This figure describes document splitting with Accounts Receivable (FI-AR).

In a business scenario, the aim of many companies is to map characteristic balance sheets (for example, balance sheets for business areas, profit centers, and segment) while also taking asset transactions into account. The system configuration is typical for fixed Asset Accounting (FI-AA) if the relevant company does not follow any other accounting principles apart from the following book depreciation: Area 01 Posts values to general ledger in real timeArea 20 Only posts depreciationBefore enhancement package 5, new General Ledger Accounting characteristics, such as the Segment or Profit Center, cannot be stored directly in the asset master record. Therefore, the system derives the Segment and Profit Center characteristics, for example, from a cost center or an internal order. These Controlling (CO) objects are assigned directly in the asset master data. Define the account assignment types for Asset Accounting in Customizing for Financial Accounting (New) under Asset Accounting Integration with the General Ledger Additional Account Assignment Objects Specify Account Assignment Types for Account Assignment Objects. You can only maintain account assignment types for active account assignment objects. For more information, see SAP Note 684659.

If more than one CO object with different profit centers is assigned to the asset master record, SAP defines a complex, internal logic, which controls the derivation of the profit center while posting to the asset.

The account assignment object is the same in asset master and posting. Select the Agreement checkbox (technical field name XIDENT) if you want to prevent the account assignment object from being changed when account assignments are made. This ensures that only account assignment to the account assignment object entered in the asset master record is possible. If this checkbox is not selected, there is no guarantee during posting that the segment and profit center values will be the same as in the asset master data. After the activation of the Profit Center and Segment account assignment objects, these characteristics are also available in the screen layout for asset master data in Customizing for Financial Accounting (New) under Asset Accounting Master Data Screen Layout Define Screen Layout for Asset Master Data. Choose the Time-dependent logical field group.

If you maintain two CO objects in the asset and the profit center, and the segments in these two CO objects are not the same, then message AIST009, The Profit Center is not unique appears. The account assignment objects, Cost Center and Internal Order, refer to the following different profit centers:Profit center from Cost Center: 0001 Profit center from Internal Order: 0003To save entries for the Profit Center and Segment characteristics in the asset master record, the table ANLZ is (with enhancement package 4) prolonged with these two fields. However, to display the fields in the asset master data, enhancement package 5 and business function FIN_GL_REORG_1 and the activation of segment reporting in FI-AA is needed. If, for example, the Segment characteristic is not needed, it can be suppressed. Use the screen layout in Customizing for Financial Accounting (New) under Asset Accounting Master Data Screen Layout Define Screen Layout for Asset Master Data if the Segment characteristic is not needed. Choose the Time-dependent logical field group.

If you miss the maintenance of the APC Values Posting account assignment type for the new Profit Center and Segment account assignment objects, the SAP system is not able to derive these characteristics from the asset master record when posting. Former definitions, for example, for account assignment object cost center or internal order are no longer successful. You have to maintain all depreciation areas that post acquisition and production cost (APC) values. Specify account assignment types for account assignment objects in Customizing for Financial Accounting (New) under Asset Accounting Integration with General Ledger Accounting Additional Account Assignment Objects Specify Account Assignment Types for Account Assignment Objects (ACSET). Note: Learn more about the Depreciation Run account assignment type in other units.

The additional information on asset accounting transactions with document splitting is as follows: Document splitting also works for an acquisition posting with several assets and different account assignments. The asset reconciliation accounts (existing customers and value adjustment customers) are already classified internally as asset item categories. The item categories for the fixed asset retirement accounts may still have to be defined. With the standard drill down reports available for new General Ledger Accounting (transaction FGI0), a balance sheet for profit centers, segments, or business areas is immediately available after you save the documents. It means that you no longer have to periodically "transfer assets to classic Profit Center Accounting" (transaction 1KEI), to create a profit center balance sheet. Note: The cost center of the asset master record is not displayed in the FI document, in the Data Entry View, or in the General Ledger View. This is because APC values are usually not passed on to a CO account assignment object. If you want to post the asset values to a cost center (in CO), see SAP Note 395762.

The example in the figure shows the gross entry of the invoice document (capitalizing the asset without deducting the cash discount by using a gross document type) and is followed by payment with the deduction of the cash discount, which can, in practice, also take place in the reverse order. This refers to the capitalization of the asset with deduction for cash discount (automatic when using a net document type) and (delayed) payment of the invoice amount without deduction for cash discount. The system behavior in the classic General Ledger Accounting is as follows: In the reverse case (also up to and including release 4.7), the asset value is only corrected in a second step, with program SAPF181. An account assignment of the Profit Center characteristic is not possible during payment (Step 1 in the figure). In the case of a unique account assignment in the asset invoice, the Business Area characteristic was transferred to the payment, at least to the bank, cash discount, and vendor line items. For non-singular account assignment for asset invoice, no characteristic account assignment is possible for business areas.

Define the post-capitalization of cash discount to asset in Customizing for Financial Accounting (New) under General Ledger Accounting (New) Business Transactions Document Splitting Define Post-Capitalization of Cash Discount to Assets. The post-capitalization of cash discount to asset is only possible if document splitting is active. You do not necessarily have to define splitting characteristics. Hint: The post-capitalization of cash discount to asset only works if the function is already configured when the invoice is entered. It is not sufficient to activate the function before entering the payment.

With Release 4.7, crediting the original CO account assignment with the amount of the cash discount was only possible by periodically running program SAPF181 (profit and loss adjustment).

The figure shows online distribution of follow-up costs for premises.

The defined document splitting characteristic for CO is already managed in the FI document during invoice entry, and the system passes the splitting characteristic for CO on through the payment document. If no characteristics are defined for the online split, the payment document only displays FI entities. Assume that you credit CO internal order 1004 using a settlement. If real-time integration CO with FI is configured, an FI follow-on document will also be posted. Even if more than one ledger is defined in new General Ledger Accounting, the CO characteristic will only be displayed in the general ledger view of the leading ledger because only the leading ledger has CO integration.

Real-time integration from FI to CO is available in an SAP system. Previously, real-time integration in the opposite direction, from CO to FI, was not possible.The activation of the real-time CO-FI integration affects changes to characteristics in the following transactions:Periodic allocations, such as assessment, distribution, and transfer posting Manual transfer postings to CO (transaction KB11(N)) Activity allocations (transaction KB21(N)) Settlement from orders or projects (transactions KO88 and CJ88) CO reconciliation with FI has always required a conciliation ledger, which is maintained in Cost Element Accounting. Periodic program runs carry out summary reconciliation postings for each cost element/expense account (transaction KALC). Transaction KALC is no longer available in the standard system after new General Ledger Accounting is activated; an information message points out the new real-time integration between CO and FI. Note: The Segment characteristic cannot be reconciled with transaction KALC.

The activation date defines when (from which posting date of the CO document) CO with FI reconciliation is possible with real-time integration. However, you can later create FI follow-on documents for CO documents that were posted before the real-time integration was activated. For existing SAP customers, the activation date for the CO with FI real-time integration within the migration to new General Ledger Accounting is usually known as the migration date. To transfer secondary (actual) cost elements from CO to FI, define an account determination in Customizing for Financial Accounting (New) under Financial Accounting Global Settings (New) Ledgers Real-Time Integration of Controlling with Financial Accounting Account Determination for Real-Time Integration Define Account Determination for Real-Time Integration . The transaction called is the same one already used for defining the account determination in the reconciliation ledger. Note: It is also feasible to transfer primary costs to FI through account determination although it usually makes most sense to work with the original cost elements here.

This figure displays the real-time integration of CO with FI using the Functional Area characteristic as an example. The Profit Center, Segment, and Business Area characteristics are left unchanged in the example for clarity. Observe the following points in the FI document (see step 2b):The posting is in real time, or each CO document (periodic) reconciliation using the reconciliation ledger and transaction KALC must be omitted. In step 2b, the FI follow-on document has no clearing accounts. Clearing lines are only essential if the activity in CO (see 2 in the figure) results in a change to a balancing entity. In the real-time FI follow-on document, you can navigate from the Management Accounting document (see 2, 2a in the figure) and vice versa (to trace the accounting documents).

You can activate the trace in the real-time integration variant in Customizing. In this case, it is always active for all users. You cannot then deactivate it in the application. Depending on the company, this can result in a large and perhaps an undesired number of log entries, which can be deleted regularly but are usually not required for evaluation. This is because if the trace is not activated in the real-time integration variant, you can still activate and deactivate it for a specific user at any time. Use transaction FAGLCOFITRACEADMIN. Hint: If the CO activity does not change any FI characteristics (for example: no change to the company code or the segment), then no FI follow-on document is created when you are working with checkboxes. However, if the trace is activated, a log entry is created.

You can navigate from the CO document to the FI (reconciliation) document generated in real time, and vice versa. This guarantees the traceability of accounting documents. This bidirectional navigation between documents is possible because real-time CO-FI integration creates an FI follow-on document for each activity and not only a totals posting at the end of the month. You can compare data of new General Ledger Accounting with CO, using transaction FAGLCORC.For more information, see SAP Note 908019.

Posting periods for interval 1 can be linked to an authorization group to close the posting periods successively for the users. The Authorization Group column is not included on the figure (for space reasons). To use authorization groups, use the posting period authorization or authorization object F_BKPF_BUP.

The new transaction to open and close periods starts automatically, if business function FIN_GL_CI_2 is active. On the SAP Easy Access screen, choose Accounting Financial Accounting General Ledger Environment Current Settings Open and Close Posting Periods or run the FAGL_EHP4_T001B_COFI transaction. If you are using the (new) interval 3, you (still) have to reconcile your period end closing between FI and CO.The following procedures for the periodic closing operations are possible:A period comes to an end, and FI wants to prevent further postings in this previous period Interval 1 is closed for this period. FI can start with the first steps of the period end closing. Likewise, CO performs all the required closing operations for the previous period. If these CO closing operations using the real-time integration of CO with FI result in FI follow-on documents, then interval 3 can be opened (by FI) for the previous period. Thus, CO can go on working unobstructed, but without any unwanted (additional external) FI documents being posted in the previous period. When CO completes the closing operations, interval 3 is also closed (by FI) for the closing period. Now FI can finish its periodic closing operations and create the required reports.

The figure explains a system behavior after maintaining period interval 3

The figure shows the logistic process chain as Purchase Requisition Purchase Order Goods Receipt Invoice Receipt. This chain is expressed as ME51N ME21N MIGO MIRO in transaction codes. Integration with FI is provided as in previous releases.In relation to the logistics processes, there has been an enhancement with enhancement packages 4. Business function FIN_GL_CI_2. FI is now able to post invoice reductions, within the MIRO (invoice receipt) transaction according to the exact cause, also for multiple account assignments. Before enhancement package 4, the credit amount was distributed to all account assignments (of the purchase order). Refer to SAP Note 1264387 for the required Customizing settings.Define document splitting rule in Customizing for new General Ledger Accounting under Business Transactions Document Splitting Extended Document Splitting Define Document Splitting Rule. On the detail screen for the header data (for example, for the document splitting rule of the vendor invoice) in the Further Subdivision in Document group box or frame, select the After Each Logical Transaction indicator.

Business function LOG_MMFI_P2P can be activated if you still use classic General Ledger Accounting.

In case the purchase order has more than one item, for example, with various profit centers, the document splitting assigns the correct characteristics to the FI follow-on documents when posting the goods receipt (GR) and invoice receipt (IR). For more information, see SAP Notes 1264387 and 1274173.

This figure displays the posting of GR and IR.

Document Splitting Information: To be able to post an IR for a purchase order with more than one item and different characteristics (multiple account assignments), the document type for the IR, for example the RE (gross invoice receipt) document type, should be assigned to the document splitting rule 0300/0002. Business transaction variant 0002 [Invoice Receipt (MIRO) with retention] for business transaction 0300 (vendor invoice) is delivered for document splitting method 0000000012 for that purpose. For more information, read SAP Note 1274173. The maintenance of the document type for retention can also be started with the OMR4 transaction.

This figure shows FI follow-on documents.

The segments are derived from the profit center of the material master. The Profit Center characteristic is saved in the material master on the Costing 1 tab page and on the (General) Plant Data/Storage 2 tab page. To achieve a zero balance situation, the system generates clearing lines if document splitting is active and set up accordingly.

With business function FIN_GL_CI_1, an authorization check for the profit center is available. It is used in addition to the already existing checks for the company code or the ledger information. The (new) authorization (only) has an effect during posting, during the manual clearing of documents, and during document display. It uses the existing K_PCA authorization object. For more information, read SAP Note 1331317. You can control this option per controlling area in Customizing for Financial Accounting (New) under Financial Accounting Global Settings (New) Authorizations Activate Authorization Check for Profit Centers. For reporting issues, an authorization check for profit centers (for example, for ledgers and the company codes) was already available before enhancement package 3. Note: When talking about mapping possibilities of PCA with activated new General Ledger Accounting, the topic Planning in FI should be considered. AC210 deals with the planning subject in one of the next sections.

Allocations are an alternative to time-consuming manual posting transactions.A typical period-end closing, regarding allocations, may involve the following allocation sequence:1. Allocation of cost centers in Controlling (CO)1. The activities remain unchanged and are as important and necessary as before to allocate costs or expense accounts.End-of-period tasks in FI (for example, foreign currency valuation) Allocation of profit centers (and segments) in FI (in new General Ledger Accounting) 1. Allocations in FI are not mandatory. If you do not need to allocate any profit center values, for example, values on revenue or balance sheet accounts, you do not have to carry out that step. A profit center allocation in FI never leads to movements on CO objects, for example, on cost centers. No CO document is created; only an FI document is created. Even if you allocate expense accounts in FI, same case happens. In case a profit center allocation leads to a change of segments, the segments are allocated within the FI document.Hint: How are the allocations of the different components integrated with FI when new General Ledger Accounting is active? Actual allocations in CO-OM: Changes are also updated in new General Ledger Accounting if CO with FI real-time integration is active. Actual allocations in EC-PCA: No update in new General Ledger Accounting; a pure EC-PCA document is generated. Actual allocations in new General Ledger Accounting: No integration into other components; a pure FI document is created.

The cycle segment technique applies to both distribution and assessment. Periodic reposting is not used in new General Ledger Accounting. To represent the allocation relationship between a sender and a receiver in a system, make the following entries for each (allocation) segment: From which objects do you allocate the costs - sender values? To which objects are you allocating the costs - receiver values? Which costs are you allocating? What is the basis for distributing the costs among the receivers - tracing factor? An allocation segment combines sender profit centers with receiver profit centers in accordance with the relationships, as described. You can group several segments together in a cycle.Caution: A cycle must always be assigned to a version. In new General Ledger Accounting, use version 1.

You can combine sender and receiver relationships in accordance with the rules. Sender values can be either posted amounts, fixed amounts, or fixed rates. If you use posted amounts, you can use both planned and actual amounts. You can enter a percentage below 100%, which leaves a corresponding residual amount on the sending profit center. On the receiver side, you can define fixed amounts, fixed percentages, fixed shares, and variable shares, for example, statistical key figures as rules.

In the figure an electricity bill is used as a relatively simple way of explaining which accounts are used to debit and credit a profit center for distribution. In practice, electricity costs would already be allocated to the different profit centers by the cost center allocations of CO (using the CO with FI real-time integration). An example of profit center distribution (or assessment) is the distribution (or assessment) of material stocks to different profit centers. This is necessary, for example, if a material in a plant is used by different profit centers. Since only one profit center can be stored in the material master, the stock values are allocated using the balance sheet account (or an assessment account) from the stored profit center to the others. Allocations in new General Ledger Accounting are also used for distributions (or assessment) of revenue accounts.

The figure, an example of cafeteria invoices is used to explain which accounts are used to debit and credit a profit center for an assessment. In practice, the cafeteria invoices would already be allocated to the different profit centers by the cost center allocations of CO (using the CO with FI real-time integration). For the assessment, you can also use inventories as examples (as in the figure), such as material stocks, fixed assets, heating oil, and profits. To execute a profit center assessment in new General Ledger Accounting, define new assessment accounts. In the depicted example, account 499900 has been used as an example. The number of the new assessment accounts depends on the number of accounts you have to allocate or, at least, on the number of balance sheet items you deal with for the assessment. The assessment account must not be a secondary cost element in CO. This means that you cannot simply use the assessment cost elements (cost element category 42) from CO.

The figure provides an overview of the functionality of profit center reorganization for enhancement package 5.Due to time constraints, it is not possible to demonstrate the profit center reorganization in a more detailed way within course AC210. To gain a better insight into the Profit Center Reorganization functionality, visit SAP standard course AC612. An initial management decision (assumed) is to shift responsibilities and to create a new profit center. The existing profit center A will be divided into profit centers A and B. Management decisions affect the composition of the profit center. For cost centers, internal orders, fixed assets, payables, and various SAP objects, you must decide if they remain assigned to the existing profit center A or if they are shifted to profit center B. This means that the entire content or composition of a profit center changes. Note: As the figure illustrates, it is not enough to change the profit center hierarchy or the master data of the profit centers. Profit center reorganization typically affects various SAP object types because the profit center can be assigned to many of them. The combination, composition, and dependencies of all the SAP object types in the context of the reorganization of profit centers are summarized in the derivation hierarchy. The assignment of the profit center in all objects of the derivation hierarchy must be changed.

To start the profit center reorganization through a Web Dynpro application, you need to work with the SAP NetWeaver Business Client or alternatively with the SAP NetWeaver Portal. To understand the functionality of profit center reorganization in detail, refer to the SAP standard course AC612 (Profit Center Accounting in New General Ledger Accounting). Caution: The reorganization of profit centers is embedded in the license model of SAP Landscape Transformation (SAP LT) software. For further information, see SAP Note 1534197 or contact your SAP account manager.