Document splitting in New GL in SAP

DOCUMENT SPLITTING IN SAP New GL

Document Splitting in SAP new GL - Contents

esign driving the document splitting process ...... 25

n Overview ...... 3

rchitecture of new GL in SAP ...... 21

he semantics of document splitting ...... 32

AP delivered pre-configured document splitting ...... 38

se of constants for non-assigned processes ...... 55

Zero-balancing for new GL ...... 48

ross company Document splitting ...... 57

AN OVERVIEWDOCUMENT SPLITTING IN NEW GL IN SAP ECC IS ONE OF THE KEY CHANGES INTRODUCED BY SAP

TO STREAMLINE MULTIPLE REPORTING REQUIREMENTS AND TO ENABLE FASTER CLOSE PROCESS FOR ITS CUSTOMERS. IN MY SERIES OF SLIDES/ BLOGS ON DOCUMENT SPLITTING, I INTEND TO

EXPLAIN AND ELABORATE THE CONCEPTS BEHIND DOCUMENT SPLITTING AND DEMONSTRATE USING EXAMPLES HOW DOCUMENT SPLITTING CAN BE ACHIEVED FOR VARIOUS COMPLEX

BUSINESS PROCESSES.

With the introduction of new GL, SAP splits financial document line items that do not have values for Profit Centre (for eg) - in the ratio of the amounts in the offsetting lines that have values for Profit Centre.

If a line item (eg. Vendor line item) on the financial document does not have a value derived for Profit Centre, and If the value of Profit Centre on the offsetting line is unique, Vendor line item will inherit that

value If the value of Profit Centre is not unique, it will split the Vendor line item based on preceding

process, if available (Passive Split) If the value of Profit Centre is not unique and if there is no preceding process , it will split the

Vendor line item based on preconfigured rules (Active Split)

Before new GL in SAP ECC, business users transferred the line items representing the account balance of vendors, customers, assets and inventories to Profit Centre Accounting as part of period end process. This transfer split the balance line items by Profit Centre.

With automated, online function of document splitting in New GL, this period end job is redundant. Business users can close their books much faster during the period end.

An Overview

Active Document SplittingActive Split occurs when SAP splits a financial document line item in the ratio of the offsetting line item. SAP performs active split, if the split cannot be performed based on a preceding process and if the profit centre cannot be inherited

Acct Cost Ctr PrfCnt AmtVendor <1000>Office Exp 1321 1200 600Office Exp 1322 1300 400

Co Code V001 DocType KRCurr AUD

Vendor Invoice outstanding at month end

Month end transfer of outstanding Vendor balance to Profit Centre

Acct Cost Ctr PrfCnt AmtVendor 1200 600Vendor 1300 400

Co Code V001Curr AUD

Vendor Invoice split before SAP ECC

Vendor Invoice split with new GL in SAP ECC

Acct Cost Ctr PrfCnt AmtVendor <1000>Office Exp 1321 1200 600Office Exp 1322 1300 400


Vendor Invoice split online when transaction is posted

Acct Cost Ctr PrfCnt AmtVendor 1200 <600>Vendor 1300 <400>Office Exp 1321 1200 600Office Exp 1322 1300 400


Data entry view

General Ledger viewActive Split

Vendor Invoice in new GL: Data entry view

Vendor Invoice in new GL: General Ledger view

Passive Document SplittingPassive split occurs when SAP splits a financial document line item based on the split in a preceding process (eg. Vendor line in payment process is split based on Vendor line split in Vendor Invoice process)

Vendor Payment split before SAP ECC

Acct Cost Ctr PrfCnt AmtVendor 1000Bank clearing <1000>

Co Code V001 DocType ZPCurr AUD

Previous Vendor Invoice paid before month end

NO Month end transfer of outstanding Vendor balance to Profit Centre since

invoice is paid

Vendor Payment split with new GL in SAP ECC

Acct Cost Ctr PrfCnt AmtVendor 1000Bank clearing <1000>


Vendor Payment split online when transaction is posted

Acct Cost Ctr PrfCnt AmtVendor 1200 600Vendor 1300 400Bank clearing 1200 <600>Bank clearing 1300 <400>


Passive Split

Data entry view

General Ledger view

Vendor Payment in new GL: Data entry view

Vendor Payment in new GL: General Ledger view

Self Balancing clearing linesWhen the amounts within a financial document in debit of profit centre and in credit of the same profit centre do not net off to zero, SAP will automatically generate line items to balance the profit centre

Profit Centre balances before SAP ECC

Acct Cost Ctr PrfCnt AmtCash 1000 <1000>Office Exp 1321 1200 600Office Exp 1322 1300 400

Co Code V001 DocType KRCurr AUD All line items have

derived a Profit Centre. Profit Centres are not in

balance

Profit Centre 1000

Off Expn $1,000

Profit Centre 1200

Cash $ 600

Profit Centre 1300

Cash $ 400

Self-balancing lines in SAP newGL (w/o partner PC)



Zero-balancing document generated for profit centre

Acct Cost Ctr PrfCnt AmtCash 1000 <1000> Vendor 1200 600Vendor 1300 400Self-balancing clearing 1000 1000Self-balancing clearing 1200 <600>Self-balancing clearing 1300 <400>


All line items have derived a Profit Centre.

Document splitting is not required. However, Profit Centre amounts are not

in balance

Profit Centre 1000

Off Expn $1,000Clearing $1,000

Profit Centre 1200

Cash $ 600 Clearing $ 600

Profit Centre 1300


Self-balancing lines in newGL in SAP (w/ partner PC)



Zero-balancing document generated for profit centre with partner profit centre information

Acct Cost Ctr PrfCnt Amt PartnerCash 1000 <1000> Vendor 1200 600Vendor 1300 400Self-balancing clearing 1000 600 1200Self-balancing clearing 1000 400 1300 Self-balancing clearing 1200 <600> 1000Self-balancing clearing 1300 <400> 1000




in balance

Profit Centre 1000

Off Expn $1,000Clearing(PPC1200) $ 600

Profit Centre 1200

Cash $ 600

Profit Centre 1300

Cash $ 400

Clearing(PPC1300) $ 400 Clearing

(PPC1000) $ 600

Clearing(PPC1000) $ 400

Self-balancing lines: Data entry view

Self-balancing lines: General Ledger view

New GL in SAP: ArchitectureSAP RETAINED THE FI TABLES BSEG AND BKPF AND INTRODUCED NEW TABLES FAGLFLEXT AND

FAGLFLEXA TO STORE THE DOCUMENT SPLIT INFORMATION. THE NEXT FEW SLIDES EXPLAIN THE ARCHITECTURE OF NEW GL IN SAP

Ledger in new GL


Co Code V001 DocType KRCurr AUD Ledger < >

Leading Ledger (0L) IAS (L5)

Local Ledger L6 (different fiscal period)


Co Code V001 DocType KRCurr AUD Ledger < L5>

IAS (L5)

If Ledger Group field is left blank at data entry, transaction posts to all Ledgers

If Ledger Group field is populated at data entry, transaction posts only to that Ledger

New GL in SAP: Table architecture

Classic GL BSEG BKPF

FI Document Header

FI Document Line Item

New GL Posting to leading and non-leading ledgers

FAGLFLEXT FAGLFLEXA

FI Line Item Table with split

information

FI Total table with split

information

New GL Posting to non-leading ledger

only

BSEG BKPF

FI Document Header


BSEG BKPF

FI Document Header


FAGLFLEXT FAGLFLEXA

FI Line Item Table with split

information

FI Total table with split

information

BSEG_ADD

FI Document Line Item for non-leading

ledger

“Scenarios” that permit Document Splitting

Scenario FieldsSegment reporting Profit Centre

SegmentPartner Segment

Profit Centre Update Profit CentrePartner Profit Centre

Cost of Sales Accounting Functional AreaPartner Functional Area

Cost Centre Update Cost CentreSender Cost Centre

Preparation for Consolidation Trading PartnerTransaction Type

Business Area Update Business AreaTrading Partner Business Area

Design driving the document splitting process in new GL

WE NOW ATTEMPT TO UNDERSTAND THE LOGIC DRIVING THE DOCUMENT SPLITTING PROCESS. DOCUMENT SPLITTING OCCURS IN THE BACKGROUND DRIVEN BY CONFIGURATION RULES; IN SOME

CASES, IT IS POSSIBLE TO SIMULATE THE SPLIT PROCESS.

Design driving the Document Splitting Process

Identify Splitting Method for

company code

Identify Splitting Rules for the

split

Perform Active Split

Perform Passive Split

Document Splitting is activated at client level and can be deactivated

by company code.

There is a splitting method assigned to the

activation.

Splitting rules define assignment of Splitting

Method, Business Transaction and

Business Transaction Variant to Item Category

of line item to be split and Item Category of

Base line item

A passive split occurs when the system uses the split ratio from the

preceding process

An active split occurs when the system uses preconfigured rules to

perform a split

Document Splitting is activated at client level and can be deactivated by company code. There is a splitting method assigned to the activation.


company code

Identify Splitting Rules for the split



Identify the Splitting Method

Identify Splitting rules for split

Identify the document

type

Determine Business

Transaction

Determine Item Category

of all lines

Determine Document

Splitting rule

Determine Base line

items

Identify lines to be split

Identify the document type

used for the business process

Each Document

Type is assigned to a

combination of Business

Transaction and Business Transaction

Variant

Determine the item category

for all line items of the

financial document.

Item category is derived from its

assignment to GL Accounts.

The document splitting rule is an assignment

of the document splitting

method and the business transaction

and the business

transaction variant.

Identify the lines that do not have a

profit centre derived

against it; these lines will be split based

on splitting rules.

For a combination of Splitting rule

and item category,

determine the base item

category to be used to split the line items

to be split.


company code

Identify Splitting Rules for the split





company code

Identify Business Rules for the split



A passive split occurs when the system uses the split in a document from the preceding process. In the Vendor Payment process, the Vendor line item is split based on the split in the preceding process –the Vendor Invoice.


Identify Splitting Method for company

code

Identify Business Rules for the split Perform Active SplitPerform Passive Split

Active document splitting comprises all processes used to split documents without reference to a different (preceding) document.

Split

ting

Rule

Objects driving the Document Splitting Process

Splitting Method

Business Transaction


Variant

Document Type

Company Code

Dete

rmin

es

Item Category to be split

Base Item Category

G/L Account

Dete

rmin

es

Item Category

The semantics of document splittingDOCUMENT SPLITTING PROCESS IN NEW GL IN SAP USES A CONUNDRUM OF TERMS THAT SOUND

SYNONYMOUS TO TERMS ALREADY USED IN OTHER TABLES IN SAP. IT IS IMPORTANT TO UNDERSTAND THESE TERMS AND WHAT THEY MEAN WITHIN THE OVERALL CONTEXT OF DOCUMENT

SPLITTING.

Item Category

Item category classifies the G/L accounts for document splitting. In the configuration of document splitting, each G/L account or a group of G/L accounts are assigned to an Item Category. With this assignment, SAP derives the Item Category for each financial posting.

You must assign the following accounts in Customizing to the item categories:◦ Balance sheet accounts — item category Balance

Sheet Account (01000)◦ Bank accounts (cash fund) — item category Cash

Account (04000)◦ Expense accounts — item

Category Expense (20000)◦ Revenue accounts — item

category Expense (30000)

Item Category Description01000 Balance Sheet Account01001 Zero balance posting (free balancing units)01100 Company code clearing01300 Cash discount clearing02000 Customer02100 Customer special general ledger transaction03000 Vendor03100 Vendor special general ledger transaction04000 Cash05100 Tax on sales and purchases05200 Withholding tax06000 Material07000 Fixed Assets20000 Expense30000 Revenue40100 Cash discount (expenses/revenue/loss)40200 Exchange Rate Difference80000 Customer-specific item category


A business transaction describes the structure of a business process for each document type. A Business Transaction groups similar business processes. In conjunction with Business Transaction Variant, it will determine the splitting rule for that business process.


Description

0200 Customer Invoice 0300 Vendor Invoice 0400 Bank Account Statement0500 Advance tax return (regular tax burden)0600 Goods receipt for purchase orders1000 Payment1010 Clearing transactions (account maintenance)0000 Unspecified Posting 0100 Transfer Posting from P&L Account to B/S Account

SAP Financial postings derive Item Category for each individual line item. Business Transaction Variant in conjunction with Business Transaction restricts the item categories that can be posted in a business process. System performs a check against Item Category to see if posting against the Item Category is permitted by the splitting rules defined by Business Transaction and Business Transaction Variant. If it is not permitted, then the system will fail that posting.

Business Transaction Variant

Document Splitting Method is assigned to the client-level activation of Document Splitting. In conjunction with Business Transaction and Business Transaction Variant, it determines the document splitting rule.

Document Splitting Method

Document Splitting Rule defines which item categories the system splits and from which item categories the system derives the account assignments (base categories) for the document splitting. Document Splitting rule are defined as a combination of Document Splitting Method, Business Transaction and Business Transaction Variant. Hence, different rules can be defined for each combination.

Document Splitting Rule

SAP delivered pre-configured document splitting

SAP ECC DELIVERS PRE-CONFIGURED SPLITTING RULES THAT CAN BE USED WITH LITTLE “LOCAL” CONFIGURATION. THE RULES CAN ALSO BE MODIFIED IN THE CONFIGURATION TO SUIT SPECIFIC BUSINESS REQUIREMENTS/ PROCESSES. AS FAR AS POSSIBLE, USE THE PRE-CONFIGURED RULES

FOR YOUR BUSINESS.

Assigning scenarios to ledgers will determine which fields SAP will update when financial document is posted. This configuration defines which fields will be split in the Document Splitting process.

#1 Assign Scenarios to Ledgers

The system proposes characteristics based on scenarios assigned to ledger. Select the characteristics for which you want financial documents to be split.

#2 Define Document Splitting Characteristics for GL

Document splitting supports certain subsequent processes whereby the system transfers document splitting characteristics from the original process to the subsequent process. Controlling (CO), for example, takes over the split line items. This means: If the subsequent processes post CO-relevant items, they can also transfer the CO account assignments from the original process to these line items. Controlling transfers these line items and the account assignments.

#3 Define Document Splitting Characteristics for Controlling

In this step, G/L Accounts are classified by Item Category. This will allow the system to perform Document Splitting based on Item Category derived on lines of a financial document.

#4 Classify G/L Accounts for Document Splitting

In this step, Document Types are assigned to Business Transaction and Business Transaction variant. This will ensure that the document type is included in the Document Splitting process.

#5 Classify Document Types for Document Splitting

For characteristics that you defined zero-balance setting in Define Document Splitting Characteristics for General Ledger Accounting, you can configure the G/L account where the clearing posting is made.

#6 Define Zero-Balancing Clearing Account

SAP allows you to activate Document Splitting for the entire client. Company Codes can be excluded from the activation in the next navigation on this configuration.

#7 Activate Document Splitting

If cash discount is applied to a payment of Vendor Invoice that was relevant to asset capitalisation, this setting will apply the cash discount to asset account instead of cash discount account.

#8 Define Post-Capitalization of Cash Discount to Fixed Assets

You can activate the standard account assignments in processes where it is not possible to derive the correct account assignments for the document splitting characteristics of General Ledger Accounting when posting the document.

#9 Edit Constants for Non-assigned Processes

Zero-balancing for new GLZERO-BALANCING FEATURE ENABLES THE SYSTEM TO BALANCE EVERY FINANCIAL DOCUMENT BY PROFIT CENTRE. IF THE ENTERED DOCUMENT IS NOT BALANCED, IT WILL AUTO-GENERATE SELF-

BALANCING ENTRIES BY PROFIT CENTRE.


Co Code V001 DocType KRCurr AUD All line items have

derived a Profit Centre. Profit Centres are not in

balance

Profit Centre 1000

Off Expn $1,000

Profit Centre 1200

Cash $ 600

Profit Centre 1300

Cash $ 400

Profit Centre balances before SAP ECC



Zero-balancing document generated for profit centre

Acct Cost Ctr PrfCnt AmtCash 1000 <1000> Vendor 1200 600Vendor 1300 400Self-balancing clearing 1000 1000Self-balancing clearing 1200 <600>Self-balancing clearing 1300 <400>




in balance

Profit Centre 1000

Off Expn $1,000Clearing $1,000

Profit Centre 1200


Profit Centre 1300


Self-balancing lines in SAP new GL (w/o partner PC)

Configuration settingsAdditional configuration required to zero-balance profit centres

Assign scenario “Profit Centre” to Ledger

Define “Profit Centre” as splitting characteristic

Select “zero balance” to allow system to generate self-balancing entries

For Profit Centre characteristic that you defined zero-balance setting in Define Document Splitting Characteristics for General Ledger Accounting, you can configure the G/L account where the clearing posting is made.

Define zero-balance clearing account

Use of constants for non-assigned processesYOU COULD CUSTOMISE DOCUMENT SPLITTING RULES TO SPLIT FINANCIAL DOCUMENT LINE ITEMS

THAT DO NOT DERIVE PROFIT CENTRE. ALTERNATIVELY, YOU CAN CONFIGURE A CONSTANT PROFIT CENTRE VALUE TO POST AGAINST THIS LINE ITEM. THIS IS USEFUL FOR BALANCE SHEET ACCOUNTS

LIKE CASH, BANK

Document split without constant

Acct Cost Ctr PrfCnt AmtCash <1000>Office Exp 1321 1200 600Office Exp 1322 1300 400

Co Code V001 DocType SACurr AUD

Financial Document is split online when transaction is posted

Acct Cost Ctr PrfCnt AmtCash 1200 <600>Cash 1300 <400>Office Exp 1321 1200 600Office Exp 1322 1300 400


Acct Cost Ctr PrfCnt AmtCash <1000>Office Exp 1321 1200 600Office Exp 1322 1300 400


Financial document posts a constant when transaction is posted

Acct Cost Ctr PrfCnt AmtCash 1000 <1000>Office Exp 1321 1200 600Office Exp 1322 1300 400Self-balancing 1200 <600>Self-balancing 1300 <400>Self-balancing 1000 1000


Document split with constant

Document Splitting in cross company code transactions

A CROSS COMPANY CODE DOCUMENT IS ONE ENTRY DOCUMENT BUT TWO FINANCIAL DOCUMENTS. PRE-CONFIGURED DOCUMENT SPLITTING RULE SPLITS CROSS COMPANY DOCUMENT

AS A SINGLE DOCUMENT; YOU CAN CUSTOMISE DOCUMENT SPLITTING RULE TO SPLIT THE DOCUMENT AS TWO INDEPENDENT DOCUMENTS

Cross company code Vendor invoice split based on pre-configured rules

Profit Centre 1300 is derived against Inter company Vendor line and inter company receivable line. The external Vendor is then split based on expense and inter company receivable line.

Cross company code Vendor invoice split based on configured rules (“constant”)

Constant Profit Centre 1000 is derived against Inter company Vendor line and Inter company receivable line. The external Vendor is then split based on expense and inter company receivable line. The partner company code document now generates self-balancing line items.

Cross company code Vendor payment split based on pre-configured rules

Profit Centre is derived against the external vendor line from the previous (vendor invoice) document. Intercompany Receivable line in V005 is split based on split in external vendor. This split is carried over to Intercompany payable line in V001. The bank account is now split based on split in intercompany payable line.

Cross company code Vendor payment split based on configured rules (“constant”)

The vendor line item split is carried over from the previous (vendor invoice) document. The Intercompany Receivable is now assigned a constant profit centre 1000 because of the configured document splitting rule. The profit centre 1000 from the Inter company receivable line in V005 is carried over to the Inter company payable line in V001. The profit centre derived on the bank account line is also 1000. With the configured splitting rule, all lines of the bank account remain in one profit centre 1000.

Verity provides the vision, and the framework for a successful Finance process and technology transformation and re-engineering.

We at Verity believe we have the experience to make success happen for our clients. This belief comes from our track record of successfully engaging customers in their pursuit of the best-of-class business solutions. We believe that this search with Verity is short because of our past experience, and fruitful because we do not simply deliver an end-result, but strive to deliver value-added service that earns us the trust and confidence of our customers.

Verity Business Solutions

Rajesh is an accomplished and successful Finance professional with over 20 years’ experience in Finance processes and related technologies.

He is a qualified accountant, and he has worked in Finance departments of multinational companies. With this strong foundation in Finance, he has managed to successfully implement best-in-class Finance processes in IT (primarily SAP).

Over the last few years, Rajesh has led Finance teams on large SAP implementations and provided his insights and experience to provide a workable and an improved solution for his customers. Rajesh is a SAP Certified Application Professional.

Presented by Rajesh Shanbhag

Contact

• Contact me if have any questions, need clarifications or would like a demo of these features in an IDES SAP system.

• Do visit the blog related to these slides at www.veritysolutions.com.au (Category SAP > Document Splitting)

Rajesh ShanbhagW www.veritysolutions.com.auE [email protected] +61 4 1123 8873

http://www.veritysolutions.com.au/

http://www.veritysolutions.com.au/

mailto:[email protected]

Technology

Document splitting in New GL in SAP