## Reviewing the Customer Profitability Report

This chapter provides an overview of Advanced Cost Accounting customer profitability reports and discusses how to:

- Run the Customer Profitability report.

- Set processing options for the Customer Profitability report (R16028).

### Understanding the Customer Profitability Report

This section provides an overview of the Customer Profitability report and list prerequisites.

#### Customer Profitability Report

Throughout the supply chain, various levels of management in your company might require tools to determine the profitability of customers, products, or both. Your company's management might need reports that show which customers are most profitable and deserve superior customer service. The Customer Profitability report (R16028) provides this information for you.

The Customer Profitability report prints four different sections:

- Revenue.

- Expense.

- Activity Costs.

- Other Indirect Expense and Income.

The Revenue and Expense sections consist of values with account numbers that fall within the AAI range of Revenue and Expenses.

- Activity Costs

  The Activity Costs section contains:

- Accounts that have been assigned to an activity.

- Accounts where a customer has been assigned.

- Accounts where the account numbers are greater than the range for the GLG 9 AAI.

- Other Indirect Expense and Income.

  The Other Indirect Income and Expense section includes:

- Accounts that fall outside the AAI range for Revenues and Expenses (greater than the GLG 9 AAI).

- Accounts that have been assigned to a customer.

- Accounts that have not been assigned to an activity.

Because meeting the needs of every customer is impossible, this report serves as a generic template that you can modify to meet your needs, according to your setup of JD Edwards EnterpriseOne Advanced Cost Accounting. This level of flexibility is achieved through the use of processing options, data selection, and minor code changes.

From the Select tab of the processing options, you can choose the cost analyzer view, fiscal year, from period, thru period, and ledger type for the system to use for the report. The Detail tab provides further flexibility by allowing you to choose the lowest level of account detail and the range of activities for the report.

Note. This report was designed to work for a level of detail of 5, 6, 7, 8, or 9. You must select one of these levels of detail in the Level of Detail processing option to see accurate profitability for a customer.

The Customer Profitability report uses an internal UBE called Profitability Reporting (R16028A). The specifications for this internal UBE need to be checked into the server for the report to run correctly.

This report prints information from the Cost Analyzer Balances table (F1602). You must run the Post to Cost Analyzer Balances program (R1602) to update this table.

Note. Because of the complexity of this report, processing time could be slow. Therefore, we recommend that you run this report at night and with data selection. For example, run only one or two companies at a time.

#### Prerequisites

Before you complete the tasks in this section:

- Set up the GLG Automatic Accounting Instructions (AAIs).

  See Setting Up AAIs for General Accounting.

- Set up the FS04 AAI.

  See Understanding Financial Reports.

- Select Activity Based Costing in the Cost Management Constants.

  See Setting Up Constants.

### Running the Customer Profitability Report.

Select Reporting (G1625), Customer Profitability Report.

### Setting Processing Options for the Customer Profitability Report (R16028)

Processing options enable you to specify the default processing for programs and reports.

Select

1. View | Specify the view that will be used in the data selection criteria for the report. Enter the number (from 1 to 10 ) of a valid cost analyzer view. If you leave this processing option blank, the system will use a value of 1.
2. Fiscal Year (4 digits) | Specify the fiscal year for the system to use in the data selection criteria for the report. Enter the last two digits of the fiscal year for which you want to run the report. For example, enter 08 for 2008. If you leave this processing option blank, the current year as defined in the Companies program (P0010) will be used.
3. Period From | Specify the from period for the system to use in the data selection criteria for the report. Enter a valid period number. If you leave this processing option blank, the system uses period 1.
4. Period Thru | Specify the thru period for the system to use in the data selection criteria for the report. Enter a valid period number. If you leave this processing option blank, the system uses period 12.
5. Ledger Type | Specify the ledger type for the system to use in the data selection criteria for the report. Enter a valid ledger type from UDC 09/LT. If you leave this processing option blank, the system uses ledger type AA.

Detail

1. Account Level of Detail | Specify the lowest level of account detail for the system to display on the report. Enter a number from 1 to 9. If you leave this processing option blank, the system will display a level of 9.
2. Activity Range - Beginning | Specify the beginning activity code for the system to include on the report. Enter a valid activity code. If you leave this processing option blank, the system includes all activities up to the value specified in the Activity Range - Ending processing option. If you leave the Activity Range - Ending processing option blank as well, the system includes all activities.
3. Activity Range - Ending | Specify the ending activity code for the system to include on the report. Enter a valid activity code. If you leave this processing option blank, the system includes all activities starting with the value specified in the Activity Range - Beginning processing option. If you leave the Activity Range - Beginning processing option blank as well, the system includes all activities.