Finance & Controlling
What is Document Splitting?
A General Ledger function that splits line items by characteristics such as profit center or segment to produce balanced statements per dimension.
Splitting rules derive dimensions on balance sheet lines, such as payables, from the expense or revenue lines. It is very hard to activate after go-live because historical data must be split. Testing must include payments, clearings, and reversals because they inherit split information.
Related terms
General Ledger
The complete record of all financial transactions of a company, organized by GL account.
Profit Center
An organizational unit for internal reporting of profit and, in S/4HANA, balance sheet items by area of responsibility.
Segment
An organizational characteristic used for segment reporting under IFRS 8 and US GAAP, usually derived from the profit center.
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