Use Constants for Non-assigned Processes

Overview

In this blog, I will demonstrate the use of constants for processes that have not derived a Profit Centre or documents that have not split the line item by Profit Centre.

You can use Document Splitting rules to split line items on a financial document by Profit Centre. However, there might be accounts (like Bank accounts, Shareholder accounts and Loan accounts) that you do not want to split across multiple Profit Centres. In such cases, it is a good idea to configure Document Splitting rules to define a constant Profit Centre where such line items should post against.

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 > Document Splitting. 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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Assumption for this blog

You should read by first 5 blogs to gain an understanding of the concepts around document splitting. These 5 blogs form the backbone of this blog series. Where possible in this blog, I will link the context to the foundation blog so you can refer back to the concept, if you want to.

#1  Overview of new GL Document Splitting Process

#2  Architecture of SAP new GL

#3  The Design driving the new GL Document Splitting process

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

#5  The semantics of SAP new GL document splitting process

The configuration for document splitting characteristics for General Ledger for this blog is as below.

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Define Document Splitting Characteristics for General Ledger

Constant

In Document Splitting design, you can assign standard account assignments (or Constant) for scenarios where it is not possible to derive the correct account assignments for the document splitting characteristics of General Ledger Accounting.

I will use the example of an expense using Petty Cash. I posted this document using SAP pre-configured Document Splitting rules – I have not customised the splitting rules to split the Petty Cash account. As you can see below, the financial document has not split; the Profit Centre against Petty Cash is blank. (The document could generate an error message instead of posting to blank Profit Centre depending on SAP pre-configured rules.)

After a constant Profit Centre 1000 was configured, I re-entered and posted a similar transaction. The Profit Centre now assigned to Petty Cash reflects 1000. There are consequential self-balancing line items in this financial document.

You can compare the financial document in the two scenarios:

1. After customising the Document Splitting rules as shown in my previous blog; and
2. After configuring a Constant as shown in this blog

Customising Constants for Document Splitting

We will now see how the system is configured to derive a Constant. There are two tables that should be customised:

• Edit Constants for Non-assigned Processes
• Assign Standard Account Assignment to Activation of Document Splitting

Edit Constants for Non-assigned Processes

I created a Constant “BALSH” and assigned Profit Centre 1000 to Controlling Area V000 within this Constant.

Configuration can be done in IMG Path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Edit Constants for Non-assigned Processes

Activate Document Splitting

Assign this newly created Constant to the activation of Document Splitting. You can assign only one Constant to Document Splitting activation.

Configuration can be done in IMG Path

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

After you customise these two tables, you will be able to derive a same Constant on all processes that did not derive a Profit Centre.

SAP standard design for Constant allows you to assign only one Constant per client and configure one “constant” Profit Centre for the Controlling Area. You can override this Constant for specific processes, by another Constant. You have to customise some additional tables to override the client-generic Constant.

Configure restriction on use of Constants

Once you configure a Constant for the client, you can restrict the application of that Constant to individual item category in an individual business transaction. For individual item category, we can

1. Assign a Constant for specific item categories; or
2. Override the standard account assignment and let the document populate a blank Profit Centre

*** Assign a specific custom Constant for specific Item Category

We can assign a specific Constant for specific Item Categories. In our scenario of expense posting from Petty Cash, for example, we want to assign Profit Centre 1500 (Treasury) and not the default client-generic Profit Centre 1000 to all Petty Cash accounts. To achieve this, we configure the following steps:

* Edit Constants for Non-assigned Processes

We create constant “CSHBA” (Cash and Bank balances) and assign Profit Centre 1500 to Controlling Area V000.

Configuration can be done in IMG Path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Edit Constants for Nonassigned Processes

* Define Document Splitting Rule

In the Document Splitting rule combination of Document Splitting Method Z000000012 Business Transaction 0000 and Business Transaction Variant 0001 > Base Item Category = 04000, change the Processing Category to 0 (transfer a fixed value (no splitting)). Once this option is selected, the screen changes to allow defining of the Constant. Enter CSHBA as the Constant.

Configuration can be performed in IMG menu path

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

We will now post an expense through Petty Cash account. As you can see below, the Profit Centre derived against Petty Cash is 1500.

*** Override the standard account assignment

We can decide to override the customised Constant and let specific Business Transaction Variant derive blank Profit Centre. This can be done by selecting the “No Default A/c Assignment” indicator against the combination of Business Transaction and Business Transaction Variant.

Conclusion

There are several ways to customise derivation of a Constant Profit Centre for a business transaction.

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

Please Share

I hope this blog has helped you understand the configuration behind 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

Document splitting in New GL in SAP

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

#1  Overview of new GL Document Splitting Process

#2  Architecture of SAP new GL

#3  The Design driving the new GL Document Splitting process

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

#5  The semantics of SAP new GL document splitting process

#6 Set up Zero-balancing for SAP new GL

#7 Customise Document Splitting rules

#8 Use Constants for Nonassigned Processes in SAP new GL

#9 Customise cross company code postings for document splitting

#10  Document Splitting in Cross company code vendor payment

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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.