1/24/2025

DOCUMENT SPLITTING
CONFIGURATION
SAP S/4 HANA 2023

Manisai Pasupuleti
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DOCUMENT SPLITTING CONFIGURATION

STEP 1: CLASIFY GL AC FOR DOC SPLITTING: SPRO

GIVE CHART OF AC & CLICK ON NEW ENTRIES

IN NEW ENTRIES WE NEED TO GIVE NUMBER RANGES WHICH WE ARE GIVEN IN “OBD4” CONFIGURATION.

WE CAN POSSIBLE TO SPLIT THE DOC BASED ON (PROFIT CENTER, BUSINESS AREA & SEGMENT WISE.)

**IN REALTIME DOCUMENT SPLITING IS ENABLED IN PROFIT CENTER LEVEL, REMAIN SHOULD BE OPTIONAL**

COMING TO CONFIGURATION SETTING, HERE WE NEED TO GIVE NUMBER RANGES AS PER OBD4 GROUPING AND NEED TO ASSIGN CATEGORY FOR
THOSE GROUPING FROM THE DROPDOWN

SEE ABOVE IMAGE, I GIVEN MY NUMBER RANGES WHICH ARE USING IN OBD4 CONFIGURATION BASED ON THOSE GL GROUP WE NEED TO SELECT
CATEGORY.

EX:

ACC
GL GROUP NAME FROM ACC TO CATEGORY
PRODUCTION EXP 1 1499 EXPENSE
ADMIN & SELLING 1500 1999 EXPENSE
CURRENT ASSETS 2000 2499 B/S
CURR LIABILITIES 2500 2999 B/S
BAL SHEET AC 3000 3499 B/S
REV/INCOME 3500 4000 REVENUE

BASED ON OUR GL GROUP WE NEED TO SELECT RELAVANT CATEGORY AND CLICK ON SAVE.

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STEP 1 IS COMPLETED.

STEP 2: DEFINE DOCUMENT TYPES FOR DOC SPLITTING:

**DOC SPLITTING IS POSSIBLE FOR MAIN LEDGER ONLY, NOT FOR SUB LEDGER LIKE AP, AR**

** WE CAN’T ASSIGN COST CENTER, PROFIT CENTER, BUSINESS AREA TO SUB LEDGERS LIKE VENDOR/CUSTOMER**

EX: WE POST ONE CUSTOMER INVOICE

HERE WE CAN SEE **CUSTOMER AC DR, BANK AC CR** THIS IS ENTRY VIEW IN SUB LEDGER

COMING TO MAIN LEDGER VIEW IT IS DIFFERENT SEE BELOW IMAGE.

HERE WE GOT RECONCILATION AC INSTEAD OF CUSTOMER AC BCOZ RECON AC IS MAIN LEDGER AC”
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** IN THIS STEP WE DON’T DO ANYTHING, JUST TO VIEW ONLY, IF WANT TO CREATE ANY CUSTOM DOC TYPE YOU CAN CREATE BUT MOST OF DOC TYPES
IS PROVIDED BY SAP BY DEFAULT**

STEP 3: DEFINE DOC SPLITTING CHARACTERSTICS FOR GL ACCOUNTING: SAME PATH

ON WHAT LEVEL GENERATE THEIR FINANCIAL STATEMENTS

1. COMPANY CODE LEVEL: HERE WE CAN GENERATE “TRAIL BALANCE, P&L, BALANCE SHEET”
2. SEGMENT WISE:
3. PROFIT CENTER WISE:
4. BUSINESS AREA WISE: WE ARE NOT FOLLOWING THIS LEVEL IN SAP REALTIME.

SCENARIO 1:

AS PER OUR CLIENT THEY SHOULD GENERATE FINANCIAL STATEMENTS BASED ON “PROFIT CENTER” WE MARK IS MANDATOTY FIELD & ZERO BALANCE.

SCENARIO 2:

AS PER OUR CLIENT THEY SHOULD GENERATE FINANCIAL STATEMENTS BASED ON “SEGMENT” WE MARK IS MANDATOTY FIELD & ZERO BALANCE.

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SEGMENT IS NOTHING BUT GROUP OF PROFIT CENTERS.

EX: WE HAVE 10 PROFIT CENTERS, 3 SEGEMENTS: WE NEED TO CONFIGURE 10 PROFIT CENTERS TO 3 SEGMENTS.

STEP 4: DEFINE ZERO BALANCE CLEARING AC:

HERE WE NEED TO MAINTAIN “PROFIT CENTER CLEARING AC” SELECT “000 AC KEY AND DOUBLE CLICK ON ACCOUNTS”

GIVE CHART OF ACCOUNTS “SP02”

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HERE WE NEED TO CREATE ON GL AC IN NEW ENTRIES “PROFIT CENTER CLEARING AC AND ASSIGN HERE”

IT IS USED WHEN WE POST ONE DOCUMENT WITH TWO LINE ITEMS WITH DIFFERENT PROFIT CENTER IT IS HELPING TO POST THE DOCUMENT

EX: EXPENSE 1, 20K, PROFIT CENTER 1

EXPENSE 2, 30K, PROFIT CENTER 2

HERE THE DIFFERENCE IS 10K FOR BOTH PROFIT CENTER WISE IN THIS CASE NORMALLY DOCUMENT IS NOT ABLE TO POST IN SAP, WHILE WE ASSIGN
“PROFIT CENTER CLEARING AC” AS ZERO BALANCE CLEARING AC. SYSTEM WILL ALLOW US TO POST THE DOCUMENT.

STEP 5: ACTIVATE DOCUMENT SPLITTING

HERE WE NEED TO MARK DOCUMENT SPLITTING & METHOD SHOULD BE “12” IT IS STANDARD ONE WE USE & MARK INHERITANCE--SAVE

**IF WE DON’T WANT DOC SPLITTING FOR SPECIFIC COMPANY CODE, WE NEED TO DEACTIVATE IN COMPANY CODE LEVEL**

EXAMPLES FOR DOCUMENT SPLITTING:

In SAP FICO, document splitting is a functionality that ensures financial transactions are divided into multiple segments (e.g., profit centers, segments, or
business areas) to facilitate detailed reporting and compliance with accounting standards like IFRS or GAAP. Below are the types of document splitting,
along with examples:

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1. Active Document Splitting

This is the most commonly used type of document splitting, where the system splits documents automatically based on predefined rules and settings.

• Example:
Suppose an expense of $10,000 is posted to two profit centers:

o Profit Center A: 60%

o Profit Center B: 40%

If the expense account is debited, and a vendor account is credited, the system splits the document into:

o Debit Expense (Profit Center A): $6,000

o Debit Expense (Profit Center B): $4,000

o Credit Vendor: $10,000

2. Passive Document Splitting

In this case, document splitting is done for additional documents derived from the original transaction, such as clearing or adjustment documents.

• Example:
When clearing an open item from the previous example:

o The system ensures that the clearing entries retain the segmentation by profit center or segment:

▪ Debit Vendor: $10,000

▪ Credit Cash/Bank (Profit Center A): $6,000

▪ Credit Cash/Bank (Profit Center B): $4,000

3. Document Splitting for Clearing Transactions

This ensures that clearing documents are split according to the segments or profit centers of the open items being cleared.

• Example:
Suppose an invoice of $10,000 is split between two segments during posting. During payment, the system ensures that the clearing document
also reflects these two segments.

Clearing entries:

o Debit Vendor: $10,000

o Credit Cash/Bank (Segment A): $6,000

o Credit Cash/Bank (Segment B): $4,000

4. Zero-Balance Document Splitting

In scenarios where splitting results in differences due to rounding or other adjustments, zero-balancing ensures that all segments are balanced to zero.

• Example:
If a $10,000 expense is split between three profit centers and rounding differences occur, the system posts additional balancing entries to ensure:

o Debit Expense (Profit Center A): $3,334

o Debit Expense (Profit Center B): $3,333

o Debit Expense (Profit Center C): $3,333

o Credit Vendor: $10,000

Here, rounding differences of $1 are adjusted by creating balancing entries.

Key Features of Document Splitting:

1. Base Objects: Define which elements (e.g., GL accounts) are subject to splitting.

2. Characteristics: Specify which dimensions (e.g., profit centers, business areas) splitting applies to.

3. Splitting Rules: Define how amounts are distributed across segments.

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