SAP Operating Concern

Author Written by Ben Adams and last updated on Posted onSeptember 19, 2017.

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In earlier tutorials, SAP Controlling (CO) was introduced

and explained as a tool used for internal managerial accounting. One of the sub
modules of CO is Profitability Analysis, also referred to as CO-PA. In order to use CO-
PA, you must first understand the structure of how the data that is used within the
module is organized. The highest level of organization within CO-PA is the Operating
Concern. This tutorial will review SAP Operating Concern and give a simple
explanation on how it is created. Please note that there are two approaches to
profitability analysis: costing based and account based. This tutorial will look at the
costing based approach and thus an SAP operating concern that is set up as such.

To most easily understand the SAP operating concern, think of it in terms of a structure
combining data from several feeder areas to populate fields. These are called
characteristics and value fields. SAP delivers standard characteristics and value fields,
but you can also create your own custom characteristics and value fields if required.
Population of data can come from several areas within SAP, but billing from the Sales
and Distribution module is likely the largest source.
 SAP Operating Concern
Contains Characteristics and Value Fields
In this tutorial, we will create a simple operating concern using predefined
characteristics and value fields.

SAP Operating Concern Configuration

To create an operating concern, use transaction code KEA0 or follow menu path:

SPRO > SAP Reference IMG > Controlling > Profitability Analysis > Structures > Define
Operating Concern > Maintain Operating Concern
IMG Path to Configure SAP Operating Concern
You will come to an initial screen with three tabs that appear as follows:
Maintain SAP Operating Concern
At the top of the screen, start by entering a unique value for your new SAP operating
concern and then hit the enter button on your keyboard. A popup will appear informing
you that the operating concern does not exist and asking if it should it be created. Click
yes, then click continue on the next popup (informational popup on cross client
settings). In the Data Structure tab, you will then enter a meaningful description for your
operating concern and click on the costing based profitability analysis check box. Your
screen should appear as follows:
Data Structure Tab
Now, click on the Attributes tab. Here you will make currency settings, defining your
operating concern currency as well as choosing if you want to store data in the
corresponding company code currency. Additionally, you have the option to store either
currency valued by profit center. You will also be required to choose a fiscal year variant
(which defines your number of posting periods, special periods, and how they are
determined by the system).
Attributes Tab
Once you make your required selections, proceed to the Environment tab. It will appear
as follows, but no action is required here:
Environment Tab
Now, go back to the Data Structure tab and click the save icon at the top of the screen
to save your operating concern (required to do so before proceeding further). After
saving, the status light will appear red and a message will appear the bottom indicating
attributes have been saved.
Create Data Structure to Assign Characteristics and Value Fields
Now click on the Create button under the Data Structure box. This is where we will
choose characteristics and value fields for our new operating concern. The screen that
follows has two tabs at the bottom for characteristics and value fields. Within the
characteristics tab, there will be a list on the right of the predefined characteristics (you
can create custom characteristics separately if required). Choose the characteristics
you need and add to the data structure on the left.
Characteristics Added to Data Structure
Next, click on the Value fields tab. On the right there will be a list as before with
predefined fields available to use as value fields (you can create custom value fields
separately if required). Choose the value fields you need and add to the data structure
on the left. Now, click the Activate icon at the top. You will see a series of messages at
the bottom of the screen as the structure generates, then it will tell you it has been
activated.
Structure Activated
Now, click the save icon at the top of the screen and you will get a similar message on
the bottom status bar indicating the structure has been saved. Click the green arrow to
go back. You will get a message asking if you want to generate the operating concern
environment. Click Yes. This process may take a bit of time as the system builds all of
the required tables in the background. Be patient, and once the process completes, you
may get an information dialog box informing you that there are warnings. If so, click on
the green check to proceed. The new operating concern is now created and generated
and the status lights for the operating concern as well as for the data structure should
now be green.
SAP Operating Concern Generated
You can now click on the Change button in the Data structure section and review your
characteristics and value fields. Click on the Change view button in the processing box
to see details of each characteristic and value field. For characteristics, you will see the
description, field type and length, check table (if applicable), origin table (if applicable),
and domain. For value fields, you will see a description and category (value fields are
either quantity or amount).
Characteristics Details in Data Structure
Value Fields Details in Data Structure
Notice the name of the data structure – CE1BA01. This is CE1 plus the operating
concern ID. You can double click on this and view the data dictionary display for the
table that was created. The table will contain many standard fields as well as well as the
characteristics and value fields you added to the operating concern. Scroll to the bottom
and see that they have been added.
Data Structure Containing Characteristics and Value Fields
Finally, we will need to assign the operating concern to a controlling area. To do this, go
back to the IMG and follow menu path:

Enterprise Structure > Assignment > Controlling > Assign controlling area to operating
concern
Assign SAP Operating Concern to SAP Controlling Area

Activation of Profitability Analysis

The operating concern must be activated prior to use in CO-PA. Once we do this, you
will see the indicator setting within the controlling area configuration that it is assigned
to.

To activate, use transaction KEKE or follow menu path:

SPRO > SAP Reference IMG > Controlling > Profitability Analysis > Flows of Actual
Values > Activation of Profitability Analysis
Scroll down to the entry you need, then click the drop down in the Active Status field
and choose the correct entry. Notice the only choices here are blank (Not active) or 2
(costing-based). Remember from earlier in our configuration of the operating concern,
we chose costing-based as our method.

Choose the correct entry and save. An example of the screen is as follows.

Activation of Profitability Analysis

The operating concern has now been generated and profitability analysis is active.

Conclusion
This tutorial covered the concept of the SAP operating concern and the basic
configuration and activation. Depending on your requirements, you may need to create
custom characteristics and value fields. The operating concern and controlling area go
together, so both will typically be configured in the first steps of implementing CO.