Table of contents
  1. Objective and Scope
    1. Objective of this operation
    2. Scope
  2. Task description
    1. Closure Activities
      1. Foreign revaluation
      2. Reclassification trade payable to Finance Debt
      3. Flow reclassification (F31 to F30)
      4. Reclassification from Long term portion to Short term portion
      5. Transfer Short Term Financial Debt to Operational Debt (Only local (P/L))
      6. Annulment of IFRS 16 amounts in statutory accounts


1 - Objective and Scope

Objective of these operations

The purpose of these tasks is to ensure that all activities are performed in order to guarantee the monthly IFRS 16 closure process.

NOTE: Please be aware that these tasks are performed automatically through FCC, however these guidelines are for when they need to be done manually.

Scope

This procedure is applied to all WW companies under IFRS 16.

2 - Task description

Closure Activities

Closure Activities need to be performed during D1 to D3


D1 

  1. Foreign revaluation (SAP transaction code OBJVAL) - The purpose of this task is to revaluate at the functional currency (currency of the company code) the monthly valuation for contracts in foreign currency. As said this task is performed monthly and we should have always 2 postings, the revaluation posting in the closure period (M-1) and the reversal in the next period (M).


Fill in the required information, such as:

  • Company Code
  • Valuation Key Date: always the last day of the closure period (M-1)
  • Valuation Area: always LE (exceptions Brazil LB and Argentina LA)
  • Valuation Method: always EVR



Perform first in Test Run, if there's nothing to be posted, the following message will appear.



If there is revaluation to be posted (it will appear as image below), in the main menu select the Posting Method Post Valuation Immediately and execute the transaction.

To check if the posting was done correctly (revaluation in the closure period and the reversal in the next period) in output you can select "2 Messages" and see the documents posted (image below - Display logs).




D2


  1. Reclassification Trade payables to Financial Debt (SAP transaction code PF2: Z1F_CAPEX_MONTHLY | WP2: ZWFA58002) - The purpose of this task is to reclassify on a monthly basis the amounts in the vendor trade payables account to the vendor financial debt account for reporting purposes. As said this task is performed monthly and we should have always 2 postings, the reclassification posting in the closure period (M-1) and the reversal in the next period (M).


When you enter the transaction to perform the posting you should select the variant: RC_TP_FD_AP_S

You will obtain the following output:



Check one company at a time and run with test simulation in order to check if no error appears in the message.

The principal error that could appear is that one of the periods is closed. If this is the situation, open it before posting in order to process the pending items.



After checking the errors message and the open amounts in the transaction, check the open items (at the last day of the closure period) in FBL3N for the G/L account 56030160 (WP2) | 5112100070 (PF2) has any posting. If you have any values from previous months, further analysis to identify what document should be reversed is necessary. 

If everything is okay, remove “test simulation” and run the transaction in real mode.

When refreshing FBL3N the amount must be the same of the Reclassification Trade Payable to Finance Debt posting.


     2. Reclassification F31 to F30 (SAP transaction code PF2: Z1F_IFRS_FLOW_CORR | WP2: ZWFA03B with variant: F31-F30_APAC_S) - The purpose of this task is to reclassify on a monthly basis the amounts in flow F31 to flow F30 for reporting purposes (to report properly the cash out). As said this task is performed monthly and we should have always 2 postings, the reclassification posting in the closure period (M-1) and the reversal in the next period (M).


First you have to check the F31 amounts in FBL3N, open transaction and select the IFRS 16 accounts

(Accounts for PF2: 5102100010, 5112100010, 5112100020, 5112100040, 5112100070 ---- Accounts for WP2: 16830100, 56030100, 56030110, 56030119, 56030120, 56030129, 56030160).

Check one company at the time and use all items from the beginning of the year to the last day of the closure month.



Filter transaction type for F31 only.

Then you open the F31/F30 reclass transaction and select IFRS16 variant.

Add one company at a time and check in test mode by selecting “Post the flow type correction” and "Test mode".



Compare the data to be posted with the information per company that you have in FBL3N. The amounts must match.

Check the history in the transaction in order to review if there is any closed period that needs to be open or any other error.



If no errors and periods are open, return and remove the "test mode" and process the items.
After the transaction posting, refresh the FBL3N extraction and filter again the transaction type for F31.
All the company codes should have F31 balanced.


    3. Reclassification from Long term portion to Short term portion (SAP code transaction OBJREG) - The purpose of this task is to reclassify on a monthly basis the debt for the following 12 months from Long term portion to Short term portion. As said this task is performed monthly and we should have always 2 postings, the reclassification posting in the closure period (M-1) and the reversal in the next period (M).


Fill in the required information, such as:

  • Company Code
  • Valuation Key Date: always the last day of the closure period (M-1)
  • Sort Method: always ZL16 
  • Valuation Area: always LE (exceptions Brazil LB and Argentina LA)



First "Perform in Test Run" running one company at a time and check if there are no error messages (for example the period of a company might be closed already).

If there are no errors and all periods are open go back to the main page of the transaction and run by "Posting Documents Immediately".

By clicking in the tab Postings you can see the documents posted. The first document is the reclassification posting, the second is the reverse.





Please be aware that the system allows to run OBJREG as many times as possible, creating duplicated amounts. For this reason you should be careful to run it just once.

In case of duplication, the documents posted must be reversed.


       4. Transfer ST Financial Debt to Operational Debt (Only local (P/L)) (ZFI_DEBT_TRANSFER) - The purpose of this task is to transfer monthly the IFRS financial debt affecting contracts, which didn't extend the IFRS16 in local GAAP (which post the lease costs to the P&L), back to the operational debt. This function is only related to the Short Term financial debt since the Long Term one is purely cancelled through Z1ANNUL annulment posting. As said this task is performed monthly and we should have always 2 postings, the reclassification posting in the closure period (M-1) and the reversal in the next period (M).

Go to transaction ZFI_DEBT_TRANSFER and select the variant IFRS16 FRANCE.

NOTE: This activity is performed ONLY for French companies.


Perform a first check in test run.

If there are no errors, then perform the posting in real mode unclicking the Test mode and save the document numbers.


D3


  1. Annulment of IFRS 16 amounts in statutory accounts (Z1AANNUL) - The purpose of this task is to cancel and correct the IFRS monthly financial debt affecting contracts, for both situations in Local GAAP (Local (P/L) - didn't extend the IFRS16 in local GAAP and post the lease costs to the P&L | Local (BS) - did extend the IFRS16 in local GAAP and post the lease costs to the BS).


To run Z1AANNUL, to verify if the different accounts are balanced, you have to fill fields with the required information (templates with pre-filled information can be found in the "Variant Directory of Program Z1AANNUL").

Use as charts of account COCA for PF2 and Z001 for WP2.

Run one company at a time, remembering to change the Country Key, based on the country identity of the company code (e.g.: company 0001 Belgium – country key BE; company 5835 Italy - country key IT, etc..) and in test run, remove the ticks on "CREATE BATCH-INPUT" and "SCMA".





Example of balanced accounts:



If the accounts are balanced, go back to the transaction main page and tick on "CREATE BATCH-INPUT", remembering to also change the NAME OF BATCH-INPUT based on the company code that is posted.



The batch is created when the following message appears:



To run the bath in order to perform the annulment posting you have to go to SAP transaction code SM35 and select the batch created.



After selecting the batch you may process as follows:



The batch is posted when the following message appears:


You can confirm that the posting was performed by selecting the log icon () and entering in the batch you process as following images:





After this last task you may consider all closure activities as completed.