1. Objective

Run interim close

Close the period for such that GL entries for any backdated deals will automatically be posted on the first day of the next month, with the exception for transactions entered by users (i.e. accounting key users) with elevated rights in their user set up.

Run Accruals

Recognize in P&L the interest income/receipts of future dated interest cashflows (for interest bearing instruments for which accruals accounting has been activated in the accounting rules/ GL accounts have been defined in the posting rules)

Check output of MVI report

After the accruals have been posted the next step in the closing process is to generate & post the MtM GL entries for Derivative instruments.

The process consists of multiple steps and is utilizing components of the Analytics module, Crystal reports, scheduled jobs and standard Quantum accounting functionality

Run position/MtM

For FX Spots: Post the MtM on the BS account and the offsetting P&L account. For all other instrument types: post the BS and offsetting transit account to be cleared by split process (see next step) with offsetting P&L account or OCI (depending on Strategy code).

Run MtM unrealized split

After posting MtM, a job will need to be triggered to take into account the Spot-to-Spot component in case of FX Forward/Swap/NDF. This “splitting job” will trigger the query mentioned earlier in case you do it at month-end, the dates fields should be then configured and saved accordingly.

Run full close

Close the period for such that GL entries for any backdated deals will automatically be posted on the first day of the next month, this time for ALL users (so including transactions entered by accounting key users with elevated interim closing rights in their user set up)

2. Tasks description

Close the period for such that GL entries for any backdated deals will automatically be posted on the first day of the next month, with the exception for transactions entered by users (i.e. accounting key users) with elevated rights in their user set up

2.1. Execute Interim Closure

2.1.1. Check the user access rights to perform postings in an interim closed period

Go to Menu → Configuration → User 

If this part of user access is not correctly updated for the accounting users (that are running the closing process), postings generated after interim close is activated will be posted on the first day of the next open month.  

2.1.2. Execute Interim Closure

Go to Accounting - G/L Close

Select the variant with all relevant entities for which to run the closing by using the “browse”

Also a single company can be select. Just select the button   and choose the variant.

Add all companies under Syensqo scope:

1x per YEAR in January, check that all companies created in Quantum are included in the variant.  Each month on D-2, ask via e-mail TSU BAM & TOOLS if a change in the company perimeter was performed in Quantum.

To Close: enter the closing date, flag interim close and hit  

To Re-open: enter the date for which the period has previously been closed, select full or interim re-open and hit 

Wait until the job finish and confirm if the period was closed for all Entities.

This process can take some time and you can control TMS messages.

When the process finish the message will mentioned that the GL Close is completed.

Select the arrow to extract and save the report.

2.2. Check interfaces of All companies

2.2.1. Ensure that all the deals were interfaced into SAP

From the Beginning till End of last month, if any missing ensure interface process.

The aim is to clear everything that is pending in the G/L interface for all companies.

And make sure everything went through the interface.

Go to Accounting - G/L Interfaces

Variant:  ALL COMPANIES

and

If there is any data , perform the , create excel file and upload it manually in SAP. Instructions in 2.20. Interface and Upload the file in SAP.

2.3. Check the account in all ERP Systems

2.3.1. Check if all the GL Accounts in SAP are cleared_ERP Systems pi2/PF2/WP2

Go to SAP and ensure that the G/L Account related to TMS are cleared at end of the month by Value Date and in a Document Currency in the three systems.

Go to FBL3N → Variant TMS BS + OB

Filter Value Date until EOM:

In pi2 do not clear the G/L Accounts 546*.

In PF2 and WP2 the accounts 546* and 46* must be cleared in Local Currency 

If the accounts are not cleared we should identify the related deal and check if all daily tasks were correctly performed during the month and if not, complete.

In case of a different issue, FO Treasury Team should be contacted in order to understand if any change occurred. 

After the necessary correction performed the interfaces should be repeated and the process should continue.

2.4. Check Mergers and Acquisitions of the Month 

2.4.1. Check if there are any deal for companies in the scope of M&A.

Go to Reporting → Transaction by deal  

Maturity Date: Greater than last day of the closure month 

The check is made on basis in the companies listed in the email received from SBS M&A.

If there is any deal for a closed company please contact treasury.fo@syensqo.com, the CAM of the company at stake and TSU Accounting and Reporting manager + TSU Accounting Expert (CAM IHB).

2.5. Check Money Markets of the month and the Accrual Process

2.5.1. Ensure no pending accruals to be posted

Using the following Variants: D- Accrual Launch

                                               D+1 Accrual Launch

                                               D+1 Accrual Launch (DEBT - Hybrid and Senior)

                                               D+1 Accrual Launch (RCF)

                                               D+1 Accrual Launch (Deposits)

Is normal to have no data after running the report in the Preview mode

Go to Accounting - Accruals

2.5.1.1.  Variant:  D-Accrual Launch

Period :  Start of Last Month until End of Last Month

and 

2.5.1.2.  Variant:  D+1 Accrual Launch

Period :  Start of Year until End of Last Month

and

PAY ATTENTION on December when the Year change!

2.5.1.3.  Variant:  D+1 Accrual Launch (DEBT - Hybrid and Senior)

Period :  Start of Year until End of Last Month

and 

PAY ATTENTION on December when the Year change!

2.5.1.4.  D+1 Accrual Launch (RCF)

Period :  The Beginning until End of Last Month (could also be start of the year rather than the beginning)

and 

Usually nothing to post.

PAY ATTENTION on December when the Year change!

RCF Accrual are calculated through the option 

Processing → Process Fees

NOTE: If necessary to see a specific deal, go to tab Fee Deals and positioning in a certain line, using Cash Flows and G/L buttons it is possible to see the historical data related to the deal.

Then select Generate Fees

Select: Calculate G/L entries

and 

NOTE: If a new fee deal is created with a retrospective date (prior to closing month), first launch generate fees for that specific deal from its creation until the closure date to catch up the missing accrual. When done, the normal closing process can continue.

You can generate fees One by One or for All at the same time. To generate the fee on 1 specific fee, please type the fee deal number instead of all.

However this step is just to perform the calculation , do not post.

To check the calculation go to:

Fee Deals --> select one Fee deal and after G/Ls

And we can see the amount to post but the deal number was not created yet.

Example: Fee deal 7

Payment in mid-January. the deal was split in 2

In order to post the amounts calculated go to Post select GL and select post all unposted GL entries

Update the date to end of the closure month

Select Post all unposted G/L entries

and 

The following message appear: 

After the interface to SAP we should clear GL account 2720000400.

2.5.1.5.  Variant:  D+1 Accrual Launch (Deposits)

Period :  The Beginning until/Start of the year - End of Last Month

Exclude: company 2232

PAY ATTENTION on December when the Year change!

and 

2.5.2. Check if the outstanding commercial papers deals in Quantum are posted in SAP 

Go to Reporting → Transaction by deal → Money Markets Monthly view

View → Commercial Paper View

Below, we can observe the outstanding short-term deposits and commercial papers, and we can verify whether all entries have been accurately recorded in SAP:

Deal Date: The Beginning - End of Last Month

Maturity Date: Start of Month - The end

Add company 2232:

Create the report in excel and compare with the information of SAP

SAP - FS10N - Account 5030000000

And account 5113000000:

Compare the Quantum report with FS10N account 5030000000 and 5113000000:

2.6. Check if all the deals created on the month are approved

Go to Dealing → FX → New FX Deal

Confirm if the filters are correct in Configure → Filters:

3. Sort by Approval Status 1 and Approval Status 2:

If there is any deal not approved contact treasury.fo@syensqo.com and TSU Operations.

2.7. Check day by day if there is no matured deal pending (NDFs and Spots)

2.7.1. Check day by day if there is no matured Spot deal  pending 

Go to Accounting → Position → FX EOD

Maturity date : Less than "First day of the next month"

ex: April/2022 closure , select 01.05.2022 and  

If there is any deal pending , you need to perform the Daily Task for that deal.

2.7.2. Check day by day if there is no matured NDF deal pending (note that the check is done during daily tasks so at this point is done just for the last day of the month)

Go to Accounting → Position → FX EOD - NDFs

Maturity date : Less than "First day of the next month"

If there is any deal pending , you need to perform the Daily Task for that deal.

2.8. Check day by day if there is no matured NDF deal pending to split  

This check is done during daily tasks so at this point is done just for the last day of the month

Go to Analytics → Queries → MVI → MVI FX NDF (Real)

and Run the report with the Position date = Fixing rate (day by day)

with the view - SOL_Analytics_MVIFX_Reclass

If there are some pending deal , proceed accordingly the Daily Tasks.

2.9. Check if in Quantum there is no suspense Accounts (ZZZ) (monthly)  

Check if there are no deal using the ZZZ account.

If you have any deal with ZZZ account analyze and please contact treasury.fo@syensqo.com, the CAM of the company at stake and TSU Accounting and Reporting manager + TSU Accounting Expert (CAM IHB) to know why using this account and correct.

Reporting →  General Ledger transaction → Suspense Accounts → View Account Report (ZZZ)

You can select two months to check

2.10. Check Rates in Quantum (Last day of month)

FX Rate  

All Rates (by last date)

Rate → FX Rate

Select currencies and the last day of the month

SAP → ZRATE

2.11. Generate Position  

Go to Accounting → Position

Select MVI FX Uptade option

As At Date: today

Position Date: Last day of the closure date

Click on icon and select Save

MVI FX Update → Should be 0 (PREVIEW) and (Save date)

Should be zero because all settlements have been done with the daily settlement process and with the final check above.

If any deal appear, it must be analyzed  if all daily tasks were correctly performed during the month and if not, complete.

In case of a different issue, FO Treasury Team should be contacted in order to understand if any change occurred. 

After the necessary correction performed rerun the MVI FX Update and after check again if the output is zero the process can continue.

2.12. Generate Position Job

Utility → Scheduled Jobs

Select MVI FX UPDATE Job

Run

After run, confirm if the job is "success".

2.13. Post MtM - Generate Position

Calculate the Revaluation for the open deals.

Accounting → Position

Postion MtM

Maturity Date: Last day of closure the month

Click on icon and select Save

Example for one deal:

Before the run:

After the Position MTM run:

For Spot's, the revaluation is directly impacting P&L account.

For other instruments, the Revaluation is posted in a transitory account (508*) that will be split. This is due to the Forward Points that are charged for these type of instruments (Forwards, NDFs and Swaps).

In this step, the revaluation is automatically reversed on the first day of the following month.

2.14. Generate MVI FX Update

Analytics → Queries → MVI

Select MVI FX (Unreal)

Position Date: Last day of the month  

Start Date: Last day of the month

End Date: Last day of the month

As At Date: today

PAY ATTENTION ON THE FILTERS

Go to Configure

Click on tab Filters and confirm that the selections are similar to the ones in the print

Click Save

2.15. Generate Position Job

Accounting → MTM Split Unrealized

Select position date → Last day of the month

View → Processing View

and   the screen with the deals will appears

Select the   and all the deals are selected.

It is possible to select one by one.

After select and the postings will be done in Quantum.

This message will appear

If there is any error is need to investigate the reason.

Run the query again no information appear:

2.16. Check Split 

Reporting → G/L Transaction

Interco → Check of MTM Accounts in the Month (INTERCO)

Extract the report and confirm if the amounts are balanced. Verify the rates in SAP (transaction ZRATE) to match the amounts:

2.17. Check if in Quantum there is no suspense Accounts (ZZZ)

Reporting → G/L Transaction

Interco → View Account Report (ZZZZ)

Start Date: Start of the year

Must have no deals.

2.18. Check if in Quantum there is no split Accounts (ZZZ)

Reporting → G/L Transaction

Interco → View Check of TRANSIT Accounts Check

Start Date: Start of the year

2.19. Interface Quantum X SAP 

Accounting → GL Interface

End date: Always day 01/MM

Variants: 

• AFF-PE1
• AFF-NON
• ALL COMPANIES

IMPORTANT: Do not forget to download the file and SAVE the excel file

2.20. Interface and Upload the file in SAP

2.20.1. Upload the file in SAP

Transaction: Z8Y_AI_MAIN

First in Test Run and after remove the Test Run option and run.

2.20.2. Fly Out the file in pi2

Transaction: ZZF_FLYPOST_OUT_TRAN

• Context: Z8Y_AI_PROCESS
• Variant: QT AI BATCH

When "Trigger events" is selected there is no need to run Fly IN in the other ERPS, it is posted automatically

First in Test Run and after remove the Test Run option.

Check in transaction Z8Y_AI_CONTROL, if there are no errors and interface was done properly.

2.21. Check if Quantum is Align with SAP

This step is ensured by check TMS vs SAP (file "Report TMS vs SAP MM YYYY_2232" stored in \\lucapfs01sco.oxo.priv\LUCAP-USERS\TREASURY ACCOUNTING (P2)\MONTH END CLOSING\YYYY\MM.YYYY\TMS MM.YYYY).

2.22. Execute Full Close

Accounting →  GL Close

Add all companies under Syensqo scope:

Check the column Last Full Close Date if the date is updated with the last day of the closure month.

2.23. SAP / Launch the internal Control & Request Regions to Ensure in WP2 and PF2

2.23.1. Check SAP and Quantum GL balances are aligned

• Ensure the 5*73 accounts are cleared
• Ensure the 54611* is balanced at 0 (Clear in WP2 and PF2) at 0 Balance in pi2 open items
• Reconcile the Cash (F15)
• Reconcile the Intercompany Movements
• Formalize the IC and upload to the G Drive

2.23.2. Check SAP, Quantum and BFC GL balances are aligned for APAC companies

• Ensure the 5*73 accounts are cleared
• Formalize the IC and upload to the G Drive 

We should take the information from each company with FX deals during the month, and put it in the Excel file:

1) From SAP, using transaction ZZF_BFC_FI_FLOW_AN, variant SBS_SFT_IC_MTM (PF2) and SBS_TRES_SFT (WP2)

2) From Quantum, query CASH

3) From Quantum, query INTERCO

4) From BFC, by importing the information to the Excel file

We should then confirm that there is no difference between all the systems:

Note: Since BFC consider only K amounts, these SAP vs BFC differences are normal.

The information should be saved in the example file below:

End of document.