Document Splitting Configuration steps with example

Document Splitting
You can use the document splitting procedure to split up line items for selected dimensions (such
as receivable lines by profit center) or to effect a zero balance setting in the document for
selected dimensions (such as segment). This generates additional clearing lines in the document.
Using the document splitting procedure is the prerequisite for as well as an essential tool for
drawing up complete financial statements for the selected dimensions at any time.
You can choose between displaying the document with the generated clearing lines either in its
original form in the entry view or from the perspective of a ledger in the general ledger view.
For document splitting to be possible, the individual document items and the documents must be
classified. Each classification corresponds to a rule in which it is specified how document
splitting is to occur and for which line items.
SAP delivers a set of standard rules that should usually prove sufficient. If not, you can define
your own set of rules and adapt these according to your needs.

Example
Example 1: Invoice
Suppose a vendor invoice containing the following items is entered:
Posting Key Account Segment Amount
31 Payables 000 -100
40 Expense 0001 40
40 Expense 0002 60
Document splitting then creates the following document in the General Ledger view:
Posting Key Account Segment Amount
31 Payables 0001 -40
31 Payables 0002 -60
40 Expense 0001 40
40 Expense 0002 60

Example 2: Payment
The payment for the above vendor invoice then contains the following items when entered:
Posting Key Account Segment Amount
 50 Bank -95
25 Payables 100
50 Cash Discount Received -5
Document splitting then creates the following document in the General Ledger view:
Posting Key Account Segment Amount
50 Bank 0001 -38
50 Bank 0002 -57
25 Payables 0001 40
25 Payables 0002 60
50 Cash Discount Received 0001 -2
50 Cash Discount Received 0002 -3

Classify G/L Accounts for Document Splitting

Each business transaction that is entered is analyzed during the document splitting procedure. In
this analysis, the system determines for each line item whether it is an item that remains
unchanged or an item that should be split.
In order that document splitting recognizes how the individual document items are to be handled,
you need to classify them. You do this by assigning them to an item category. The item category
is determined by the account number. In this IMG activity, you need to assign the following
accounts in the system:
Revenue account
Expense account
Bank account/cash account
Balance sheet account
The classification of all other accounts is known to the system, so you do not have to enter them
here. You can enter an account interval since the system recognizes SAP-specific classifications
and does not allow SAP settings to be overwritten by your own settings.
Example
The following item categories are included in the system:
Customer
Vendor
Cash discount offsetting
Asset
Material
Expense
Revenue
Standard settings
Item categories are included in the standard SAP System. You can not define any additional item
categories. If the item categories included in the system do not meet your needs, contact SAP.
Activities
Enter your accounts or account intervals and assign them to an item category.

Classify Document Types for Document Splitting

Every business transaction that is entered is analyzed during the document splitting process. In
this process, the system determines which splitting rule is applied to the document. In order that
the system can determine the splitting rule, you must assign a business transaction variant to
each document type.
To ensure that a splitting rule is used appropriately, the relevant documents must meet certain
requirements. These requirements relate in particular to certain item categoriesthat either must
or must not be available. This information is specified for each business transaction variant and
is checked against the current document during posting. If the document does not meet these
requirements, the system rejects the posting.
Example
The accounting transaction 0200 (customer invoice), variant 0001 (standard), is delivered. In this
accounting transaction, the following item categories are allowed: customer, value added tax,
withholding tax, expense, revenue, exchange rate differences, and company code clearing.
Standard settings
With the document types delivered in the standard system, SAP delivers a classification for
document splitting. This classification is a proposal that you need to check against how your
document types are organized. You need to check whether the classification or assignment to a
business transaction variant produces the desired result in document splitting.
SAP includes business transactions in the standard system. The item categories that are allowed
for each accounting transaction are also defined. Accounting transaction variants are also
included. These are additional limitations of the accounting transaction.
You cannot define additional business transactions. However, you can define your own business
transaction variants to the the standard business transactions.
Activities
Assign your document types to an accounting transaction and a business transaction variant.
Further notes
 Document splitting is essentially controlled by the document type. You should therefore ensure
that the documents used for business transactions are assigned uniquely in document splitting to
a business transaction variant and in this way to a splitting rule.
You may therefore be required to introduce more document types.
Example:
The document type SA is assigned to business transaction 0000 Unspecified Posting with variant
0001.
In the methods delivered, no splitting rules are defined for the business transaction variant
Unspecified Posting (with the exception of company code clearing). If an account assignment is
expected in these documents, it has to be specified for all lines. This means that the system does
not project any account assignments to non-assigned lines due to the absence of a splitting rule.
However, this document type is generally used for a large variety of business transactions that
would also have to be treated differently in document splitting. In such cases, it is necessary to
define additional document types and to assign them to the specific fiscal year variants.

Define Zero-Balance Clearing Account

For account assignment objects for which you want to have a zero balance setting, the system
checks whether the balance of account assignment object is zero after document splitting.
If this is not the case, the system generates additional clearing items. In this activity, you have to
create a clearing account for these additional clearing items.
Activities
Create a clearing account for your chart of accounts.

Define Document Splitting Characteristics for General Ledger

Use
In this IMG activity, you specify for which characteristics you want to perform document
splitting in General Ledger Accounting. You can define the following:
Whether you want to apply a zero balance setting for the characteristic
Whether you want to use a partner field to document a sender/receiver relationship in the clearing
lines generated additionally in the document
Whether you want the characteristic to be a required entry field (whereby the system only accepts
postings when this field can be filled with a value from the document splitting)
Requirements
The characteristics that you specify should be maintained in at least one of your ledgers.
Standard settings
 If you have not yet entered any characteristics, the system proposes appropriate fields that are
updated in your ledgers.
Activities
Check the settings and then save.

Define Document Splitting Characteristics for Controlling

Use
In this IMG activity, you specify on which additional characteristics you intend to apply
document splitting. The additional characteristics are not relevant for General Ledger
Accounting. Instead, they are relevant for other application components (such as subcomponents
in Controlling) that use documents transferred from General Ledger Accounting.
For this, the system can divide up the line items during the following General Ledger Accounting
processes:
Clearing of Vendor/Customer Items
Cash Discount Paid
Cash Discount Received
Lost Cash Discount
Clearing of Open Items
Realized Exchange Rate Differences
Foreign Currency Valuation for Open Items
Expenses / profit from foreign currency valuation
Flat-Rate Individual Value Adjustment for Vendor/Customer Items
Expenses / profit from individual value adjustment
Note
The selected characteristics are only transferred to the specified line items when the account to
which the postings are to be made can also take the characteristics. This means in particular that
CO account assignments are only transferred when the account has also been set up as a cost
element.
The field status definition of the account, however, is explicitly excluded from this check. This
means that characteristics are also transferred when they are hidden by the field status definition
of the G/L account (for manual entry).
Activities
Select the desired characteristics and save your settings.
Define Post-Capitalization of Cash Discount to Assets
Use
In this IMG activity, you define whether the cash discount that is applied in the payment of a
asset-relevant invoice should be capitalized to the asset. When you select this setting, the cash
discount amount is not posted to the cash discount account in the payment document, but instead
directly to the asset.
Requirements
Document splitting is activated.
Activities
Choose the Asset field if you want to have cash discounts capitalized to assets.
Example
Invoice
Suppose a vendor invoice contains the following items:
Posting Key Account Amount
31 Payable -100
70 Asset 20012 90
40 Expense 10
Payment
The payment for the above vendor invoice then contains the following items:
Posting Key Account Amount
50 Bank -95
25 Payable 100
75 Asset 20012 -4.50
50 Cash Discount Received -0.50

Edit Constants for Nonassigned Processes

Use
In this IMG activity, you define default account assignments (for example, a default segment) for
specific line items in processes for which it is not possible to derive the correct account
assignments at the time when the document is posted. This is the case if the required information
is not yet available when the posting occurs.
Example
The segment can be used as an example of an account assignment: For a cash receipt from a
customer that is posted to a house bank account, it is not immediately known which invoices are
to be paid by this cash receipt.
Step 1:
To make the information concerning available financial means available to the system within the
shortest possible delay, a posting from checking account against cash receipt is made. Since no
additional information is available for this, the account assignment must be made to a default
segment.
Account Segment Amount
Checking Account Default 1000
Cash Receipt Default -1000
Step 2
The cash receipt account is then posted against the customer (with clearing of the customer). In
this way, the correct segment(s) can be determined from the cleared invoice.
Account Segment Amount
Cash Receipt 0001 1000
Customer 0001 -1000
Step 3
Finally, both items on the cash receipt account are cleared against each other. Since both
positions are assigned to different segments, corresponding clearing items must be generated on
the cash receipt account.
If a zero balance is required for a segment, additional line items that set the document balance
per segment to zero are generated on a clearing account defined in Customizing. These clearing
items reflect the correction of the segment information on the checking account. However, it is
no longer possible to determine the correct checking account. This could be ambiguous in more
complex cases than this example. It is therefore useful to assign the clearing account in the
balance sheet to the checking accounts.
Account Segment Amount
Cash Receipt Default 1000
Cash Receipt 0001 -1000
Clearing 0001 1000
Clearing Default -1000

Activate Document Splitting

Use
In this IMG activity, you active document splitting. The splitting method used is that delivered
by SAP as standard, which contains the splitting rules for the different business transactions. If
this splitting method does not meet your requirements, you can first define and then select your
own method in Customizing for document splitting. You do this under Extended Document
Splitting -> Assign Splitting Method.
The activation then applies for the entire client. You can explicitly exclude individual company
codes from document splitting. This means, however, that you are then no longer able to create
any cross-company-code transactions containing company codes that have divergent settings for
document splitting.

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