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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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.
The configuration for document splitting characteristics for General Ledger for this blog is as below.
[IMG] Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Define Document Splitting Characteristics for General Ledger
Configuration for CO-relevant document splitting characteristics can be performed in IMG menu path
Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Define Document Splitting Characteristics for Controlling
I will also assume you have configured the GL account default for unrealised foreign exchange loss/ gain.
[IMG] Financial Accounting (New) > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Outgoing Payments Global Settings > Define Accounts for Exchange Rate Differences
This GL Account is created as an expense cost element.
What I am demonstrating
In this blog I will demonstrate Document Splitting in the unrealised foreign exchange loss/ gain process. I will create an outstanding Vendor Invoice from an Australian company for an overseas vendor in US Dollars. I will execute the revaluation of open items in foreign currency program. That program will post unrealised foreign exchange gain/ loss on open items.
Unrealised foreign exchange gain/ loss
I posted the following Vendor Invoice from an Australian company in USD. The exchange rate at the time of booking the Vendor Invoice was USD:AUD 1:1.015.
This Invoice is outstanding at the end of the month (of Sept 2012). I executed the valuation of open items in the foreign currency program. At the end of the month, the exchange rate has moved to USD:AUD 1:025. The revaluation program valuates the USD 1000 Invoice at AUD 1025. There is a AUD 10 foreign exchange loss. This loss is split between the two cost centers 1322 and 1732 in the ratio of the expense in the original invoice.
Variation of above process
If the unrealised foreign exchange gain/ loss account is not set up as a cost element, then the Document Splitting for unrealised foreign exchange gain/loss GL account will occur at the Profit Center level only.
The process of Document Splitting on subsequent processes is relatively simple. Document Splitting for certain subsequent processes works automatically in SAP without any extended Document Splitting configuration. SAP picks the split on the original document and uses that as the split basis for the subsequent documents.
I hope this blog has helped you understand the design behind document splitting of subsequent processes. 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
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.