Creating Document Types

Let’s navigate through the core operating principle of SAP S/4HANA, known as the document principle, as it is key to efficiently processing business transaction posts within the system. Here's what you can expect from this principle:

• With every business transaction posting, a document is generated and saved within the system.

• This document exists as an indivisible entity in the system until such time as it is archived.

• Every document carries a unique identification, which derives from the following fields: Document Number, Company code and Fiscal Year

The structure of the documents in SAP S/4HANA is comprised of:

• A Document Header: This section contains information that is relevant to the entire document.

• Line Items: For each posted accounting document, there should be a minimum of two lines (as seen in debit and credit entries) but not more than 999 line items (this limit can be raised to 9999 lines under certain circumstances). The information contained within each line item pertains exclusively to that specific line.

These are some important document types delivered with S/4HANA:

The document type controls the document header and helps differentiate the business transactions that are being posted. Since document types are defined at the client level, they are valid and shared across all company codes. SAP S/4HANA is delivered with document types that can be changed or copied.

Document types define the following elements:

• Number range for the document type: Each document type must have a number range assigned to it.

• Reverse document type: The document type specified in the field Reverse document type is used when a reversal transaction is performed. If you do not specify a reversal document type, the system uses the same posted document type as well for the reversal document.

• Account types allowed for postings: Assets, Customer, Supplier, Material, G/L, Secondary costs.

• Control data: This section includes the following fields: Net Document Type, Customer/Vendor check, Negative Postings permitted, Inter-company postings, Enter trading partner

• Required during document entry: By selecting Reference Number and Document Header Text, you make each of these fields a mandatory entry in the document header.