Document Split for Directors remuneration and shareholders funds

[Former Member]

Dear SAP Gurus,

My client has got 2 business areas for which he requires seperate balance sheets. One Business area has a turnover of Rs.100 crores while the other one has an annual turnover of Rs.10 crores. I want to know the following basic things while enabling the Document split functionality at my clients place.

1. What happens to common expenses such as Director's remuneration, HR Expenses, and other such expenses which are common to both the business areas and cannot be directly apportioned to individual business areas. How are these expenses divided amongst these 2 business areas ?

2. What happens to the liability side of the balance sheet for items such as Share Capital, General Reserve etc, when i draw balance sheet of the 2nd business area the noly liability which would reflect would be that of accounts payables, loans and advances used specifically for that business area. In such case how would the Balance sheet tally ?

Regards

Nikit

[Former Member · Accepted solution]

Hi Nikhit,

1. For Directors remuneration u can divide proportionately between business areas on the basis of your turnover, for this u need to use customized document splitting method defined by yourself as it is an expense standard document splitting wont work.

2. For balance sheet based on business area, there is a concept of zero balance with the help of this u can be able to create the balance sheet business area wise.

Hope it helps

regards

srikanth