What is opportunity contribution in SAP IS-B-PA - Profitability Analysis?

SAP Term: opportunity contribution

• Component: IS-B-PA

• Component Name: Profitability Analysis

• Description: Interest amount of the alternative transaction on the money and capital market.

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• Key Concepts: 
   Opportunity Contribution is a component of the Profitability Analysis (IS-B-PA) module in SAP. It is used to measure the contribution of a particular opportunity to the overall profitability of a company. It is calculated by subtracting the costs associated with the opportunity from the revenue generated by it. 
  
  How to use it: 
  In order to use Opportunity Contribution, you must first set up the Profitability Analysis module in SAP. This includes setting up cost elements, cost centers, and other related data. Once this is done, you can then enter the data for each opportunity into the system and calculate its contribution to profitability. 
  
  Tips & Tricks: 
  When setting up Opportunity Contribution in SAP, it is important to ensure that all costs associated with an opportunity are accurately accounted for. This includes both direct and indirect costs such as labor, materials, overhead, etc. Additionally, it is important to ensure that all revenue associated with an opportunity is accurately accounted for as well. 
  
  Related Information: 
  Opportunity Contribution is closely related to other components of the Profitability Analysis module such as Cost-Volume-Profit Analysis and Break-Even Analysis. Additionally, it can be used in conjunction with other modules such as Financial Accounting and Controlling to gain a more comprehensive view of a company’s profitability.