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1. Objective and Scope
The purpose of this document is to describe the BFC Admin activities related to the maintenance of the PREV category in BFC.
PREVphase is operated by the Corporate Controlling team (not GAR) and used by GBU controllers to report and consolidate forecasted / budgeted Dec. Y and quarterlyquarters Y+1 Budget / Forecasts:
- Budgeting process conducted at detailed level in Controlling tools, BFC being the final step to aggregate GBU's forecasts and as well as to provide Consolidated Forecasts at SYENSQO Group level
- 5 periods : Dec. Y / Quarterly 03 06 09 12 Y+1
- Reporting to BFC not handled by legal company but at the GBU level using fictive reporting companies (1 package per GBU in K. Euros + 3 dedicated central packages for Corp Controlling, all handled in K.Euros)
- Note that single consolidation method "IG / fully conso" for each fictive package. Non Conso companies being excluded, Equity Methods and IP methods being directly integrated as such in GBU package, not relying on consolidation rulestreatments
- Reporting content made of P&L (Sales to Net result), Balance Sheet (Working Capital, Fixed Assets), CAPEX, SCF (Simplified Cash Flow / GBU) and FCF (Free Cash Flow / Group)
- using some aggregated headings (compared to detailed chart of headings used in ACTUAL's category)
- using limited flows : Closing balance F99 F99EX F99 AJ F99AJ for P&L (to manage both IFRS and Underlying sets of Financial statements), closing balance F99 for BS and some variations flows for CAPEX and SCF/CFS
- Purpose of PREV Exchange Rates : not used for the consolidation of Budget data (as packages are reported directly in K. Euros) but used in RSB (Restated Y-1) consolidations (variant 2) for future months (when ACTUAL rates are not yet available)
From a customizing point of view, this category has its own:
- Scope (PREV PREVSYENSQO code)
- Exchange rates (PREV version)
- Category scenario (PREV code)
- Package schedules / folders and Controls
2. Reporting Setup
2.1 Reporting setup - Reporting Organizer
The opening of PREV phase should occur in July.
To create a new Reporting ID for the period, select the one of the previous year in the field Select Reporting IDs.
Then in Reporting Organizer module Open it and Save As.
The General tab defines the general properties of the reporting ID.
Enter the following information:
- Category - PREV
- Data entry period - YYYY.12
- Short & Long description - Budget - YYYY.12 PREV SYENSQO YYYY / YYYY+1
The Definition tab will define the associated category scenario and the start and end dates for the reporting.
Enter the following information:
- Version of category scenario: PREVxxxx (latest version to be selected)
- Start & End Date: Adjust start and end date.
The Package tab defines the data entry settings applicable to packages:
- Windows and Internet folder: 00L-PREVEN
- Set-of controls: PREV
- Control level to be reached: PREV
- Blocking - Flag the option Blocking.
- Apply to central manual journal entries as well - it MUST NOT be flagged
- Opening balance data : not applicable: Budget is focused on future, not needing any link with the past ACTUAL's or PREV's
The Restrictions tab defines the data entry restrictions which are applied when the data is entered.
- There are no restrictions to be set up. Compared to ACTUAL's categories, PREV category does not require any link or reference to the past past to build a full Balance Sheet by flows (no need for F00 "opening balance")
The Operation tab defines the settings associated with packages publication.
In the Deadline it it has to be informed the date that the packages will have to be published.deadline for package's publication. it has not such an importance as packages are directly completed centrally by Corporate Controlling
- Deadline 15.02Deadline 31.12.YYYY+1.: Setting the deadline at
- mid Feb YYYY+1 will allow Corporate
- Controlling team to update packages all during the Budget year
2.2 Reporting setup - RU Organizer and Package Manager
As general rule, BFC Admin should copy the list of packages completed in the previous PREV exercise:
- GBU packages using fictive GBU companies 3 central packages (GEST-ADJ / AJUST-RH / AJUST-DISCOP) directly completed by Controlling Corporatexxx or SCO-xx, xxx code representing an abbreviation of GBU name)
- 1 Central package (SCO-ADJ)
However, the list of packages to be created must always be confirmed by Syensqo Corporate Controlling team (KUF Nicolas Bourgois):
- in case of new GBU created since the previous PREV exercise, most probably that a GBU fictive company will have to be created, integrated in PREV scope and its PREV package created as well
- in case of GBU divested or merged since the previous PREV exercise, most probably that its package will not be required anymore and that its fictive company will be excluded from the PREV scope
- Folder dedicated to GBU "00L-PREVEN" selected in the General Reporting Organizer hasto be removed for those 2 companies and replaced by the folder "00L-PREVRH"
- Difference between both : 00L-PREVRH folder will allow Corporate Controlling to report Financial Statements sections not handled by GBU
- P&L : headings to bridge from post EBIT to Net Result
- Headings to bridge from SCF (Simplified Cash flow / GBU) to FCF (Free Cash Flow / Group)
Final step in package manager, launching the generation of packages.
3. PREV consolidation scope
3.1 Scope definition
PREV PREVSYENSQO scope must be created in FCTop BFC_Top_SCO and piloted to FCProdBFC_Prod_SCO.
It has to include the list of companies for which PREV packages have been created.
- Consolidation method - FC Full conso : as explained above, special consolidation methods (Equity methods, IP, Non Conso) are directly integrated in packages, not relying on consolidation treatments
- Rate - 100%
3.2 Piloting to BFC_
ProductionProd_SCO database
Task EXPLSCO-GESTION ADMIN has to be used to pilot PREV consolidation scope.
3.3 Internal Control
It is part of the internal controls to archive the evidences of the objects created in the BFC_Top and transferred to BFC_Prod, as well as the approval initially obtained from the Corporate Controlling (e-mails).
The e-mail should be save in PDF format and archived in the following Google Drive folder of BFC Admin team Internal Control folder for pilotings
Select the sub folder related to the current year => EXPL-GESTION sub folder => relevant quarter
The file Name should be coded this way: Code of the Reception task in BFC_Prod DD.MM.YYYY- E-mail Subject
4. PREV Exchange rates
As in ACTUAL (=REEL) Exchange Rates tables, there are the 6 types of conversion rates updated and used in PREV category:
- TC - Closing rate - used for Balance Sheet
- TMN - Average cumulative rate - used for P&L
- TMN-1 - Average rate Dec.Y-1
- TO - Opening rate (equals to Dec.Y-1 closing rate ) - used for Balance Sheet
- TCN-1 - Closing rate N-1 (closing rate / same period of previous year)
- TMYN-1 - Average rate N-1 (average rate / same period of previous year)
PREV Exchange rates are provided by Syensqo Corporate Controlling team.
BFC Admin team:
4. PREV exchange rates
PREV exchange rates are provided by Corporate Controlling team, in July, in an excel file.
BFC Admin team,
- creates the 4 tables 03, 06, 09, 12 (YY+1) in July (YY)
- updates 09 table in Oct.on October 1st (YY) for rates TCN-1 & TMYN-1 ) with Sept. YY Actual rates- no need to receive request from Corp Controlling
- updates the 4 tables in Jan.1st 4 03 06 09 12 (YY+1) tables on January 2nd YY+1 (TCN-1 & TMYN-1 & TMN-1 & TO) with Dec. YY Actual rates - no need to receive request from Corp Controlling
Both, creation and update , (exception for October and January updates directly done by BFC Admin once Sept. and Jan. Actual rates are available) => ONLY upon requests from Syensqo Corporate Controlling team.
The file sent by corporate Controlling to BFC Admin must have a tab - BFC INPUT Format- with the Average (TMN) and Closing (TC) rates for the quarters of the next year.
4.1
PREV exchange rates -Initial creation and update (July YY)
In FCTopBFC_Top_SCO, in the exchange Exchange rates module,
- Open the YY PREV tables (03, 06, 09, 12)
- Do a save as of each table to the corresponding YY+1
In this example, to create 2023 tables we do a Save as from 2022 tables. :
- 2022.03 table saved as 2023.03 table
- 2022.06 table saved as 2023.06 table
- etc ...
There's an Excel workbook - BFC PREV ER update.xlsx - that should be used to prepare the BFC tables update.
The file - BFC PREV ER update.xlsx - is saved in thisfolder on the remote desktop \\Acew1ptsefcp1Acew1ptsescp3\BFC-SHARE\ER\PREV
The file can also be found in the Gdrive
Google Drive Live Link
Open BFC Excel WIN Link Prod and then open the file.
The file has several tabs:
- Copy BFC input format
- PREV 03 , PREV 06 , PREV 09 , PREV 12
- PREV 09 update (Y) - to be used in Oct. YY to update with Sept. YY ACTUAL rates
- PREV 03 update (Y+1) , PREV 06 update (Y+1) , PREV 09 update (Y+1) , PREV 12 update (Y+1)- to be used in Jan.YY+1 to update with Dec. YY ACTUAL rates
Tab Copy BFC inputformat - is the one to which we should copy/paste the values we receive in BFC input from the requestor.Corporate Controlling
Tabs PREV 03 , PREV 06 , PREV 09 , PREV 12 - will be automatically updated trough excel formulas and BFC excel through Excel formulas from "BFC Copy BFC format" and through BFC / Excel retrieval formulas.
PREV 03 and PREV 06 tabs:
- TC & TMN (columns C & D) - values are retrieved
- through Excel formulas from tab "Copy BFC
- format" => Rates are Forecasted ones !
- TMN-1 & TO (columns E & F) - values are retrieved from BFC (PREV / Dec. Y-1)
- => Rates are Forecasted ones !
- TCN-1 & TMYN-1 (columns G & H) - values are retrieved from BFC (REEL / N-1)
- => Rates are Actual ones !
To update TMN-1 & TO (columns E & F) and TCN-1 & TMYN-1 (columns G & H) we must connect to BFCTop BFC_Top_SCO and refresh the file
Once the data has have been refreshed we should copy the tables into BFC:
- Select C4:H44 range and copy / paste into BFC
PREV 09 and PREV 12
- TC & TMN (columns C & D) - values are retrieved
- through Excel formulas from tab Copy BFC input
- => Rates are forecasted ones !
- TMN-1 & TO & TCN-1 & TMYN-1 - Actual rates 09 YY and 12 YY not available in July => no action, columns will stay empty
- Select C4:D44 range and copy / paste into BFC
4.2
PREV exchange rates - Update with REEL rates (Oct.)Update Sept. PREV with Sept. YY REEL Exc. rates
Once 09 YY REEL rates become available (last working day of the month),
- In BFC PREV ER update.xlsx, there's a tab PREV 09 update (Y) created to retrieve 09 YY REEL rates and to update TCN-1 & TMYN-1 columns in 09 YY+1 PREV rates table.
- Once the data
- have been refreshed(connecting to BFC_TOP) we should copy the 2 columns into BFC.
4.3 Update PREV
exchange rates - Update with REEL rates (Jan.)with Dec. YY REEL Exc. rates
Once 12 YY REEL rates become available (last working day of the month), YY+1 PREV rates tables can be updated.
- In BFC PREV ER update.
- xlsx (\\Acew1ptsescp3\BFC-SHARE\ER\PREV)
there are 4 tabs PREV 03 update(Y+1), PREV 06 update(Y+1), PREV 09 update(Y+1) and PREV 12 update(Y+1) created to retrieve 12 YY REEL rates and update Dec. YY-1 in PREV rates.
PREV 03 update(Y+1), 06 and 09 PREV tablesPREV 06 update(Y+1), PREV 09 update(Y+1) tabs:
- In these tables we need to update
- TMN-1 &
- TO columns.
- Once the data have been refreshed (connecting to BFC_TOP) we should copy the 2 columns in each corresponding BFC table
- .
12 PREV table
- In these table we need to update TMN-1, TO, TCN-1 & TMYN-1 columns.
- Once the data have been refreshed (connecting to BFC_TOP) we should copy the 4 columns in 12.YY+1 BFC table.
4.4 Piloting to BFC_Prod_SCO database
Task SCO-ADMIN has to be used to pilot PREV Exchange rates tables.
No need for Internal control evidences as maintenance of exchange rates is considered as Recurring activities from BFC administration team.
5. Consolidation definition
PREV consolidation is defined yearly and it's multi-period:
Data1 single data entry period of PREV consolidation with 5 consolidated periods:
- Unique data entry period 12.YY
- 5 consolidated periods 12.YY; 03.YY+1; 06.YY+1; 09.YY+1; 12.YY+1
In the tab General should contain , the following informationparameters have to be selected:
- Category: PREV
- Data entry period: YYYY.12
- Scope: PREV PREVSYENSQO
- Variant: 2
- Currency: EUR
- Long Description: Budget PREV SYENSQO YYYY.12- YYYY+1
In the tab Properties should contain the following information:
- Scope Period: YYYY.12
- Version: S-1
- Set of rules: PREV12
- Multiply thresholds by: 1
- Conversion Rate Period: YYYY.0612
- Conversion Rate Version: REELPREV
In the tab Opening Balances no opening balance data
In the tab Periods conversion rates need to be adjusted to the PREV rates.
: not applicable, as explained earlier in this procedure, Budget is focused on future, not needing any link with the past ACTUAL's or PREV's
In the tab Periods for each period source of Exc. Rates has to be adjusted with the corresponding PREV table
6. Communication to Syensqo Corporate Controlling
In July at the initialization phase and at each update of PREV customizing objects, e-mail has to be sent to Syensqo Corporate Controlling to confirm the availability of changes in the BFC_Prod_SCO database.
END OF THIS PROCEDURE