Document splitting query

[former_member195383]

Hi,

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

Rudra

[Former Member · Accepted solution]

Hi Rudra,

Good to see u on SDN

This happens due to document splitting only. Well this is very important from the business point of view, when the business want to take a balance sheet at a profit center level. Without the vendor and custiomer line items having a profit center it will not be possible to take a balance sheet at that level.

The idea of document splitting is, any entry in FI, will be posted only if the debit and credit in the profit center is tallied (either by actual postings or by system generated line items)

Best Regards

Vimal

[former_member195383 · Accepted solution]

Hi Vimal ,

Thanks for the response

The real problem is a VAT line is getting split.User tells it should have assigned to one Profit center rather than being split.

My question is,does document split mean that all the unassigned lines(unassigned to Profit Center) get split?

Thanks

Rudra

[Former Member · Accepted solution]

Hi Rudra,

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.

Best Regards

Vimal

[former_member195383 · Accepted solution]

Thanks again Vimal.

SO the idea is that for a document, each of the assigned profit center have to be balanced.

That is the debit and credit should sum up to 0 .

Prior to the document split functionality.It was handled through Assessment..Please correct me ,

if I am wrong.And now because of the doc split functionality, it is happening online..

Please let me know, if the above is correct(especially the first line ).

[Former Member · Accepted solution]

Hi Rudra,

What u have put in bold is absolutely correct. That is the document splitting functionality.

But i'm not sure how it was handled previously. As far as i knw it was handled through business area, but i have read that was not fully successful when it came to business area wise balancesheet and hence SAP came out with new GL and doc split (never seen 4.7 system - so not sure). I have no idea about the use of assessment in this scenario. I dnt think assessment can be used for this purpose. It is generally used inside controlling (and COPA) for internal transfers.

Best Regards

Vimal