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This organizational procedure (P) applies to all companies within the Solvay Syensqo Business Services scope of entities. It is important to highlight that this procedure concerns all types of projects: Industrial, Research & Development, and IT etc.

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Prior to any project code creation, the project manager has to obtain the formal authorization (approval) to launch the project. In this authorization request, he should indicate either the project in question should be capitalized or not. The process of obtaining the projects approval is described in the document "CAPEX 01".
Preceding any WBS element creation and purchase allocation in the system, the project has to be created in PS and key elements must be defined: this is performed via the project code creation in PS (PS is an SAP module allowing the project manager to ensure that the project is executed efficiently, on time, and within budget - which he achieves by guaranteeing that the required resources and funds are available as and when needed) Thus after validation of the project, key elements related to the project itself must be entered in PS. This will allow the future WBS creation.

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Roles and Responsibilities:

Solvay Syensqo Legacy

• The Project Managers are in charge of:
  1. Listing all information necessary to create the project code:
     1. Division
     2. Entity code
     3. Business area
     4. …
  2. Transferring the information to the Manufacturing and Database Reporting entity
  3. The Manufacturing and Database Reporting entity is in charge of:
     1. Centralizing all project code creation requests
     2. Sending the project code creation requests to SU MAC team

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• The Project Managers are in charge of:
  1. Identifying all information necessary to create the project code:
     1. Division
     2. Entity code
     3. Business area
     4. …
  2. Creating the project code in the ERP

Flowchart:

Solvay Syensqo Legacy

Rhodia Legacy

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Project Life Cycle

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A project is defined under a hierarchical structure made up of WBS (Work breakdown Structure) elements created at different levels.

• For Solvay Syensqo Legacy:

WBS elements are based on Material Codes that represent different activities / tasks (Appendix 1). The use of the material code during project realization allows simplifying the transition from project phase to fixed asset creation, by minimizing interpretations all through the process.
It is important to respect a few rules in the WBS elements issuance at the very beginning of the project.
The WBS elements issuance rules have to meet two main requirements:

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Roles and Responsibilities

Solvay Syensqo Legacy

Rhodia Legacy

Flowchart

Solvay Syensqo Legacy

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• The "AUC Monitoring" will be detailed in the "I&D Closing Management" procedure and the "Fixed Asset Creation" / "Accounting Project Closure" will be detailed in the "I&D SAP Transaction Management" procedure
  Rhodia Legacy
  

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• The "AUC Monitoring" will be detailed in the "WW - FXA.01.08 - Review of assets under construction (AUC) older than 6 months - Sleeping AUC" procedure and the "Fixed Asset Creation" / "Accounting Project Closure" will be detailed in the "I&D SAP Transaction Management" procedure

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  Capitalized Cost Collection

  Key Principles

  
  The capitalized cost collection follows the following key principles:
• Submit Capitalization Request:

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• FXA.01.01: Documentation of any modification in the assets books
• FXA.01.08: Review of assets under construction (AUC)older than 6 months
  
  
  

  Roles and Responsibilities

  
  Solvay Syensqo Legacy

  Roles and responsibilities	Project Managers	Tools
  Send the capitalization request	X	Xls/Doc/mail
  Control documents authorizing capitalization	X	Xls/Doc/mail
  Control that costs to be capitalized correspond to the costs recorded in the system	X	Xls/Doc/mail / SAP
  Identify projects with no related expenses for more than 2 months	X	Xls/Doc/mail / SAP
  Create asset in AA module	X	SAP-AA

  
  Rhodia Legacy

  Roles and responsibilities	Project Managers	Tools
  Send the capitalization request	X	Excel Format
  Control documents authorizing capitalization	X	Excel Format
  Control that costs to be capitalized correspond to the costs recorded in the system	X	Excel Format / SAP
  Identify projects with no related expenses for more than 2 months	X	Xls/Doc/mail / SAP
  Create asset in AA module	X	SAP-AA

  
  

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  Projects / WBS status management

  Key Principles

  
  In SAP, WBS (or project) are managed by 2 types of status :
• User status
• System status
  1. Created
  2. Release
  3. Technically closed
  4. Complete closed

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