What is profit and loss by function of expense in SAP FIN-CS - S4HANA Financial Consolidation?

SAP Term: profit and loss by function of expense

• Component: FIN-CS

• Component Name: S4HANA Financial Consolidation

• Description: A profit and loss statement that structures expenses according to their business functions such as selling costs, administrative costs, and other expenses.

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• Key Concepts: 
  Profit and loss by function of expense is a financial reporting tool in SAP S4HANA Financial Consolidation that allows users to analyze the profitability of their business by breaking down expenses into different categories. This tool provides a detailed view of the costs associated with each function of the business, such as production, marketing, and administration. It also allows users to compare the performance of different functions over time. 
  
  How to use it: 
  To use this tool, users must first enter their financial data into SAP S4HANA Financial Consolidation. Once the data is entered, users can then select the “Profit and Loss by Function of Expense” report from the Reports menu. This report will provide a detailed breakdown of expenses by function, as well as a comparison of performance over time. 
  
  Tips & Tricks: 
  When using this tool, it is important to remember that it only provides a snapshot of the current financial situation. To get a more comprehensive view of profitability, users should also consider other factors such as customer satisfaction and market trends. Additionally, users should be aware that this tool does not provide any insights into how to improve profitability. 
  
  Related Information: 
  For more information on how to use this tool, users can refer to the SAP S4HANA Financial Consolidation User Guide or contact their SAP support team. Additionally, users can find more information about financial reporting in general on the SAP website.