High- Level Specification

Functional Overview

This apps will be called from Advance Financial Closing (AFC) task list and also can be executed from S4 HANA directly if required. This app is required in all two S/4 HANA Production systems.  

There are two functionality serves within this program to meet business requirements:

• Syensqo group reporting policy mandates to report Cashflow on Capex as part of its disclosure requirements (both at Group level and at GBU level), as well as detail Capex cash movement by project for GBU Capex analysis (Simplified Cashflow). The Cashflow on Capex must exclude VAT and WHT

  • Starting from the transaction type for "increase/addition" (F20) on the Fixed Asset and Asset Under Construction accounts. When an asset under construction (AuC) is completed and capitalized, the increase or addition (F20) to the AuC account is reversed once the asset is brought into service, using the "Brought into Service" (F34) transaction type. This same F34 transaction is then applied to the appropriate Fixed Asset Class

  • Further to that, any unpaid invoice then need to be corrected on the working capital in operating cashflow. Meaning, If invoices remain unpaid but the fixed assets have already been obtained, these should not be classified as cash outflows. The adjustment for this scenario will be implemented through this program, by reclassing from Trade Payable account (under Operating Cashflow) to Capex Supplier account (under Investing Cashflow) using Flow (Transaction Type) F15. The value recorded must reflect the net amount, which means it should exclude VAT, withholding tax, and any payment discounts, representing the actual cost incurred

  • Downpayment is not part of this reclass program as this will be handled via special GL indicator that is mapped directly to Cashflow reporting 

• To satisfy IFRS16 cash flow reporting requirements. Supplier OI related to finance lease need to be reflected in Financing Activities (as oppose in Operating Activities) using Flow (Transaction Type) F30. This program is intended to perform this reclass.

           Posting scheme:   

Scope and Objectives

Capex Supplier and IFRS16 Financial Debt reclass only relevant for:

• Trade Payable (excluding Non-Trade Payable, Intercompany, and Noted Items)

• IFRS ledger (not applicable for Local GAAP ledger)

Out of scope:

• This program will not be reclassing Vendor open items that were brought in as part of data migration at go-live cutover as there is no linkage to underlying transactions. The reclass for those documents will need to be done manually (see: Reclass - Capex Supplier and Finance Lease Debt on Migrated Data.pptx)
• FI vendor invoice posting to WBS (all CAPEX purchases must follow Purchase Order process)

Process Flow Diagram

Assumptions

For Capex Supplier reclass, all Capex purchases (including Direct Asset purchase) are using Purchase Order with three way matching. GR/IR account will have information on WBS/Project, profit centre, etc in Universal Journal (hereinafter referred to as 'ACDOCA')

For IFRS16 Finance Debt reclass, the transitory account will have information on contract number in ACDOCA

Dependencies

This program has dependencies on:

• Configuration on transaction types 

• Data migration for AP open items

• Payment On Behalf (POBO) design from Treasury

• RE-FX Reclass program

• I2M Master Data standard

• Capex reporting

Security, Integrity and Controls

This transaction will be assigned to role as per swimlane described in L4 09.07.01.05. Manage General Ledger Period Close

Configuration Requirements

Not Applicable

Language Requirements

Language for any error messages will need to be translated as per KDD055 - Multi-Language Support.

Special Requirements

This program needs to be accessible via Fiori Apps in each of production client. Also be able to be called from Advance Financial Closing (AFC). Please refer to OSS Note: 2879220 - AFC Integration of customer-specific reports for coding requirements

Design Rationale

This program will be executed at month-end. The program will have a Fiori app that can be executed by business either online or as scheduled (background) 

There are two functionalities serves for the program:

1. Capex Supplier Reclass 

2. IFRS16 Finance Debt Reclass

Recommended UI Technology

Standard ABAP report program as User Interface as required by the AFC.

To post reclass document on Production run: Use (1) BAPI_ACC_DOCUMENT_CHECK; subsequently (2) BAPI_ACC_DOCUMENT_POST

 Data Source Considerations

Application Screen

Wireframe or Mock-Up

Apps Name: Reclass Capex Supplier and Finance (Lease) Debt

Screen Behavior

Screen Validation: 

• When "Posting Period" and "Fiscal Year" specified on selection screen are greater than current date issue warning  (should only be run at month-end)
• When parameter for Ledger Group populated not equal to (<>) '0L' issue error message "Only ledger '0L' is allowed'
• Issue error when mandatory fields on selection parameters are not populated
• for field "G/L Accounts" on selection parameter section, issue error if the account selected for the company code inputted is not SKB1-MITKZ = 'K'.

Dynamic screen is required for "Reclass Tasks". When user select "Reclassification to Capex Supplier" it expands the screen to show these four parameters, and hidden the parameters for Finance Lease Debt. The same when a radio button "Reclassification to Finance Lease Debt" is selected, four parameters are shown. And parameters related to Capex supplier are now hidden. 

Dynamic screen is also required for "Production Run". When user select "Production Run" it expands the screen to show "Background Processing" option. When user select Radio button for "Test Run", the "Background Processing" option is hidden . 

Additionally, please refer to section "Selection Screen" section below

Screen Navigation

Screen Default Layout on "Test Run" for Capex Supplier. For Finance Lease Debt default layout has "Contract Number" instead of "WBS" or "Project"

Screen Default Layout on "Production Run" for Capex Supplier. For Finance Lease Debt default layout has "Contract Number" instead of "WBS" or "Project"

Data Integration

Selection screen 

There will be protected program variants specified specifically for month-end ("/MERCLCPX_APAC/EMEA/AMER", and "/MERCLLEA_APAC/EMEA/AMER"*) that will be used for this program. *potentially needs to be split further for CUI and CHINA instances

Report Layout

Processing Logic

Program Logic:

1. Reclassification to Capex Supplier

          - If Company Codes <> IHB Header Entity 
          - If Company Code = IHB entity (see ** for additional selection, an extra steps to get the information on original invoice number for the invoice that has been moved (POBO) to IHB header entity)

* related to I2M Master Data Standard

^ original invoice document number

2. Reclassification to Finance Debt

 Selection logics are the same as CAPEX reclass program, the differences are:

Output Logic:

• "Test Run"

      Program will create ALV report layout, default columns displays depending on the program executed:     

• • For Capex reclass - list down the details of the information retrieved (as result of step#3). Columns to display: Status#, Company Code, Vendor, Purchasing Doc + Item, Document Number (original FI invoice doc), Profit Centre, WBS, Project, TC, Amount in TC*      

  • For IFRS16 Fin Debt reclass - list down the details of the information retrieved. Columns to display: Status#, Company Code, Vendor, Purchasing Doc + Item, Document Number (original GR/IR doc), Profit Centre, Contract Number, TC, Amount in TC*, 

      (*see section Program Logic for columns marked as "retrieved"). It should create a spool with no immediate output but hyperlink to Spool SP02 (message "Spool request (.... ) created without immediate output. View details")

      # Status column should show "OK to post" for the document lines that can be posted, and "ERR" which can be referred to spool error message

• "Production Run" (online)

      Program generate posting depending on the program executed (use: API_ACC_DOCUMENT_SRV or BAPI_ACC_DOCUMENT_POST) :

• • For Capex reclass - the posting is to offset normal Vendor recon accounts (offset account as per parameter), where amount = retrieved amount, to Capex supplier account (as per parameter), where value = *-1 (opposite value) with transaction type F15

                     ^Based on documents list retrieved from step#3, create posting group by Currency, profit centre and project ID

                     and reversal document (reverse entry of original entry Posting Key and amount (with header text = original doc + suffix "_REV" - "CAPEX_SUP_RECLASS_REV") and XBLNR = initial reclassed document number 

• • For IFRS16 Fin Debt reclass

                     ^Based on documents list retrieved from step#3, create posting group by Currency, profit centre and Contract number

                     and reversal document (reverse entry of original entry Posting Key and amount (with header text = original doc + suffix "_REV" - "LEASE_SUP_RECLASS_REV") and XBLNR = initial reclassed document number 

           Program will then create ALV report layout, default columns displays depending on the program executed:     

• • For Capex reclass - list down the details of the information retrieved from step#3 combined with posted documents into matrix table*

    • Available columns for display: Status#, Reclass result (Doc No., CCd, Transaction Type, TC, TC Amount, LC, LC Amount, GC, GC Amount) + Original documents retrieved from step#3 (Company Code, Vendor, Purchasing Doc + Item, Document Number (original FI invoice doc), Profit Centre, WBS, Project, TC, Amount in TC, LC, Amount in LC, GC, Amount in GC) 

  • For IFRS16 Fin Debt reclass - list down the details of the information retrieved from step#3 combined with posted documents into matrix table*

    • Available columns for display: Status#, Reclass Result (Doc No., CCd, Transaction Type, TC, TC Amount, LC, LC Amount, GC, GC Amount) + Original documents retrieved from step#3 (Company Code, Vendor, Purchasing Doc + Item, Document Number (original FI invoice doc), Profit Centre, Contract Number, TC, Amount in TC, LC, Amount in LC, GC, Amount in GC) 

                # Status column should show "Posted" for the document lines that have been reclassed and "ERR" which can be referred to spool error message

                * to differentiate with the original document retrieved up to step#3, the reclass document information should be displayed in ALV with columns that are prefixed with "R_ "

• "Production Run" (Background)

            When the parameter "Background" is selection on Production Run, the same output as per Production Run (Online) is required to be displayed on the spool result 

• "Production Run" (Re-run)

           When the program is re-run, it needs to check if the reclass documents have been posted for the original invoices selected. Only to select and post the delta if the original invoice has a corresponding reclass document

Custom Tables

Master data - N/A

 Configuration table - N/A

Tooltips

• show 'green' traffic light with tool tip "OK to post" or 'red' traffic light with tool tip "Error" (on test run) 
• show 'green' traffic light with tool tip "Posted" or 'red' traffic light with tool tip "Error" (on production run)

Front-End

This program/Fiori Apps will be run from desktop/laptop. This is not meant to be run from mobile phone / tablet

Mobile Services

Not applicable

Authentication & Authorization

Accessing the Fiori Apps should be done out of launchpad using SSO. Or triggering the apps from Advance Financial Close (AFC) by logging to AFC via SSO

Accessibility

Not applicable

Volumetrics

Data based on legacy systems:

Capex Supplier reclass

PF2 (based on 28 company codes in scope): FY 2025 up to Nov (1378 documents), FY2024 (1724 documents), FY2023 (1339 documents), FY2022 (1223 documents)  BKTXT = Z3F_CAPEX_FAV_MONTHLY_POSTING

WP2 (based on 47 company codes in scope): FY2025 up to Nov (4698 documents), FY2024 (5637 documents), FY2023 (5014 documents), FY2022 (4344 documents) BKTXT = Z3F_CAPEX_FAV_MONTHLY_POSTING

QI2 (based on 2 company codes in scope): FY2025 up to July (707 documents), FY2024 (1579 documents), FY2023 (1138 documents), FY2022 (764 documents)    XBLNR = Z1F_CAPEX_MONTHL

IFRS16 Finance Lease Debt reclass

PF2 (based on 28 company codes in scope): FY 2025 up to Nov (333 documents), FY2024 (450 documents), FY2023 (388 documents), FY2022 (333 documents)  BKTXT = Z1F_LEASE_MONTHLY_NEW

WP2 (based on 47 company codes in scope): FY2025 up to Nov (1139 documents); FY2024 (1351 documents);  FY2023 (923 documents); FY2022 (863 documents) BKTXT = Z1F_LEASE_MONTHLY_NEW

QI2 (based on 2 company codes in scope): FY2025 up to July (512 documents), FY2024 (1054 documents), FY2023 (987 documents), FY2022 (809 documents)    XBLNR = Z1F_LEASE_MONTHL

Performance Consideration

This program will be executed at month-end. There is no performance issue expected as this will be run per region covering EMEA (ERP), APAC (ERP, ECP) , America (ERP). America region will have 19 company codes; EMEA (ERP) will have 31 company codes; APAC (ERP) will have 15 company codes; APAC (ECP) will have 8 company codes. Based on volumetrics on number of documents processed in legacy these will only be maximum around 5000 documents

Error Handling

On both test run and production run, when the program does not pick up any records, show a message "No data selected!" 

On both test run and production run, check the "Target" and "Offset" G/L Accounts specified on the  selection parameters with company codes entered in selection parameters against SKB1:

• If  SKB1-SAKNR does not have G/L accounts specified on the parameters, issues error message "G/L Account XXXXXXX, XXXXXXX does not exist in Company Code 1234" where XXXXXXX = SAKNR from parameters and 1234 = BUKRS from the parameters
  
• If  SKB1-SAKNR does have the G/L accounts specified on the parameters but it has status blocked for posting (XSPEB) = "X" and/or  deletion flag (XLOEB) = "X", issues error message "G/L Account XXXXXXX is  (Condition A or Condition B)"; where XXXXXXX =  SAKNR from parameters and Condition A = 'block for posting' if the GL accounts has "XSPEB=X" or Condition B = 'marked for deletion', if both XSPEB and XLOEB are "X" shows only Condition A error)
• else no error 

On production run, when the program unable to post due to period is not opened, issue error message "Period XX FY XXXX is Closed"

• Check T001 for Company Code (T001-BUKRS) posting period variant (T001-OPVAR)
• Based on (T001-OPVAR), check T001B where Record Type (T001B-RRCTY) = "0" (Actual), Account Type (T001B-MKOAR) = "S" ,  and  "GL Account" specified in "Target" G/L Account in parameters is within From Account (VKONT) to To Account (BKONT) - if not loop until find the correct range
• Then Get Posting Period that are still open From Period (FRPE1) + From Fiscal Year (FRYE1)  to To Period (TOPE1) To Fiscal Year (TOYE1)
• Compare the posting period, FY, posting period+1, FY(+1, if posting period is 12) specified in parameters - including posting period/FY reversal
• If posting period/FY incl. reversal posting period/FY are not opened, issue error message "Period XX FY XXXX is closed" where XX and XXXX are posting period specified in parameters or if the reversal period that is not open "Reversal Period XX+1 FY XXXX(+1) is closed"

Testing

How to Test

Access the apps and execute the transaction based on predefined program variants (parameters specified on section "selection screen enhancement") and/or

Logon to AFC and execute from app "Process Closing Tasks" to trigger execution of the reclass program on each connected S4 system(s)

Test Conditions and Expected Results

Capex Supplier Reclass Program

Finance Debt (IFRS16) Reclass Program

*( Process Closing Tasks apps)

Test Considerations/Dependencies

Calling the program from Advance Financial Closing (AFC) has dependencies on the following:

• Register custom program, variant, and task model at local setting
• Synchronize completed to AFC system 
• Task model available in AFC test system 

Executing the program multiple times for the same parameters should only post the delta.

Other Information

Reference legacy process Functional Documentation - Capex Analysis report

Reference legacy IFRS16 Finance Debt reclass program: Z1F_CAPEX_MONTHLY (PF2); ZWFAR58002 (WP2); Z3F_CAPEX_FAV_MONTHLY_POSTING (PI2)

Reference legacy Capex Supplier reclass program: Z1F_CAPEX_MONTHLY_POSTING (PF2, WP2); Z3F_CAPEX_FAV_MONTHLY_POSTING (PI2)

Development Details

Package

UI Implementation

API Implementation

Other Development Objects

Appendix

Custom Authorization Group Naming Convention

This table is based on the Syensqo development standards document. It provides the naming conventions for authorization groups to associated with custom reports and tables to comply with security requirements.

See also

ERP-956 IHB Factoring - Selection of open items/Chained Inter Co/Payment order (Factoring contract)

Change log