Passive: The account assignments of the items to clear are inherited to clearing line items. Not only
ensures that the account itself is balanced, but also the additional dimensions.
Active: Splitted based on document splitting rules
Clearing Lines / Zero balance formation by balancing factor: Reclass/Reposted between account assignment objects. For example: Transfer posting from profit center A to profit center B.
Splitting characteristics: Need to define which FI characteristics document splitting is performed;
BA, PC, Segment.
The system always processes document splitting in the sequence
Document splitting activated at client level further can be deactivated at company code level.
INHERITANCE: Inheritance means when customer invoice is created, from a revenue line, (business area or segment) are projected (inherited) to the customer and tax lines in the general ledger view.
CONSTANT VALUE: The standard A/c assignment can be used to replace all account assignments that could not be derived from the posting with a constant value.
Define Document Splitting Characteristics for General Ledger Accounting:
Document splitting runs as follows:
The balance of the involved entities is then always 0 for every posting, ensuring "entity balancing".
Reason for reposting: A vendor invoice was assigned to an incorrect segment and paid with this
incorrect segment.
Zero balance creation is only useful and necessary if you want to create a complete balance sheet for
a specific characteristic
Mandatory Field:
Firstly, it is an extension of the field for accounts in which the characteristics cannot be
"entered" during document entry, and/or for accounts that cannot be controlled using the field
status. Example: Vendor lines should always include a profit center or a segment.
Secondly, it is a check as to whether a business process-equivalent business transaction variant
was selected (which determines whether a splitting rule can be found).
Splitting Method:
Defines how splitting is performed, here the individual item categories are handled in the individual business transaction, assigned to Ledger.
Business transaction
Business Transaction variant
Item category
ensures that the account itself is balanced, but also the additional dimensions.
Active: Splitted based on document splitting rules
Clearing Lines / Zero balance formation by balancing factor: Reclass/Reposted between account assignment objects. For example: Transfer posting from profit center A to profit center B.
Splitting characteristics: Need to define which FI characteristics document splitting is performed;
BA, PC, Segment.
The system always processes document splitting in the sequence
Document splitting activated at client level further can be deactivated at company code level.
INHERITANCE: Inheritance means when customer invoice is created, from a revenue line, (business area or segment) are projected (inherited) to the customer and tax lines in the general ledger view.
CONSTANT VALUE: The standard A/c assignment can be used to replace all account assignments that could not be derived from the posting with a constant value.
Define Document Splitting Characteristics for General Ledger Accounting:
- Proposes logical document splitting characteristics based on the scenarios.
- Should use these characteristics in at least one ledger.
- Mandate to maintain "Zero Balancing Indicator" if plan to create Financial statements, this ensures entity balancing.
- Mandatory fields
- Firstly it is an extension to FSV for the accounts in which the characteristics cannot be entered during document entry, and/or for accounts that cannot be controlled using the field status. Eg; vendor line should always include a profit center.
- Secondly, it is a check as to whether a business process-equivalent business transaction variant was selected (which determines whether a splitting rule can be found).
INHERITANCE: Account assignment is derived from the revenue or expense line item to customer or vendor account and to its tax lines.
Standard A/C Assignment/Constant:
Replace all account assignments that could not be derived from the posting with a "constant value".
ACTIVE Split Example:
Entry view
Vendor Cr 11000
Exp1 Dr 5000 SEG1 PC1
Exp 2 Dr 4000 SEG 2 PC2
Tax Dr 2000
GL View
Vendor Cr 5000 SEG1 PC1
Exp1 Dr 5000 SEG1 PC1
Tax1 Dr 1000 SEG1 PC1
Vendor Cr 4000 SEG2 PC2
Exp2 Dr 4000 SEG2 PC2
Tax2 Dr 1000 SEG2 PC2
Vendor and tax line derives account assignment based on Expense line/Base item category - Rule-Based split.
Document splitting runs as follows:
- When making a posting, the system determines from the document type the underlying business transaction, assigns the item category to the individual items within the document, and checks whether the item categories are permitted for that business transaction.
- The system creates a reference to preceding documents (such as clearing and invoice reference). The system applies the account assignments that you have defined as document splitting characteristics for General Ledger Accounting. For more information, see Passive Document Splitting.
- Depending on the classification of the document, the system applies the related document splitting rule for the document in which it is specified how the document is split and for which line items. For more information, see Active Document Splitting.
- If the system cannot determine the account assignments of the document splitting characteristics for individual line items, it can determine the account assignments either by inheritance or by using a standard account assignment. This can be necessary if the required information is not yet available when the posting occurs. You can use account assignment inheritance or standard account assignment to simplify document splitting. For more information, see Enhancement Logic.
- For individual document splitting characteristics for General Ledger Accounting, you can define that the line items for these document splitting characteristics must be assigned to an account (required entry field). The system then checks whether the line items for these document splitting characteristics have an account assignment. If not, the system rejects the posting and issues an error message. For more information, see Validation of the Document Splitting Characteristics for General Ledger Accounting.
- If the document does not produce a balance of zero for balancing dimensions, the system creates additional clearing items that ensure that the balancing dimensions in the document do produce a balance of zero. For additional information, see Creation of the Zero Balance Setting for Each Document.
The balance of the involved entities is then always 0 for every posting, ensuring "entity balancing".
Reason for reposting: A vendor invoice was assigned to an incorrect segment and paid with this
incorrect segment.
Zero balance creation is only useful and necessary if you want to create a complete balance sheet for
a specific characteristic
Mandatory Field:
Firstly, it is an extension of the field for accounts in which the characteristics cannot be
"entered" during document entry, and/or for accounts that cannot be controlled using the field
status. Example: Vendor lines should always include a profit center or a segment.
Secondly, it is a check as to whether a business process-equivalent business transaction variant
was selected (which determines whether a splitting rule can be found).
Splitting Method:
Defines how splitting is performed, here the individual item categories are handled in the individual business transaction, assigned to Ledger.
Business transaction
Business Transaction variant
Item category
