3

Document Splitting — Imp. Elements

• Let’s first understand some of the basic elements before delving into the details

􀂌 Splitting rules

􀂌 Item categories

􀂌 Business transactions

􀂌 Business transaction variants

􀂌 Splitting methods

• Splitting rules

􀂌 The splitting rules define two things:

􀂌 Which accounting items are split?

􀁦 In our example of Vendor Invoice, the Vendor and Input Tax items need to be split

􀂌 What calculations are used to split based on specific accounting items?

􀁦 Used the calculations of 80%-20% based on Expense Items

• Splitting rules for financials transactions

􀂌 Splitting rules for Vendor Invoice

􀁦 Vendor and tax items are accounting items to be split

􀁦 Expense items are the base items

􀂌 Splitting rules for Customer Invoice

􀁦 Customer items to be split

􀁦 Revenue items to be the base items

• Item categories

􀂌 Item category is the grouping of new G/L Accounts

􀂌 Instead of defining the splitting rules for all expense accounts individually, the item category groups all expense accounts (for example, 20000) together

􀁦 You could have one rule for all expenses

􀂌 Item categories are pre-defined in the system

Item categories are pre-defined in the system

Category Description                                                             Category Description

01000 Balance Sheet Account                                             05200 Withholding Tax

01001 Zero Balance Posting (Free Balancing Units)         06000 Material

01100 Company Code Clearing 07000 Assets                    01300 Cash Discount Clearing 20000 Expenses                                                                02000 Customer

30000Revenue                                                                      02100 Customer: Spl G/LTran

40100 Cash Discount (Exp/Rev/Loss)                               03000 Vendor 40200 Exchange Rate Difference                                                               03100 Vendor: Special G/L Transaction 80000 Customer-Specific Item Category         04000 Cash Account

05100 Taxes on Sales/Purchases

• Business transaction/business transaction variant

􀂌 A business transaction is a general breakdown of an actual

business process

􀂌 Examples of business transactions are Vendor Invoice,

Customer Invoice, Cash Payment, and more

􀂌 A business transaction variant is a specific version of a

business transaction provided by SAP

􀂌 There are various business transaction variants already defined

in the system

􀂌 In Financial Accounting, various document types are linked to

the business transactions and business transaction variants

􀂌 The splitting method is the main key used to activate splitting in

the new G/L

􀁦 It’s the main driver for document splitting

􀁦 It’s the list of all splitting rules for all business transactions

􀁦 Technically, it’s a collection of splitting rules, business

transactions, business transaction variants

􀂌 SAP ERP systems are pre-delivered with:

 Splitting Method 0000000012        Document Type (KR)

00012)

Business Transaction

(Vendor Invoice 03000)

+

Business Transaction Variant

(Standard variant 0001)

(Vendor 03000)

(Tax 05100)

• Base Item Categories

(Expenses 20000)

Splitting Rules

The values and descriptions in () parentheses are sample values.