Document Splitting

Why we need document splitting?

Let us take an example of Vendor Invoice for Rs. 11,000 of which office supplies Rs.8, 000 and Postage
Rs.2,000 and Input Tax Rs.1000.

Office Supplies related to Profit Centre-X

Postage related to Profit Centre- Y

The Entry:-

Office Supplies – PC -X 8,000

Postage Expenses- PC-Y 2,000

Input Tax 1,000

Vendor A/c Cr 11,000

If any person responsible for PC-X is unable to analyses the transaction as there is cumulative balance in
vendor and Input tax account. If we check the transaction total amount 10,000 is divided in 80%:20%
ration (8000/10000): (2000/10000).
There is only two transaction so we can easily calculated. Assume if we have 1000 line items and it is not
possible to us to split the amount.

Hence SAP given document splitting Concept.

Types of Document Splitting

Passive Splitting – Inheritance of document splitting already in place i.e Vendor line in Payment process
is split based on vendor line split in vendor invoice process.

Active Splitting – Online splitting. Uses pre-configured rules to perform splitting i.e Splits the line item in
the ratio of offsetting line item.

Zero balancing Splitting – when the amount with in the document is not able to balance, SAP
automatically generates new line item to balance the document.

Steps in Document Splitting

We have to Classify GL accounts according to Categories i.e we need to Classify as B/S, Cash Accounts,
Vendor Accounts etc. Instead of giving it as single GL, we will classify as range of GL’s

01000 Balance Sheet Account

01001 Zero Balance Posting (Free Balancing Units)
01100 Company Code Clearing
01300 Cash Discount Clearing
02000 Customer
02100 Customer: Special G/L Transaction
03000 Vendor
03100 Vendor: Special G/L Transaction
04000 Cash Account
05100 Taxes on Sales/Purchases
05200 Withholding Tax
06000 Material
07000 Asset
20000 Expense
30000 Revenue
40100 Cash Discount (Expense/Revenue/Loss)
40200 Exchange Rate Difference
80000 Customer-Specific Item Category
In this step “Business transaction “and “Business transaction variant” is assigned to document types.

Normally no need to do anything in this step. If we have created new document type then only we need
to assign “Business transaction “and “Business transaction variant”

0000 Unspecified posting 0001 Unspecified Posting

Z001 Unspecified Posting
0100 Transfer posting from P&L to 0100 Transfer posting from P&L to B/S
B/S account account
0200 Customer invoice 0001 Customer invoice
0300 Vendor invoice 0001 Vendor invoice
Vendor invoice (Invoice Receipt
(MIRO) with Retention)
0400 Bank account statement 0001 Bank account statement
0500 Advance tax return (regular 0001 Advance tax return (regular tax
tax burden) burden)
0600 Goods Receipt for Purchase 0001 Goods Receipt for Purchase Order
Order
1000 Payments 0001 Payments
1010 Clearing transactions 0001 Clearing transactions (account
(account maint.) maint.)
1020 Resetting cleared items 0001 Resetting cleared items
To balance unspecified profit centres

Here we need to Give posting Keys Debit -40 Credit -50

And GL Account for Zero balance

This is most important step. Here we need to assign partner fields

Here we have so many characteristics. We need to select what actually we need.

Normally no need to do anything it comes in default.

Select Document Splitting

And Method it will come automatic

0000000001 Splitting: Customer, Vendor, Tax

0000000002 Splitting: Customer, Vendor, Tax, Money, Co.Code Clearing
0000000012 Splitting: Same as 0000000002 (Follow-Up Costs Online)
0000000101 Splitting for US Fund Accounting
0000000111 Splitting for US Fund Accounting (Follow-Up Costs Online)
BZ00000013 Splitting: Same as 0000000002 (Follow-Up Costs Online) Brazi

Tick on Inheritance

Selecting the Inheritance signifies the line items which do not have account assignment will derive the
account assignment from other line item

Activation of Document Splitting happens at client level but it is always possible to control of activation
and deactivation at company code level.