DOCUMENT SPLITTING

Subsequent Implementation

Enter Date (Month, Year) Version: XXXX

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Learning Objectives
SAP S4 HANA FINANCE– Document Splitting-Subsequent Implementation

Introduction Customization Involved

01 04
Explain the basics of splitting Discuss the customized logic
the document. written for the project.

Configuration Errors and Lessons Learnt

02 Define configuration required

to split the documents.
05
Review some specific errors
and lessons learnt during the
implementation.

Subsequent Configuration Conclusion and QnA

03 06
Define extra configuration Discuss the summary and
required to implement it conclusion along with QnA
subsequentially. session.

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Agenda
SAP S4 HANA FINANCE – Document Splitting-Subsequent Implementation

Unit Title Time

1 Introduction 5 Minutes

2 Configuration 15 Minutes

3 Subsequent Configuration 20 Minutes

4 Customization involved 10 Minutes

5 Errors and Resolution 15 Minutes

6 Lessons Learnt 10 Minutes

7 Challenges Encountered 10 Minutes

8 Conclusion and QnA 5 Minutes

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Meet the Presenters - USI
SAP S4 HANA FINANCE – Document Splitting-Subsequent Implementation

Anshuman Pande
Manager, India

Project Delivery Manager for HPE NGIT releases.

Anirudh Kuruvadi
Senior Consultant, India

Design Lead and business counterpart for document splitting project in HPE.

Mihir Shailesh Kenia

Senior Consultant, India

Testing Lead and GL/AP/AR Expert and business counterpart for document splitting project in HPE.

Tarannum Fathima
Consultant, India

Testing Lead and Tax/IC/Costing Expert and business counterpart for document splitting project in HPE.

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 Document Splitting - Subsequent Implementation

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Overview

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Overview

• Document Splitting is an inbuilt feature from SAP.

• Its an automated process to split the document line item within itself based upon the characteristics
configured.
• Splitting occurs mainly with these characteristics of an accounting document.
• Eg.:Profit Center or Segment or Business Area or All.
• Business will have accurate reporting based upon the dimensions configured.
• Mainly the following reports will have a high quality data.
• 1. Tax Reporting.
• 2. AP/AR Reporting.
• 3. Balance Sheet Reporting.

4. Cash Discount Reporting etc.

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Overview

• Example:
• Vendor Invoice of $11K for two purchases belonging to two different Profit Centers and taxes

• You can not identify taxes and vendor amounts on each PC.

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Overview

• Example:
• The total purchases are on the ratio of 80:20.
• Same document is now automatically split based upon the pre-defined criteria.
• No manual intervention required. This process is called document splitting.

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Overview

• Types of Splitting:
• 1. Active Splitting:
◦ Works on pre-defined split rules set up in the system.
◦ Also known as rule based splitting.
◦ Like in previous example, a vendor invoice transaction will be split based upon the ratio of
purchase accounts’ amounts.

2. Passive Splitting:

Used during clearing transactions (Payment transactions etc.)

System splits the transaction based upon a reference from other transaction.

As an example, document splitting of vendor payment transaction occurs based upon the: -
Account assignments from vendor invoice.

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Overview

• Types of Splitting:
• 3. Splitting using zero balancing:
◦ Allows the system to balance at a particular characteristic.
◦ Balanced per PC or Segment or both.
◦ System creates additional adjustment lines using zero balance clearing account.

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Configuration

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Configuration

Key Terms:

Item Category: Classify the GL accounts for document splitting based upon

the business usage.

Business Transaction: Business process such as invoice, payment,

clearing etc.

Business Transaction Variant: Use standard SAP variant or a customized

one based upon our needs.

Splitting Rule: Logic which is used to split the line items of a document.

Splitting: Based upon the rules specified, base item categories will be

identified (Expense/Revenue) and they will split the other item categories

like (vendor, customer, tax, WHT etc.).

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Configuration

Key Configuration:

Classify GL Accounts with item categories based upon business usage.

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Configuration

Key Configuration:

Classify document types based upon business usage.

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Configuration

Key Configuration:

Define Zero balance Clearing Account

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Configuration

Key Configuration:

Define Document Splitting Characteristics for General Ledger Accounting

Define Document Splitting Characteristics for Controlling

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Configuration

Key Configuration:

Define Splitting characteristics for P&L Processes

Assign Constants for unassigned processes

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Configuration

Key Configuration:

Activate Document Splitting

We can copy the standard method and copy it to a customized one(Approach suggested by SAP always).

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Configuration

Key Configuration:

Review Splitting Rules like which item categories are to be split based upon which base item categories.

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Configuration for Subsequent
Implementation

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Configuration for Subsequent Implementation

Key Configuration:

Subsequent Implementation is used when you are already having productive data and you have to
implement document splitting in the current world. This feature is available only in S4 HANA.

SAP always suggests to do it from the start of your Fiscal Year.

We also need to enrich the open items posted in previous Fiscal Years with the document splitting
characteristics configured.

Create a Project:

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Configuration for Subsequent Implementation

Key Configuration:

Assign Company Codes to your Project:

We can select the company codes whichever are applicable for activation.

Activate Online Validation prior to the activation of actual splitting. This will make you analyze your
productive system with what kind of errors might occur and refine your processes.

You can either have error/warning/only log generated to analyze.

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Configuration for Subsequent Implementation

Key Configuration:
Implement below BADI’s to perform data enrichment. This means your historic data will be filled
with your document splitting characteristics in the splitting tables.

BAdi for Open Items: This enriches all your open items so that once the document splitting is
active; the successor processes will be executed smoothly (like clearing, payment)
BAdi for BCF: This enriches BCF (Balance Carry Forward) entries so that even the balances are
in sync with your document splitting characteristics.
BAdi for Reversal Posting: This is required after document splitting will be active and if you need
any extra enrichment logic for reversal postings.
BAdi for Period End Postings: This is required after document splitting will be active and if you
need any extra enrichment logic for period end postings like FCV etc.
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Configuration for Subsequent Implementation

Key Configuration:

There is no standard enrichment logic provided by SAP and you can chose the logic that suits your
project.

Ex: PC and Segment from immediate line item, PC and Segment from the line item with highest amount,
default PC and Segment etc.

The data enrichment will only happen for the line items that have blank PC and Segment and will ignore
the remaining lines with the existing PC and Segment.

There are also tools to analyze your previous postings are as per your splitting characteristics with out
any errors.

This is for analyzing your log entries.

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Configuration for Subsequent Implementation

Key Configuration:

Once all your mandatory steps are complete, we need to complete the preparations stage in every client
where you would intend to implement document splitting.

This will check the following mandatorily. Please make sure there are no documents posted in the future
date than your document splitting activation date.

i. Document Splitting Activation Date is set in the future.

ii. Online Validation for Document Splitting is active.

iii. Data Enrichment BAdi’s are implemented.

This starts the online enrichment of open items posted newly after the step is complete.
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Configuration for Subsequent Implementation

Key Configuration:

This starts with the execution stage of your project means your data enrichment starts here.

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Configuration for Subsequent Implementation

Key Configuration:

Reconcile Journal Entries: This will analyze all your open items and documents in the system to see if
they fall out with errors in future. All the inconsistencies will be shown here.

Generate Splitting Information: All the open items are enriched based upon your BAdi and the
characteristics are entered in your document splitting tables.

Reconcile Splitting Information: Once the enrichment is done, system will analyze if there are any
fallouts again.

Activate Document Splitting: Only if we finish this step, document splitting will be active in the system.

Confirm Fiscal Year Closure: Once your previous FY is closed, we need to close here in the cockpit too.

Enrich Journal Entries: This will make sure data is consistent between your splitting tables and ACDOCA.

Reconcile Opening Balances: All your opening balances will be reconciled to check any inconsistencies
available in the system.
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Configuration for Subsequent Implementation

Key Configuration:

Enrich Opening Balances: All the opening balances are enriched based upon your BAdi and the
characteristics are entered into ACDOCA.

Reconcile Enriched Opening Balances: Once the enrichment is done, system will analyze if there are any
fallouts again.

Confirm Data Enrichment: This will complete the data enrichment in the system.

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Configuration for Subsequent Implementation

Key Configuration:

Once everything is finished, if there are any adjustments required to be posted in the opening balances,
we may need to do this in post processing phase.

Everything closed, then complete the project.

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Customization Involved

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Customization Involved

1. Make sure we do not have defaulting for BS accounts at least for below in FAGL3KEH.

2. 1. Customer reconciliation accounts

3. 2. Vendor reconciliation accounts

4. 3. VAT accounts

5. 4. WHT accounts

6. Make sure we do not have defaulting for P&L accounts at least for below in OKB9.

7. 1. Exchange rate loss/gain accounts

8. 2. Cash discount accounts

9. Make sure we do not have defaulting for above accounts in substitutions as well.

10.Control the defaulting in such a way that they work prior to document splitting and not after
document splitting for the above said accounts.

11.Make sure all your custom logic, enhancements, BAdi’s, exits and other programs do not have
defaulting to above said accounts.
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Customization Involved

HPE Landscape:

• Multiple interfaces and billing systems

(ECC systems) are connected to ECC 6.

• ECC system sends documents to

S4 1709 system through CFIN.

• S4 1709 has document splitting

Implementation which is in turn connected

to multiple interfaces and 3rd party tools.

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Customization Involved

1. Points to Note:

2. Make sure that postings coming through SLT has PC and Segment filled in all lines except those
which can split automatically.

3. Custom logic has to be implemented to achieve the above point.

4. Logic should be written in such a way that the documents posted before activation date should post
in old manner and the documents posted after activation date should consider new logic with
document splitting.

5. This can be achieved through BADI changes, substitutions and exits.

6. Make sure to check the document types mapping in CFIN has same functionality(n document types
of source should have same functionality like 1 document type of target mapped to).

7. Make sure to check the GL Accounts mapping in CFIN has same functionality(n GL Accounts of source
should have same functionality like 1 GL Account of target mapped to).

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Errors and Resolution

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Errors and Resolution

1. Common Errors while Posting:

2. 1. Document Type Classification missing - Please check your document type classification has been
performed as per the configuration showed above.

3. 2. GL Account Classification missing - Please check your GL Account classification has been
performed as per the configuration showed above.

4. 3. Balancing field PC/Segment not filled - Pleas check what kind of account it is and decide whether it
can automatically split or we should supply the values manually.

5. 4. Item Category Missing - Please check there is a mandatory value available as per your document
type classification.

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Errors and Resolution

1. Common Errors while Posting:

2. Vendor Account is mandatory in Vendor Invoice type.

3. Customer Account is mandatory in Customer Invoice Type.

4. Cash Account is mandatory in Payment type etc.

5. 5. Item Category not allowed - Some types of accounts are not allowed in some transaction types.
Please make sure that you do not enter them.

6. Cash Account in not allowed in Invoice types.

7. Cash Discount Account is not allowed in Invoice types.

8. Tax Account is not allowed in Bank Reconciliation document types etc.

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Errors and Resolution

1. Common Errors while Posting:

2. 6. Items missing for clearing - Open items should be available in the document splitting tables which
will then allow you to clear them. Please check whether your date enrichment is successful while
executing in cockpit.

3. 7. Attributes missing during reversal - Error while reversing a document after activation which was
posted before activation.

4. PC and Segment is mandatory in every line after activation. Please check all the lines have PC and
segment which were posted earlier to activation or implement the BAdi’s which were showed in the
configuration section.

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Errors and Resolution

1. Common Errors while Data Enrichment:

2. 1. Clearing Mismatch - While the cockpit is initiated, system will check for consistency for each and
every document posted before activation date in each and every step. One such kind of error is
clearing mismatch between tables.

3. We need to check whether the inconsistencies have been caused by custom implementations. If not,
SAP will provide correction programs to clear the inconsistencies.

4. 2. Split Information missing 0 System reconciles whether the enrichment was complete and will
throw below kind of errors if it checks any inconsistencies.

5. Please rerun data enrichment and check again.

6.

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Errors and Resolution

1. Common Errors while Data Enrichment:

2. 3. Change in customization - Please make sure that you do not change the activation date once your
preparation phase is complete. System will not allow you to activate document splitting in cockpit if
you change the customization for activation date in between.

3. 4. BCF not complete: You cannot close the Fiscal Year in cockpit until Balance Carry Forward is
executed. System will check and throw the below error if BCF is not complete. Please check and
rerun the step.

4. 5. Inconsistent BCF: While enriching opening balances, system will also check for the BCF
consistency and throws error. Please rerun BCF for the company code + ledger combination and
correct the inconsistency.

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Lessons Learnt

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Lessons Learnt

Always test your journals both the ways.

 Before Document Splitting Activation Date: To check everything works as is.

 After Document Splitting Activation Date: To check the split process works as per the design.

Test every scenario how the documents will be posted as is in Production.

SLT postings trough CFIN.

Interface Postings.

Journal Workflows.

YEC/MEC activities like revaluation etc.

Have a copy of production data where you do data enrichment of your cockpit.

Always link your CFIN source system to test system to understand all kind of errors that may pop
up.

Send your online validation TR’s to production much before activation.

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Challenges Encountered

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Challenges Encountered

1. Having document splitting in S4 system and not in your source system. Configuring and testing the
system when document splitting is not active in your source system and active only in S4 system is
an uphill task.

2. Testing all interfaces with all connections to test systems is a tedious task.

3. Working on SD/FI integrations and testing the accounting documents generated through billing and
invoices.

4. Resolving each and every single error in cockpit.

5. Closing issues on Month End Closing/Year End Closing activities like Depreciation Run and Foreign
Currency Revaluation .

6. Changing the business processes to allow document splitting to work like Vendor to Vendor
Reclassification should be done only through transfer posting with clearing etc.

7. Reversing documents after activation which were posted prior to activation.

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Conclusion

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Conclusion

1. Understood the overview of document splitting.

2. Different types of splitting.

3. Way the split process happens.

4. Key Configuration steps for document splitting.

5. How to implement the document splitting subsequentially.

6. How to execute and steps involved in the cockpit.

7. Customization involved while implementing in project HPE.

8. Various errors noticed and the cause + resolution to those.

9. What kind of lessons learnt while implementing in HPE.

10.Challenges encountered while implementing in HPE.

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Questions

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Wrap-Up
Contacts

If you have any additional questions or would like additional information, please contact the following
individuals:

Anshuman Pande [email protected]

Anirudh Kuruvadi [email protected]

Mihir Shailesh Kenia [email protected]

Tarannum Fathima [email protected]

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