The BFC activity 1 is mainly materialized in SAP PF1 and PI1 by :

• the Business area , for postings linked to the Balance sheet,
• Reporting profit centers, for postings linked to the P&L.
  

For the operations linked to material movements (purchasing, consumption in production process, sales…), the Business area is determined by the combination of the division (MM03 - Display the Division) and the plant code. All combinations are maintained in the Table T134G (view V_T134G_WS).

For costing operations, the Business area is specified in the cost center or other objects, 

For other operations, the Business area can be entered manually in the document.

In case the operation arrives in the BFC / BW interface without business area, a default business area is determined by company code in table  ZZR_REPO_DIV_EXC  (records for “dummy reporting divisions 00 and 99). This table also enables a change of Business Area in the BFC interface, creating a difference between the accounting documents in the ERP system and the data transmitted to BFC.

A “BFC Activity 1” involves the following SAP objects:

• BFC Activity 1 → PF2 - Table ZZF_BFC_MARKET - BFC Activity 1 
• Reporting Division = BFC “activity 1” [trans codified into 2-character code if initially longer] → PF2 - Table ZZR_REPO_DIV - Reporting
• Trans codification between the Reporting Division and the BFC Activity 1 → PF2 - Table ZZF_BFC_DIV_COVV - Trans codification between “reporting division” and BFC Act1
• Business area = way of representing the “activity 1” for most SAP postings → PF2 - Table TGSB (view ZZRTGSBV) - Business area
• PIF (“Produit Issu de Fabrication”), materialized by two SAP objects :
  • Level of the “commercial hierarchy” → PF2 - Table ZZRT179V - Product hierarchies
  • Product division → PF2 - Table ZZRTSPAV - Product divisions
• Profit Centers and their hierarchies, on two levels :
  • global profit center representing the “activity 1” (D + business area code)
  • detailed profit centers at PIF / industrial origin level (F* range).
  • In both cases, additional profit centers can be necessary, based on the partner company.
• COPA Characteristics → Transaction KES2 - COPA Characteristics

The implementation of a new “BFC activity 1” requires the following steps:

• GAR  informs of the creation of a “BFC activity 1” with its BFC code

• The  GBU controller  defines with the GBU Marketing & Sales department, the appropriate product hierarchy structure. The GBU controller makes a request to Finance Data & Reporting team, including the following elements :
  • New BFC Activity 1;
  • “PIF” contained in the hierarchies, specifying whether they are new PIF or re-assignment of existing PIF – giving the product hierarchy of the new PIFs;
  • For each PIF, the list of the involved industrial origins (either linked to actual production, or external purchases or “mix of bulks” in external storages). In case of implementation in PF1 of a WP1 product division, WP1 code of these product divisions;
  • For each PIF, the list of the plants for which automatic determination of the business area is needed to derive the new business area;
  • Possible additional profit centers to be created to include the partner company.

• Finance Data & Reporting team : 
  • Create the Reporting Division in PF2 - Table ZZR_REPO_DIV - Reporting, PF2 - Table ZZF_BFC_MARKET - BFC Activity 1, and PF2 - Table ZZF_BFC_DIV_COVV - Trans codification between “reporting division” and BFC Act1 in PRS (PF1-050);
  • Open a Service one request to IT  Materials & Structure Data  team requesting the update of the PF2 - Table TGSB (view ZZRTGSBV) - Business area with the new business area code and the update of PF2 - Table T134G (view V_T134G_WS) - Business Area determination whenever we have the required information
  • Checks in transaction KES2 - COPA Characteristics  in PF1-020 if the new COPA characteristics codes are already available .

After the confirmation by IT  Materials & Structure Data  team, proceed to the creation of the Profit Center - Master Data:

• Create the D* profit center at “reporting division” level and insert it directly under the node representing the BU.
• Create the F* profit centers representing the combination of “PIF + industrial origin + bulk / pack”.

If needed, insert the “partner division” for some companies purchasing the goods represented by this “activity 1” (PF2 - Table ZZF_BFC_DIVPARTV - Division partner determination).

If needed and exceptionally / temporarily, force a change of Business area in table PF2 - Table ZZR_REPO_DIV_EXC - Reporting division conversion - Exceptions, to change the “business area – activity 1” in the BFC / BW interface to by-pass the one in the documents, when changes are decided when there are open documents.

When these activities are completed,  Finance Data & Reporting team  informs the Controller and the project team so they can undertake the downstream activities, according to 3 scenarios. Most often, these actions are included in a “mini-project” to be coordinated by IT teams:

1. First scenario: “brand new” materials – this is the easiest scenario:
   1. Insert profit center in the material costing view (F* for finished goods to be sold and D* for raw materials).
   2. Check that the combination “plant / product division” exists in PF2 - Table T134G (view V_T134G_WS) - Business Area determination .
      
      
2. Second scenario: existing materials but without stock :
   1. Idem as first scenario plus possible updates of open sales orders and other documents using the profit center. PF2 - Table T134G (view V_T134G_WS) - Business Area determination  can only be updated under this scenario if there is no stock for any material representing the combination “plant / product division”. Otherwise, scenario 3 must be activated.
      
      
3. Third scenario: existing materials with stock: this is the most complex scenario, requiring a series of sequential actions, usually coordinated by an IT Project team. As the working capital is calculated by “BFC Activity 1”, existing stock must be moved from the old to the new Activity 1. The safest way of achieving this, even not the simplest, is to go through a “zero stock” phase. It is strongly advised that this operation is done under the coordination of IT people used to this type of operations. 
   As no shipments or stock consumption is possible during the operation, it needs to be made at a time of low activity as to be agreed with the local Supply Chain manager:
   
   1. 1st phase: the stock is removed to arrive at a zero stock situation and thus cancelling the working capital on the old Business area.
   2. 2nd phase: all updates are made in PF2 - Table T134G (view V_T134G_WS) - Business Area determination, profit center in material costing views….
   3. 3rd phase: the stock is reinstated as before, reloading thus also the working capital on the new Business Area.

Other updates might be needed at different times, to be ascertained and coordinated by the IT project team.

A PIF involves the following SAP objects:

• PIF (“Produit Issu de Fabrication”), materialized by two SAP objects :

• • level of the “commercial hierarchy”, under the responsibility of under the responsibility of SCMS (Supply Chain, Marketing & Sales) → PF2 - Table ZZRT179V - Product hierarchies

  • product division → PF2 - Table ZZRTSPAV - Product divisions

• Profit Centers and their hierarchies: detailed profit centers at PIF / industrial origin level (F* range).

• COPA Characteristics → Transaction KES2 - COPA Characteristics in PF1-020

The implementation of a new “PIF product division” within an existing “BFC activity 1” requires the following steps :

• The GBU controller defines with the GBU Marketing & Sales department the appropriate product hierarchy structure.

• In case of implementation in PF1 of a WP1 product division, and in the absence of specific requirement from SCMS, the “minimum” hierarchy is determined by Finance data & reporting in basis of the other data.

• The GBU controller makes a request to Finance data & Reporting, including the following elements :

• • Activity 1 in which the new PIF will be reported.

  • “PIF” contained in the hierarchies, specifying whether they are new PIF or re-assignment of existing PIF – giving the product hierarchy of the new PIFs.

  • For each PIF, the list of the involved industrial origins (either linked to actual production, or external purchases or “mix of bulks” in external storages).

  • In case of implementation in PF1 of a WP1 product division, the WP1 code of these product divisions.

  • For each PIF, the list of the plants for which automatic determination of the business area is needed to derive the new business area.

  • Possible additional profit centers to be created to include the partner company.

• Usually, the request for the new product hierarchy is made to  IT  Materials & Structure Data  team  by the GBU, either Controller or Marketing.

• Finance data & reporting analyses the request and, if all clear and OK : 

• Create the F* profit centers representing the combination of “PIF + industrial origin + bulk / pack”.

• Checks in transaction KES2 - COPA Characteristics  in PF1-020 if the new COPA characteristics codes is already available .
  
• When these activities are completed, Finance data & reporting informs the Controller and the project team so they can undertake the downstream activities (material profit center, open orders…).

Only the Profit Centers and their hierarchies are involved.

The implementation of a new profit center within existing “PIF / product division” and "BFC activity 1” requires the following steps :

• The GBU controller makes a request to the Finance Data & Reporting team, including the same elements as for an “BFC activity 1”, specifying the existing PIF, “BFC activity 1” and industrial origin.

• Finance Data & Reporting team analyses the request and, if all clear :

• • Check that the requested profit center is at PIF level, neither above nor under.

  • Create the profit centers insert them into the hierarchy as in the first sub-process.

• The local Controllers ask Service Unit Management accounting team to update the profit center in the material master data.

The full hierarchy of Solvay Business structure is implemented in two ways in the ERP Solvay:

1. With a set of tables in PRS, replicated to PF1 and PI1:
   
   1. Clusters – PF2 - Table ZZR_REPO_CLU - Clusters
   2. Groups of GBU, also called sub-clusters – PF2 - Table ZZR_REPO_SCLU - Sub Cluster, including the link to the appropriate cluster
   3. GBU – PF2 - Table ZZR_REPO_BU - Reporting: Business Unit, including the link to the appropriate “sub-cluster”
   4. Group of Activities – PF2 - Table ZZR_REPO_SBU - Reporting: Sub Business Unit including the link to the appropriate GBU.
   5. BFC Activity 1 - PF2 - Table ZZR_REPO_DIV - Reporting includes the link to the “Group of Activities”.
2. The hierarchy of Reporting Profit centers: CHEFCHEOPS, starting from the GBU downwards.

The implementation of a change of organization above “BFC Activity 1” requires the following steps :

• Finance Data & Reporting agrees on a date for implementing the change, together with the GBU Controller.
• Finance Data & Reporting creates a workflow describing the changes to be made and asks the GBU Controller to submit/validate it.
• At the given date, Finance Data & Reporting implements the change in the tables and the profit center hierarchies.