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Document splitting

Former Member
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What is document splitting?

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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You can use the document splitting procedure to split up line items for selected characteristics (such as payables lines by profit center/Business area/segment) or to effect a zero balance setting in the document for selected characteristics (such as segment).

Document splitting is one of the function in NEW G/L

Getting a financial statement at Comany code level is easy since it is balaned when entries are posted in finance or from other application module.

If a company is interested in getting complete financial statement like P&L and Balance Sheet we require a tallied Trial Balance for those characteristics like Profit centre or Business Area.

Document splitting helps to split the accountig balances like payables/receivables etc for characteristics like profit center.

Note: If New G/L is activated in a client every FI document generated in the system will have two view like Entry view and G/L view.And G/L view will be used for drawing Balance sheet for any characteristics say profit center.

A vendor invoice is posted below for ur reference

CC:cost center PC:Profit center

<b>Entry View</b> <b>G/L View</b>

Expenses 1 Dr 1000 CC1 Expenses Dr 1000 CC1 PC1

Expenses 2 Dr 2000 CC1 Expenses Dr 2000 CC2 Pc2

Vendor Cr 3000 Vendor Cr 1000 PC1

Vendor Cr 2000 PC2

If you will observe from the above example i.e vendor balances have been splitt for profit center 1 & profit center2 on the basis of expenses ratio.

Here Expenses is called base itm category and vendor balance is called item cate gory.

Splitting does this and help us to get a full fledged balance sheet.

Hope I have tried to explain you in short what the document spliiting is. Please assign points if u find it is useful.

Surendra

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Former Member
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Hi,Sai

The example given in my previous reply is not appearing properly.Pl follow the below mentioned example

Note: CC: Cost Center PC: Profit Center and power charges is defined as cost element

<b>Entry View</b>

Power charges Dr 1000 CC1

POercharges Dr 2000 CC2

Vendor Cr 3000

<b>G/L view if splitting is activated</b>

Power charges Dr 1000 CC1

Power Charges Dr 2000 CC2

vendor Cr 1000 CC1 PC1

Vendor Cr 2000 CC2 PC2

Because splitting is activated vendor balances have been split as shown above on the basis of power charges for profit center.and Profit center is a derivation from cost center master.

Regards.

Surendra

Former Member
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Sai,

Document splitting allows you to display documents using a differentiated representation. In the representation, line items are split according to selected dimensions. In this way, you can draw up complete financial statements for the selected dimensions at any time.

Using the document splitting procedure, you can also create a segmented display of a (partial) balance sheet according to a set of legal requirements (for example, IAS) or according to areas of responsibility.

In addition, you can allocate at the time of posting additional costs (such as realized or valuated exchange rate differences) to the CO account assignment objects to which the costs relate. Assets can also be subsequently capitalized at the time of posting.

A simple example would be :

Normal G/L Entry :

Bank Cr 1000

Discount Dr 100

Customer Dr 900

With Document Split

Bank Cr 1000

Discount 1 Dr 40

Discount 2 Dr 60

Customer 1 Dr 360

Customer 2 Dr 540

Hope that helps..

Nandita

Former Member
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Hi Nandita,

You have very aptly described how Document Splitting works, however I have a question,

Suppose we activate Document Splitting in the middle of a Financial Year, what happens to the documents posted earlier to Document Splitting Activation.

Is there any way we could apply document Splitting to previous documents.

Thanks in Anticipation,

Regards,

Debojit Dey