Document splitting query
I have a customer invoice .If I go in to the Accounting document, I can see in entry view, the line items for customer recon account and the O/P Vat account are not assigned to any profit centers. The other line items are assigned to either of the profit centers that is Profit Center A and Profit Center B .
In The general ledger view, the amount against customer recon account and the VAT account are split in to Profit center A and Profit Center B .
Please let me know if this happens due to Document splitting. Also, please let me know, how this is significant from Business point of view. Why such a split happens.
Thanks & Regards
Vimal Vijayan replied
No, Document split doesn't mean every line item will get split. The main functionality is
1. To arrive a profit center for every line item.
2. In every line item to have the debits and credits balanced for each profit center
Let's say there is a vendor invoice of $ 1000 for expenses(for different profit centers) which have some taxes also. When you post it, u'll post the entry
Expense Dr (PC1) $450
Expense DR (PC2) $450
Tax DR $100
Vendor CR $ 1000
Since the doc split is active, the system will check in background whether all the line items are balanced for a profit center. If not splitting happens to balance them. So it will split vendor line item to PC1 and PC2 @ $225 each. The same logic it will apply to tax line item and split it into $50 each.
U can explain the user, showing her the document in GL view how the profit center is getting balanced. And also ask her if the whole tax is accounted into one profit center, how will the profit center entries get balanced.
Hope this helps.