3553531 - Profit Overview by Key Figure Does Not Calcluate Profit Margin for Invoice or Sales Order Profit

With the profit type set to 2- Invoice profit, the Profit by Key Figure report does not show any profit margin as no cost of sales are listed. 

However, when changing the profit type to 3- Earned Profit, the report derives costs of sales and calculates a profit margin. 

SAP Business ByDesign

1. Go to Cost and Revenue work center.
2. Go to List view.
3. Select report Profit Overview by Key Figure.
4. Run the report with the relevant selection for the company.
5. However, the report value is not as expected: With Profit Type 2 – Invoice Profit, cost of sales and profit margin are not be displayed. But when using Profit Type 3 – Earned Profit these values appear. 

• If Profit Type 3– Earned Profit is selected: With this setting, the report pulls data directly from actual accounting data based on the functional areas used, aligned with the Income Statement.
• When setting the profit type to 2-Invoice profit, the data is derived from the CRM application, as maintained in the customer invoice pricing tab. The report can calculate the profit margin only if the respective price components are present in the customer invoice Pricing tab (List price, Cost, Discount, Surcharge etc.). 

• Profit Type

  The profit type determines the source of data used to calculate profit:

  • Order profit is based on the sales and service orders in CRM. This profit type is available at an early stage in the sales process and is therefore useful for forecasting and reports on incoming orders. However, there is no assurance that the order profit will be fully translated into actual profit later.

  • Invoice profit is calculated using the revenues from customer invoices in CRM. Since it is based on invoices, it is closer to the revenue data that will eventually be recorded in accounting.

  • Earned profit is based on the data in accounting and therefore corresponds to the amounts in the income statement. Since earned profit cannot be calculated until the data is recorded in accounting, it is not available as early as the other two profit types. 

Profit Analysis Based On Orders and Invoices

Profit Detail by Key Figure

profit for invoices, Profit Overview by Key Figure report , KBA , AP-ACC , Business ByDesign: Financial Accounting , Problem