Which component of Management Accounting is used to report on profitability in real-time?

Comprehensive and Detailed 150 to 250 words of Explanation From Positioning SAP Business Suite via SAP Financial Management Solutions documents:

In SAP S/4HANA, Margin Analysis (formerly known as Account-based CO-PA) is the primary component of Management Accounting used to report on profitability in real-time. This is made possible by its deep integration with the Universal Journal. Unlike legacy "Costing-based" Profitability Analysis, which stored data in separate tables and often required complex reconciliations with the General Ledger, Margin Analysis uses the same ledger and dimensions as Financial Accounting.

Because every sales transaction—from the moment an item is shipped to when the invoice is posted—is captured in the Universal Journal with full detail (including customer, product, region, and cost of goods sold), the CFO can see real-time profitability without waiting for month-end allocations. Margin Analysis provides a "market-oriented" view of the business, allowing users to drill down into the contribution margins of specific market segments. It also supports advanced features like "predictive accounting," where the system can project future margins based on open sales orders. This provides management with the immediate insights needed to make informed decisions about pricing, product mix, and market strategy, ensuring the business can steer toward the most profitable opportunities as they arise.