ENTERPRISE STRUCTURE ?

SAP enterprise structure is organizational structure that represents an enterprise in SAP

R/3 system. It consists of some organizational units which, for legal reasons or for other
specific business-related reasons or purposes, are grouped together. Organizational
units handle specific business functions.

What is the purpose of the enterprise structure?

Every organization strives to achieve its targets and its structure only facilitates
this. The main purpose of such a structure is to help the organization work
towards its goals. It brings members of the organization together and demarcates
functions between them.

CHART OF ACCOUNT ?
The chart of accounts in SAP is a group of GL Accounts that controls the name of
General GL Master, number of GL Master and some control information. In other words, it
is the grouping of G/L accounts that forms the framework for recording accounting
transactions in a structured way.

What is a chart of accounts in SAP ?

What is a Chart of Account? In SAP, the Chart of Accounts (COA) is defined at the
client level and assigned to each company code. It is a list of General Ledger
account's master data that fall under different account groups of a company
code. This grouping mechanism helps to develop better financial reports.
 FISCAL YEAR ?

Fiscal Year is nothing but the accounting period which normally spreads over 12 months.
The financial statements are drawn for a fiscal year in SAP. In SAP Fiscal year is defined
as Fiscal Year Variant. In SAP Fiscal year can be defined as year independent and year
dependent.

What does fiscal year mean ?

A fiscal year is a one-year period that companies and governments use for
financial reporting and budgeting. A fiscal year is most commonly used for
accounting purposes to prepare financial statements. Although a fiscal year can
start on Jan. 1 and end on Dec. 31, not all fiscal years correspond with the
calendar year.

LEDGER CRAETION ?

Ledgers are defined in Customizing for Financial Accounting New. To create a ledger,
navigate to Financial Accounting (New) → Financial Accounting Global Settings (New) →
Ledgers → Ledger. When a ledger is created, the system automatically creates a ledger
group with the same name

What is ledger concept in SAP?

Definition. A ledger is a section of a database table. A ledger only contains those
dimensions of the totals table that the ledger is based on and that are required for
reporting.

GENERAL LEDGER CREATION ?

General Ledger (G/L) accounts are used to provide a picture of external accounting and
accounts and to record all the business transactions in a SAP system. This software
system is fully integrated with all the other operational areas of a company and ensures
that the accounting data is always complete and accurate.

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For creating GL accounts in SAP we has to configure the basic settings, first of all u
check whether u configured all the settings like, company, company code, business area,
chart of accounts, account groups, retained earnings account, fiscal year variant ,
posting period variants , document types and number ranges …

OUTGOING PAYMENT ?
The residual payment method in SAP clears the partially paid document and creates a
new document with the residual amount as an open item.

What is outgoing payment?

Outgoing payments are to send out to vendors for supplies or services that were
provided to you, or other payments.

PATIAL PAYMENT ?
A partial payment is a payment that is posted to an account without any open items
being cleared. You assign this partial payment to an open item. When you post the partial
payment, the system marks the document number of the original open item in the line
item for the partial payment.

What means partial payment?

Partial payment refers to the payment of an invoice that is less than the full
amount due. Create professional credit notes for free with sum up Invoices.
Partial payment is normally half of the total amount or a percentage of it.
 RESIDUAL PAYMENT ?

Residual payment means Balance Payment, in this Payment some of the amount will pay
at the first time,& Remain amount will be Cleared as Balance Payment. After first time
Payment it shows Invoice Clearing, and for the Remaining balance it shows Open item

What is the residual payment?

A residual or balloon payment is a final lump sum you are required to pay at the
end of your loan term to own an asset outright. Usually, the lump sum is
equivalent to – or less than – the depreciated value of the asset. Opting for a
residual payment at the end of the term means your weekly payments are smaller
and you.

VENDOR ?

SAP Vendor means any third party authorized by SAP to license or resell, install,
configure, maintain and/or customize any SAP Offering or provide training or consulting
services related thereto, including system integrators, resellers, connector vendors,
value added resellers, OEMs and partners

What is type of vendor in SAP ?

Type of Vendors :

Internal Vendors: Supplying by another company code under the same client.
External Vendors: A company or a person who supplies material from outside
(Indigenous and imported vendor) Regular Vendors: A vendor supplies the
material at the client level.

PURCHASE INVIOCE ?

What is purchasing invoice ?

a document that a person or company receives when they buy something, giving
details of price, payment conditions, etc.: Check the supplier's purchase invoice
to make sure the amount is correct.
 PURCHASE RETURN ?

What is a purchase return?

A purchase return occurs is when the buyer of merchandise, inventory, fixed
assets, or other items sends these goods back to the seller. Excessive purchase
returns can interfere with the profitability of a business, so they should be closely
monitored

ACCOUNT PAYABLE ?

SAP FI Accounts Payable is used to manage and record accounting data for all the
vendors. All invoices and deliveries are managed as per vendor requests. Payables are
managed as per the payment program and all the payments can be made using checks,
transfer, electronic transfers, etc.

What is meant by accounts payable?

Accounts payable (AP) are amounts due to vendors or suppliers for goods or
services received that have not yet been paid for. The sum of all outstanding
amounts owed to vendors is shown as the accounts payable balance on the
company's balance sheet.

DOWN PAYMENT ?

A down payment is a payment made or received before the physical exchange of goods
and services. Once the receipt or delivery of goods and services occurs, the down
payment clears against the final invoice.

What is down payment invoice in SAP ?

 Down Payment Invoice is used when the vendor sends or when the customer
requests a bill for a down payment. When the A/R Down Payment Invoice or A/P
Down Payment Invoice is created, SAP Business One will post the journal for the
down payment but will not affect the value of the inventory.

HOUSE BAKN ?

SAP defines a House Bank as the bank your company has account with. House Banks
are used for outgoing and incoming payment processes involving vendor and customer
payments. They are also used in bank transfers, bank statement processing and other
Cash Management processes.

How is House bank defined in SAP ?

How to Create a House Bank in SAP ?

1. OR in the SAP Menu, navigate to: Accounting -> Financial Accounting -> Banks ->
Master Data -> House Banks -> Manage House bank.
2. On the next screen, enter Company Code and press Enter to proceed.
3. Next on Change View "House Banks": Overview screen, click on New Entries
button

AUTOMATIC PAYMENT ?

Automatic Payment Program (APP) serves the purpose of posting accounts payable like
payment to a vendor based on vendor invoices automatically. APP is used to find out
due/overdue invoices and to process a list of customer and vendor invoices to make
payments in one go.

What is automatic payment transaction ?

The Automatic Payment Program has been developed for both national and
international payment transactions with vendors and customers , and handles
both outgoing and incoming payments.

CHECK CANCELATION ?
FCH8( this guide) is about voiding the check AND canceling the payment. This is used,
e.g. if, you paid the wrong vendor. In this case, we would need to void the check as well
as reverse the payment. FCH9 is used when we just need to void the check.

ISSUED CHECK CANCELATION ?

FCH9 is used when we just need to void the check. E.g., if we wrote a check, but lost the
check and we need to reissue a check, but the payment info is correct. Enter the
information of the check you are canceling. 1- Paying company code– This is the
company code that issued the payment.

CANCEL PAYMENT ?

In addition, you can cancel incoming or outgoing payments by choosing the “Cancel”
option from the context menu of the relevant document. In this case, SAP Business One
cancels the payment and automatically re-opens any related document that was closed
as a result of adding the payment.

What does it mean payment Cancelled ?

A canceled check is a check that has been paid or cleared by the bank it was
drawn on after it has been deposited or cashed. The check is "canceled" after it's
been used or paid so that the check cannot be used again.

DISCOUNT RECEIVED ?
Through this SAP configuration you define the G/L account numbers for your cash
discount received accounts. The SAP system posts the cash discount amount to this G/L
account when you are clearing the open items. Discounts are to be adjusted to
purchases where a cash discounts are to shown under other income.

What are discounts received ?

A discount received is the reverse situation, where the buyer of goods or services
is granted a discount by the seller. The examples just noted for a discount
allowed also apply to a discount received

HELD DOCUMENT ?

Hold Document is one of the required and regular functionality while processing the day
to day operations. It will help to temporarily suspend the work without losing the data
which already entered. The requisite condition is assigning the temporary number to
hold the document.

What is the hold document in SAP ?

Hold documents are Incomplete documents when data require to complete the
transaction is not available like cost center and bank charges and all.The system
does not update any account balances. Temporary document number will be
generated when we hold the document

PARKED DOCUMENT ?

A parked document in SAP is a document saved but not yet posted to general ledger
accounts. Parked documents can be edited. SAP puts a limit on the fields that can be
edited in a parked document.

What is hold and park documents ?

Hold document is to hold the document before posting if you require any
clarifications. Park document is mainly requires Approval levels. for Eg. If the
user is eligible to post the document with amt $10000 and the document is for
$15000 then the document is parked for approval for the next level to post.

SAMPLE DOCUMENT ?
 Sample document is a reference document for the original documents. It will not update
any transaction figures. We can use the sample documents for month end provisions.
The Tc is F-01, You can use the standrad document type X2 for sample documents.

What is sample document ?

Sample documents are used to propose values for the data fields in manually-
entered documents. The use of sample documents is beneficial if you need to
enter many documents that are similar to each other.

Sample document is nothing but an template.

1. Steps for creating sample document. Define number ranges. ...
2. Define number ranges. Go to transaction code FBN1. ...
3. Creation of sample document. Transaction code is F-01. ...
4. Posting of a document. Posting of a document by taking sample document as
reference. ...
5. Display of sample document.

RECURRING DOCUMENT ?

Recurring entries allows the business a function for automatic. creation of accounting
entries based on the predefined parameters. Once the Recurring entries are created they
get posted into. the SAP system as per the defined schedule by the business. Use of this
functionality is only recommended to be used.

What are recurring documents ?

Overview. Recurring entries are business transactions that are repeated
regularly, for example rental payments or insurance premiums. The process of
recurring documents automates the monthly payments with a fixed run schedule.

FOREIGN CURRENCY ?

When a foreign currency valuation is done in SAP, all open items and balances in a
foreign currency will be converted to local currency using the current exchange rate
maintained in the system. After taking FCV run SAP creates two postings.

What is foreign currency transaction in SAP ?

Foreign Currency transactions should be expressed in enterprise's reporting
currency and the financial statement of foreign branches should be translated
into enterprise's reporting currency in order to include them in the financial
statement of the enterprise.
 ACCOUNT RECEIVABLE ?

Accounts Receivable in SAP FI records and manages accounting data of all customers. It
is also an integral part of sales management. All postings in Accounts Receivable are
recorded directly in the General Ledger.

What is an account receivable and payable in SAP ?

Accounts Payable (AP) is an important application of SAP FICO module that

helps to record and manage accounting data of all vendors. In SAP, sundry
creditors are called accounts payables and sundry debtors are called accounts
receivable.

SALES INVOICE ?

The invoice contains information such as customer details, amount to be paid, payment
terms, shipping address, and so on. A customer invoice can be created in SAP S/4HANA
Finance directly in accounts receivable or in sales and distribution using the order-to-
cash business process

What is sales invoice ?

A sales invoice is a document issued by a business to outline the goods and
services provided to a client. Sales invoices serve as a record of sale and
typically include: A description of the service provided or goods purchased.

SALES RETURN ?

Sales Returns in SAP FI are used to manage full products that the customer has
returned. These are used in consumer goods industry. All returns are related to quality
defects and not incorrect deliveries. The path that the returned merchandise takes often
has to be tracked in detail.
What is sales return process in SAP ?
in SAP standard, sales returns involve physical returns of material from the
customer. you process the sales returns using document type RE when doing t-
code VA01. a billing block is automatically set, to prevent unauthorized parties
from creating credit memos for this transaction.

DOWN PAYMENT TO CUSTOMER ?

n this tutorial, as part of our free online SAP FI training, we will describe the SAP
customer down payment process. A down payment is a payment made or received
before the physical exchange of goods and services. Upon receipt or delivery of the
goods or services, the down payment is cleared against the final invoice.

What is down payment in accounts payable ?

Down payments are advance payments made at the beginning of a sale,
commonly involved in purchasing expensive goods or services that will require
ongoing installment. Learn how to invoice with a deposit or down payment

INCOMING PAYMENT ?

The purpose of incoming payments is to assign incoming payment documents to a

customer and clear open items from the customer accounts of a lease-out. When these
items are being cleared, they are assigned a document reference number and the
clearing date.

What is an incoming payment ?

Incoming payments are received in from your customers as payment for supplies
or services rendered. Outgoing payments are to send out to vendors for supplies
or services that were provided to you, or other payments.
 DISCOUNT ALLOWED ?

The parameters of the payment term mean that the customer is entitled to a 2% discount
if the payment is made within 14 days of the baseline date. If the payment is being made
after 14 days from the baseline date then full payment is expected

What is discount allowed example ?

Accounting for the Discount Allowed and Discount Received

when the seller allows a discount, this is recorded as a reduction of revenues,

and is typically a debit to a contra revenue account. For example, the seller
allows a $50 discount from the billed price of $1,000 in services that it has
provided to a customer.

BILLS RECEIVABLE ?

Accounts Receivable is a submodule of SAP FI used to manage and record Accounting

data for all the customers. It handles customer invoices, approvals, payments and other
allied activities. Any postings made in Accounts Receivable is updated in General Ledger
G/L as well.

What is meaning of bill receivable ?

A bill receivable is a document that your customer formally agrees to pay at some
future date (the maturity date). The bill receivable document effectively replaces,
for the related amount, the open debt exchanged for the bill. Bills receivable are
often remitted for collection and used to secure short term funding.

REVERS CONTIGENTAL LIABILITY ?

Reverse Contingent Liability

Reverse Contingent Liability

Path: Accounting - Financial Accounting - Accounts Receivable - Document Entry - Bill of Exchange
- Reverse Contingent Liability (Transaction code is F-20)
Step 1) Populate the following fields: Document Date, Type, Company Code, GL account, Usage,
Due by and Customer
Select Edit line items button
Ignore warning message

Press enter

Step 2) Select + (Set items to active) for command Column

Select the save button

From the menu select Document - Display
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STATEMENT OF ACCOUNT ?

What is statement of account example ?

A statement of account is a detailed report of the contents of an account. An

example is a statement sent to a customer, showing billings to and payments
from the customer during a specific time period, resulting in an ending balance.

What is statement of account for ?

A statement of accounts is a document that reflects all transactions that took

place between you and a particular customer for a given period of time. Generally
business owners send statements of accounts to their customers to let them
know how much they owe for sales that took place on credit during that period.

INTEREST CALCULATION ?

nterest refers to two related but very distinct concepts: either the amount a borrower
pays the bank for the cost of lending or the amount an account holder receives for the
favor of leaving money with the bank. In SAP, we can post interest either payable or
receivable automatically using transaction code “F. 52”.

What is Item interest calculation in SAP ?

Purpose. This component enables you to calculate interest on debit and credit
items automatically. Individual items and the business transactions that created
them are both included in item interest calculation, which allows you to control
precisely whether and how interest can be calculated on an item.

BALANCE INTEREST CALCULATION ?

You can calculate interest on the balance of those of your G/L accounts which are
managed with open item display by using the balance interest calculation function in the
FI system. This function can be used, for example, to double-check the interest
calculated on your accounts by the bank.

What is interest calculation in SAP ?

Interest refers to two related but very distinct concepts: either the amount a
borrower pays the bank for the cost of lending or the amount an account holder
receives for the favor of leaving money with the bank. In SAP, we can post
interest either payable or receivable automatically using transaction code “F. 52

DOCUMENT REVERSAL ?
If you have entered an incorrect document, you can reverse it, thereby also clearing the
open items. A document can only be reversed if: It contains no cleared items. It contains
only customer, vendor, and G/L account items. It was posted with Financial Accounting.

What is the reversal reason in SAP?

Reversal reason is only information as to why the document was reversed.
Reversal of an incorrect posting in the same period, Reversal of an incorrect
posting in the subsequent period or Reversal of an incorrect document which is
an accrual etc.

MASS REVERSAL ?

You use this function to reverse or invert many documents, which have been posted
either manually or automatically. See also: If you want to reverse individual documents,
you can use Reversal of Manual Postings.

How do you mass reverse a document in SAP ?

the transaction for mass reversal is F. 80. But careful while executing this
transaction. Accidently some other documents might get reversed.

REVERSAL TO REVERSAL DOCUMENT ?

When an incorrect entry is posted in the SAP system, we have to reverse the same or
pass a rectification entry. Various situations may arise that may compel a company to
correct its accounting documents. The only way to correct a wrongly posted accounting
entry is by its reversal.

ZERO BALANCE ?

Zero-Balance Clearing Account

For account assignment objects for which you want to have a zero balance
setting, the system checks whether the balance of account assignment object is
zero after document splitting. If this is not the case, the system generates
additional clearing items.

What is zero balance clearing account new GL SAP ?

As the name indicates it, a zero-balance clearing account is a balance sheet
account which is maintained for the purpose of posting additional clearing
entries in the event of the documents are not balanced with the respect to
different dimensions used for your reporting such as profit centre, business area,
segment, .

TERMS OF PAYMENT ?

Terms of payment is used in SAP to determine the due date and discount calculation.
Terms of payment is maintained in vendor master and customer master to default at
invoice level however this can be changed at invoice level as well.

Where do payment terms come from in SAP ?

Payment Terms in SAP FICO comes after creating Master Data in the SAP System
available to your vendors. The next logical step after creating Master Data is to
configure the system. This handles business transactions in SAP FICO

TERM ?

Image: Crazy Cloud / Fotolia.com. The SAP terminology is the result of longstanding
terminology work done by SAP. By consistently collecting and managing the terms used
within the company, SAP has created a huge terminology database named SAPTERM.
Some time ago SAP made this database available to the public for free

INCOME TAX ?

Surcharge of 10% is applicable on Tax payable wage type (/446) if the value of the Total
Income wage type (/434) is greater than INR 10,00,000. Amount of income that exceeds
INR 10,00,000, which is the difference between the value of Total Income wage type (/434)
and INR 10,00,000.

What is income tax definition ?

Income tax is a type of tax that governments impose on income generated by
businesses and individuals within their jurisdiction. Income tax is used to fund
public services, pay government obligations, and provide goods for citizens
 GST ?

State GST is the tax levied by the state governments on all intra-state supplies of goods
and services. SGST subsumes the previous state taxes such as value added tax (VAT),
entertainment tax, luxury tax, and entry tax.

What is the meaning of GST ?

Goods and services tax
The goods and services tax (GST) is a value-added tax levied on most goods and services
sold for domestic consumption. The GST is paid by consumers, but it is remitted to the
government by the businesses selling the goods and services.

CONDITION TYPES IN GST ?

What is a condition type in SAP?

A condition type is a representation in the system of some aspect of your daily
pricing activities. For example, you can define a different condition type for each
kind of price, discount or surcharge that occurs in your business transactions.

TAX CODE & SALES ORDER ?

Where is tax code in sales order SAP?

The tax code is displayed on the Country tab for the relevant sales order item.
The system applies the rules determined by the tax code (or condition types
directly, if no tax code applies) and further Customizing settings to: Calculate tax
values.

ASSET ACCOUNTING ?

Asset Accounting in the SAP system is used for managing and monitoring fixed assets.
In Financial Accounting, it serves as a subsidiary ledger to the general ledger, providing
detailed information on transactions involving fixed assets.

What is the asset accounting in SAP FICO ?

The Asset Accounting (FI-AA) component is used for managing and supervising
fixed assets with the SAP System. In Financial Accounting, it serves as a
subsidiary ledger to the General Ledger, providing detailed information on
transactions involving fixed assets.

What is asset accounting ?

An asset is a resource with economic value that an individual, corporation, or

country owns or controls with the expectation that it will provide a future benefit.
Assets are reported on a company's balance sheet and are bought or created to
increase a firm's value or benefit the firm's operations

What Is Specify Account Determination ?

What is Account Determination? In SAP, account determinations are the keys that are
used to link the asset classes or mater record to the general ledger (G/L) accounts based
on the nature of transaction. The screen layout are required to process the information in
respect of the assets by the users.

Which accounts are determined using account determinations ?

When you post with account assignment to an asset, the system determines
the G/L accounts that are posted based on: the chart of accounts valid in the
company code, the depreciation area, and the account determination key. You
enter the account determination key in the general master data for the asset
class.

What Is Screen Layout In Sap ?

The screen layout specifies the status of the fields in the asset master record. You use
the screen layout to determine if fields are required entry or optional entry fields, or if
they are suppressed completely, for example.you create only the keys and descriptions
of the screen layout controls.

What are screen layout rules in SAP FICO ?

The screen layout rules describe the status of various fields in the SAP asset
master record. It determines whether any specific field is mandatory entry field,
optional entry fields, or suppressed completely.

Why Add Numb Range Method ?

How do you assign a number range to an asset class ?

You define the number ranges at company code level. In Customizing for the
asset class, specify the number range per company code, and specify whether
assignment from the number range should be carried out externally or internally.
Alphanumeric intervals can only be assigned externally.

Which attributes should you consider when defining asset number range?
Which attributes should you consider when defining asset number ranges? Each
asset number range has to be assigned to a unique asset class. Asset number
ranges are defined at chart of depreciation level. Each asset class can have either
an internal or external number range.

Sap FI Integration with Asset Accounting ?

Asset Accounting in the SAP system is used for managing and monitoring fixed assets.
In Financial Accounting, it serves as a subsidiary ledger to the general ledger, providing
detailed information on transactions involving fixed assets.

What is asset SAP FI ?

SAP Asset Accounting is also called as sub ledger accounting, it is one of the
important sub-module of SAP financial accounting (SAP FICO) module. Asset
Accounting in SAP (FI-AA) is used for managing and supervising the fixed assets
of an organization.

What Is Asset Class In Asset Accounting ?

What is Asset Class in SAP / Assets Classes. In SAP, Asset classes are used to classify
the fixed assets in the asset accounting according to the asset types. Each asset master
data must be allocated to one asset class, for e.g. Building, Vehicles, Furniture,
Machines, etc.
What is the asset classification?

Historically, the three main asset classes have been equities (stocks), fixed income
(bonds), and cash equivalent or money market instruments. Currently, most investment
professionals include real estate, commodities, futures, other financial derivatives, and
even crypto currencies in the asset class mix.

What Is Base Method In Asset Accounting ?

The base method contains general control parameters the system needs for calculating
depreciation. You enter the base method in a depreciation key. The base method is
independent of the chart of depreciation, meaning that it does not contain any country-
specific settings.

What is base method in SAP asset accounting ?

The base method specifies the method of depreciation (ordinary or special tax
depreciation), depreciation method (percentage from useful life, reducing balance
method etc.), whether depreciation is allowed after the end of useful life etc. The
percentage of depreciation is specified in the "Multi-level Method" settings.

What Is Multi Level method In Asset Accounting ?

This can be achieved in SAP by using Multi level Method. In this method, SAP
provides us the possibility to specify different levels during the useful life of an
asset. Each level represents the period of validity of a certain percentage rate of
depreciation.

What Is Period Control In Asset Accounting ?

The period control function is used for each asset transaction to determine the
(calculation) period from which a transaction, such as an acquisition or retirement, is
included in the calculation of automatic depreciation.

What Is Maintaining Depreciation Keys In Asset Accounting ?

You assign calculation methods to each depreciation key for the actual determination of
depreciation amounts. You can define depreciation keys and calculation methods in
Customizing for Asset Accounting ( Depreciation → Valuation Methods → Depreciation
Keys ).

What is depreciation key in SAP asset accounting ?

The depreciation key contains the value settings which are necessary for
determining depreciation amounts. It represents a combination of calculation
rules, which are used for the automatically calculated depreciation types.
Ordinary depreciation. Special depreciation.

What Is Depreciation Area in Asset accounting ?

A depreciation area in SAP contains the parameters required to evaluate an asset. It is

defined by a two-digit numeric key. You may use more than one depreciation area to
represent different asset valuations for cost accounting or legal reporting.

What Is Screen Layout For Master Data Asset Accounting ?

Define Screen Layout for Asset Master Data in SAP

The screen layout consists the specifications for the field groups to control asset
master data in SAP. You can enter this screen layout in asset class and allows to
form a structure of master data for asset classes.
What are the maintenance levels of a screen layout rule for asset master data?
When configuring the asset screen layouts, there are few maintenance levels
eg. class, main and sub.

Why Creation of Main Asset in Asset Accounting ?

Asset Accounting in SAP (FI-AA) is used for managing and supervising the fixed assets
of an organization. The main purpose of asset accounting is to extract the exact values
of the fixed assets owned by the company on a particular date.

What is asset class in asset accounting in SAP?

What is Asset Class in SAP / Assets Classes. In SAP, Asset classes are used to
classify the fixed assets in the asset accounting according to the asset types.
Each asset master data must be allocated to one asset class, for e.g. Building,
Vehicles, Furniture, Machines, etc.

Document Splitting In Sap ?

In SAP ERP the document splitting is the most powerful tool is widely and most
commonly used. With this function the document splits the line items based on the
“Characteristics” we define in system. Often this function is used to get the financial
statements correctly for segment reporting.

What do you mean by document splitting ?

Document splitting is based on the unique assignment of document types to

predefined, non-modifiable business transactions (or their attributes in a
business transaction variant) as well as on the assignment of accounts to
predefined, non-modifiable item categories.

What are the advantages of document splitting ?

 Benefits of Documents Splitting in SAP ?

Likewise, Document Splitting allows you to display documents using a

differentiated representation. In the representation, line items are split according
to the dimensions you choose. Thus, you can draw up complete financial
statements with those dimensions at any time.

What is active splitting and passive splitting ?

Passive document splitting comprises all document splitting processes, for

example, clearing processes that are determined program-internal and that you
cannot control with settings in Customizing. By contrast, active document
splitting comprises all processes used to split the document itself.