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Author(s)
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Verification
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Approval
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Fernanda Ramos
Operational Process Specialist L1
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Anne-laure Allard
FAC Team Leader
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Anne-laure Allard
FAC Team Leader
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09.09.2021
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09.09.2021
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30.09.2021
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Version
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Date
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Description
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01
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06-11-2016
25-11-2019
08-01-2020
10-01-2020
01-03-2021
New Document
Revision
Revision
Revision
Revision
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6.1 Schedule details
6.1.1 L4051 – Financial information for equity companies
6.1.2 L6605 – Borrowings by maturity
6.1.3 L6810 – Commitments and contingencies given
6.1.4 L6825 – Analysis of employee expenses
6.1.6 L6864 – Net Financial Indebtedness
6.1.7 L6880 – Overdues on receivables – Ageing balance
6.1.8 L7110 – Transactions with Related Parties
7 Appendix
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SBS – Solvay Business Services
FAC GL – Financial Accounting Service Line (Service Unit)
FAC Interco – Financial Accounting Service Line (Service Unit)
ACP - Accounting Platform
BFC – Consolidation tool
Actual 3 – Package inside BFC reporting tool, which aims to provide a deeper detail on items reported in previous BFC reporting packages (Actual 2)
CAM – Company Accounting Manager
GAR – Group Accounting and Reporting
PF1 – Solvay Legacy's SAP system
WP1 – Rhodia Legacy's SAP system
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1 Objective and Scope
1.1 Objective of this Procedure
1.2 Scope
2 Reference Documents
3 Definitions
4 Responsibilities
5 Periodicity
6 BFC Actual 3 schedules
6.1 Schedule details
6.1.1 L4051 – Financial information for equity companies
6.1.2 L6605 – Borrowings by maturity
6.1.3 L6810 – Commitments and contingencies given
6.1.4 L6825 – Analysis of employee expenses
6.1.6 L6864 – Net Financial Indebtedness
6.1.7 L6880 – Overdue on receivables – Ageing balance
6.1.8 L7110 – Transactions with Related Parties
7 Appendix
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The purpose of this document is to provide the guidelines to fill in BFC Actual3 package.
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This operating procedure (OP) applies to all the companies under the scope of FA SL Service Center.
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SBS – Solvay Business Services
FAC GL – Financial Accounting Service Line (Service Unit)
FAC Interco – Financial Accounting Service Line (Service Unit)
ACP - Accounting Platform
BFC – Consolidation tool
Actual 3 – Package inside BFC reporting tool, which aims to provide a deeper detail on items reported in previous BFC reporting packages (Actual 2)
CAM – Company Accounting Manager
GAR – Group Accounting and Reporting
PF2 – Solvay Legacy's SAP system
WP2 – Rhodia Legacy's SAP system
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The BFC Actual 3 package has split responsibilities between FA SL, ACC PLAT and the CAM of the company, depending on the schedules and headings to fill in. Detailed information on "who does what" is included in each schedule details inside this procedure.
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BFC Actual 3 is required for September closure and December closure. The deadlines for the publishing of this package are communicated by GAR.
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The following BFC schedules are reported under Actual3:
L6605 - Borrowings by maturity
L6810 - Commitments and contingencies given
L6825 - Analysis of employee expenses
L6864 - Net Financial Indebtedness
L6880 - Overdue on receivables - Ageing balance
L7110 - Transactions with Related Parties
L4051 - Financial information for equity companies
BFC Actual 3 schedules for Equity method companies
L6810 - Commitments and contingencies given
L7110 - Transactions with Related Parties
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Schedule details
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This schedule is under the responsibility of CAM.
This schedule only concerns the companies which have shares recorded under A24000.
You need to report balance sheet and P/L items of the affiliate companies that are consolidated under "Equity method".
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This schedule is under the responsibility of the CAM, for PF2 and WP2 systems.
In this schedule, the closing values of long term and short term borrowings are retrieved from Actual 2 package. It is then required to split the values according to their maturity (period where the borrowed money must be returned to the loaner).
The headings that need to be split by maturity are the following:
- Long Term (from 1 year to over 5 years): L16100, L16800, L16830 and L16810: is classified with Fixed Rate
- Short Term (less than 1 year): L51900, L57000 and L58200: is mainly variable rate but need to be confirm upon the loan.
Short Term portion of Long Term debt: L56000, L56010, L 56030: follow the rate of the Long term loan (Fixed Rate)
Changes in the schedule L6605 - IFRS16 impact - A report is sent by MAC to fill this information.
Part 1. Book value
a. Insert L16830 LT lease IFRS16 under L16810 LT lease debt
b. Include L16830 in sub-total "Borrowings > 1 year"
c. Insert L56030 ST lease IFRS16 under L56010 ST lease debt
d. Include L56030 in sub-total "Borrowings < 1 year"
f. Include A46300 in sub-total "Borrowings < 1 year"
g. Include A26300 and split by flow.
Part 2. Nominal value
a. Insert X16109 Lease debt IFRS16 (incl.ST debt) Nominal value under X16108
b. Insert X16113F99 + Split per maturity flows
Part 3. Interest payments on LT loans
a. Insert X16129 Lease debt IFRS16 (incl.ST debt) Interest payment under X16128
b. Insert X16123F99 + Split per maturity flows
Reminder: IFRS16 leasing is a financial debt with a fixed interest rate.
L6810 – Commitments and contingencies given
This schedule is under the responsibility of the FAC GL, for PF2 and WP2 systems, also, the CAM needs to insert the values of guarantees, security interests and commitments given by the company for the acquisition of assets or other balance sheet items.
This schedule contains 2 parts:
1° - FAC GL - E6001 Commitments to acquire tangible and intangible assets (excluded Right of Use) - Extracted by BW through E6001 Template
In the first tab "Feuil1" - Click on Prompts and fill in accordingly and click ok
A filter on WBSE Syst. status should be done excluding WBS with status Closed and Technically completed and its WBS related to CAPEX (WBSE type IM) should include on this extraction.
Update the data tab with the relevant information take from the GAR List. In pivot tab, refresh de data after run BW prompt. Verify if there was any error, if not, please proceed with BFC upload.
2° - CAM - E6044 Security interests / bank guarantees - Each quarter Treasury Department will do Extraction of guarantees for GAR and forward it to all CAMs and FAC team- to know what must be declared in Actual3 schedule L6810 and which company must declare it the "Yes" must be selected in column "BFC disclosure".
The amount posted in the L6810 for the financial guarantees should correspond to the FARAWAY database of financial guarantees managed by Treasury. The "Fairway" database of the Treasury Dept. will contain the indication if it must be included in BFC and also by which company. The filing of the L6810 schedule must be based on Fairway. For most of your CAMs nothing would need to be disclosed as from Dec 2019.
Example:
- Filter on yes on column "BFC disclosure"
- Column P "Which party must declare it in BFC" give the company concerned
- if "principal" refer to column I and H "Principal code" "Principal Name" to retrieve the code
- if "guarantor" refer to column "L Guarantor Name" and retrieve the code of the company in the GAR list
- if "applicant" refer to column K and retrieve the code in the GAR list
- The amounts to report are in column R " Outset. Amount (end of day, base currency)"
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This schedule is under the responsibility of FAC GL, for PF2 and WP2 systems.
Important: before the below step (extraction of the information from SAP) it is advisable to confirm if all the accounts that are included in the actual 3 headings are correct.
In transaction KAH3 - ZSOLV Please confirm that the accounts in the heading below are included in the Actual 3 headings
In order to compare please go to transaction ZZF_GL_BFC_Overview, just execute:
and then when you have a list of all the accounts, you can filter by heading and choose the actual 3 headings.
Also if for any reason a new account is created that should be included in Actual 3 please make sure it is included in the proper heading. For this please contact MAC Data Team .
Note: accounts use for Non-recurring entries (Flows F24/F37 and F56 should be excluded of Actual 3.
As the name implies, we need to insert in this schedule the values related with employee expenses of various natures, which can be found in multiple G/L accounts for each company.
To fill in the data, perform BFC extractions from ZZF_BFC_COLLECTIVE with variant B3_IAS19 SCO for PF2, WP2 and PI1.
After that run transaction ZZF_BFC_CONVERSION with the same variant B3_IAS19 SCO.
The last part is to extract the information in transaction ZZF_BFC_TRANSFER variant B3_IAS19 SCO, chose the path and run.
Note: Confirm the companies in your scope.
For those transaction check (and if needed change) the BFC Consolidation Parameter depending on:
ERP | Syensqo |
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| PF2 | SYEP |
| WP2 | SYEW |
If you want to check the information extracted you can see by GR55 - Z4F1 report.
After executing the report, select the field "BFC – Personnel Cost" on the top left corner.
The values should be filled in with opposite signs (if positive in SAP, it should be negative in BFC and vice-versa).
In case a heading has no values, we should insert the amount as 0. If not, it will generate a blocking control.
Data are in local currency and not in K local currency !!!
Important: If we compare the BFC data to GR55 Z4F1, there can be discrepancies. These discrepancies are due to the exclusion of the restructuring costs (based on the specific restructuring costs centers codification - PF2 EE812/ WP2 CCCC-81 and ZFR3-82*) (for the companies where Restructuring provisions do exist) and also to the Defined contribution costs reclassification of the US).
Freinage costs reclass - cancelling from Social Security contributions to the Defined Contribution Expenses (from ACTUAL3 heading X9920 to X9923).
For US and Canada, Defined contribution is not recorded in a dedicated P&L account. We need to change in BFC from ACTUAL3 heading X9920 to X9923.
Open the Payroll file for US and filter for the following wage types:
3EZ1, 3EZ2, 3EZ3, 3RC1, 3RF0, 3RF1, 3RF4, 3RF5, 3RF6, 3RF7, 3RF8, 3RF9, 3RR0, 2588 and accounts
WP2 : 98320122 (US fringe) 98320241 (Payroll posting)
PF2 : 6220003320
For Canada the Wage type is 3R12, account 98320219
Then in BFC fill in X9923 that is empty with the amount found above. Remove the same amount from X9920 (The total Employee expensed does not change).
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L6605 - Borrowings by maturity
L6810 - Commitments and contingencies given
L6825 - Analysis of employee expenses
L6864 - Net Financial Indebtedness
L6880 - Overdues on receivables - Ageing balance
L7110 - Transactions with Related Parties
L4051 - Financial information for equity companies
BFC Actual 3 schedules for Equity method companies
L6810 - Commitments and contingencies given
L7110 - Transactions with Related Parties
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This schedule only concerns the companies which have shares recorded under A24000.
You need to report balance sheet and P/L items of the affiliate companies that are consolidated under "Equity method".
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- Long Term (from 1 year to over 5 years): L16100, L16800, L16830 and L16810: is classified with Fixed Rate
- Short Term (less than 1 year): L51900, L57000 and L58200: is mainly variable rate but need to be confirm upon the loan.
Short Term portion of Long Term debt: L56000, L56010, L 56030: follow the rate of the Long term loan (Fixed Rate)
Changes in the schedule L6605 - IFRS16 impact - A report is sent by MAC to fill this information.
Part 1. Book value
a. Insert L16830 LT lease IFRS16 under L16810 LT lease debt
b. Include L16830 in sub-total "Borrowings > 1 year"
c. Insert L56030 ST lease IFRS16 under L56010 ST lease debt
d. Include L56030 in sub-total "Borrowings < 1 year"
f. Include A46300 in sub-total "Borrowings < 1 year"
g. Include A26300 and split by flow.
Part 2. Nominal value
a. Insert X16109 Lease debt IFRS16 (incl.ST debt) Nominal value under X16108
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Part 3. Interest payments on LT loans
a. Insert X16129 Lease debt IFRS16 (incl.ST debt) Interest payment under X16128
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L6810 – Commitments and contingencies given
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This schedule contains 2 parts:
1° - E6001 Commitments to acquire tangible and intangible assets (excluded Right of Use) - Extracted by BW through E6001 Template
In the first tab "Feuil1" - A filter on WBSE Syst. status should be done excluding wbs with status Closed and Technically completed and jts Wbs related to CAPEX (WBSE type IM) should include on this extraction.
In pivot tab, refresh de data after run BW prompt. Verify if there was any error, if not, please procede with BFC upload.
2° - E6044 Security interests / bank guarantees - Each quarter Treasury Department will do Extraction of guarantees for GAR and forward it to all CAMs and FAC team- to know what must be declared in Actual3 schedule L6810 and which company must declare it the "Yes" must be selected in column "BFC disclosure".
The amount posted in the L6810 for the financial guarantees should correspond to the FARAWAY database of financial guarantees managed by Treasury. The "Fairway" database of the Treasury Dpt will contain the indication if it must be included in BFC and also by which company. The filing of the L6810 schedule must be based on Fairway. For most of your CAMs nothing would need to be disclosed as from Dec 2019.
Example:
- Filter on yes on column "BFC disclosure"
- Column P "Which party must declare it in BFC" give the company concerned
- if "principal" refer to column I and H "Principal code" "Principal Name" to retrieve the code
- if "guarantor" refer to column "L Guarantor Name" and retrieve the code of the company in the GAR list
- if "applicant" refer to column K and retrieve the code in the GAR list
- The amounts to report are in column R " Outstd. Amount (end of day, base currency)"
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After that run transaction ZZF_BFC_CONVERSION with the same variant.
The last part is to extract the information in transaction ZZF_BFC_TRANSFER variant B3_ALL, chose the path and run.
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Data are in local currency and not in K local currency !!!
Important: If we compare the BFC data to GR55 Z4F1, there can be discrepancies. These discrepancies are due to the exclusion of the restructuring costs (based on the specific restructuring costs centers codification - PF1 EE812/ WP1 CCCC-81 and ZFR3-82*) (for the companies where Restructuring provisions do exist) and also to the Freinage costs reclassification of the US).
Freinage costs reclass - cancelling from Social Security contributions to the Defined Contribution Expenses (from ACTUAL3 heading X9920 to X9923).
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This schedule has mixed responsibilities, depending on the headings to fill in:
-X04011 and X04061: CAM responsibility for both PF1 PF2 and WP1 WP2 systems
-X04051: FAC GL responsibility for both PF1 PF2 and WP1 WP2 systems
In this schedule, we will need to report for the above 3 headings the split of the receivables by overdue items and how long they have been overdue.
The values initially calculated are derived from Actual 2 package. Below the list of headings that are reported under Actual 2 and their correspondence to the 3 headings inside this schedule.
X04051X04061X04011 
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In some cases, the blocking control is not solved, even after the upload of the data, there might be a case where the headings reported in the balance sheet with impact on this schedule are different from SAP and BW.
To check this, we can use the BW query BW_QRY_MVFIWC01_0006 (can be found by selecting "Area" view and the following path: Solvay –> Financials Management and Controlling -> Financial accounting -> Working Capital -> Working Capital Virtual Layer ->FIWC: MultiSystemsMultisystem)
The fields to be filled should be filled as below (only differences being the Calendar day and the Company Code to be analyzed)
For the remaining headings, the CAM has to fill in the data using the same logic as X04051 – split by impaired / not impaired value and the value that is not impaired should be split between "Not Overdue" and specific dates when it is considered as overdue.
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This schedule has mixed responsibilities. The split responsibilities between FAC Interco, ACP and the CAM of the company is done below:
- PF1PF2/WP1 WP2 system:
- Heading X5010 Revenues – FAC InterCoInterco
- Headings X5040 Trade and other receivables - Net value and X5060 Trade and other payables – ACP
- Headings X5020 Purchase of goods ans and services, X5070 Financial X5070 Financial loans and XCQ200T – CAM
All headings beginning with "X50" inside this schedule need to be filled in with open items that the reporting company has open with "Associated companies" and "Non-consolidated companies" (these companies are companies that use consolidation method 20 – Not Consolidated, 50 – ME – Equity Method, 60 – Not Equity Method, or 70 – Interests 10%-20%).
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For heading X5010 Revenues – For PF1PF2/WP1WP2, the information is filled in by FAC InterCo FAC Interco.
In order to provide the figures, an excel file has been created with the BW query needed to perform the extraction. This file can be found under code SBS-FRM-DRTR-05-120
The file needs to have "Analysis for Microsoft Excel" working in order to be able to refresh the data in the BW query. Detailed instructions on how to operate and extract the needed information can be found inside the Excel file.
For heading X5020 Purchase of goods ans services –
Data filled in by by CAM. Detail of goods and services purchased for "Associated" companies and "Non-consolidated" companies.
For heading X5040 Trade and other receivables - Net value – ACP - Run transaction FBL5N and select the variant SBS_X5040 (same variant in both systems). This will insert in the Dynamic Selections, all the companies that belong to the previously indicated Consolidation Methods (Non consilidate consolidate companies and Associated companies). To be sure that all companies are included correctly in Trading partner field you can check this information based in LEGAL ENTITIES MANAGEMENT, consider the open item until the closure period.
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For heading X5060 Trade and other payables – ACP - Run transaction FBL1N and select the variant SBS_X5060 (same variant in both systems). This This will insert in the Dynamic Selections, all the companies that belong to the previously indicated Consolidation Methods (Non consilidate consolidate companies and Associated companies). To be sure that all companies are included correctly in Trading partner field you can check this information based in LEGAL ENTITIES MANAGEMENT, consider the open item until the closure period.
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