Tasks to be completed when documenting an operation (from creation to publication)

1. Enter the Title of the operation / page

2. Add the following Labels:

    • Scope of applicability: ww, country_accounting

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam,uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore, new_zealand, emea_transversal, apac_transversal

    • Unit and Domain according to the List of labels to be used in the Finance Service Line space

      • E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":
        • Labels to be used: ww, financial_accounting, central_fin_proc_compliance

      • E.g. 2: France Operation in Financial Accounting:
        • Labels to be used: country_accounting, france, financial_accounting
          (for country operations, the Domain is always country_accounting)

3. Fill in all fields as described above

4. Name the title of each section using OPD methodology naming convention - Infinitive verb without the “to”, mainly action verb...something) -" I do something..."

5. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance approval workflow

Domain:

Responsibility area:

Table of contents 


Scope


ERP


Frequency

 

References



Forms



Attachments




<< CL - Procedure Royalties >>



. Objective and Scope

1.1. Objective of this Operation

This procedure show how to generate the report to calculate the value of Royalties on the sales of some materials.

1.2. Scope

7725


2. Definitions

See Finance Glossary:

  • WP1


3. Royalties Procedure

3.1. I Retrieve the data

3.1.1. Retrieve the email sent by customer service team.

The royalty calculation is always created and done in D-1, we must wait for the email from the customer service team informing that the sales are closed.

3.1.2. Retrieve the data in Excel format

Enter in transaction KE30 and access ZZZ-SOLVFC L2015 - Income Statement

Inform only the month that going to be used to perform the calculation:

Select the line of sales F9


Use the layout saved as /ROYALTIES

**If the layout is not available, these column need to be considerate

Export the data to Excel:


3.1.3. I align the new information with the information from the previous file


Use the archive of Royalties of previous month to give continuity on calculation. Paste the exported values in lines below of archive of previous month and after that align correctly conform the previous month.

Use the formula already existing inside column painted blue

(Check if the products are in number format so that the formula does not return an error)


For products in which the formula gives an error, but we have not sales movement, we can eliminate the line:


For the formulas that gives an error and have sales, we have to check item per item and insert in folder “Base1” that stay hidden.




...


3.2. Preforming consideration 

3.2.1. How this consideration should be performed:

The materials of plant 8791 are sales of Soda ASH, for these we do not pay royalties, must insert directly this description.

We pay 4% of Royalties for materials that are BLOTTED, here is a brief description that we received from the controller of how this consideration should be performed:

To perform this check for new products, enter transaction CK13N, inform material, plant and consting area variant Z25 and click on COST ESTIMATES:

Process:

This example below is a material of resale, we have not any transformation after that receive the product:

Copy the name and insert the RESALE information in the worksheet, with this the formula going to already be fed:

Below is an example of a product that we pay Royalties, it starts as material 144431 and after being transformed it becomes 144741, that is, there was a transformation so that the material is sold.

After performing the checks, we must update the dollar rate that to be applied for the month. In the folder "TAX 2022" the rates that were used for each month are informed, enter the link.

This page will open, select the excel option and download the file with the rates:

Copy the rates of month that you are working and paste it in archive of Royalties:


On the last day of the month line, enter the formula =AVERAGE to give you the average of the month, this will be the exchange rate used for the month's royalties.

Go to the “BASE” worksheet and update the rate in the AC column “Royalties 4% USD”, only for the month in which the calculation is being made, to the rate you have just calculated.

After the calculation is performed, update the Pivot Table to bring the current month:

Confirm that the spreadsheet value matches with the transaction KE30

Updating the pivot table, you will already have the royalty calculation in CLP and USD:

Send this file to CAM of the company pilar.galarza@solvay.com, she will send to the responsible team to be accounted.

After the cycles are processed, confirm that the reported royalty amount is posted on line C41 of the KE30.

Accounting is done to account 98120400 and cost center 7725-7102 by the intercompany team.

Payments are made every six months, so we will have the provision in account 4010111 until June and within this same month the reversal of the provision and the payment invoice for company 7427 CYTEC TECHNOLOGY CORP.

Supplier: 2156248

Invoice example:

...


End of document.

 

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