Margin Analysis Basics

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Margin analysis checklist

• Characteristic = dimension (customer, product, district). Market segment = one combination of values.
• Operating concern defines characteristics: fixed ones plus up to 50 more; custom names start with WW.
• Margin analysis lives in the Universal Journal and reconciles with FI by design.
• Costing-based CO-PA: optional in Private Edition and on-premise, not available in Public Edition.
• COGS posts at goods issue, revenue at billing: watch month-end timing.
• COGS split: one target account per cost component, from the released standard cost estimate.
• Variance split: Define Accounts for Splitting Price Differences, one account per variance category.
• Check "not assigned" for every characteristic before trusting a margin report.
• Test per flow and per characteristic with expected values, including expected blanks.
• Test a derivation step in KEDR (F8) before a full flow; run RKEDRCHECK after transports.