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Document Splitting in SAP New GL

Document splitting in SAP allows allocating one expense line item into multiple segments in the new general ledger. It can be activated at the client and company code levels. There are two types - passive splitting inherits account assignments, while active splitting uses defined splitting rules. Benefits include segmented financial statements, differentiated line item representation, and cost allocation during posting.

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452 views4 pages

Document Splitting in SAP New GL

Document splitting in SAP allows allocating one expense line item into multiple segments in the new general ledger. It can be activated at the client and company code levels. There are two types - passive splitting inherits account assignments, while active splitting uses defined splitting rules. Benefits include segmented financial statements, differentiated line item representation, and cost allocation during posting.

Uploaded by

Amin raufi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Document Splitting in SAP New GL

skillstek.com/document-splitting-in-sap-new-gl

Pradeep May 27, 2019

What is Document Splitting in SAP New GL?


Document Splitting in SAP is the new functionality introduced in SAP ECC 6.0 New GL
to create segment financial statements. It is used to allocate one expense line item
into two segments in New General Ledger.

Here, you cover SAP FI Document split and the Segment via “segment field” which is
a standard field in the totals table in the New General Ledger “FAGLFLEXT.

How to activate Document Splitting in SAP?


First, you need to enable Document splitting at the client level customizing.
Then you can activate or deactivate the document splitting in each company code.
Similarly, you can activate the “Inheritance” which provides the level of detail for a
document split.
By activating inheritance you can create a customer invoice from a revenue
line item.
As a result, the Business areas or segments populate automatically in the
general ledger view. It shows the customer and tax line items.
Noteworthy, SAP recommends activating ‘Inheritance” with document
splitting. Since it does not require the business to then create “rules” for a
business process to ensure that account assignments are projected.

Read: SAP FICO Interview Questions Blog Series

Active and Passive Splitting in SAP New GL


Document splitting in SAP New GL is divided into two types. The Passive Split and the
Active Split (rule-based) or Clearing Lines by document.

Passive Splitting
With passive document splitting, the system inherits the account assignments of the
items to clearing line items during the clearing of a document.

Active Splitting
Active splitting works on the principle of defining splitting rules. You configure
splitting rules which SAP system uses to make a document split.

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Document splitting is one of the Key functionalities enabled in SAP New GL
to help deliver segmented financial statements.

Get Details: SAP S4 HANA Simple Finance Training

Document splitting under Profit Center Accounting


As per the New GL Profit Center Accounting (PCA), there are two entry-views. The Entry
view and The General Ledger view.

You can find the document splitting under the General Ledger view.

Understand this with an example:-

Material purchased for two different profit centers under one invoice.

Entry View

Expenses A/c (Dr) Rs. 100 (Profit Center 1)

Expenses A/c (Dr) Rs.100 (Profit Center 2)

To Vendor A/c (Cr) Rs. 200

In General Ledger View

Expenses A/c (Dr) Rs.100 (Profit Center 1)

Expenses A/c (Dr) Rs.100 (Profit Center 2)

To Payable A/c (Cr) Rs.100 (Profit Centers 1)

To Payable A/c (Cr) Rs.100 (Profit Centers 2)

Benefits of Documents Splitting in SAP


1. If you see the general ledger view, you can find the object of document splitting.
While, under the Business Area concept, you cannot find this facility.
2. Likewise, Document Splitting allows you to display documents using a differentiated
representation. In the representation, line items are split according to the
dimensions you choose. Thus, you can draw up complete financial statements with
those dimensions at any time.
3. Furthermore, using the document splitting procedure, you can also create a
segmented display of a (Partial) balance sheet. Either according to a set of legal
requirements (For Example IAS) or according to areas of responsibility.
4. In addition, you can allocate additional costs to the controlling account assignment
objects at the time of posting. Such as realized or evaluated exchange rate
differences. This is to which the costs relate.
5. Subsequently, you can also capitalise an asset at the time of posting.

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Document Splitting Implementation
Consider the following points:

Make settings in Customizing and other preparations for document splitting.


Use the General Ledger Migration cockpit. (If you are already using new General
Ledger Accounting in your production system and subsequently want to implement
document splitting).

Document Splitting Integration

Document splitting has an effect on subsequent processes, such as closing operations and
on processes in Controlling (CO).

Further, you can use the document splitting procedure in two situations. First, to split up
line items for selected dimensions (such as receivables lines by profit center). Second, to
effect a zero balance setting in the document for selected dimensions (such as segment).

Thus, it generates additional clearing lines in the document.

Document Splitting Process


To do the document splitting successfully, the system classifies the individual line items
as well as the documents. This takes place using your settings in Customizing.

Moreover, the splitting rule selected for a document specifies the process and line items to
split the document. It also depends on how the system classifies a document.

Although, SAP delivers a set of standard splitting rules. However, you can also define your
own rules.

Passive document splitting

The system creates references to existing account assignment. You use these account
assignments as the base for line items to split.

The system applies all account assignments that you define as document splitting
characteristics in customizing.

If you have set zero Balance settings indicator for the document splitting characteristic,
the system then creates any necessary clearing lines. This is to ensure that the
characteristics produce a balance of zero in each document.

Active Document Splitting


If you split a document in this subfunction, the line items are split according to the
settings in customizing. This is the classification of the document and the splitting rule
assigned to the document.

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Subsequent Process- For the clearing process you can also use CO account assignment
relating to the costs. Such as while realizing the exchange rate differences, you can use CO
account assignments to post the difference in the rates occurring in this subsequent
process.

Closing Operation
You can perform closing operations according to the document splitting characteristics
defined. An example of this is Foreign Currency Valuation.

Document Splitting Simulation


During document entry, you can simulate the postings you want to generate. From the
simulation in the general ledger view, you can call the expert mode. Further, in the expert
mode, you can obtain detailed information about the split document as well as about the
document splitting rules applied.

Therefore, it allows you to view the customizing settings for document splitting. These
settings are specific to the business transaction. Thus they display the split Document.

You can display a document as follows:

1. In its original form in the entry view.


2. Split from the view of the ledger in the general ledger view and with the generated
clearing lines.

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