The prerequisites include the following:
| Balance component categories | Optional and used to more logically group the different balance components. |
| Balance components | These are the basis for the entire Profitability Analysis tool. You define the different Balance components and how you want to retrieve the value for the component: The different options are:
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| Item profitability codes | Although this is optional, you must define these codes if you intend to calculate the Net contribution of your items when building the report. |
| Customer profitability codes | Although this is optional, you must define these codes if you intend to calculate the Net contribution of your customers when building the report. |