1. Objective and Scope

1.1. Objective of this Operation

This procedure aims to help to understand the Corporate Insurance process, how it is performed and estimated

1.2. Scope

All Legal entities covered by Corporate Insurance Program, both on PF2 and WP2

2. Definitions

See Finance Glossary:

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3. Tasks description

3.1. I receive the Premium Allocation File 

Every year, around July, we receive the new Premium Allocation File from the Corporate Insurance Team. Usually, the policy covers a period of 12 months, meaning the insurance period will cover from July until June the following year. 

We will receive the file, usually via email, but it can also be posted in the Corporate Teamsite. 

The file will usually look like this:

With each tab referring to a specific insurance program (for example, Property Insurance, D&O Insurance, etc). 

It is important to check that the file containt the following information:

• Internal rec - this information will determine the site of the amount to be charged as expense;
• Legal Entity - this information will determine which company code the amount is referring to;
• Address;
• Total Premium (Including tax) in Local Currency;
• Period of the policy

If any of this information is missing, we should contact the Corporate Insurance Team to provide it so we can have the information complete.

Once we receive the premium allocation file, we can start working in the internal allocation file.

3.1.1. I transfer the information to the internal file

After you have received the file and ensured that no information is missing, you can transfer the information to the internal file, stored at the Google Drive.  You can create a new folder on the Drive and copy the file from the previous period to keep the history. 

Once you have done this, you can start transferring the information from the Premium Allocation File to the tabs accordingly to the program:

It is usually better to do one program at a time to ensure that no data is missing.

Once you have transferred the information, you can check the company code tabs to ensure that the formulas are working and adjust them if needed: 

If everything is alright, you can check in the tab to ensure that everything is ok. Filter on column "H", "Check 1" to see if anything is everything is ok:

If something is marked as "Not Ok", you will have to check what is missing.

Usually, when something is "Not Ok", it is related to a new Internal Record informed by the Corporate Insurance Team that you will have to add in the company code tab in the "I" column:

Once all company codes are correct for every program, you can send the file for the controllers.

3.1.2. I send the Allocation File for the controllers 

If everything is ok with the file, you can send it to the controllers so they change the cost center allocation in the company codes allocation:

Then, you can send an email informing the controllers that the file is ready for their updates. You can find the list of the controllers here. 

Once the controllers have done their changes, go to tab, and check all the companies with "Not Ok" status on the "Check 4".

This means you will have to add a new cost center in the U column:

After you have added all the cost centers for all companies, and that everything is ok in the "Companies Check" tab, you can start to change the cycles and later create the Accruals Object.

3.2. I change the cycle allocation and create the Accruals Object

3.2.1. I change the cycle allocation

Now that the controllers have informed what should be the new cycle allocation, you should change it by segment in transaction KSV2.

For example, for company code 6409, the allocation suggested by the controllers for General Liability Insurance was as follows:

Therefore, in KSV2, the allocation should be the same:

Insert the control area, cycle insurance (the company code number plus IN) and the start date (the first day of the year):

Select the Icon to select the segment you want to change:

In this case, you can check in the internal file the segment by looking at the cost element (it will be the same as the name, for example 98300251)

Click on  to adjust the percentage by cost center:

Once you have updated, save it on the button.

Do the same for the others segments as well.

In case a cost center is missing, you can go back to and edit the cost center group:

Select the cost center group, go to "Extras" and "Change Group" and then "Cost Center" to add a missing cost center:

3.2.2. I create the Accrual Object

I create data upload using Accrual Engine Template

Go to the Forms repository and download macro-profiled file for data upload. Follow the instruction in file.

Creating Accrual Objects without a Template

Go to transaction ACACTREE01 and see the following screen:

following in the Reference Data:

1. Company Code:  Enter the company code for the Accrual Object to be created.
2. Accrual Object Category:  Selected from the drop down menu.  Select with the year of the policy period followed by “_INSUR” (i.e., for 2025-26 insurance renewals, it is 25_INSUR). Every year, a ticket has to be created to IS requesting the category creation YY_INSUR (where YY is the current fiscal year)
3. Text:  The text in the accrual object setup should follow standard naming convention of year, type of insurance, and Business Area.  Example:  2025-26 General Liability Person Responsible:  if based on estimate, “ESTIMATE”; if actual insert ERP invoice document number.
4. Start and end dates:  The policy period dates are entered here.  Normally it will be one year.

Go to the Item Data tab and click on “Append Row” Icon to add an Accrual Type:

1. Accrual Type: Select “COSTS”.
2. Accounting Principles:  Select “IAS.”
3. Total amount to be accrued:  The estimated premium for the policy year for that company (based on Premium Allocations File provided by Group Insurance team)
4. Accrual Item Currency: The currency of the company code
5. Total Quantity to Accrue and Unit of Measure: Leave blank
6. Accrual Method: Select “Linear.”

You should have something similar to the below information:

Go to the Parameters tab and click on the button “Enter Parameters” to bring in the additional fields to populate:

Text field: Standard text with the policy year, followed by the type of insurance, and “estimate” (i.e., 2025-26 Broker Fees).  This information will appear in the posting line.

Assignment field: The type of insurance as shown below will match up with posting from Insurance file (where XXXX=policy year beginning and YY=policy year ending – i.e., 2025-26 Liability General):

Document Header Text:  The policy year followed by “Insurance (i.e., 2025-26 Insurance)

Completed Parameters:

Go to the Acct Assigts Tab. 

Enter the Insurance Cost Center for that company in the Cost Center  field (for PF2, consider cost center EE800000IN, where EE is company establishment code; for WP2, consider the SWEEP cost center CCCC-5998, where CCCC is company code number):

In the bottom section of the Accrual Object creation screen, go to the Accts tab.  Complete the screen as follows:

For the “Opening Posting” the “Start Acct” is always 2322014902 (PF1) and 46950200 (WP1) and the “Targ Acct” is always 270000010 (PF1) and 47900100 (WP1).

For the “Periodic Postings,” the “Start Acct” is always 2700000010/ 47900100, but the “Targ Acct” is based on the type of insurance.  Enter the appropriate G/L account based on the Insurance Program: 

After completing all the above fields for the Accrual Object, you need to save it.

IMPORTANT:  When you save the Accrual Object, a posting is made for the amount in the “Opening Posting” at that time.  It is important that you ensure all fields have been correctly and accurately completed.  Otherwise, information included in the posting will have incorrect data.  No monthly periodic postings are made when initially saved.

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End of document.