4 Replies Latest reply: Jul 29, 2008 8:46 AM by Pidintla Chandrashekhar Reddy RSS

Operating Concern

raja ram
Currently Being Moderated

Hi,

 

What is the term called Operating Concern? How it is useful in CO PA??

  • Re: Operating Concern
    Habeebuddin Mohammed
    Currently Being Moderated

    Hi,

     

    An operating concern represents an organizational unit in your company for which the sales market has a uniform structure. It is the valuation level for Profitability Analysis (CO-PA).

     

    If you intend to implement either the account-based or costing based Profitability Analysis, you need to configure an operaating concern. It is the main organizational unit within CO-PA.

     

    Refer to transaction KEP8 to maintain the operating concern. Hope this will help you.

     

    also refer this link:

    http://help.sap.com/saphelp_erp2005/helpdata/en/7a/4c37ef4a0111d1894c0000e829fbbd/frameset.htm

     

    Rgrds,

    Habeeb

  • Re: Operating Concern
    kiran manyam
    Currently Being Moderated

    hi raj,

     

    Operating concern is the Root node for Controlling areas , Comapny codes  and Business units.

     

    See this structure:

     

                               OC

                                  

     

                                CA( Controlling Area)

     

                                CC ( Comapny code )

                                 |

                                BU ( Business Unit)

     

     

    In one word : OC is the group of Companies.

     

     

    Thanks ,

    Kiran manyam.

  • Re: Operating Concern
    SURESH B.G.
    Currently Being Moderated

    Hi Raja,

     

    Definition

     

    An operating concern represents an organizational unit in your company for which the sales market has a uniform structure. It is the valuation level for Profitability Analysis (CO-PA).

     

    In this section, you create an operating concern.

    In order to use Profitability Analysis (CO-PA), you have to define operating concerns. An operating concern is an organizational unit in Financials. The structure of an operating concern is determined by analysis criteria (characteristics) and the values to be evaluated (value fields).

     

    In a first step, you have to define the characteristics for your operating concerns. You define characteristics in the Customizing activity Maintain characteristics. For costing-based Profitability Analysis, you also need to define value fields. You do this using the activity Maintain value fields. These characteristics and value fields can be used in several operating concerns. Their definition applies to all clients.

    operating concern is the highet organisational unit in fico

     

    one operating concern can have any number of controling areas but one controling area can be assigned only one operating concern

     

    operating concern contains characteristics and value fields

     

    we can create operating conern by 2 ways one is costing based and accounting based

     

    it is mainly useful for reporting purpose

     

     

    After this, you have to define the structure of your operating concern in the activity Maintain operating concern. You do this by selecting the desired characteristics and adding them to the data structures of your operating concern. If costing-based Profitability Analysis is active, you also need to select and add the required value fields. The structure of an operating concern is valid in all clients.

     

    In the step "Maintain operating concern", you also specify the attributes of your operating concern (fiscal year variant, currencies). By maintaining the attributes, you make an operating concern "known" in the current client. The attributes are client-specific.

     

    Structure

     

    You structure an operating concern by selecting

     

    Characteristics

    You should ask yourself at what level your analyses should be performed, such as the sales organization, region, product, or customer level.

     

    and value fields (only in costing-based Profitability Analysis)

    You should ask yourself which values and key figures should be analyzed, such as revenues, sales deductions, costs, or quantities.

     

    as well as G/L accounts (only in account-based Profitability Analysis)

    This structure may vary greatly from one company to the next. For example, the structure of total production costs in a manufacturing company differs from that in a wholesale or retail company. Consequently, you need to "model" CO-PA in Customizing by defining the characteristics and value fields that you want to analyze.

     

    By generating operating concern, system create tables like CE1***, CE2**,CE3*** & CE4**** (**** means operating concern) for each operating concern and just by saving, data saves in a particular table only.

     

    It is a standard function to create environment for Profitability Analysis.

     

     

     

    The system then generates the necessary database tables for CO-PA transaction data and access programs based on how you defined your operating concern.

     

    See also:

     

    For information on the procedure for defining an operating concern, choose Structures ®  Define Operating Concern in Customizing.

     

    Characteristics for Profitability Segments

     

    All the characteristics in the operating concern are used in the line item. However, you can restrict the characteristics for a profitability segment that forms the basis for valuation. This is because it is unnecessary and impractical for a profitability segment to use characteristics that are almost always populated and each has a different value. You should deactivate such characteristics when creating a profitability segment. Otherwise the data volume of the profitability segments is too large and hampers system performance.

     

    One characteristic that should not be used in profitability segments is the sales order in repetitive manufacturing.

     

     

     

    You specify in Customizing which characteristics are to belong in which profitability segments. For more information about this function, see  Define Profitability Segments Characteristics (Segment-Level Characteristics).

     

    Regards

    Sureh B.G.

     

  • Re: Operating Concern
    Pidintla Chandrashekhar Reddy
    Currently Being Moderated

    Hi,

     

    Operating Concern is the Highest reporting level within COPA. Defines the limit of sales and market info that can be reported together

     

    Some Characteristics are predefined in Operating concern like Material, Customer, Company Code.

     

    With Regards,

    PCR

     

    Edited by: Shekhar on Jul 29, 2008 8:46 AM

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