Document Splitting in New GL in SAP #9 Customise cross Company Code postings for Document Splitting

Document Splitting in New GL in SAP #9 Customise cross Company Code postings for Document Splitting

Overview

In this blog, I explore the effect of pre-configured Document Splitting on cross company code postings (within the same currency). When a Vendor Invoice is posted across company codes (eg. vendor supplying goods through one invoice to more than one company code), multiple documents are generated – each for every company code posted to. SAP delivered pre-configured rules split the Vendor line based on the offsetting posting to expense account. You can also configure constants within Document Splitting to achieve different results.

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

 

What I am demonstrating

In this blog, I intend to demonstrate the impact of Document Splitting process on cross company code Vendor Invoice. What applies to a cross company code Vendor Invoice should apply to most cross company code documents.

Initially, I will post a cross Company Code Vendor Invoice against the background of SAP pre-configured Document Splitting rules. The Vendor line items in the invoice document are split based on the split in the offsetting line items.  We will analyse what pre-configured rules caused the document to split.

Then, I will demonstrate how the Document Splitting can be manipulated using Constants in SAP Extended Document Splitting.

 

Cross company code posting of a Vendor Invoice

I processed a Vendor Invoice that had expense lines across multiple Company Codes.  The system has SAP delivered pre-configured Document Splitting rules to achieve this; no changes have been made to those rules.

In Company Code V001, Inter-company Vendor is sub-ledger account IV_V005 (ledger account 213000); and in Company Code V005 Inter-Company Customer is sub-ledger account I_V001 (ledger account 123000).

The Vendor Invoice belongs to company code V005; and it has expense line for company code V001 and V005. The FI cross Company Code document is as below:

The FI document is split as below. In company code V001, the Profit Centre (1300) from the expense line is assigned to the Inter-company Vendor line (GL 213000).

 

The FI document is split in company code V005 as below.

 

The Profit Centre (1300) from the Cross Company Vendor line in Company Code V001 is assigned to the Inter-company customer line item (GL 123000). The Vendor line item (GL 211000) is now split based on the Profit Centre of the expense line item (PC 5001) and the Profit Centre of the Inter-company customer line item (PC 1300).

The two split documents are summarised below:

GL Account Description Dr/Cr Amount Company Code Cost Centre Profit Centre
75003 Vendor account Cr 50.00 V005 5001
75003 Vendor account Cr 50.00 V005 1300
651000 Office Supplies Dr 50.00 V005 5001 5001
123000 Intercompany Receivable Dr 50.00 V005 1300
651000 Office Supplies Dr 50.00 V001 1322 1300
213000 Intercompany Payable Cr 50.00 V001 1300

The system generates the Trading Partner field as per standard SAP settings. The design of Document Splitting does not impact derivation of Trading Partner.

 

Use pre-configured Document Splitting rules to split cross Company Code Vendor Invoice

SAP ECC is delivered with pre-configured splitting rule for cross company posting. Let us understand the components of the splitting rule that performs the split during the posting. I will take the example of a cross Company Code Vendor Invoice (Business Transaction 0300 Variant 0001) where the expense from the Vendor Invoice is posted across multiple Company Codes.

In the Document Splitting rule configuration, the leading Item Category for cross Company Code posting is 03000 (Vendor).

Configuration can be done in IMG Path

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

This (leading) item category is marked as “required” in the Business Transaction configuration. That ensures that the leading item category always exists in a cross company posting.

Configuration can be done in IMG Path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Extended Document Splitting > Define Business Transaction Variants.

In the Document Splitting rule, there is configuration for Item Categories under Vendor Invoice.

Item Category 01100 CC <> CC of leading item (dependence on leading item = 2): This rule influences the line items not belonging to the Company Code of the Vendor line item. In the previous example, the Company Code of the leading (Vendor) line item is V005. Hence, the line item from the other Company Code (V001) will be processed first.

Item Category 01100 CC = CC of leading item (dependence on leading item = 1): This rule influences the line items belonging to the Company Code of the Vendor line item. In the previous example, the line item from the partner Company Code (V001) will be processed first. The Profit Centre (1300) will be carried over to assign to the Inter-company line item in Company Code of leading line item (CC V005). The Document Splitting will proceed based on that.

As you can see, the SAP delivered pre-configured Document Splitting rules perform the Document Splitting for cross company posting. To enable this configuration to work, in the above example, the Profit Centre 1300 (“owned” by V001) should be assigned to both V001 and V005. This is because SAP uses the same Profit Centre in the offsetting posting in the leading item Company Code document.

Given this requirement, the Profit Centre design should ensure that all possible Profit Centres should be assigned to all Company Codes. As a general rule, I prefer to assign any individual Profit Centre to a single Company Code (the reasoning of this is not part of this blog). SAP delivered pre-configured rules pose a problem to this design. You can get around this requirement by configuring a Constant Profit Centre for all cross Company Code postings.

Use SAP Extended Document Splitting to split cross Company Code document

SAP pre-configured rules for Document Splitting implicitly requires you to assign a Profit Centre to all Company Codes. You can get around this requirement by defining a Constant Profit Centre to which all cross Company Code split documents will post. For a detailed explanation of constants, read “Use Constants for Nonassigned Processes in SAP new GL”. The limitation is that you can define only one Constant per Controlling Area for all postings. You cannot define, for example, a separate constant Profit Centre for cross company posting.

For our example, we will define a constant Profit Centre 1000. This Profit Centre is assigned to Company Code V001 and V005. This obviates the requirement to assign all possible Profit Centres to all Company Codes. This Constant rule is assigned to Document Splitting rule with dependency on leading item = 1 (CC = CC of leading item). For the moment, we will not assign the Constant to the Item Category 01100 with dependency = 2. The Profit Centre 1300 is only assigned to Company Code V001.

I make the same cross company posting as shown in the above example. The split document in Company Code V001 will show the same split and Profit Centre = 1300.

 

However, the Profit Centre assigned to FI document in V005 is now 1000 and the Vendor line item is split accordingly.

 

This scenario can be summarised as below:

GL Account Description Dr/Cr Amount Company Code Cost Centre Profit Centre
75003 Vendor account Cr 50.00 V005 5001
75003 Vendor account Cr 50.00 V005 1000
651000 Office Supplies Dr 50.00 V005 5001 5001
123000 Intercompany Receivable Dr 50.00 V005 1000
651000 Office Supplies Dr 50.00 V001 1322 1300
213000 Intercompany Payable Cr 50.00 V001 1300

Variation to splitting rule

A variation of this scenario is to assign the Constant to Item Category 01100 and dependency = 1 and dependency = 2. This will cause the system to assign Profit Centre 1000 to document in company code V001. Since the expense line is assigned to Profit Centre 1300, the system will automatically generate a self-balancing entry if that is configured (Read “Set up Zero-balancing for SAP new GL”).

The posting in Company Code V001 will remain the same.

You will notice that the Profit Centre assigned to Inter-Company Payable and Inter-company Receivable is the same. This scenario can be summarised as below:

GL Account Description Dr/Cr Amount Company Code Cost Centre Profit Centre
75003 Vendor account Cr 50.00 V005 5001
75003 Vendor account Cr 50.00 V005 1000
651000 Office Supplies Dr 50.00 V005 5001 5001
123000 Intercompany Receivable Dr 50.00 V005 1000
651000 Office Supplies Dr 50.00 V001 1322 1300
213000 Intercompany Payable Cr 50.00 V001 1000
690001 PC Self Balancing Dr 50.00 V001 1000
690001 PC Self Balancing Cr 50.00 V001 1300

 

Conclusion

Cross Company Code postings can be split as if it were a single document (pre-configured Document Splitting); or as if they were two separate documents (Configure Document Splitting for cross Company Code). The only difference between these two is the method used to derive the Profit Centre. Configuring Document Splitting is a little more extra work. However, it allows you to design Profit Centre assignment to only one Company Code.

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

 

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.

View Rajesh Shanbhag's profile on LinkedIn

 

Comments

  1. Hi Rajesh,

    I am currently working on an SAP project for a company which is using unique profit centre assignments. This is causing inheritance issues when posting cross company payroll.

    E.g.
    Employees home cost centre resides in company X profit centre 001, their alternative cost centre maintained in the employee master infotype 27 resides in company Y profit centre 004. When the employee works 100% of their time for the alternative cost centre the system tries to post the liabilities in company X with a blank profit centre and the expense in company Y profit centre 004 (from cost centre). The document splitting tries to inherit profit centre 004 from the expense line in company Y to the liability line in company X, which errors out due to the profit centre assignment.

    Reading your articles seems to suggest the solution would be a common default profit centre however the company is strongly opposed to creating any ‘dummy’ profit centres. Please could you suggest any other options? Any help would be greatly appreciated! Congratulations on a fantastic article!

    Kind regards,
    Chris

    • Hi Chris

      Happy to note that the article was useful to you.

      There is no other alternative I know of.

      If you open all profit centres to post cross-company, reporting could get challenging.
      You are posting cross-company code – best to create a profit centre that posts across all company codes and use that as the default.
      One additional step in period end to ensure balance of this profit centre is zero. Exclude this profit centre from all functional unit reporting.

      Sorry I could help more.

      Regards

      Rajesh
      http://www.slideshare.net/rshanbhag/document-splitting-in-new-gl-in-sap

  2. Hi Rajesh

    The customer wants to implement New GL.Let me put forward 2 scenarios please suggest a solution.

    1. Company Code 1000 – Profit Centers 1100,1200,1300 – The employee is assigned to Cost center. During Payroll run for the expenses from the cost center profit center is derived where i have no issues. I have few Balance sheet accounts like deductions, provisions etc where the document splitting is not happening i.e., Profit center not getting derived. I cannot default the profit center in FAGL3KEH as Profit Center wise balance sheet is required by the customer.

    2. I am trying to post a cross company code posting using FB50. Company code 1000 /Profit center 1100 and Company code 2000 / Profit Center 2100. Upon input of the same in respective line items, when i post the profit center is posting to the primary company code line item only i.e.,am posting for 1000 company code line item first, so after cross company code posting the profit center is hitting to 1100 only across both the company code documents. Please suggest how to tackle.

    Your quick reply in this regard would be appreciated well.

    Saravanan

  3. Hi Rajesh
    I need your help. When we are trying to post cross-company code transaction through transaction F-02, we are assigning profit center in one line for co code A. But for other line of co code B we don’t want to use any profit center as the account used is balance sheet account and not required profit center. But system is throwing error and asking to extend the profit center existed in A to profit center B because of the document split method 0000000012, Business Transaction 0000, Business Transaction Variant 0001. Please guide me how to modify or add the rule so that system should not ask for profit center for line item 2 in co code B.
    I will be very thankful for your help.

    Pooja Gupta

    • Hi Pooja

      Can try to remove the flag “Zero Balance” and “Mandatory field” in config Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Define Document Splitting Characteristics for General Ledger Accounting? This will not propose any error message for all Balance Sheet accounts that have not derived a profit centre. This means the system might derive Profit Centre for some and not derive for some; depending on your document splitting config.

      Also try and remove all classification of GL Accounts to Document Splitting item categories for Balance Sheet accounts and document splitting rules for Balance Sheet item categories.

      I have not tested this and have not implemented such a scenario before. So please test it well before giving this a go-ahead. Let me know if this does not work or if you need more information.

      Rajesh

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