Document Splitting in SAP new GL #3 The design driving the new GL Document Splitting process

Document Splitting in SAP new GL #3 The design driving the new GL Document Splitting process

Overview

In this blog, we will familiarise ourselves with the design used in Document Splitting in SAP new GL to split a financial document. We will also see how SAP simulation can be used, in limited circumstances, to analyse the split.

 

Blogs on Document Splitting

In my series of blogs on document splitting, I intend to explain and elaborate the concepts behind Document Splitting and highlight using examples how document splitting can be achieved for various complex business processes. I use Profit Centre as a “scenario” to explain the functionalities; however all processes that apply to Profit Centre also apply to the other scenarios (Segment, Business Area).

To identify the series of blog, I have categorised the blogs under SAP > newGL. If you have questions/ comments/ suggestions, please send me your comments in the form below. Sharing your questions and experience using comment box below will help other readers to gain additional knowledge involved in this functionality.

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Assumptions

The design documented in this blog does not represent the order in which SAP Document Splitting program in New GL is coded; the aim of this blog is to provide an understanding of how Document Splitting works; such understanding will help troubleshoot any issues with Document Splitting. We will use the example from my previous blog on Vendor Invoice and Vendor Payment transaction to understand the design.

The semantics around the document splitting process might seem daunting; we will look at the semantic structure in another blog. I have kept the design of document splitting separate from the semantics of document splitting to keep the blogs focused on the topic under discussion.

For the purposes of this blog, I will assume that the document spitting characteristic is the Profit Centre. Profit Centre is automatically derived from source (eg. from Cost Centre) for certain line items. Derivation of profit centre from source is not a new feature in the new GL; that derivation process is not described in this blog.

 

Stepped approach to the design driving the splitting process

  • Derive the splitting method for company code
  • Identify Business Rules for the split
    • Identify Business Process/ document type
    • Determine Business Transaction
    • Determine Item Category of all lines
    • Determine Document Splitting rule
    • Identify lines to be split/ edited
    • Determine Base Item Category
  • Perform Passive Split (technical event “Document Creation”)
  • Perform Active Split (technical event “Accounting Interface”)
Design driving the Document Splitting Process

Design driving the Document Splitting Process

 

Derive the Splitting method for company code

Document Splitting is activated at client level and can be deactivated by company code. There is a splitting method assigned to the activation. As the first step in understanding how a financial document is split, we need to identify the splitting method for the company code. This can be done by checking the configuration.

The configuration can be checked in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Activate Document Splitting

Identify the Splitting Method

Identify the Splitting Method assigned to the client

 

Then we have to ensure the company code in our example is not deactivated.

Document Splitting deactivate by company code

Ensure that Document Splitting is not deactivated for your company code

 

In our example of Vendor Invoice, the Splitting Method for company code V001 is Z000000012.

Identify Splitting Rules for the split

Identify Splitting rules for split

Steps to identify Splitting Rule

 

I used this step to identify all the objects used to split the document, and thereby to determine the splitting rules that can be used in the next step.

  • Identify Business Process/ document type
  • Determine Business Transaction
  • Determine Item Category of all lines
  • Determine Document Splitting rule
  • Identify lines to be split/ edited
  • Determine Base Item Category

Identify Business Process/ document type

In this step we identify the business process performed and the document type used to perform the process.

You can find the document type in the header of the financial document.

Document Splitting - Identify Document Type

Identify Business Process / Document Type for the posting

 

In the screenshot above, we identify the business process as the creation of Vendor Invoice using document type KR.

Determine Business Transaction

Document Types are uniquely linked to a combination of business transaction and business transaction variant. At this point, do not be too concerned about understanding the connotation of Business Transaction or Business Transaction Variant; we will look at this in detail in a separate blog. For the purpose of this blog, we should understand that:

  • Business Transaction can represent a single business process or a group of related business processes
  • Business Transaction Variant contains all the item categories that are available for the assigned business transaction. An item category is a category into which GL Accounts can be grouped.

Configuration can be checked in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Classify Document Type for Document Splitting

Document Splitting - Classify Document Type

Assign Business Transaction and Variant to Document Type

 

In our example of Vendor Invoice, the Business Transaction is 0300 and Business Transaction Variant is 0001.

Determine Item Category of all lines

A single GL account or a group of GL accounts can be assigned to item categories in the configuration of Document Splitting. This assignment is used to derive the item categories on each line item of the document.

Configuration can be checked in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Classify G/L Accounts for Document Splitting

Document Splitting - Classify GL Account

Assign GL Accounts to Item Category

 

In our example of Vendor Invoice, GL Accounts in Chart of Accounts CAAU is assigned to Item Categories as shown below. From the above assignments, we can derive the item category on each line item in the Vendor Invoice document.

Document Splitting in New GL in SAP #3

Derive Item Category from GL Account

 

Determine Document Splitting rule

The Document Splitting rule is the assignment of the Document Splitting Method and the Business Transaction and the Business Transaction Variant. We identified the Document Splitting Method, Business Transaction and Business Transaction Variant in the preceding steps of this design.

Configuration can be checked in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Extended Document Splitting > Define Document Splitting Rule

Document Splitting - Rule Header

Maintain Document Splitting Rule

 

For each combination of Splitting Method, Business Transaction, and Business Transaction Variant SAP defines

  • which line item needs split; and
  • which line item is the basis of the split.

Identify lines to be split/ edited

Identify the lines that do not have a Profit Centre derived against them; these lines will be split based on splitting rules.

Configuration can be checked in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Extended Document Splitting > Define Document Splitting Rule

Document Splitting - Split document

Example of a Vendor Document Split

In our example of Vendor Invoice, the items that need to be split have item category 03000 (Vendor) and 05100 (Tax). Select the line items that have Item Category 03000 or 05100 to identify the base category that will be used to perform the split.

Document Splitting - Rule line to be split

Document Splitting Rule – line to be split

 

Determine Base Item Category

For a combination of Splitting Rule and Item Category, determine the base item category to be used to split the line items to be split. The configuration settings determine the split rules for the line item to be edited.

Configuration can be checked in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Extended Document Splitting > Define Document Splitting Rule

For Vendor Item Category 03000, the Expense Item Category (20000) and Tax Item Category (05100) is the Base Item Category.

Document Splitting - Rule Base Line

Document Splitting Rule – Base item category

For Tax Item Category 05100, one of the Base Item Categories is the Expense Item Category (20000).

Document Splitting - Rule Base Line 2

Document Splitting Rule – Base Line Category

The amounts on the Vendor line item and Tax line item is split in the ratio of the base line item amounts.

Perform Passive Split (technical event “Document Creation”)

A passive split occurs when the system uses the split in a document from the preceding process. In the Vendor Payment process, the Vendor line item is split based on the split in the preceding process i.e. the Vendor Invoice process. Since the transaction used in this blog is a Vendor Invoice which is an original business process, there is no passive split performed.

Below is an example of Vendor Payment document (a “subsequent process”) that was “passive split” based on the split in the Vendor Invoice document.

Perform Passive Split

Passive Document Split

 

Perform Active Split (technical event “Accounting Interface”)

An active split occurs when the system cannot use the split from a document in the preceding process and uses pre-configured splitting rules to perform the split. In the Vendor Invoice process, the Vendor line item is split based on preconfigured rules.

 

Perform Active Split

Active Document Split

In our example of Vendor Invoice, the system will perform a split of Vendor line and tax line in the ratio of the amounts on the Expense line.

Document Splitting - Split document

Example of Active Document Split

As you will notice, the Vendor and Tax line items have been split to Profit Centres 1200 & 1300 in the ratio of 1:3 respectively (ratio in which the expenses were incurred).

Simulation of document splitting in new GL

Every financial document in new GL has two views: data entry view and general ledger (split) view. When a financial document is posted online, it is possible to simulate the General Ledger document and analyse the splitting process.  Simulation is not possible for financial documents posted in the background (for example, financial documents posted through Material documents, sales documents, payment runs, upload of data from non-SAP systems etc.).

If you want to simulate a general ledger document, use the menu path Document > Simulate General Ledger document as you enter data into the transaction. The system will propose the General Ledger document as shown below.

Document Splitting - Simulation1

Simulation of Document Splitting

You can click on “Expert mode” to analyse how the document was so split.

Document Splitting - Simulation2

Simulation of Document Splitting – Expert Mode

Conclusion

Understanding the design and logic behind Document Splitting is essential to troubleshooting issues and errors in the Document Splitting process.

Use the General Ledger simulation, where possible, to troubleshoot how the document was split. If General Ledger simulation is not possible, follow the above steps to derive and determine how splitting was performed.

 

Please Share

I hope this blog has helped you understand the design and configuration of document splitting. Please do leave your comments below whether this article was helpful; and whether you have any suggestions/ comments; or if you would like to share your experience with document splitting.

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View my presentation on Slideshare

 

Index of my blogs on Document Splitting in new GL in SAP ECC

Overview of new GL Document Splitting Process

Architecture of SAP new GL

The Design driving the new GL Document Splitting process

SAP delivered pre-configuration for document splitting in SAP new GL

The semantics of SAP new GL document splitting process

Set up Zero-balancing for SAP new GL

Customise Document Splitting rules

Use Constants for Nonassigned Processes in SAP new GL

Customise cross company code postings for document splitting

Document Splitting in Cross company code vendor payment

Can SAP ECC newGL replace your existing Special Ledger?

_____________________________________________________________________________________________________________________________

Rajesh has implemented new GL and Document Splitting for several customers. Rajesh has 12 years experience implementing SAP / IT / BPM Finance solutions for several customers globally; he also has 7 years experience working in the business in Finance and Accounting functions. His business process knowledge combined with his IT expertise enables him to provide his customers with best-of-breed advice on business process / IT implementations.

View Rajesh Shanbhag's profile on LinkedIn

 

Comments

  1. I did all Doc. Spilitting Configuration same you mentioned but I have a problem when simulating in General Ledger View nothing appears regarding PC and Segment for all lines

    but in Expert mode all thing are running as perfect

    Could you trace the case with me !
    Thanks…

  2. Great information and in a very lucid language… loved the way it is presented .. will configure soon .. thanks a lot 🙂

  3. HI Rajesh

    Can you pls clarify my doubts re Document Splitting.

    1. Do we have to assign B/S A/cs to Item Category 01000 or specific Item Categories based on Nature of B/S A/cs?

    2. If we are purchasing an Asset through F-90, Both of the accounts involved are B/S A/cs.
    Then, How can we input Account Assignments? For this, Do we have to set up any Default Profit Centers?

    • HI Sonu

      1. No – you can assign B/S accounts to multiple Item Categories. Vendor, Customer, Asset and Inventory can be assigned to different Categories; rest could be assigned to one category. However you could create multiple categories for the rest as well.
      In this blow http://veritysolutions.com.au/2011/11/08/document-splitting-in-new-gl-in-sap-edit-constants-for-nonassigned-processes-in-sap-new-gl/I mentioned:


      It is a good practice to:

      Allow split of business specific GL Accounts like Vendors, Customers, Assets, Inventory
      Define a default constant for all other Balance Sheet Accounts and
      Define exceptions to this default for specific GL accounts if required by your business

      So if you intend to assign a constant, there is no point to assign multiple item categories.

      2. Asset transactions should take account assignments from Asset master. I do not specifically remember F-90, but the logic should work the same.

      Apologies for responding so late. I do not make any excuses for the delay. Do call me or drop me an email if you want to clarify the above.

      Rajesh

  4. Hi Rajesh,

    When I am making payment, after activating New GL, I am getting this error – Balancing field “Profit Center” in line item 003 not filled Message no. GLT2201 as
    Profit Centers are not derived to Bank Accounts. Then, I created “Constant” in “Edit constants and Non assigned process” and assigned and activated “Std Account Assignment”.

    After this configuration, I am able to post document. Can you pls check Accounting entry in the attachment and let me know if this process is correct.
    and I would like to know why Account assignment are derived to Bank A/c, though I am using standard Splitting Method 0000000012.

    Thanks

  5. I notice that even if i don’t mention customer recon a/c in classify gl accounts for document splitting…ie purposely delete 140000 g/l a/c mapping to item category 2000 still system worked…??

    any thoughts

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