New GL – Document Splitting
So this is called parallel ledgers. Parallelly, we are maintaining 0L ledger, D1, D2. So like this, any number of ledgers you can post. And at the time of posting, you can choose. So enter General Posting for Ledger Group. So what you can do, you can choose any ledger group. Whatever you want, to whatever the ledger that you want that is connected to our company code. So D1, D2. Or 0L means normal ledger. So I can post accounting entries to only one ledger or combination of ledgers. So whatever I want, I can do that. And, what is the purpose of this I told you already. When you are going to report to any other country legal requirements, now if I have raised my funds in the US market, I have to submit some books of accounts in US dollars and as per the fiscal year variant. And if I’m raising the funds from the European market, I can submit my books of accounts in the European market. For whatever the currency that I want, I can post, I can submit. So that is the purpose of parallel ledgers. So, parallelly, you can maintain any number of ledgers, but you can have only three (3) currencies, one company code currency plus 2 other currencies. That you need to remember. So this is called maintaining of the parallel ledgers.
Next, we have one more thing, Document splitting. What is meant by document splitting? Document splitting is nothing but splitting of a document as per the requirements of the company means. What is meant by document splitting, I’ll show you. So document splitting is nothing but a splitting of a document.
See, business area Hyderabad, business area Chennai, office rent account return to bank. Now if I’m going to post an accounting entry, Say, I’m posting manually 400, 600 here. So my office rent account, business area Hyderabad, business area Chennai to bank. From my head office account, I’m posting to all these things. Now, if I want to prepare my balance sheet and P&L account as per the business area, if this is done, I cannot do it because if I have to prepare my balance sheet, bank account also should be split into both business areas, business area Hyderabad, business area Chennai. At the time of posting itself, you can post it. But in all cases it is not possible. Because, when I’m posting the accounting entry, in case of sales, in case of purchases, all those documents will be posted through other modules. So when you are posting through other modules, you cannot post manually like this. Here, I have taken business area, but in real scenario, generally we take profit center accounting. Profit center wise document, I want to get it split. So by default, I want the system to split the document by profit center wise. So whatever the purchases I’m making.
Here, Business Transactions, Document Splitting, Information On Document Splitting. You should you read this.
See here, for example, suppose vendor invoice containing the following items is entered: payables 100, expense 40, 60. Here payables means vendor account is going to be credited with 100 and purchases 40, 60. Now, if I’m going to prepare my balance sheet as per the segment here or business area or profit center, whatever it may be. Here, we have segment 1, segment 2. So we have purchased, expense means nothing but purchases, so payable account is credited and expense accounts are debited with segment 1, segment 2. Segment 1, 40. Segment 2, 60. Now, this liability, it is only one line item. So in which segment is it going to be posted? So if I want the document to be split, this table should be split. So that’s why document splitting then creates the following document in the general ledger view.
The general ledger view, tables segment 1, table segment 2, Expense segment 1, expense segment 2. Once the document is split, it should be 40, 60. So like this, whatever the document you want to split it as per the requirement, you can split it. That is the purpose of document splitting. And if payables 1, payables 2, so 40, 40, 60, 60, both can be posted separately into the balance sheet.
Similarly, example 2, in case of discount is there, how the discount document should be split, just you go through it. So here, a lot of information is given to you. You can use the document splitting procedure to split up the line items for the selected dimensions, such as receivables, lines by profit center, profit center segment, whatever it may be. So that is only for the purpose of preparing the segmental wise profit and loss balance sheet and profit center wise balance sheet, something like that for that purpose. So read this.
Here, Classify GL Accounts for the Documents Splitting, so whatever the GL accounts that you have, you have to classify the GL accounts. Standard is given. My chart of accounts is DRCA. Go to New Entries. What I can do, all the accounts assets and liabilities, say category. First of all, here, there are so many categories are given.
Say balance sheet account, balance sheet account is nothing but 1,000. So balance sheet account, say 1 lakh 1 to say 1 lakh 100. This is a balance sheet account. Similarly, like that all accounts we have to assign. Say cash account 200401 to 200500.
So here, what I’m doing is SAP system has given us categories and said that, please, you define your GL accounts based on the categories whatever I have given you, because we are going to make the document split. In order to split the document, you need to understand each and every nature of account. And the categories it has given, that category has to be assigned for each and every nature of account. Say, for example, here expenses 20,000, revenue 30,000. Say, what I can do here, expenses, 4 lakhs 1 to 4 lakhs, I can give all. And next. Revenue, 30,000. I can say 3 lakhs 1 to 3 lakhs. So all the accounts will come here. Balance sheet account, cash, like this.
Like this, whatever the nature of the account, all accounts you can assign based on the categories whatever that have been given here. I need to categorize. Save it. It’ll give a message, just read the message and say yes. Then coming to Classify Document Types for Document Splitting, this is not required.
Next, Define Zero-balance Clearing Account. So zero-balance clearing account is nothing but when document is split into 2 line items, if there’s any undivided or, which cannot be divided into x equally. So then what system says that when you are going to split the document, the split document should have zero balance again. Means, there should not be any difference. So for that purpose, we need to create one zero-balance clearing account. The purpose of this account, you’ll understand once we split the document, and I’ll show you. So zero-balance, you can create any asset or liability account, whatever it may be. You can see now the liabilities I can create.
Last account I’m creating, 101100. First of all, you have to create a GL account. So FS00. Create Other liabilities, Zero balance clearing account.
In the control data tab, what you need to do is here, check line item display, and open item management. You know what is meant by open item, so open items are nothing but the system will take care of the clearing of the operator. Sort key 001. Also check only balances in local currency. Field status group, G001. Save it.
So in Define Zero-balance Clearing Account, what I need to do, select ‘Standard account for zero balance’. Click on accounts, enter chart of accounts DRCA. Click on new entries. Enter your account number, press Enter.
I’m telling to the system this is my zero balance account. So zero balance account is going to be used for the purpose of splitting the document. And if any difference, it will be posted here.
Next, Define Document Splitting Characteristics for General Ledger Accounting.
So this is the standard one. Document can be split by business area wise, profit center wise, segment wise. So you can split the document, whatever the thing you want, you can use. You can remove other things. So here, I need not do anything. And, there’s a profit center field, partner field is a technical name for the field. So here, I don’t want to do anything. The standard already, it is given. Define Document Splitting Characteristics for Controlling, this is not required.
Next, Activate Document Splitting. Here, we need to activate it.
Right here, check this box. But the problem is once this is checked, it is applicable to all company codes. At client level, everybody will get a problem now that they have to define the document splitting. So that’s why once our class is over, I’ll deactivate it again. But the during this time, if somebody gets a problem, they have to wait. And you can deactivate by company code wise.
If you check the box, it’ll be inactive. If I don’t select, this is active mode. So here what I’ve done, document splitting has been activated.
So I want to post one entry, F-02. 400303 I’ll post. I take here, say, 700. Business area, I need to give. We have DRBN Bangalore, DRCH Chennai, DRHY Hyderabad. I’ll take DRHY and DRCH. And the second line item also, again, I’m taking 40. 400303.
Here, I’ll take 300. Cost center, 1 naught 1. Test for document splitting. 50. My bank account.
Actually second line item Business area, I have not given. There’s a problem here, though I have not given business area, system has taken DRHY. Why? Because in this cost center, we have given business area Hyderabad. So that’s the reason it has taken it. Now let me check whether I can change it. I cannot change it out in the cost center. Otherwise, I have to do one thing. I’ll create one more cost center. KS01 is for creation. What I will do is 1,004, I’ll create. Valid from 01.04.2013. 1004. Just test, person responsible GM production, cost center category, L maintenance, hierarchy area, take finance division. So business area, what I will do? I’m taking DRCH second line item.
Right. 1,004, I’ll take. Now, back to entry, I’ll change business area of second line item to DRCH.
Save it. Go to Display, click General Ledger View.
Now Document has been split. See here, 0 balance account. This 1,000 is split into unposted below it. Say, for example, why has the system has given like this? See, exactly 700, 300. This 1,000 has been divided into 700 and 300, but plus minus, plus minus. The reason being if you are going to take only one 700, one 300, where will it be posted? Because when you are going to post, there should be debit and credit. So that’s why here, the same 1,000 has been posted into 700 debited, 700 credited, 3000 debited, 300 credited. When you are going to prepare my balance sheet account, the 1000, credited 700 and credited 300 are minus figures. It’ll be posted to 0 balance account. And system, when it is going to take the balance sheet account, in the asset side, it will take minus 300, 700. Other amount, it will be posted on the same, everything will be posted in the zero balance account. This is only for the sake of preparing, say, business area wise balance sheet. Now I need business area wise. Here the column is not there. But, anyway, in the accounting entry, it is there. Both are almost the same. Cost center.
So anyway, when it is posted, 1,000 is posted in the Axis Bank account. But when you are going to prepare balance sheet, office maintenance is go to P&L account. And to the respective balance sheet, if you are going to see, system will not take Axis Bank account like this, but it’ll be presented in the form of a zero-balance account. This is a balance sheet account, and when you prepare a balance sheet, it will take 700 and 300, that minus and minus. The balance in amount 700, 300, it is going to be shown in the balance sheet account. This is only for the purpose of, say, for example, when I’m preparing my balance sheet for business area wise.
Here I’ll show you. See here, balance sheet by profit center 1, balance sheet by profit center 2. Or profit center or business area, whatever it may be. Here, I’m taking as profit center. Now what is the entry we have posted? That some expense account return to bank account we have taken. Now if I’m going to prepare my balance sheet, it will take that 0 balance account on both sides. One more example I’ll give you. If I am buying raw material, expense account to vendor account, this vendor account will get split. Now instead of vendor, we have taken bank account. Vendor account will get split. Now here say, for example, instead of that entry, you have taken this raw material account profit center 1 return, raw material account profit center 2 return, to vendor account.
Now if I’m going to prepare my balance sheet by profit center wise, if I’m going to take only 100, if you don’t take 30 and 70, how can I prepare balance sheet? I cannot prepare because see balance profit center 1 and profit center 2. Here, raw material profit center 1, 30 and profit center 2, raw material 70. Now 100 rupees, vendor account is there. Vendor account should be shown as a liability side, if there’s only 100 there, you cannot show liability. That is the reason why, if company code level wise, if you are doing it, this is 30, 70, right, 100 rupees. If company code wise you are preparing, no problem because raw material is a current asset. That’s why I’m taking here. But the problem you get only if you want to prepare by profit center wise. So when you are going to prepare profit center wise, you can take, say, inventory of raw material in PC1, inventory of raw material in PC2, 30, 70. Then liability side, you cannot take. So that’s why liability side, what system will take this account it will take. The 0 balance account. For all things it’ll take 0 balance account. Now raw material this in PC1, 0 balance account. 0 balance account is nothing but this is for instead of sundry creditors, it is taking 0 balance account. Now my balance sheet will tally. So here, my purpose is the document should get split as per the business area wise or profit center wise or segments wise.
Now you got what is the purpose of document splitting. So here system cannot only split one side. When you are splitting it debit, it should be credit. So same, for each line item, system creates 1 debit, 1 credit for the two. Because as many numbers you have, if you are splitting into three, here also it will get split into three.