Flexibility introduced via Document Splitting in SAP S/4hANA

Get improved clarity on your financial data with document splitting in S/4 

Document splitting was introduced with ‘New’ GL in SAP ECC, the concept enables document balance sheet line items to be split based on characteristics e.g profit center, segment, business area, fund etc that we define in the system. 

The functionality enables financial data to be enhanced, and a lower level of detail than company code to be captured by introducing new account assignment objects to journal postings. Something that was sometimes a struggle to achieve in SAP ECC. With the introduction of the universal journal and the enhanced finance data model the SAP S/4HANA the functionality is further enhanced

Key changes to S/4HANA document splitting functionality

Document splitting isn’t mandatory functionality in S/4HANA. It needs to be activated. 

This can be done after you’ve migrated to S/4HANA using the subsequent document splitting feature. Activation of document splitting is time-dependent and can be implemented without system downtime.

Examples of why activating document splitting might be useful for an organization include:

1. To produce a complete financial statement for additional specified dimensions e.g. profit center or segment.
2. To analyze working capital for a profit center or segment and measure performance.
3. To meet specific legal reporting requirements more easily.

What does that mean for the user?

Ability to generate complete financial statements at a lower level than company code.

Document splitting allows the creation of financial statements at a level lower than company code providing greater flexibility to achieve reporting requirements.

Example - your normal general ledger journal might look like this, with no profit center detail against the vendor line.

If document splitting by profit center is active, the journal entry would look like this:

Now the supplier item is split and tagged with a profit center.

Build your SAP S/4HANA migration business case with FusionGraph

With the help of FusionGraph it's easy to discover and understand new functionality like this and add it to your business case for S/4HANA migration. 

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