Document Splitting
Definition
SAP's Financial Accounting module features document splitting, providing a detailed and precise breakdown of accounting documents within the SAP ERP system.
The objective is to improve financial reporting by dividing line items across various dimensions.
The system ensures the proper allocation of revenues and expenses to the appropriate organizational units.
This tool aids in creating balance sheets at the segment, profit center, or business area level.
It automates the process of dividing line items according to predefined rules.
such as:
Profit Centers
Segments
Business Areas
Purpose of Document Splitting:
1. Enhanced Financial Statements: Document splitting enhances financial statements by preparing balanced, granular financial statements at a granular level, ensuring each dimension has balanced line items for regulatory or internal reporting.
2. Detailed Reporting: This feature enables businesses to report specific accounting elements like assets, liabilities, revenues, and expenses at a granular level, simplifying performance tracking across various dimensions.
3. Legal Requirements Compliance: Document splitting helps businesses meet legal requirements by balancing financial reports for specific segments or profit centers.
Configuring Document Splitting in SAP:
Step 1: Activate Document Splitting
1. Menu Path: Financial Accounting (New) → General Ledger Accounting (New) → Business Transactions → Document Splitting → Activate Document Splitting
2. The document splitting functionality should be activated for the company codes that require it.
Step 2: Define Document Splitting Characteristics
1. Menu Path: Financial Accounting (New) → General Ledger Accounting (New) → Business Transactions → Document Splitting → Classify Document Types for Document Splitting
2. The document specifies which document types, such as vendor invoices and customer invoices, should be split.
Step 3: Define Document Splitting Rules
1. Menu Path: Financial Accounting (New) → General Ledger Accounting (New) → Business Transactions → Document Splitting → Define Document Splitting Rule
2. This step involves setting up splitting rules for specific business transactions, such as dividing expenses, revenues, payables, or receivables across profit centers, segments, or business areas.
o Base Item Categories: Define the base item categories (e.g., revenue, expense) that will be subject to document splitting.
o Assigned Item Categories: Define the assigned item categories that will get their values from the base items (e.g., tax or cash discounts).
Step 4: Assign Document Splitting Method to Company Code
1. Menu Path: Financial Accounting (New) → General Ledger Accounting (New) → Business Transactions → Document Splitting → Assign Document Splitting Method to Company Code
2. The text instructs you to assign a predefined document splitting method, such as 0000000012, to your company code(s).
Step 5: Define Zero-Balance Settings
1. Menu Path: Financial Accounting (New) → General Ledger Accounting (New) → Business Transactions → Document Splitting → Define Zero-Balance Clearing
2. Configure zero-balance settings for profit centers, segments, or other dimensions to ensure balanced documents for reporting through document splitting.
Step 6: Define Document Splitting Characteristics for Vendor and Customer Items
1. Menu Path: Financial Accounting (New) → General Ledger Accounting (New) → Business Transactions → Document Splitting → Classify Document Types for Document Splitting
2. Ensure that the system recognizes vendor and customer items for splitting.
