DOCUMENT SPLITTING FUNCTIONALITY

Document Splitting is a new feature SAP to be able to bifurcate costs incurred in one Document for different accounting and controlling purposes. e.g. - You import an Item from China for $100000. And you pay Freight from China to US for $5000. The total cost incurred becomes $105000. Now, You would want to settle the cost of freight in your book of accounts by Treating them as a seperate cost (Line Item) still pertaining to One Document (transaction). Based upon your configuration need, you will set up the document splitting.

Document splitting is part of New GL PCA. As per New GL PCA there are two entry views one for Entry view and General Ledger view. In General Ledger view you can find the document splitting. For example Material purchased for two different profit centers under One Invoice. Entry view Expenses Expenses To Vendor General Ledger View Expenses Expenses To Payable To Payable

Dr 100 Dr 100 Cr 200

Profit center 1 Profit center 2

Dr 100 Dr 100 Cr 100 Cr 100

Profit center 1 Profit center 2 Profit center 1 Profit center 2

If you see the general ledger view you can find the object of document splitting. Under Business Area concept you can not find this facility. Document splitting needs to be enabled first at the client level customizing. Once this is enabled, then document splitting can be activated / deactivated in each company code. Similarly, 'Inheritance' can be activated which provides the level of detail for a document split. To take an example, by activating inheritance one can create a customer invoice from a revenue line item. The business areas or segments are automatically populated in the general ledger view showing the customer and tax line items. Activation of 'Inheritance' is recommended with document splitting as this does not require the business to then create 'rules' for business processes to ensure that account assignments are projected.