Authorizations & Roles

...

Anchor
_Toc426720632 _Toc426720632

Objective and Scope

Anchor
_Toc426720633 _Toc426720633

Objective of this Procedure

Anchor
Application Application

Anchor
_Toc364693744 _Toc364693744

Anchor
_Toc45612200 _Toc45612200

The purpose of this document is to standardize and harmonize the customizing and procedure of investment grants/subsidies posting.

Anchor
_Toc364932388 _Toc364932388

Anchor
_Toc426720634 _Toc426720634

Scope

Anchor
Definitions Definitions

Anchor
_Toc45612201 _Toc45612201

Anchor
_Toc364693745 _Toc364693745

This operating procedure (OP) describes the steps to be done to prepare and perform subsidies postings in PF1 PF2 (ERP) as well as WP1 WP2 (RCS).

Anchor
_Toc426720635 _Toc426720635

Reference Documents

(…N/A).

Anchor
_Toc426720636 _Toc426720636

Definitions

SBS RtR BO Solvay Business Services Record to Report Back Office
SBS RtR FO Solvay Business Services Record to Report Front Office
BU Business Unit
GBU Global Business Unit
APC Acquisition/Purchase Cost
WBS-element Work Breakdown Structure SU MAC Service unit management accounting   
GBU Global Business Unit
APC Acquisition/Purchase Cost
WBS-element Work Breakdown Structure Element
Investment Grants or Subsidy: amount granted by public institutions or third party to support an investment project.

Anchor
_Toc426720637 _Toc426720637

Responsibility

GBU or BU supported by local organization examines if and how subsidies will be granted for investment projects. In case of subsidies to be received, GBU /BU has to provide the agreements and documentation to Technical Controller (for PF1 PF2 companies) or Regional Manager SBS SU MAC I&D key user (for WP1 PF2/WP2 companies). Technical Controller respectively Regional Manager SBS SU MAC I&D key user have to prepare necessary WBS-elements as well as asset master for subsidy postings. They have to support the local management in case of an audit (e.g. by local authorities) by providing the appropriate SAP reports.
Depending on the specifics of the agreement, the subsidies have to be posted at the due date (e.g. as a receivable when the asset is ready for use) and not at the cash-in date.

Anchor
_Toc426720638 _Toc426720638

Subsidies in SAP

Posting and documentation of subsidies granted for investment projects are standard procedures in SAP.
Depending on the country or subsidy specifics, three different types have to be distinguished:

1. Subsidy to be capitalized in IFRS and Local GAAP
2. Subsidy to be capitalized in IFRS and to be reported on liability side for Local GAAP
3. Subsidy to be capitalized in IFRS and to be reported as profit in P&L for Local GAAP

Anchor
_Toc426720639 _Toc426720639

Master Data Maintenance

First step in SAP is always to determine the appropriate investment support key and to maintain the asset master accordingly. In the asset master, on tab "Allocations" you will find in the sub-tab "Investment support measures" the field "Key":

Clicking on the match-code button of "Key"…

…you will get the full list of selectable keys per chart of depreciation (example in PF1PF2):





The list in WP1 WP2 less exhaustive:


The appropriate key has to be selected and the updated master data to be saved.

Anchor
_Toc426720640 _Toc426720640

Posting of Subsidies

Two SAP standard transactions exist for posting of subsidies: ABIF and AR11 . They can be either perform by ID Regional Manager or Back officeSBS SU MAC.

Anchor
_Toc426720641 _Toc426720641

ABIF

ABIF has to be used for posting of individual amounts on individual assets. The transaction is available in both systems, PF1 PF2 as well as WP1WP2.

ABIF posting in

...

WP2

To start a posting with ABIF, following selections have to be made:
Company Code
Asset Number
Document Date
Posting Date and period
Transaction Type
The transaction type always depends on the investment key and the period of the related acquisition cost:

...

Following entries have to be made in the posting screen:
Amount
Asset Value Date
Offsetting Account (see posting schemes in the EXCEL file attached)
Text
Assignment
Reference

Before executing the posting, click on simulation , flag the line with the P&L account and check by clicking on "Additional Account Assignment" if a cost center has been added by default:


Finally click on "Post" .

ABIF posting in

...

PF2

The principle of posting procedure in PF1 PF2 is exactly the same as in WP1WP2. The only differences are the investment keys and related transaction types. 

AR11 posting in

...

PF2

ÁR11 is used to make subsidy postings on several assets via batch input. This is currently not prepared in WP1WP2. Prerequisite is the customizing of investment keys – as well as corresponding transaction types – with a fixed percentage. The asset master has to be prepared like described above (see 5.1). 
Parameter like posting date, document date, asset value date, transaction type etc. have to be selected comparable to ABIF. A range of assets, all assets of an entire cost center, plant or location can be selected and posted in one shot.
Before executing the posting, don't forget to remove the "Test Run" flag and make sure that the document type selected is AA.

Anchor
_Toc426720642 _Toc426720642

Corresponding postings in PS

To reflect the reduction of acquisition cost of assets in PS and to align the capitalized cost in PS and FI-AA, special "statistical" postings have to be performed. For this purpose a special asset under construction (asset class in PF1 PF2 ZXX93000 and AC219199 in WP1WP2) as well as a WBS-element for subsidies has to be created. 
This WBS-element, linked via settlement rule with the special asset under construction can also be used to "park" temporarily subsidies received already before the final assets are completed. In such a case the sequence of steps below has to be changed (2. – 3. – 1. – 4.).
The principle of postings to be performed is always the same:

1. Posting of subsidies on assets (ABIF or AR11) vs. P&L account
2. Posting on vendor account vs. WBS-element
3. Settlement from WBS-element on asset under construction (CJ88)
4. Settle asset under construction (investment measurement) to special asset under construction (CJ88)
5. Balancing of special asset under construction vs. P&L account (AB01)

You will find the detailed posting schemes in the SBS-FRM-DRTR-09-009 Investment Grants or Subsidies.




End of document