5

Document Splitting — Setting Up

1. Classify the G/L accounts

2. Classify document types

3. Define the zero balance clearing account

4. Define document splitting characteristics

5. Define document splitting characteristics for the CO module

6. Define constants for nonassigned processes

7. Activate document splitting

􀂌 The IMG menu path for document splitting configuration

􀁦 IMG: Financial Accounting (New) > General Ledger Accounting (New)>􀂌 Business Transactions > Document Splitting

Step 1: Classify G/L Accounts

• One of the first steps in configuring document splitting is to

assign the item categories to the G/L accounts for your Chart of

Accounts

• Assign the item categories for the G/L accounts

􀂌 Instead of assigning item categories by individual accounts, it

is recommended that you use a range of accounts

• Note that the splitting rules are defined for items categories (for

the items to be split and also base category items)

• Assign Item Categories to G/L accounts

• Note that 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 30000 Revenue

02100 Customer: Special G/LTransaction

40100 Cash Discount (Expense/Revenue/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

Step 2: Classify Document Types

• To ensure that every relevant financial transaction is considered for document splitting, categorize the document types according to specific business transaction variants

• Assign business transaction and business transaction variants for the document types

• Notes:

􀂌 Standard SAP document types are already defined with appropriate values

􀂌 Make sure that you classify the custom Z document types

• Assign Business Transaction/Business Transaction Variants

Step 3: Define the Zero Balance Clearing Account

• Define a G/L account to be used for creating zero balance splitting

for the characteristics

Step 4: Define Document Splitting Characteristics

• Define the characteristics for which the document splitting rules apply

• Additionally:

􀂌 Specify if you want to use zero balancing

􀂌 Indicate if this characteristic is mandatory

• Segments

􀂌 If you are planning to use the Segment characteristic, define the segments in the IMG and assign the segments to profit centers

􀁦 IMG Menu path to define Segments: IMG 􀂌 Enterprise

Structure 􀂌 Definition 􀂌 Financial Accounting 􀂌 Define

Segment

Step 5: Define Document Splitting Characteristics for CO

• Define the splitting characteristics for Controlling (CO) processes

􀂌 The additional characteristics are for processes such as:

􀁦 Cash Discounts

􀁦 Exchange Rate Differences

• Define the post-capitalization of Cash Discounts to Assets

􀂌 You may need to capitalize the cash discounts for the purchases related to fixed assets

􀂌 Define post-capitalization of Cash Discounts for assets purchases

Step 6: Define Constants for Non-assigned Processes

• Define the default account assignments (for example, default segments)

• Define the defaults when the system cannot determine the Characteristics for the processes

Step 7: Activate Document Splitting

• SAP ERP system is delivered with pre-defined method 0000000012

• Once activated, the document splitting is active at the client level

􀂌 You can selectively de-activate document splitting for specific company code(s)

• Review rules

􀂌 Review Splitting rules – Item categories to be split and base item categories

Sum-up

 Key Points to Take Home

• Use document splitting feature in the new G/L to attain balanced reporting

• Document splitting does not change end-user entry methods

• Document splitting basically consists of three options – passive, rule-based active, and splitting using zero balancing

• Passive splitting assigns splitting rules from the original document

􀂌 Usually for subsequent transactions (Vendor Payment, Customer Payment, Clearing Transactions)

• Active splitting uses the rules by which the items are to be split based on specific items

􀂌 For example, in a vendor invoice transaction, the rule is to split the Tax Items based on the ratios of Expenses Items

• Splitting using zero balancing assures that the document is balanced for the specific characteristic

• Splitting method is the collection of splitting rules, business transactions, and business transaction variants