Tasks to be completed when documenting an operation (from creation to publication)

1. Enter the Title of the operation / page

2. Add the following Labels:

    • Scope of applicability: ww, country_accounting

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam,uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore, new_zealand, emea_transversal, apac_transversal

    • Unit and Domain according to the List of labels to be used in the Finance Service Line space

      • E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":
        • Labels to be used: ww, financial_accounting, central_fin_proc_compliance

      • E.g. 2: France Operation in Financial Accounting:
        • Labels to be used: country_accounting, france, financial_accounting
          (for country operations, the Domain is always country_accounting)

3. Fill in all fields as described above

4. Name the title of each section using OPD methodology naming convention - Infinitive verb without the “to”, mainly action verb...something) -" I do something..."

5. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance approval workflow

Domain: Central Finance Processes & Compliance

Responsibility area: Ensure information on standard costs for Restructuring provisions is shared to Controllers

Table of contents 


Scope


ERP


Frequency

 

References



Forms


Attachments

docs.google.com/spreadsheets/d/1Imx6KXXW_bZMxEjmmErKEw-tAzuEXIT__TpjcHVkKd4/edit#gid=2025782719

 

<< I communicate the Standard costs for Restructuring >> I ensure master data is prepared in SAP for restructuring provisions



1. Objective and Scope

1.1. Objective of this Operation

The goal of this operation is to share with the FI Representatives assigned Restructuring provisions review any changes shared by HtR on standard costs to be considered for best estimation of the provision.

 

1.2. Scope

All countries impacted by Restructuring provisions with Standard Costs listed (France, Belgium, Portugal, Italy, Spain, USA, UK, Germany, China, Singapore, South Korea, Brazil).


2. Definitions

See Finance Glossary:

Restructuring includes all measures designed to permanently adapt structures, production and employees (production, sales, administrative) to economic changes.
Restructuring plans include site closure and/or stop of activity. They should be distinguished from "Recovery plans", which result in decrease in staff and that are reported under "R38220 - Recovery plans" above REBIT.
The cost of all arrangements associated with the restructuring decision should be provided for in the year in which the decision to restructure is made.
Restructuring costs are broken down into:

  • R45100 - Restructuring expenses of the period excluding depreciation
  • R45200 - Use of restructuring provisions
  • R45300 - Restructuring provisions
  • R45500 - Restructuring - Impairment of fixed assets
  • R45600 - Restructuring - Write-down of inventories / receivables

R45500 & R45600 are out of scope of this procedure
Restructuring costs include:

  • severance pay
  • compensation for the early termination of operating leases, and
  • all exit costs arising from restructurings, including impairment losses recognized on discontinued assets due to the closure of a site or operation.


Restructuring provisions (R45300)
In here are reported the full charges of these provisions in the P/L (without cash counterpart):

  • the new provisions (new measures)See above under R45100 for the related expenses types.
  • The restructuring provisions are reviewed quarterly with the cost controllers.

Notes:

  • The corresponding heading of R45300 in the statement of financial position is "L15800 / L45800 - long-term / short-term provisions for restructuring".
  • Before reported new restructuring provisions, the agreement from the Consolidation Department is required in order to ensure these provisions relate well to a restructuring plan and not a recovery plan (competitive plan).


3. Tasks description

Finance Service Line General Ledger Specialist handling Restructuring Provisions must share with the FI Representatives handling Restructuring provisions review the most updated list of Standard Costs, provided by HR Reports team.

3.1. I inform Controllers on the update of Standard costs for Restructuring provisions

3.1.1. I inform Controllers on the update of Standard Costs of Restructuring provisions by email, sending the link of the Database used.

Send an email to the Controllers listed as FI Representatives and alert them on a quarter or yearly basis that the standard costs by Country have been changed and that the Restructuring provisions should reflect the update accordingly.





End of document.