

Hi...

I think that the main purpose of accounting-based is reconciliation between financial accounting and co-pa using GL Account.

So, if you don’t need the reconciliation using GL account, you can deactivate accounting-based.

In case of only using costing-based, you can create a profitability report that is reconciled with financial accounting using the relationship between value field and GL Account.

[suryavarma_co]

Hi Yoshitada Kaneko san,

I completely agree with Big Choi. Costing Based is a better choice.

However, i have recently read some blogs on Smart(Simple) Finance wherein the focus is shifting from Costing Based COPA to Accounts Based COPA.

Please have a look and incase there are chances of your client migrating from Normal ECC to Smart Financials in the near future, it would be a wise option,in my opinion, to activate both types of COPA.

Best Regards

Surya