Document Splitting – SAP New GL

April 25, 2009 by mySAP
Filed under: General Ledger Module 


Document Splitting: Overview

Wellesley Information Services 

 

• New General Ledger (or new G/L) in the SAP ERP system offers a powerful feature known as document splitting

• With document splitting, accounting line items are split according to specific characteristics

For example characteristics in new G/L as Profit Center, Segment
 

• Thus, you can create financial statements for entities such as Segments and meet legal requirements for your country

For example, International Accounting Standards (IAS) requirements for segment reporting

Sample Financial Transactions

The concepts of document splitting in new G/L using a simple financial transaction of Vendor Invoice

Vendor Invoice of $11,000.00 for two purchases and taxes (Two purchases belong to two different profit centers)

document_splitting

 

This document is not balanced for a characteristic Profit Center

  • You cannot analyze the financial transactions for individual profit centers
  • You cannot identify the amount of, for example, Input Tax for each profit center
  • Similarly, this document is not balanced for Vendor A/C

 

The Profit Center ratios for purchases: the total purchases were in the ratio of 80%-20%

profit-ratio

 

Vendor Invoice Document – Alternative

If the original vendor invoice document was posted as shown below using the ratios, you also receive the analysis for the profit centers

document_splitting2

 

Continue >> Document Splitting Overview Cont.

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