What is base value in SAP IS-B-PA - Profitability Analysis?

SAP Term: base value

• Component: IS-B-PA

• Component Name: Profitability Analysis

• Description: Volumes, payment flows and interest rates form the base values for the costing procedure and are calculated by the system in accordance with the costing rules defined by the user.

Smart SAP Assistant

• Key Concepts: 
  Base value is a term used in SAP IS-B-PA Profitability Analysis. It is the starting point for the calculation of profitability and is used to determine the profitability of a product or service. It is calculated by subtracting all costs associated with the product or service from the revenue generated by it. 
  
  How to use it: 
  In order to calculate the base value, you must first determine the total revenue generated by the product or service. This can be done by adding up all sales of the product or service. Then, you must subtract all costs associated with the product or service, such as production costs, marketing costs, and other overhead costs. The resulting number is the base value. 
  
  Tips & Tricks: 
  When calculating base value, it is important to include all costs associated with the product or service, even those that may not be immediately apparent. This will ensure that you are accurately calculating the profitability of the product or service. 
  
  Related Information: 
  Base value is an important concept in SAP IS-B-PA Profitability Analysis and is used to determine the profitability of a product or service. It is also related to other concepts such as cost of goods sold (COGS) and gross profit margin (GPM). Understanding these concepts can help you better understand how to use base value in your profitability analysis.