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Tasks to be completed when documenting an operation (from creation to publication)1. Enter the Title of the operation / page2. Add the following Labels :
3. Fill in all fields as described above4. 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 |
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Table of contents
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ScopeERPFrequency
ReferencesFormsAttachments<<
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1. Objective and Scope
1.1. Objective of this Operation
The purpose of this procedure is to explain in detail how to analyze and proceed to settle open balances related to:
- Palladium invoicing;
- Taxes on electricity due on a quarterly basis;
- Annual fees for Veterinary Medicinal Marketing Authorizations.
1.2. Scope
The procedure is applied to entity Solvay interox Cytec Engineered Materials Limited (UK WP1) (SAP code 0240) and your main point of contact for support is the controller of Warrington plant - Iva Montez. 7771).
2. Definitions
See Finance Glossary:
- ...
3. Tasks description
3.1. I
analyze GL account 2729000005 and settle the outstanding balance - Palladium invoicing3.1.1. Monthly check - Palladium purchase
On a monthly basis the Palladium catalyst (Pd) and production costs monthly provision has to be registered when reporting production cost.
This provision is calculated by plant controller, based on the monthly production and an estimated market price shared by the GBU following a specific accounting scheme:
• 40 6000100118 Palladium and catalyst costs (income statement)
• 50 2729000005 Accrued liabilities-Palladium and catalyst (balance sheet), mapped to trade payables (L40100) in BFC.
This accrual is intended to compensate possible losses in production, it will be used over the course of the production year to provide funding for purchases and at the moment of purchasing, the invoice is booked against the accrual.
Therefore, to make sure that the invoice is registered correctly you have to check in vendor account 702703090 - SOLVAY S.A. if any invoice was issued in what regards the Palladium purchases.
Open transaction FBL1N with the following selections:
- Vendor account 702703090 - SOLVAY S.A.
- Company code 0240
- All items for the current month – 01.MM.YYYY to 31.MM.YYYY
To identify the invoice, the text generally mentions “Other industrial services WN32482500”.
Open the invoice registered and confirm if the invoice is registered in account 2729000005.
If not you must regularize immediately the invoice from the PL account to the provision account.
You can use document as reference 5010009745:
3.1.2. Quarterly check - Analyze the outstanding balance
At year end, If the accrual has not been completely used to purchase Pd metal:
• in case the plant has not yet purchased the accrued quantity of metal: the accrued amount will continue to be recognized, and will be debited against purchases in a subsequent year;
• if the plant has purchased the accrued quantity of metal (so if the difference is due to the metal price being lower than the estimated market price used as basis for the accrual calculation): the accrued amount will be moved to P&L.
Either way, you have to check account balance and each quarter contact and align with plant controller if any action should be taken to regularize the outstanding balance.
3.2. I analyze GL account 2450003712 and settle the outstanding balance - Taxes on electricity due on a quarterly basis
3.2.1. Quarterly check (May; October; December; February)
The Climate Change Levy is an environmental tax charged on the energy that businesses use. It is designed to encourage businesses to be more energy efficient in how they operate, as well as helping to reduce their overall emissions.
In accounting, you will find a monthly provision registered by plant controller based on previous months consumptions. The payment is due in the month after the quarter end and at this moment the provision is adjusted.
You need to ensure that payment is registered in GL account 2450003712 and ensure that we are able to match with the provision, to close the open items.
To identify the payment in the bank open transaction FEBAN with the following selections:
Execute and after report is open select other display:
This will allow you open a list of bank movements. In the field Payment Notes look for "HMRC CCL".
If posting area 2 is allocating to account 6431000002 Penalt and fines (social,tax,civil,criminal)-n/ded. with cost center WN46200000, we need to transfer to account 2450003712 to close the provision done for the previous quarter.
You can use document 5010009723 as reference:
If the allocation is directly to GL account 2450003712 clear the items open with the provision registered in the previous quarter plus the adjustment requested by the controller.
3.3.I analyze GL account 2486000000 and settle the outstanding balance - Annual fees for Veterinary Medicinal Marketing Authorizations
3.3.1. I check if the invoice was received and regularize PY's provision
The holders of UK marketingauthorizationsextract the data from SAP
Transaction: KE24
Operation concern: Z006
Variant: FERRAR
Layout: /FERRA
Then I extract the data to Spreadsheet.
Open the download from SAP:
3.1. I extract the file from Drive
Download the sheet Blank from Drive to Excel so I can compile the data.
https://drive.google.com/drive/folders/1smevpLH_K6wvHEj19EUXKKQJfcec_r9m
When downloaded, I will copy the information from SAP to sheet KE24.
Paste using Special Paste (Values only).
Make sure that the formulas in columns T and U are applied to all the rows.
Filter on the column T only the "YES"
Here I copy all the data from column A to S and paste to sheet Calculations.
Then return to sheet KE24, clear the filter in the column T and Select all again.
Now filter the column U only with "YES" too.
Copy all the data from column A to S and paste to sheet Calculations.
Then return to sheet KE24, clear the filter in the column U and Select all again.
Return to sheet Calculation and make sure that the formulas in columns T, U and V are applied to all the rows.
When in column U I have a "YES", I don't need to change any formulas.
When in column U I have a N/A, I need to insert the column corresponding to "Ship-To Party", column I.
Calculate SUM:
And copy the result to sheet Summary.
Open the previous month file and update Excel Summary sheet with the amounts from previous months.
Note: Material&Customer - Do not change unless I receive some communication via e-mail. Always confirm requested modifications with Gerald Perrin or Anne Perazio.
3.3. I send an email with the compile data
In the end, send an email to info@aeroteam-to.it with the file
(MA) are required under the veterinary medicines regulations to pay annual fees to cover ongoing service costs.There are two elements to the charge:
- Graded annual fee charged at 0.67% of your declared turnover
- Fixed annual fee of 230 GBP.
Plant controller is preparing a declaration for the turnover figures used to calculate the annual fees due and perform an estimation of the fee to pay. This is the origin of a monthly provision registered in GL account 2486000000 identified by assignment VMD LICENCE/ROYALT.
Each year when the new declaration is submitted the controller request the update of the recurring entries and in the text we have the detail of the calculation. The VMD will issue an invoice at the end of the financial year (generally in March) and we must ensure that it is registered against the provision to close the open balance.
You have to search for this invoice in supplier account 2807670 VETERINARY MEDICINES DIRECTORATE (or look at order number 80551002180 VMD Annual Fee in co code 0240 that is used for this purpose only), to confirm the amount invoiced in the period.
Take example of invoice registered in 2023 (document number 6311662265/0240/2023):
In the field description you see a reference to 2022, this means that the invoice is for the declaration of 2022 based on 2021 turnover figures. Also you see that the % applied has changed from 0,67% to 0,36%.
Now go to SAP and open transaction FBL3N to display all open items of GL account 2486000000. Use the filter and select only assignments 80551002180 and VMD LICENCE/ROYALT.
Then your analysis starts:
1. Your invoice should be the total of assignment 80551002180 that should match with a the provision registered in 2021 total sales of 2,142,350;
2. The controller uses the text field to keep record of the YTD provisional amounts.
3. Use the filter in text field selection only ORD 80551002180 and 2021* related postings, to find all the entries to regularize.
4. As we have seen in the invoice the % applied changed from 0,67 to 0,36. Our provision is based on the 0,67%, so for sure we will find a delta to regularize.
5. To close the open balance perform a credit (50) in GL account 6130200000 with cost center WN46100000 with text VMD FEE 2021.
6. Inform the plant controller of the steps taken and if any entry was done to close the outstanding balance.
As a final step, just to make sure of the current balance; make sure that the open balance registered is referent to previous and current year provisions. Following the example, 2021 should have been closed and nothing remains open.
...
End of document.
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