Apr 43 min read

Document Splitting in SAP S/4 HANA

What is Document Splitting in SAP S/4 HANA ?

Document splitting in SAP S/4 HANA 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. Document splitting is one of the Key functionalities enabled in SAP New GL to help deliver segmented financial statements

There are Three Functions of Document Splitting :

1. Active Document Splitting

2. Passive Document Splitting

3. Zero Balance Clearing Account

Active Document Splitting: Active splitting works on the principle of defining splitting rules. You configure splitting rules which the SAP system uses to make a document split
Passive Document Splitting: with passive document splitting, the system inherits the account assignments of the items to clearing line items during the clearing of a document.
Zero Balance Clearing Account: Sometimes when the system does not balance out the transaction entries on its own, then, we need to define the zero balance clearing account. This helps to generate and balance out financial entries not done on their own.

Configuration of Document Splitting:

IMG Path to configure : Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions -> Document Splitting -> Classify G/L Accounts for Document Splitting

STEP 1: Classify G/L Account For Document Splitting

As per the nature of the business transaction, we classify the GL considering the item categories. You do this by assigning them to an item category. The item category is determined by the account number

>> Enter Your Chart Of Account

>> Enter your accounts or account intervals and assign them to an item category.

STEP 2: Classify Document Types for Document Splitting

Here we assign the “Business Transaction” and “Business Transaction Variant” to document types.

IMG Path: Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions -> Document Splitting -> Classify Document Types for Document Splitting

When you enter into the transaction you will see all relevant document types

STEP 3: Define Zero Balance Clearing Account

This we need to do when the system is not able to balance out the transaction entry based on its own. I have explained below in detail with steps.

>> In the next screen the chart of account from the list and click on right mark to proceed

>> In the next screen select the item like below and New Entries on the Application Bar

Enter the below details.

Account Key - Specify the account key (3-digit alphanumeric).

Name - Specify the account key description.

Dr. PK - Specify the debit posting key from the list.

Cr. PK - Specify the credit posting key from the list and SAVE.

>> Select Account Key 000 and click on Accounts (on left side of screen ) >>

Enter the Zero Balance Clearing G/L Account and Save the Data.

STEP 4: Define Document Splitting Characteristics for General Ledger Accounting

IMG Path: Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions -> Document Splitting -> Define Document Splitting Characteristics for General Ledger Accounting.

When you enter into the transaction, you get following screen. Create a new field characteristic or edit an already existing one.

STEP 5: To Activate Document Splitting

Here comes the final action step. We activate the document splitting by selecting the check-box and choosing the relevant method.

IMG Path: Financial Accounting (New) -> General Ledger Accounting (New) -> Business Transactions -> Document Splitting -> Activate Document Splitting

Document Splitting is Activated as per Client Level we are using Standard method as 0000000012, it is pre-delivered by SAP and latest method and we use it

This is where you need to defined Constant we just created 0DFLT Constant

>> To activate or deactivate per company code click on the second folder icon “Deactivation per Company Code”

>> Find you company code and see if the check-box is flagged. If it is flagged the document splitting is not active for that company code and Save the Data.

Document Display :