Document Splitting Implementation

Consider the following points:

 Make settings in Customizing and other preparations for document splitting.

 Use the General Ledger Migration cockpit. (If you are already using new General Ledger
Accounting in your production system and subsequently want to implement document
splitting).

Document Splitting Integration

Document splitting affects subsequent processes, such as closing operations and processes in
Controlling (CO).

Further, you can use the document splitting procedure in two situations. First, to split up line
items for selected dimensions (such as receivables lines by profit center). Second, to effect a zero
balance setting in the document for specified dimensions (such as segment).

Thus, it generates additional clearing lines in the document.

Document Splitting Process

To do the document splitting successfully, the system classifies the individual line items as well
as the documents. This takes place using your settings in Customizing.

Moreover, the splitting rule selected for a document specifies the process and line items to split
the document. It also depends on how the system classifies a document.

Although, SAP delivers a set of standard splitting rules. However, you can also define your own
rules.

Passive document splitting

The system creates references to existing account assignments. You use these account
assignments as the base for line items to split.

The system applies all account assignments that you define as document splitting characteristics
in customizing.

If you have set zero Balance settings indicator for the document splitting characteristic, the
system then creates any necessary clearing lines. This is to ensure that the characteristics produce
a balance of zero in each document.

Active Document Splitting

If you split a document in this subfunction, the line items are split according to the settings in
customizing. This is the classification of the document and the splitting rule assigned to the
document.

Subsequent Process- You can also use CO account assignment relating to the costs for the
clearing process. Such as while realizing the exchange rate differences, you can use CO account
assignments to post the difference in the rates occurring in this subsequent process.

Closing Operation

You can perform closing operations according to the document splitting characteristics defined.
An example of this is Foreign Currency Valuation.

Document Splitting Simulation

During document entry, you can simulate the postings you want to generate. From the simulation
in the general ledger view, you can call the expert mode. Further, in the expert mode, you can
obtain detailed information about the split document as well as about the document splitting rules
applied.

Therefore, it allows you to view the customising settings for document splitting. These settings
are specific to the business transaction. Thus they display the split Document.

You can display a document as follows:

1. In its original form in the entry view.

2. Split from the view of the ledger in the general ledger view and with the generated
clearing lines.

Document Splitting Configuration in SAP

As an overview, I here mention the basic steps we follow to configure document splitting in the
SAP system.

1. First, classify the General Ledger Account – As per the nature of the business
transaction, we classify the GL considering the item categories.
2. In step 2, classify the Document types – Here we assign the “Business Transaction” and
“Business Transaction Variant” to document types.
3. Next, Define a zero balance clearing account– This we need to do when the system is
not able to balance out the transaction entry based on its own. I have explained below in
detail with steps.
4. Defining Characteristics for GL– It is a mandatory step in document splitting
configuration in SAP. I.e. defining characteristics of document splitting.
5. Modifying constants– In this step the constants are defined which helps to assign the
default account assignment when is not able to derive from any of the sources.
 6. Activating Document Splitting– Here comes the final action step. We activate the
document splitting by selecting the check-box and choosing the relevant method.
o Inheritance Settings – This is a part of Activating Document Splitting itself.
Here you also apply some more settings such as Inheritance. This means
inheriting account assignments from other line items to those who do not have
them of their own.

How to define a zero balance clearing account in SAP

Sometimes when the system does not balance out the transaction entries on its own, then, we
need to define the zero balance clearing account. This helps to generate and balance out financial
entries not done on their own.

You should refer to the following path:-

SPRO => SAP Reference IMG => Financial Accounting (New) => General Ledger Accounting
(New) => Business Transaction => Document Splitting => Define Zero Balance Clearing
Account