1. Objective and Scope

1.1. Objective of this Operation

Syensqo’s affiliates are funded exclusively through internal financing, in the affiliate’s currency and at arm’s length rates. The internal financing is originated from the Internal Structured Borrowing (ISB) for stable financing needs.

The purpose of this process is to compute the amounts of interest on loans subscribed with affiliates. This process will also allow to perform the transfer between long term and short term loans. Overall this process is making sure that accounting is reflecting what is being done at the level of the business (Treasury FO).

This process is currently automatic for the entity 2232.

The loans and borrowings contracts are communicated by the Treasury Corporate Front Office and/or Back Office to the Service Unit Treasury Accounting team. Ensure that the contracts attached in PI1 PI2 are complete is a key point in the process.

The Service Unit Treasury Accounting team needs to perform the following steps:

• Run the automatic interests computation via SAP transaction or manually;
• Ensure that all the entries are correctly posted in the accounting for the profit and loss and the accrued interests (BS);
• Perform the reconciliation of respective balance sheet and profit and loss accounts with the data recorded by the front office team (via “treso file” and accounting data).

1.2. Scope

This operating procedure (OP) applies to SAP PI1 PI2 company 2232 Syensqo SA - Treasury Division.

2. Definitions

See Finance Glossary:

• ...

3. Tasks description

3.1. I run FCC on D+1 and follow the steps in folder "2232: Loans / borrowings process".

3.1.1. I run the loans and borrowings interest calculation

Run transaction FCLOCO in SAP BW - WBP OBP – choose task list Z_SCO_TRE for the month being closed and find the activity in D+1 tasks

This first step computes the interest on loans and borrowings for company 2232.

Go to the blue button – Interests on Loans and Borrowings and schedule the task. This action will open the transaction code TBB4 with the Variant 3S-2232-PROMS.

Update the date accordingly with the closing period.

Monitor the progress via the transaction code SM37 and post the Batch via SM35.

Run TBB4 transaction code to verify if there are no blocked postings.

3.1.2. Check the postings are completed in P&L and Balance sheet accounts

Next step is to follow if the Interests on Loans and Borrowings postings are performed accordingly in P&L accounts 7513000000 and 6504000000 (check that TM documents are posted).

Check Balance sheet accounts (2232): 2710100000/2720100000 (check that TM documents are posted).

For the old accounting scheme (2232 interest on borrowings): 2710200000 / 2720200000 / 2710300000

3.1.3. Check the last run of transaction code TBB1

Run the last steps in FCC first in test and after in real mode if needed.

This check shows if there are no outstanding postings to be performed by Treasury Corporate back Office Operations Team. Usually when the new loan contract created after the last day of the month and is not yet validated by Back Office Treasury Operations in the system.

Transaction: TBB1, Variant: D+2_60M_60P

3.1.4. Ensure Loan LT \ ST Transfer 

Run transaction Z3Y_TR_LOAN_LT2ST, variant CLOSURE LOANS, to make the reclassification of the ST portion amounts for the LT loans.

3.2. I check if the Interests on loans and Borrowings are performed accordingly in Balance Sheet and P&L accounts for 2232

Perform the Reconciliation of the respective Balance sheet accounts to verify if there are no missing postings.

One of the most common reasons is a technical program issue that is why it is very important to do reconciliation directly after Interest on Loan / Borrowings postings on D+1 evening or D+2 morning to catch mistakes and book the interests manually if required. This is critical to avoid intercompany differences between the affiliates.

In this step we should:

1)  Check if in GL accounts 271010000 and 272010000 there are payments to be cleared with the accruals

2) Check GL accounts 52* to see if there are items to be cleared (loans repayments, etc.)

3) Perform the control files stored at \\lucapfs01sco.oxo.priv\LUCAP-USERS\TREASURY ACCOUNTING\MONTH END CLOSING\YYYY\MM.YYYY\2232\LOANS (steps below)

3.2.1. I perform the reconciliation using the suivi file

Using the suivi file - all accounts except 2710100000 (due to DTO different contract numbers, currently it is not possible to manage the good pivot filtering)

Reconciliation - Suivi file to be prepared in D2 to avoid unreconciled differences, not only on the loans and borrowings but also in the short term deposits accounts.

Currently the file is being prepared on google drive and not being stored in the Lucap folder. 

The accounts of loans and borrowings being checked are the following:

7513000000 - for Loans

6504000000 - for Borrowings

The first step is to put correctly the formulas, in the tab "Database", dragging the cells with information (in the green table) to the cells next to it. Do the same for the blue table.

The formulas are calculating the interests for the month being closed. In the green table, it's the calculation of the interests in document currency and in the blue table it's the calculation of the interests in EUR.

The sum of the amounts of interests calculated must be equal to the sum of the TM documents that we have in SAP in 2710100000 for loans and 2720100000 for borrowing accounts.

Then we have to update in the tab "Rates" the table with the rates for closing month, so the formulas can convert the amount to in doc currency to local currency (EUR).

We have to fetch this information aodocs in AODOCS document "ExchRates 2025 Syensqo" only for the the currencies above. Use the column "End of Month".

In case the file from aodocs AODOCS it's not filled, we can see the rates in SAP transaction ZRATE.

The last check (for the loans and borrowings side) it's to go to tab "PL control" and verify if the amounts are equal to the ones we have in FS10N for the account that we analyzed.

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3.2.2. I perform the reconciliation for account 2710100000 - Interests receivable on Loans

RECONCILIATION for 2710100000 should be done 2 times:

D1 - after the Interest on Loans posting - pre-check

D3 - after the closing upload and verification of the package of 2232 (before package publication) - final Reconciliation

Reconciliation for 2710100000 - First we run the summary of the existing loans:

Transaction code FS10N

Account 52* - 2232 20YY / click on YTD Balance / filter “Cleared/open item” / Sum by TPartner

List of all Loans by Trading Partner, by Currency, by Contract

Print screen or save in PDF, this will be the supporting document for Reconciliation

In some cases - to double check with Treasury FO (Edgars, Hatem)

The next step is to run FS10N or FBL3N for 2710100000 - Open items at the last day of the month being closed

Export the data to the Excel file.

Make the Filter by Trading Partner and check each Trading partner one by one.

You can use colors, borders, other grouping options for reconciliation purposes.

IMPORTANT: the Reconciliation should be reliable and accurate, clear for any 3rd party (Reconciliation approver, Treasury dpt, Deloitte)

An account is reconciled when:

+ Supporting detail is known

+ Differences are identified and properly supported

+ Unresolved reconciling items are investigated and escalated

The Loan contracts details can be checked with transaction code TM03 = TX.3

Reconciliation files to prepare and saved in Z:\TREASURY ACCOUNTING\MONTH END CLOSING\YYYY\MM.YYYY\2232\Loans:

• 2232_Int on Loans MM.YYYY
• Loans Accounts - 5200000000_5200200000_5200100000_MM.YYYY

2232_Int on Loans 10.2024.xlsx

2232 Loans Accounts - 5200000000_5200200000_5200100000_10.2024.xlsx

3.2.3. I perform the reconciliation for account 2720100000 - Interests payable on Borrowings

Reconciliation file "2232_Int on Borrowings MM.YYYY" to be prepared and saved in Z:\TREASURY ACCOUNTING\MONTH END CLOSING\YYYY\MM.YYYY\2232\Loans.

End of document.