2.0 Business Process

Capture the business process that the application supports . This can be describe through a process diagram or a business capability model

3.0 Application Feature Overview

Information about the existent Workbooks and the respective BW queries.

4.0 Functional Specification

4.1 General Data/Calculations 

This section will approach the concepts/definitions that will be used in all the reports and required to understand the data from the reports.

Could be specific fields, closing activities, additional information to work and understand the reports.

4.2 Process Detail 

4.2.1.  Report/Process Definition 

<insert link>

This section represents the process with detail information for the application. Can include specific or special cases, complex logics , calculations, flows, among others.

4.2.2. KPI's/Calculations/Indicators 

Indicators available: 

• XXXX
• XXXX

Indicatores/KPI's

Definition

Calculation/Extraction of data

Can be a field, a program, something that was created or the report

What are we looking for ? Why has this KPI been created/developed? What is the goal of monitoring this data ? 

How is the calculation, or if it's a program what are the steps or how the data is extracted if it's by files

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borderColor #ededed titleColor #ffffff titleBGColor #5495FC title CBS Invoicing
Introduction on how CBS Project started In the Solvay Group, certain functions are performed by central service providers (and not within BU’s) for the benefit of companies in the Solvay Group as it is more economical and efficient for these to be performed centrally by specialists than separately by each group entity. Examples include Human Resources, Payroll, Invoicing, Credit Control, SBS IS .., these services are provided by organizations known as “Function Service Providers” which collectively form part of “Corporate & Business Services” (CBS). Similar services were performed centrally in both Solvay and Rhodia before Solvay acquired Rhodia.  Following the acquisition there has been in a continuing process of internal merger and restructuring. This created a need for a new harmonized system of cost recording, reporting and invoicing of centrally provided services; this was referred to as the “CBS Project” and consisted of three sub-projects: P&L Structure; BW Cost Tracking; and Charging and invoicing of Centrally Provided Services. The CBS project was launched with three main objectives: Harmonize practices of Solvay and Rhodia legacies, with an extension to Cytec following its acquisition by Solvay in 2015; Simplify and enhance visibility of global service charge for BU’s; and Ensure compliance with accounting, legal and tax requirements For each objective, there were corresponding main guiding principles.  The CBS model has been managed in Excel until 2019. As Solvay seeks to improve efficiency, reduce cash leakage and reduce non-compliance risk, in 2020 EY was engaged to automate the CBS model using SAP’s Profitability and Performance Management (PaPM) application, to reconsider the services invoicing process, with a priority given to transpose and automate the existing process supported by the PaPM application. PaPM maintains and executes complex calculations, rules and simulations automatizing and improving all manual calculations. The data can be analyzed for real-time data insights, and the traceability of the data allows easy identification of outliers or potential errors in data. PaPM outputs are built as queries where the data is compiled and edited. It calculates the amounts to be charged and invoiced by each service provider entity to each entity that obtains benefit from the services that it provides.  In PaPM, the whole process can be breakdown as the steps: Calculate cost at origin. Calculate Service Costs. Allocate Charges. Update Overhead Rates. Prepare Invoice Data. Create Invoicing Output. Review Margin. Please see in the section Process Detail to see more information about this process.

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borderColor #ededed titleColor #ffffff titleBGColor #5495FC title Segmented P&L
Previously the process for the Segmented P&L in Solvay was done mostly manually in MS Excel on a quarterly or annual basis. This work was done with complex files managed in Excel which were very time consuming and to slow to delivery the Segmented P&Ls, which caused slow provision of data for audits, TP Documentation (compliance statutory requirements) and planning. The Group incurs costs related to year-end adjustments: double taxation (corporate income tax) and customs overpayments. By producing the new solution for the Segmented P&Ls this will improve: Checks on a more regular basis, the users we can more accurately and regularly proactively update unit prices to target arm’s length outcomes. This will reduce the value of year-end adjustments, reducing double taxation and customs overpayments. A better Group-wide compliance with national & supranational regulations and lower tax audit risks by more consistently achieving arm’s length results for controlled transactions.  Faster and more consistent data for tax audits. This faster and more consistent data can also be leveraged for tax & TP planning. In addition, the solution will free up time from the manual data processing tasks currently involved in preparing the Excel Segmented P&Ls, to be refocused on higher value analysis such as updating prices and other TP compliance tasks such as TP documentation, notifications and interco agreements. This new solution was implemented in PAPM application. Main objectives with this integration in the PAPM application: Add more transaction types in the transfer price table - aligning the table used for price setting with the transfer pricing classifications used in the Segmented P&Ls and TP Documentation. Automate the calculation and allocation in PAPM, minimize manual workload, to migrate the Segmented P&L from Excel to PAPM. Implement new Segmented P&L solution in PAPM for all Solvay Entities in WP1 and PF1. Framework Image Added To see more information about the process and how to work with this please check see the link for the Segmented P&L in PAPM  and to see more details for the blueprint solution please see in the link 11490 Segmented P&L in PaPM BBP_PaPM Solution.

3.0 Application Feature Overview

This application it's used on the user side in the SAP system using some transactions to perform the full process and get the final values into BW and in a final excel. So, in this way, the user can check the final data using also the workbooks directly in excel using AfO (Analysis for Office).

In the SAP system the user can access to the following transactions:

To see the information in AfO for the BW data please check below the following workbooks:

PAPM: CBS Invoicing:  

PAPM: Segmented P&L:

4.0 Functional Specification

4.1 General Data/Calculations 

4.2 Process Detail 

4.2.1.  Report/Process Definition 

CBS Invoicing

CBS Calculation - Old Process:

Image Added

CBS Calculation - New Process (PAPM):

Image Added

This is the high level view of the new process, see below more detail about this process using the PAPM application:

Image Added

Note: The BAAN part don't exist anymore.

Timings

Image Added

Normally the timing it's 2 time per year but it's possible that the team needs to have an additional execution for the process.

PAPM Process

• Each process corresponds to a CBS calculation run in PaPM.
• Process creation/deployment is under responsibility of Execution Management –> SU FAC Transfer Pricing.
• At the start of each Calculation is linked with the Snapshot taken from BW.
• Only after the process is deployed each user can perform the activities.

Segmented P&L

Segmented PL is to provide the P/L of each entity with the view per activities (granularity: TP transaction type & Material code / Partner Company / Original company) after all shared cost / expense allocated among the activities. 

The Segmented PL will be used to Set & Monitor the unit prices of transactions to a level that will achieve arm’s length outcomes (profit margins in tested parties), and also support kinds of reporting like TP Documentation, Benchmarking ranges, Comparability analysis.

In PaPM, the whole process can be breakdown as the steps:

• Raw PL and correction. 
• Data enrichment & CBS Integration
• Cost allocation & produce Segmented PL
• Output reporting

Some detail about the process behind before using the PAPM tool is:

1º Take a snapshot to copy the data from P&L to the specific DSO;

2º Redetermine the Transaction Type in BW:

Two tables:

• First has the old and the new TP based in some conditions. The busines should maintain this directly in SAP..
• Second it's just a load for a flat file to control the data selection.

This info will be stored in this calculation view: Solvay.IA_FMCO.IA_FMCO_CO.IA_FMCO_COPA/CV_FMCO_COPA_PL_SNAPSHOT_PAPM (with TP Typ redetermination done in HANA)

Some consultation that we can do for the snapshot info:

SE16 - /BIC/AABCOPA082 Snapshot ADSO PF1

SE16 - /BIC/AABCOPA092 Snapshot ADSO WP1

Check the following presentation to see more information regarding the BW requirement and the technical documentation with more details for this.

5.0 Non-functional Descriptions 

5.1 Usability

as per standard.

5.2 Regulatory Compliance

as per standard.

5.3 Security

as per standard.

5.4 Performance

as per standard.

5.5 Reliability

as per standard.

5.6 Scalability

as per standard.

5.7 Compatibility

as per standard.

5.8 Availability

as per standard.

5.9 Refresh of the Data

Segmented P&L: For P&L information it's scheduled every month on the 4th working day at 10am.

5.0 Non-functional Descriptions 

5.1 Usability

Usability is about the ease with which a User can learn to start using the solution and the ease with which they can use the system.  In addition to ease of learning and ease of use, usability also includes areas such as ease of recall, error avoidance and handling, accessibility among others e.g., 99% of metadata entry Users who have use the Maintenance Dashboard should be able to change filters, extract etc., when required.  Maintenance data will be centrally stored in the Google Cloud platform, which will be available to other applications e.g., and Dashboards if needed.

5.2 Regulatory Compliance

Software systems must comply with legal and regulatory e.g., GDPR requirements, this can change depending on country, organisation industry and / or region.  The software systems must be secure from unauthorized access.  The Maintenance Dashboard will comply with Solvay’s regulations and compliance e.g., access only granted to authorized Users.

5.3 Security

Security refers to essential aspects that assure a solution and its components will be protected against unauthorized access or malware attacks.  Important considerations related to security aspects of a system are User authentication, User authorization or User access privileges, data theft, malware attacks, data encryption, and maintaining audit trails, e.g., only Users with administrator access shall be able to create new accounts and assign data access privileges to the new accounts e.g.,

• All data will be encrypted in the dashboard
• Only authorised Users / Administrative Users will be able to access data.
• Maintenance data will be split between either SCO or ECO, and Users will only have authority to one Entity data.

5.4 Performance

Performance defines how fast a software system or a particular section of it responds to certain User actions under a certain workload.  In most cases, this metric explains how long a User must wait before the target operation happens e.g., the page renders, a transaction is processed, etc., given the overall number of Users now.  Performance requirements may describe background processes invisible to Users, e.g., backup and speed of data transfers. 

5.5 Reliability

Reliability is the ability of a solution or its component to perform its required functions without failure under predefined conditions for a specified time / period.  Reliability can possibly be specified in terms of average time system runs before failure occurs, percentage of operations completed successfully within a time / period, maximum acceptable failure probability, or number of failures within a period.  Reliability aspects are in reference to (but not limited to) evaluation of the system to be considered as reliable, classification of reliability defining failures vs. regular failures, and the impact of failure on business operations.  The Maintenance Dashboard will display data from the previous refresh of data.   

5.6 Scalability

Scalability refers to the degree to which a solution can evolve to handle increased amounts of work.  The increased amount of work could be in terms of the user base, transactions, data, network traffic, or other factors e.g., the system should be able to handle an additional load of a maximum of 5,000 Users every month for the next 6 months without any noticeable performance impacts.  

5.7 Compatibility

Interoperability is the degree to which the solution is compatible with other components.  It is a measure of how effectively the system interoperates with other software systems and how easily it integrates with external hardware devices.

Interoperability aspects to be discussed during elicitation are in reference to (but not limited to) software systems to be interfaced with along with data / messages to be exchanged and any standard data formats, hardware components to be integrated with, and any standard communication protocols to be followed e.g., Order Management system will push the order file into a secured file transfer protocol server from where it will be loaded into the system through a daily job.  To guarantee between Google Cloud platform and SAP BW Queries e.g., BW_QRY_MVPMOR01_0002, Solvay has introduced a new tool called Xtract (Xtract).

5.8 Availability

Availability is the degree to which the solution is operable and accessible when required. It is a measure of time during which the system is fully operational e.g., available for use and sometimes included as a Service Level Agreement (SLA) considering its criticality to the business, e.g., the system shall be at least 99% available on weekdays between 09:00 to 18:30 Central European Time (CET).

5.9 Refresh of the Data

Frequency, data, and time of the data refresh in the data product.