Achieve Balanced Reporting by Automating Document Splitting in the New G/L

  • by Mitresh Kundalia, Director — SAP Practice, Quality Systems & Software
  • June 15, 2007
SAPexperts Financials
See the rules, steps, transactions, and method for document splitting. Then follow seven steps to configure it in your system.
Key Concept

The splitting method is the main key to activate document splitting in the new G/L, including splitting rules, business transactions, business transaction variants, and more. It is a component of active splitting. The process is a new capability in the new G/L and was not possible in the classic G/L.

The new General Ledger (new G/L) in the SAP ERP system offers a feature called document splitting. With document splitting, the system splits accounting line items according to specific characteristics. This enables you to create financial statements for entities such as segments and meet the legal requirements such as International Accounting Standards Board (IASB) regulations for segment reporting. You can find out more information about these requirements by visiting www.iasb.org.

I’ll discuss the concepts of document splitting with a simple example of a financial transaction of a vendor invoice. Say you have a vendor invoice that has two expense items totaling $10,000 with $1,000 input tax, so the total is $11,000 (Table 1).

Mitresh Kundalia

Mitresh Kundalia heads the SAP practice at Quality Systems & Software (www.QSandS.com). QS&S is a leading business and technology consulting firm that specializes in delivering superior IT solutions using SAP products. Mitresh is widely acknowledged as a leading SAP expert and has worked on various SAP assignments, including strategic planning, fresh implementations, upgrades, and post-go-live support projects. With an MBA degree in finance, Mitresh manages SAP projects with a special focus on customer-focused solutions, management reporting, profitability analysis, SAP General Ledger, and business intelligence. He is a regular contributor at SAP events and publications and technical advisor to leading journals.

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