SAP Central Finance – All about Document Splitting

With SAP S/4HANA Document splitting is the mandatory key feature and situation is complex when the organisations are transforming from different ECC systems to SAP S/4HANA via SAP Central Finance.

Some customers still use classic GL systems where splitting is not yet active, some customers have new GL systems but they want to change splitting methods when they look for new ways of working in future. So all in all this is a complex issue.

In this blog we will focus on scenarios and possible options for overcoming challenges in implementation of SAP Central finance. This will will take as a base that you know complete document splitting features and functionality as a consultant or business user.

Below can be the case with any customer for the source system.

  1. Some customers can have only classic GL systems as source systems
  2. Some customers can have only New GL systems as source systems
  3. Some customers can have combination of classic and New GL systems

Before we start detailing out the same lets understand what SAP suggests in case of SAP central Finance:

  • Extended Document splitting is not supported in CFIN scenario
  • Document splitting rules and configurations in SAP S/4HANA system should be near or similar to the source systems (applicable for scenario 2 above)

Let’s discuss the scenario 1 now.

Till SAP S/4HANA 2020 SAP was not supporting this scenario and it was all customer or implementation partner who need to drive solution. With SAP S/4HANA 2020, SAP introduced the standard solution where

  • Pre check at document post in source system using splitting rules transferred from the Central Finance system
  • Replication of splitting rules from the Central Finance system to the source system
  • Document split simulation for documents in AIF Error Monitor and from Initial Load

This reduces the efforts of error resolution.

When the document splitting is active in the Central Finance system only, documents which are posted successfully in the source system can get stuck in the error monitor in the Central Finance system. With this functionality implementation SAP delivers 3 step process:

1. Transfer of splitting rules

2. Activation of Check

i. You need to maintain entry of the relevant company code in SM30 > VCFIN_SOURCE_SPL
ii. Check is per company code and one out of below TWO options can be selected

3. Check during posting

i. When user will post document in SAP ECC with classic GL, error/warning will be raised related to document splitting even though splitting is not active in ECC.

Additional checks to implement this functionality

  • It is mandatory to have splitting switched OFF at client level in source system
  • Scenarios supported are for postings originated from FI, MM and SD. Other scenarios like payroll postings etc. needs to be tested completely.
  • Check has been given in consistency check report related to document splitting rules in source and target system
  • Simulation of document splitting is also possible in AIF
  • Ranges of GL account configured in document splitting configuration needs to be made at line level

Alert – This is clearly mentioned by SAP in pilot note of this functionality that all the scenarios creating accounting documents in source system needs to be tested well as system may generate alters/errors with this implementation and impacts business as usual. In case of manual postings the user can ignore warning and move on (ignore warning) however in case of interface postings coming from several systems may be impacted if warnings/errors are raised due to splitting check.

This check also applies to the company codes which are not in scope of SAP Central Finance

Also refer to the pilot note – 2842551 – Central Finance: Document Splitting is active in Central Finance but not active in the source system

Now coming to scenario 2 –

In this case your source and target splitting rules should be almost similar. If in source extended document splitting is in use then you need to assess how that will be replicated in target CFIN system.

It will take enhancement to replicate the extended document splitting to CFIN since its clear that SAP does not support it (at least till S/4HANA 2020 FP2 release)

This setup should be same in source & target

Document types mapping should make below set up similar in both systems in case you are using different document types

Scenario 3 – It’s a combination of above 1 and 2.

This will also lead to several notes implementation on source and target side to support the end to end process and don’t miss that you still need enhancements to complete the 100% document replication and reconcile data in CFIN.

In case pilot is not something you prefer then 100% custom solution needs to be developed.

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