Table of contents
1 Objective and Scope
1.1 Objective of this Procedure
1.2 Scope
2 Reference Documents
3 Definitions
4 Main Part
4.1 Principle
4.2 Accounting rules
4.3 Reconciliation/reporting
4.4 Periodicity
4.5 General Roles and Responsibilities
4.6 Operational schemes
4.7 Operational sequence
4.7.1 Sequence
4.7.2 Log
4.7.3 List
4.7.4 Spool
4.7.5 Checking with BW

Objective and Scope

Objective of this Procedure

The purpose of this document is to describe the way to record Fixed Assets supplier Debt in the frame of CAPEX reporting.

Scope

This organizational procedure (P) applies to all Fixed assets supplier debt recorded in PF1 and WP1.

Reference Documents

Group IFRS Principle and Rules:
Financial Reporting Guide

Definitions

ERP : Enterprise Resource Planning (SAP)

SBS :  Solvay Business Services

AUC :  Asset Under Construction

WBS :  Work Breakdown structure

PS :  SAP Module for "Project System"

BFC :  Business Financial Consolidation. Group's consolidation tool

AHS : Asset History Sheet

GL : General Ledger

CGU : Cash Generating Unit

SU MAC: Service Unit Management Accounting 

COLMAR : Capex Overall Lifecycle Management Approvals and Reporting

FXA - Fixed asset

Main Part

Principle

In order to take in account cash out, CAPEX of the group are calculated as followed : assets acquisition (F20 BFC)+ Assets down payment+ Delta fixed assets supplier debt(+debt at 1/1-debt 31/n). The purpose of the document is to describe the rule to determine fixed asset supplier debt.

Accounting rules

• Fixed assets supplier debt is recorded in SAP monthly through the transaction Z1F_CAP_Monthly_Post.
• The debt is cumulating invoices and good receipt accruals NOT YET PAID linked to assets acquisition.
• The amount considered as debt have to reflect exactly the amount in fixed assets expenses meaning without tax and reevaluation.
• The amounts are recorded in BFC L40800 split by CGU – the split is insured based on BW AP data but sent through SAP/ BFC Interface.
• The CGU is the one included in the profit center linked to the WBS for WP1 or business area for PF1 in the P&L posting.
• The amount recorded in L40800 is offset by Trade payable L40100.
• Assets Down payment have separate account are recorded separately in A40170 in BFC and are not part of the posting.
• All intercompany debt will be eliminated at trade payable level L40100, they are not included in L40800.
  

  Reconciliation/reporting

• Justification are provided by the program (remain attached to the posting evidence archived in SAP business workplace).
• BW and COLMAR reporting tool will be aligned with SAP and BFC.
  

  Periodicity

  
  The amounts are recorded each month after last good receipt to be confirmed at 12:00 of D+2 and are reversed in the beginning of following month meanings:

• All good receipts are posted on the purchase order or "Blanket PO"
• All invoices are posted
• All vendor bank reconciliation are posted (no more clearing in AP)
• Posting Vendor period is blocked

General Roles and Responsibilities

• SU MAC : SU MAC is responsible to record monthly fixed assets debt program and is responsible on accuracy and reconciliation of the figures

• SU MAC I&D Key user: Supervise the process

Operational schemes

Some considerations to the model should be taken in to account:

• CAPEX Suppliers Data Collection
  • Capex Fixed Asset Expenses Selection in the program
    • The selection is based Check cost object is classified as Investment, i.e. will only be considered if the object in the PO \ Invoice is an Order that settles to an Investment type WBS or directly an Investment WBS.
    • The program will select the accruals and reconciliation accounts based on the Z1F_SEL_ACCOUNTS in SM30 according to automated accruals, and automated transport accruals as well as vendor reconciliation accounts.

• • Impacts in adjacent tools
    • Changes to the SAP program Z1F_CAP_Monthly_Post
      • Performing changes in this program and structure should take in to consideration informing the team managing the BW structure as well as the interface in SAP tables to BFC and BW extraction accounts.
      • Specific transactions are executed in the background by IS to feed this transaction. In case of any changes or disruptions assessment of the impact on the tables below should be reviewed with IS.
        • Z1F_CAP_PO_I_BSV
        • Z1F_CAP_PO_I_PLV

• CAPEX Fixed Asset Expenses

• • Without VAT, Specific Withholding taxes or other Discount
    • Reasoning is that amount assigned to the FXA Expense account and hence settled to the Investment is net based on the Accrued Good Receipt.
    • At the moment of reconciliation of Good Receipt \ Invoice Receipt if any price difference exists, it will be assigned to the FXA Expense and consequently settled to the Investment.
      • This is also applicable to the Subsequent Debits to the Good Receipt, i.e. the foreseen or Additional Transport costs.
    • Invoices and all the additional items within: VAT, Specific Withholding taxes or other Discount
      • These items will not be taken in to account as not considered in the capital expenditure.

• • Without Revaluation – Treatment of accruals \ Invoices in foreign Currency
    • • Good Receipts (General Rule) are not valuated at month end on the assumption that at moment a GR is issued and settled to the Investment it is at the moment of acceptance and at actual rate.
      • Invoices Receipt (General Rule) are valuated at month end under the General Suppliers heading whilst open for payment. For Capex Supplier (L40800) the reclassification of the Revaluation portion will not follow.
      • The reclassification of Vendors to Vendors to Fixed Assets takes place at historical rate at company code currency.
        • Risk: in a company where the majority of the suppliers are CAPEX and there is a strong devalue of the local currency.
          • Consequence the Valuation impact in the L40100 will be a debtor.

4.7 Posting scheme
In the enclosed attachment is the detailed posting scheme.



 

Operational sequence

Sequence

Calling transaction Z1F_CAP_MONTHLY_POST and enter the:

• Company Code
• Fiscal Year
• Posting Period

Output Parameters:

• Execution in test

Allows to assess if any block exists in the posting preparation.

• Real Launch

Execution in background recommended - spool maintenance.

The document type is always SA.

Log

Please select

Notes:

1. Profit Center used for the reporting in BW of the Corresponding BFC Market
2. Document number of the posting in the period
3. Reversal document of the posting in period +1
4. E – If errors exist

List

Here the detail is by:

• Account nature
• Profit center or BA (WP1 or PF1)
• Vendor
• Purchase Order and Line of the PO
• Document – Good receipt or Invoice
• Currency of Transaction (Rate is historic Rate at document posting).

Spool

The archiving of the spools should be performing in SAP business workplace in the folders by country.
In FCC should be create/maintain variants by country.

Checking with BW

It is possible to do a cross check of the transaction output with BW. Jump query to summarize at document level only available by IS FINANCE Management 

However by use of BW query:



Result:

In this case we see there are differences:

A Positive in 23*2001 - means we debit L40100 and Credit L40800
A Negative in 23*2001 - means we credit L40100 and debit L40800
A Positive in 232*2001 - means we credit L40100 and debit L40800
A Negative in 232*2001 - means we we debit L40100 and Credit L40800
The origin of the differences could be:
BW – Delta not justified - SAP posting with possible adjustment based on BW
SAP - Delta not justified - Big variance (more than 5% or 50K) - Posting based on BW
If we should perform the adjustment via BW:

1. Request ticket to IS RtR Management 

Example WP1:

Example PF1:

• Postings are performed by Profit Center (WP1) or BA (PF1)
• The posting should be done by FBS1 to allow reversal by F.81
• In the link below you will find an example for PF1 and to WP1.
  
  

Posting - BW adjustment:

  end