I have mentioned document splitting in various topics, but I wanted a complete separate section as it has been
enhanced in ECC 6.0, document splitting addresses the issues to allow a customer to generate balance sheets by other
factors such as profit center, plant and company specific entities, document splitting allows you to display documents
using a differentiated representation, the line items are split according to selected dimensions. This means you can
draw up a complete financial statements for selected dimensions at any time, you can also create a segmented display
of a (partial) balance sheet according to a set of legal requirements (for example IFRS) or according to areas of
The main object of document splitting is to automatically determine missing account assignments according to
assignment rules. For example for a vendors invoice the profit centers can be assign to expense accounts manually or
you can derive the assignment automatically or make the assignment using substitution cost center. Document splitting
places these profit centers in the payable accounts of the invoice document.
Let's begin with a vendor invoice example so that we fully understand document splitting, I will show you in a table
format that way you will understand better, you can use transaction code FB60 to create the below invoice
Account Profit Center Segment Amount
Payables Blank blank 10000.00-
Expense PC99 SEG00 5000.00
Expense 1402 SEGA 5000.00
However the system will post the entries as in the below table, note that the payables line item has been split into two,
this is because of the different profit centers and segments, when you process a payment and apply cash discounts these
are also proportionally allocated to the appropriate segments and profit centers.
Account Profit Center Segment Amount
Payables PC99 SEG00 5000.00-
Payables 1042 SEGA 5000.00-
Expense PC99 SEG00 5000.00
Expense 1402 SEGA 5000.00
While processing the payment you enter the following accounting entries which also apply a cash discount.
PK Account Profit Center Segment Amount
50 Bank blank blank 9900.00-
25 Payables blank blank 10000.00
50 Cash discount received PC99 SEG00 50.00-
50 Cash discount received 1402 SEGA 50.00-
The process of the document splitting then creates the below entries in the general ledger
PK Account Profit Center Segment Amount
50 Bank PC99 SEG00 4550.00-
50 Bank PC1402 SEGA 4550.00-
25 Payables PC99 SEG00 5000.00
25 Payables PC1402 SEGA 5000.00
50 Cash Discount received PC99 SEG00 50.00-
50 Cash Discount Received PC1402 SEGA 50.00-
Document Splitting Process
The system must be able to classify individual line items as well as documents, using customizing settings a splitting
rule is selected for a document, the splitting rule controls how the document is split and for which line items, the below
table shows you the three distinct document splitting rules of which you should be aware
Types of processes Process details
clearing and similar processes
The system creates a reference to existing account assignments which are then used as the basis for
line items to be split. Only the document splitting characteristics defined in customizing are
considered for passive document splitting. For example if you have not defined Business Area as a
characteristic relevant for document splitting, it would not be split passively, you cannot change any
features of how the split happens for passive document splitting. These are determined directly by SAP
ERP rules and are non modifiable.
Passive document splitting rules cannot be set in customizing, they are determined automatically
based on business transactions.
splitting a document
The line items are split according to the customizing settings for document splitting. These settings
can be customized according to you requirements which makes this different from passive document
clearing - such as realized exchange
rate differences; closing operations -
You can perform closing operations according to the defined document splitting characteristics.
such as foreign currency valuation
ensures that the balance sheet is
automatically balanced for the
characteristics for which zero balance
setting is activated
This allows you to set a flag that controls whether the characteristics is automatically balanced to
zero. This should be set if you want to generate balance sheets for a specific characteristics.
Zero balancing guarantees perfectly balanced balance sheets, it does this by ensuring that whenever a
document is posted all of the relevant characteristics are balanced (debits and credits are equal) , in
additional to the document itself being balanced.
The diagram shows you how these rules fit into the document splitting process, illustrating the sequence of how a
document is split in the system
The advantages of using document splitting are the following
You do not need to change the way that you enter data, based on the defined rules the system automatically
generates a general ledger view that distributes the account assignment based on the rules.
SAP supports the derivation of segment from the profit center, however the profit center itself can be derived
from a cost center, a controlling order or a project.
document splitting ensures that the segment characteristics (or any other entity) is split consistently, uniform
segmentation means that for the relevant entity a zero balance is archived for each document
not only can you split the segment entity but segments can also be inherited by the vendor line items and tax line
items of the document
with the online split (and the inheritance) two period-end closing activities are no longer required, balance sheet
adjustment (program SAPF180) and profit and loss adjustment (program SAPF181)
you can also apply document splitting to subsequent processes, such as payments, cash discounts received or
paid are distributed to the entities according to the amount of the original postings to the expense account that is
maintained in customizing
customer invoices in which the revenues are distributed across different entities are treated the same way as the
related vendor invoices
using the document splitting procedure ensures that you can draw up complete financial statements for the
selected dimensions at any time, allowing you to generate balance sheet views by segment or profit centers.
The below diagram outlines the basic architecture of document splitting
document type - the document type of the transaction
business transaction - you can categorize your business processes and represents the business transaction for
which the split would be done, for example a customer invoice 0200, a payment, an account statement or an
business transaction variant - the maximum number of item types assigned to the business transaction
item type - classification of lines for document splitting, such as the customer line item item type. This is only
relevant for the part of document splitting that is ruled-based, the split is not-rule-based in the case of clearing
or if a zero-balance is generated. The split is always performed for these processes.
item category - the item category is a semantic description of the document line for the document split, it
essentially a grouping of general ledger accounts, which allows you to define splitting rules for different
categories of these accounts, these are already predefined in the system.
splitting method - this recognizes the business transaction variants, the splitting methods combined with the
business transaction variants produce a rule, procedure 0000000012 is the standard (recommended to
rule - this includes from where the split information is taken (the basic item type determines the line item type
such as revenue) and the target of the split (item type to be processed such as customer line item)
The diagram below explains the sequence to setup document splitting, we must first assign a range of general ledger
accounts to an item category, then assign business transactions and business transaction variants to a document type,
extended document splitting requires additional configuration of the splitting method, splitting rules and new business
transaction variants. Next you define the general ledger accounts that will be used for clearing balances of general
ledger accounts in cases where document splitting rules do not derive the necessary assignments. Finally the last step
is the activation of document splitting for the general ledger.
Using the IMG you have all the document splitting configuration, in my IDES system I have already configured
document splitting, I will show you what I have currently configured. We will be pretty much going through the below
list one at a time in the order that you see them, including the extended document splitting section
First we will look at that G/L accounts we have classified for document splitting, you can define single accounts or an
account range, you then select the category which I have 18 configured these were predefined by SAP (see right-hand
screenshot), when document splitting is active each business transaction that is entered is analyzed (split or not split)
during the document splitting procedure.
Next we will take a look at the document types, here you assign the business transaction and the business transaction
variant to the document type, SAP uses the three pieces (type, transactions and variant) to complete an assignment.
You cannot define you own business transactions but you can define your own variants that are assigned to standard
business transactions. The transaction variant controls the processing in the document split.
Next we will take a look at the zero balance clearing account, the clearing account will be used if the balance is not
zero, first you define the posting keys for the clearing account, the item category 01001 is defined by default (Zero
Balance Posting - Free balancing units), you then define the G/L account, the account key is set to 000 and as you can
see we are using the CAUS chart of accounts.
Next we define the document splitting characteristics for the general ledger accounting, here you can see that for profit
center, business area and segment are used in document splitting,
zero balance - the system will ensure that the balance for the characteristics is zero during posting
mandatory field - the system requires an entry for document splitting
partner field - you can specify if you want to use a partner field to document a sender-receiver relationship in
the additional clearing lines generated in the document
Next we define document splitting characteristics for controlling, as you can see the order is just cost center but you
could add cost object, network, sales order, etc. I will be covering controlling in detail in my controlling section IN
Next will edit the constants for non assigned processes, we define default account assignments in cases where it is not
possible to derive them, for example if you are receiving cash and you want to get it into the system ASAP so that you
can send it to the bank, you might record the cash receipt without any reference to a customer, at this time the default
segment you have defined as a constant is used, when you clear the cash with the correct customer, the appropriate
segment is derived. The below screenshot's show how we define segment 10BATHS and default profit center BATHS for
the controlling area DD10
Next we will look at defining the post-capitalization of cash discount to assets, if this setting is configured the cash
discount amount is posted to the asset instead of the cash discount expense account. For example lets say that you
receive a vendor invoice, at the time of the invoice the accounting entries are credit vendor $100 and debit asset $100.
Now lets assume that at the time of the payment you get a cash discount of 5% (because you paid early), the payment
accounting entry if you activate this indicator is as follows debit the vendor $100, credit bank $95 and credit asset $5,
thus the cash discount is transferred to the asset. The below screenshot show the setting that will transfer any post-
capitalization discount to assets.
Lastly we activate the document splitting, once activated you can start using document splitting, simply select the
document splitting checkbox and click save, this will then activate document splitting for all company codes. You have
two choices when you activate document splitting, you can either use the characteristics you define earlier (select the
inheritance checkbox) or use standard account assignments (select the standard A/C assignment checkbox). With
account assignment inheritance the characteristics for general ledger accounting are transferred to lines that do not
have any assignments, using standard account assignments on the other hand, allows you to activate the standard
account assignment in the non assigned lines. If you do decide to use standard account assignment you must also define
the constant that is derived for non assigned general ledger lines as we mentioned above. You have the option to
deactivate document splitting for specific company codes, select the deactivation per company folder and then select
the inactive checkbox for the company code that you wish to deactivate.
This section we will cover the extended configuration which allows you to define your own rules for document splitting,
if the standard ones are not sufficient for your needs. This process allows you to customize how characteristics flow in
documents, we recommended that you copy the delivered default settings of the splitting method you defined earlier and
then make changes to those settings. We will cover defining document splitting rules, document splitting methods,
assigning document splitting methods and defining business transaction variants (the lower section in the screenshot
Firstly we define document splitting methods, a splitting method contains the rules governing how the individual item
categories are dealt with during document splitting, there are a number of methods that come with SAP, which must
not be changed, most organizations use 0000000012 as it allows you to split costs online and includes the most
comprehensive combination of splitting rules for vendor, tax, and company code clearing. Public companies may use
method 0000000111 because this is more attuned to Funds Management and ties with US Fund Accounting. If you
need to create a new method simple copy an existing one and change the description.
Next we will take a look at defining a document splitting rule, you might for example need to tweak the way an vendor
invoice is split for a particular item category, when defining a document splitting rule you should be familiar with the
below key settings
Header Data overview and details
Item category to be edited - overview
o no dependence on leading item
o company code is company code of leading item
o company code is not company code of leading item
o define base item category
The screenshot below show you the splitting methods, we will take a look at 0000000012, the customer invoice,
If you double click you are taken to the screen below, this shows you the lowest level where yo can see the base
categories which allow you to group similar general ledger accounts together from a document splitting perspective
If you click on the item categories to to be edited folder you get the screen below, this view defines the possible account
assignment recipient (lines) for the split process that can be set.
If you double click on a category you are taken to the screen below, you can choose from among three processing
transfer of a fixed value (no split) - in business transactions for which no reasonable basic account assignment
can be determined, you can set a default account assignment, in this case an entry field has been shown
dynamically under the default control with allocation according to the basis area in the below screenshot, here
you can maintain a constant the values for which you must maintain under the menu item edit constants for non-
split according to base item categories provided - this option is used in 95% of all cases, the split is determined
from the document lines.
split according to current account balance - the split is executed on the basis of the account balance of the
document line of the item category to be edited, an example is posting during the run of the report on advanced
return for tax on sales and purchases, the notification report (RFUMSV00) would create postings without a split
account assignment because the base item categories are missing.
The three configuration settings for the base item categories are
No dependence on
this setting allows you to not have any impact on the leading item when determining the company code that is used for document splitting
proposes. Using the screen above you should notice that the dependence on leading item field is blank. You can also indicate whether the
system should check the tax code and determine if a cash discount is related, these options are only available for processing category 1. If
you do not select these then all base items are selected, otherwise items with the same tax codes or ones that are relevant for cash
discounts are selected for document splitting
company code is
company code of
Notice in the below screenshot the dependence on leading item is 1 by default and that the partner company code of the posts to be
processed (cc clearing only) has been chosen for picking up the base items.
The cross-company document split is generally formed from the company code clearing line items. Generally there must be two entries one
entry for leading company code and one entry for non-leading company codes, to split the items into the non-leading company codes, the
base items are only taken from the respective company codes.
company code is not
company code of
Notice in the below screenshot the dependence on leading item is 2 by default and that the company code has been chosen for picking up
the base items.
Lets see what all this means by an example using the diagram below, show the impact of marking dependence on
leading item as "1:CC=CC of leading company code" or "2:CC<>CC of leading item", the example we have entered a
customer line (accounts receivable for 1100) in CC1 for $1000; revenues are entered in CC2 for $300 with segment S1
and revenues are entered in CC3 for $400 with segment S2 and $300 for segment S3.
Value 1 - is the specification of how handling should take place in the leading company code (company code 1),
value 1 causes the base item from the partner company code of the item to be edited radio button selected. in this
way the split portions of the clearing items in company code 1 are determined from the revenue items of the
partner company code 2 and 3, if we choose 1 the split created in CC1 as clearing CC3 $400 with S2, clearing
CC3 $300 with S3 and clearing CC2 $300 with S1
Value 2 - receivables (clearing line items) are determined from the respective company code, value 2 causes the
base items from company code of the item to be edited radio button selected, in this way the split portions of the
receivables (clearing line items) are determined from the respective company code. If we choose 2, the split is
created as clearing CC2 and CC3, the amounts remain the same but the location where the clearing is recorded
If you click on the define base item category folder you will see the below screenshot, through clearing an existing
account assignment is split from the item to be cleared (passive splitting) into the clearing line. If this account
assignment should be further split into the new open item, then you must define this by selecting the split
automatically checkbox for the respective base item.
By combining all of the above parameters (splitting method, business transaction, business transaction variant, item
category, dependence on leading item and based item categories) you specify how the postings should happen for
document splitting. These parameters update the split info table, which then updates the actual line items and finally
the general ledger totals table.
You can only assign a custom document splitting method if you have a activated basic splitting and the screen for
maintaining the extended document splitting method is similar to that for activating basic document splitting, here you
can modify the standard delivery splitting method and replace it with your customer splitting method.
Lastly we will look at the business transaction variants, these are important
Business transactions are tied to the item category that can be posted, with a business transaction variant, you
can further restrict business transactions by excluding specific item categories. When you post a document the
system can check using the business transaction variant whether the posting is permitted. If an item category is
not permitted the system rejects the posting.
For each business transaction variant you can define the document splitting rule, if you want to split individual
documents for one business transaction according to different rules, you have to define the required number of
business transaction variants.
The below screenshot shows the standard business transaction variants and how you can create an accounting
transaction variant for them, you can also see how you can assign item categories to an accounting transaction
variant. Remember you cannot define your own business transaction but defining your own business transaction
variant allows you to have some control over the business transactions.
forbidd - the item category is not permitted for this business transaction category, for example in an asset
invoice only the item category asset is to be posted, the expense item category then can be set as forbidd
required - this item category must exist when you post a document, for example a customer invoice must contain
a vendor thus the customer item category 02000 should be set to required.
only once - the item category must only appear once in the business transaction specified
Declaration: This is related to my Practice in Demo System ERP6 EHP5 since after my SAP Certification. I have taken guidance from SAP Expert
of UK who had given me full instructions on how to go about with certain configurations in Financials. I have successfully completed one