Std12-Commerce Txt Book

in GL

SAP GL DocumentSplitting Part IAs alluded to in my last post, the document splitter plays a crucial partin the derivation of profit center and consequently in the preparationof management financial statements. Now we’ll start to take a deepdive into document splitting.

There are two prerequisites for using the splitter. First, the NewGLmust be active in the box. That should be the case of any recentimplementation. Second, there should be an understanding of thedesired coding block and the business interpretation of the codingblock elements.

Document Splitting CharacteristicsThe first step to configuring document splitting in SAP is to determinewhich coding block elements that you will want to have as documentsplitting characteristics. A document splitting characteristic will beacted on by the splitter to derive more detailed postings.

Page1 of 11SAP GL Document Splitting Part I - SAP with David

24-Mar-2015http://sapwithdavid.com/sap-fi/gl/sap-gl-document-splitting-part/

The partner field is used for cross-characteristic postings. For instance,in a posting spanning two profit centers A and B, the debit balance onone profit center A has partner profit center B, and the credit balanceon profit center B has partner profit center A. It’s very similar totrading partner for those familiar with that concept.

There are two more options for each characteristic. First, whether thefield is mandatory – that is it must be populated on all GL line items.Second, whether the field is zero balanced – whether the sum of thepostings must equal zero (debits=credits).

For instance (and most common), if the profit center is set as amandatory zero balancing characteristic, each line item on a postingmust have a profit center and the total (debits-credits) of each profitcenter must be zero.

Configuration ModelThe second key to understanding how the splitter is configured is tounderstand the theoretical model of the configuration. Once theseareas are understood, it becomes much easier to guess what theconfiguration is doing. In the tradition of help.sap.com, I’ve createdthe informative diagram below (Ha! Ha! Ha!) .

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The critical information to glean at this step is that each GL account isassigned to an Item Category and each Document Type is assigned to aBusiness Transaction Variant. Finally, in the Splitting Method, weestablish rules for each Business Transaction Variant on how each itemcategory will be derived. This information is confusing, but it’s key tounderstanding the nature of the splitter. Memorize it if you must.

Next, we’ll walk through different splitting scenarios.

Active Document SplitThe pièce de résistance of the NewGL, the active document split is thestandard example used by most FICO consultants. In this scenario, anAR item is offset by two revenue items. Each revenue line item has adifferent profit center. In the GL View, the splitter breaks the AR lineitem into two line items – one for each profit center. Furthermore, theamounts on each posting is based on the weighted average of the offsetline items. Read that twice – it’s tricky.



When we get to the active document splitting configuration, the key tothis example is that the AR item category is split by the revenuecategory.

Inheritance Once you have active split down, inheritance is much easier. The keyhere is that if a posting has one blank line item and all other line itemshave the same profit center, then the blank line items will receive thesame profit center. In the below example, we have a cash item withouta profit center that has two expense items with PC 101. In the GL view,the cash item will receive the same profit center.

Inheritance is turned on by default for all business transactions. Youdo have the option of turning it off at the rule level, but I’ve never seena reason to do so.

Passive Split



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The third type of splitting, is the passive split. The passive split issimple and it’s used whenever you reverse or clear a document. Forreversing a document, the splitter will reverse the posting with theexact same profit center derivation as the document being reversed.This makes intuitive sense. The reversal should reverse out the originalposting exactly, regardless of the configuration.

Second, for lines that are being cleared, the clearing line items willreceive the same profit center split. This approach also makes intuitivesense. If we have an AR line item with $500 on profit center 101 and$300 on profit center 102, then we would expect the clearingdocument to wipe away $500 on 101 and $300 on 102.

In the next part of the series, we’ll start looking at the basicconfiguration.

1. SPRO->Financial Accounting (New) -> General Ledger Accounting (New) ->Business Transactions -> Document Splitting -> Define Document SplittingCharacteristics for General Ledger Accounting [↩]

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Related posts:1. The three toughest items in the SAP GL for finance

users2. Performing GL Conversions (part III)3. GL Accounts in SAP: What do all these fields do??4. Profit Center Derivation in SAP

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Std12-Commerce Txt Book

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