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), a consulting firm specializing in SAP S/4HANA, SAP General Ledger, and complex System Landscape Optimization (SLO)-type reorganizations. Mitresh is widely acknowledged as a leading SAP expert, with multiple publications and an SAP-PRESS book to his credit. He has published more than 50 peer-reviewed articles and white papers, and he has given presentations at various SAP conferences and events. Mitresh is the chief solutions architect of General Ledger Migration Optimizer (GLMO), a leading product to accelerate and jump-start the SAP S/4HANA and SAP General Ledger initiatives; SAP Data Reorganization Optimizer (SDRO), an SLO-type product for managing complex system landscape reorganizations; and Group Currency Activation and Conversion (GCAC), a product suite to manage introduction of parallel currencies and conversion of data in a live SAP system.

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