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: Country Accounting

Responsibility area:

1. Objective and Scope

1.1. Objective of this Operation

The purpose of this document is to explain how perform the post and reconciliation for Deferred Compensation in company 7424 in WP1 system.

The Deferred Compensation is a monthly contribution paid by the key executives. The managers choose to defer a part of their remuneration and the funds are deposited in as a saving plan, but these plans are considered as non-qualified, that means the government is not responsible for this funding in case of company’s bankrupt. So, the company is not obligated to fund these amounts. Under these rules, the company maintains the liability but is not required to deposit funds into the Deferred Compensation accounts.

When an individual retires or leaves the company, he develops a program with the company outlining withdrawals from the plan.

The reconciliation is done on D-2 and it is related every previous month. The founds are administrated by Merrill Lynch (external) and there is one month delay on the reports.

1.2. Scope

This procedure is applicable for 7424 company code on D-2.

2. Definitions

See Finance Glossary:

3. Tasks description

3.1. I Receive the Files

3.1.1. I Receive the File With Plan's Balance

Normally it is sent by Sara D'agostino ( sara.dagostino@solvay.com - Deputy Compensation & Benefits Manager) by email or you can find it in Freshdesk tool searching by "Month + Sara Dagostino":

Email:

Freshdesk

Download the attachment Plan's file.

3.1.2. I Check If Payroll Report Is Done

Go to HR-Finance in AODocs and find the US HR report for the current month that you are. It means no payroll postings will be done anymore in the month and this procedure can continue.

Otherwise, it means there is a possibility to have payroll postings, which will impact the reconciliation.

If no access to this folder, please contact Teresa Maciel (teresa.maciel@solvay.com) - responsible for HR in AODocs in SBS;
It is not necessary to download the file, i is just to check if payroll posting are completely done;

3.2. I Post and Reconcile the Account

3.2.1. I Check the Files

After the previous steps, get the previous month reconciliation file, normally in ARA tool or in the email as you need to send it to the CAM after it is done.

Just to show, here is the template of the file - 7424 16920200 Deferred Comp Template. Please do not use the template as it does not contain the reconciliation itself. Instead, use the previous months files as it contain the reconciliation's history;

In the Plan's file, copy the information on tab "7424 Post 2016" to the reconciliation file, tab "ML Report YYYY".

Information to be copied:

Original Tab in the Plan's file:

Reconciliation file:

Then, check if the "sum of end" balance form previous month reconciled is the same of the "sum of begin" balance from the report:

If it is not equal, something could have happened like a transfer or the report is incorrect. Please verify it with Sara.

3.2.2. I Reconcile the Account 16920200

In the reconciliation file, create a tab for new month and name it as "previous month YY Rec in current month" as below:

The tab's structure is in the screenshot below and can be found in the template file 7424 16920200 Deferred Comp Template:

As it has been said, please use the previous month files and not the template directly as it does not have the reconciliation's history;
It can be found on ARA or in the email sent to the CAM in the last months;

ML Report check:

Include the values as below scheme from tab "ML Report YYYY" to reconciliation tab (use formulas in excel).

After that, check if there is difference between the Closing balance in the reconciliation tab and the "ML Report YYYY". If yes, something went wrong. If not, it will result 0 in the check line in the screenshot below:

ML closing balance:

After that, the below structure should be populated:

ML Closing Balance = take it from "ML Report YYYY" tab (excel formula);

Month payroll = take it from current month account in SAP 16920200:

Open FBL3N transaction in SAP with the current month line items

See what is HR payroll (normally it is document type H0):

Balance that SAP should tie to = automatic calculation considering the previous ML balance + current Payroll (this is what the account balance should be in SAP);

SAP Balance Month per screenprint = enter in FS10N and take the current month balance:

Difference = automatic calculation between what the balance should be and what it is. This is what you need to post through journal entry.

After posting the journal entry, this difference needs to be zero.

3.2.3. I Create the Journal Entry and Post

Take the template JE 7424 Deferred Compensation Template for the Journal Entry.

The objective is:

Adjust the account 16920200 + F56 in the flow (transaction type) and the counter part is 98536400 + cost center 7424-9401;
Be careful with posting date and posting key, because it can be different depending on the month.

In the justification tab, take a screenshot of the "ML Report YYYY" tab and include the comment "Posting of MM YYYY interests and Market Value Change in 7424 to tie with the Merrill Lynch's reconciliation report".

Post it through freshdesk.

3.3. I Do the Final Check and Send the File to CAM

3.3.1. I Do the Final Check

After posting the adjustment, update "SAP Balance Month per screenprint" line with the FS10N balance. If there is no difference, than it is ok, If there is, something went wrong.

Remember to update the screenshot of the FS10N and include it in the reconciliation.

3.3.2. I Send the File to CAM

Send the reconciliation file to 7424 CAM - Martin Bright (martin.bright@solvay.com) through Freshdesk.

End of document.

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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

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

Table of contents

Scope

ERP

Frequency

References

Forms

Attachments

1. Objective and Scope

1.1. Objective of this Operation

1.2. Scope

2. Definitions

3. Tasks description

3.1. I Receive the Files

3.1.1. I Receive the File With Plan's Balance

3.1.2. I Check If Payroll Report Is Done

3.2. I Post and Reconcile the Account

3.2.1. I Check the Files

3.2.2. I Reconcile the Account 16920200

3.2.3. I Create the Journal Entry and Post

3.3. I Do the Final Check and Send the File to CAM

3.3.1. I Do the Final Check

3.3.2. I Send the File to CAM

End of document.

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US - 7424 - Deferred Compensation

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

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

Table of contents

Scope

ERP

Frequency

References

Forms

Attachments

1. Objective and Scope

1.1. Objective of this Operation

1.2. Scope

2. Definitions

3. Tasks description

3.1. I Receive the Files

3.1.1. I Receive the File With Plan's Balance

3.1.2. I Check If Payroll Report Is Done

3.2. I Post and Reconcile the Account

3.2.1. I Check the Files

3.2.2. I Reconcile the Account 16920200

3.2.3. I Create the Journal Entry and Post

3.3. I Do the Final Check and Send the File to CAM

3.3.1. I Do the Final Check

3.3.2. I Send the File to CAM

End of document.