1.Document is entered with a document type, gl account.
2.System identifies business transaction through document type.
3.from business transaction defined in splitting rule, system Identifies the category of the transa ction For eg: expenses, revenue, tax on sales etc., 4.A transaction category within business transaction of splitting Rule consists of base item categories. Base item categories refers to item categories that are used for active splitting. Active split work based on splitting rule. We do only active split but passive and subsequent Splitting system do automatically Also check ramesh notes controlling a to z-6.tifpage no.90 to 92