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.

General Ledger Master Records

1) There are 3 steps to create and use a chart of accounts (COA)
a) Define COA
b) Define the properties of the COA
c) Assign the COA to Company codes.

2) The COAs is a variant that contains the structure and the basic information about general ledger accounts.

3) The Definition of COA contains
a) Four digit COA key.
b) COA Name.
c) Maintenance language,
d) Length of the G/L Account number.
e) Integration with Controlling (CO) – Manual/Auto creation of Cost Elements.
f) Group Chart of accounts.
g) Status – Block indicator.

4) Length of G/L accounts can be from 1 to 10 digits.

5) One COA can be assigned to several company codes.

6) GL Master contains COA segment and Company code segment.

7) The Information entered in the COA segment for a G/L account applies to all company codes using that COA.

8) The Chart of account segment contains following details:
i) Type/Description – Account group.
– P/L or Balance sheet item.
– Description – Short/Long text.
– Group Chart of Account G/L. no.
ii) Key word Translation. – Key words in COA
– Translation.
iii) Information – Info in COAs
– G/L text in COA.s

9) The Company code segment of G/L master contains:
Only bal in
a. Control Data. – Account Control local currency, Exchange rate diff, Tax Category.A/c Management in Company code.- Open/Line item management,
b. Bank interest
c. Information.

10) Account Group Controls – Number ranges of the account.
– Status of fields in the company code segment of the master record.

11) Field status has following properties – Hide.
– Display.
– Required entry.
– Optional entry.

12) Fields displayed in G/L account master record are controlled by:

a. Account group
b. Transaction specific controls (Create/Change/Display).

13) Field status group assigned to a G/L codes in Company code segment is to control the field status of the financial transaction entered in that G/L account.

14) While creating Reconciliation account G/L master Reconciliation a/c type needs to be assigned – i.e. D – Accounts receivable or K – Accounts payable

15) You cannot post amounts directly to reconciliation accounts.

16) You can only activate or deactivate open item management if the account has a zero balance.

17) If the account currency is the local currency – the account can be posted to in any currency.

18) Account in Foreign currency as account currency can only be posted to in that foreign currency.

19) The group chart of account is assigned to each operational chat of accounts. If this is done “Group account number” in COA segment of the Operational COAs is a required entry field.

20) Country COA/Alternative COA number is entered in company code segment. This makes alternative G/L a/c field in Company code segment of the G/L master record a required entry.

21) Different accounts of one operational COAs can refer to the same group g/l account. However one country chart of a/c GL code can be referred to only one operational GL a/c. Every country chart of accounts number can only be used once.

22) If all the companies are using the same operational COA then consolidation is possible otherwise Group COA is used for Consolidation.

23) G/L accounts with open line item management must have line item display activated.

24) GL account number ranges are always external where as for customer/vendor it can be internal as well as external number assignment.

25) For Cross company code controlling, companies must use the same chart of a/cs.

26) Number intervals for G/L account master data can overlap.

27) The fields “Account currency” and “Field status Group” are always required entry fields. This status cannot be changed.

28) Reconciliation accounts are general ledger accounts assigned to the business partner master data to record all transactions in the sub ledger.

IMG: Financial A/cing>G/L A/cing>Master records>Preparations >Additional Activities>Define screen layout for each transaction 9Create/Change/Delete)