Document Splitting in SAP New GL General Ledger

SAP ECC 6.0 New GL has a new functionality to create segment financial statements. With the help of document splitting one can allocate an expense line item between two segments. FI Document split and segment is covered via a ‘segment field’ which is a standard field in the
totals table in the New General Ledger FAGLFLEXT. So how does one go about document splitting.

Document splitting needs to be enabled first at the client level customizing. Once this is enabled, then document splitting can be activated / deactivated in each company code. Similarly, ‘Inheritance’ can be activated which provides the level of detail for a document split. To take an example, by activating inheritance one can create a customer invoice from a revenue line item. The business areas or segements are automatically populated in the general ledger view showing the customer and tax line items. Activation of ‘Inheritance’ is recommended with document splitting as this does not require the business to then create ‘rules’ for business processes to ensure that account assignments are projected.

Document splitting in New GL can be divided into passive split, active(rule based) split or clearing lines by document. With passive document splitting, during clearing of a document, the account assignments of the items to clear are inherited to the clearing line items. Active splitting works on the principle of defining splitting rules. Splitting rules are configured which are used by SAP to make a document split. Finally, in case of clearing lines, New GL creates clearing lines automatically to achieve a split. Document splitting is
one of the key functionalities enabled by SAP New GL to help deliver segmented financial statements.

What is credit memo processing in SAP FICO?

Credit memos in SAP are used to correct a vendor invoice. Once the invoice and the credit memo difference is posted in SAP, any open items left in the invoice, credit memo and payment can be cleared. To take an example, suppose you purchase office supplies worth $500. A user posts an invoice received from the vendor. Now suppose the user comes to know that $150 has already been paid on the invoice. A credit memo is used in such cases. In our example, the user will process a credit memo worth $150 in SAP. The difference between the invoice amount and credit memo i.e. $100 would be paid to the vendor via check.

Special Ledger – OBS2

Special Ledger can be assigned by the transaction OBS2. If a ledger is assigned using OBS2, then it is valid for all company codes. In ECC6.0 and later, the concept of special ledger is not there. The concept of non-lending ledger is there.