General presentation

This page provides all the technical and detailed documentation concerning the "FIWC for Solvay Group" (Finance Working Capital) application in BW, including :

• General overview of the dataflow
• Query, Workbook, Webtemplate and broadcasts documentation
• Maintenance operations : necessary manual updates of master data.

This application replaces the former FIWC application which was created for Rhodia legacy (WP1)

General definitions

Working Capital definition

• Global definition:*
  The working capital is a financial indicator used to measure the Free Cash Flow of the enterprise.

It is equal to the sum of:

• Value of the stocks
• Value of the customer receivables
• Value of the vendor payables

It excludes:

• The investments
• Intracompany
• Intercompany

In BFC:
Every month, persons in each company will get the values from RCS/BW for each account and enter it manually in BFC.

• Values are entered in local currency. BFC then converts to EUR.
• If amounts are not affected to a business unit then they will manually affect the amounts using rules.

G/L Accounts

We can split the Working Capital in 3 main components, which separates in sub-components. Each is a list of G/L Accounts:

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Where to find it:

!Attachment Library^WCAppli_html_m55f566b3.gif|height="358" !

+G/L Accounts restitution:

!Attachment Library^WCAppli_html_339e1905.gif|height="35" !

For definition of each field and list of values check the public definition of |GL Account >BW - Business Warehouse.GL Account Master Data]* master data.*
The management of G/L Accounts for Working Capital is done manually by the BW Team.

Filters in the Working Capital

Interco/Intraco

To filter out Intraco and Interco for Payables and Receivables we use the Status of the Trading Partner of the supplier/customer/partner.

In the report we display customers/vendors which corresponding trading partner has a status different from 1.

In BW, we filter out all Intra and Inter company sales/purchases (Intraco, Interco)

Functional explanations

• For the working capital we are working at the Rhodia group limits. This means that we must not take into account sales or purchases between Rhodia companies.
• Each Rhodia company has a corresponding customer number and trading partner code in RCS and has a status.
• We only look at items for customers / vendors that correspond to non-Rhodia companies or non-integrated Rhodia companies.

Technical explanations

• To filter we use the “Status of the trading partner” of the customer or partner :
• Status is* = Partner is an integrated Rhodia company
• Status is* /3 = Partner is a non-integrated Rhodia company
  No status = Partner is an external supplier/customer

Note: he master data team (MAGDA) is responsible for maintaining the partner and customer status value in RCS

Consolidated non obsolete companies

To filter out the legal entities (Company) which are obsolete or not fully integrated, we will also use the Status of the Trading Partner but this time of the Company.

In the report we only display data for legal entities for which the corresponding trading status is equal to 1.
Note about obsolete companies: the day a company is tagged as obsolete it will completely disappear of the reports! Even from the historical data

Note about companies partially integrated (Butachimie): BW updates manually a list with a coefficient for each company. Normal companies will have 100%. Partial companies can have a lower percent. In 2010, Butachimie has 50%.

In BW, we filter out all Obsolete / Non Integrated companies

Functional explanations

• We only want to display the values for non-obsolete companies and only for integrated companies.

There is 2 cases:

• The company is obsolete: company no longer exists but there is still some date. We must filter it out.

Ex: 3894 - ZZZZ exBluestar Silica Fra

• The company exists but is not “integrated” to the Rhodia group. We must filter out.

Ex: 1892 - GIE Chimie Salindres

Technical explanations

• To filter we use the “Status of the trading partner” :
• Status is* = Partner is an integrated Rhodia company
• Status is* /3 = Partner is a non-integrated Rhodia company
  No status = Partner is an external supplier/customer or obsolete company
• Normally we do not have this flag on the company code (0comp_code) but only on the Partner code (0company). What we have done is add a routine that will get the status from 0Company and add it to 0comp_code

Note: he master data team (MAGDA) is responsible for maintaining the partner status value in RCS

Investments

To remove all investments from the account payables, we use the Cap Goods Indicator (Or Invest.ID in RCS)

This indicator, found on the invoice, will be checked (X) if it is an investment. In the report we only show amounts from documents with indicator different from X.

Example of invoice:

Note The indicator is only used for FIAP (Invoices) data. For provisions, the difference between investment/non investment is done by GL Account. There aren't investments in the Stocks and FIAR.

In BW, we filter out the CAPEX / Capitalized goods

Functional explanations

• Some purchases (for example projects) are considered as investments are and capitalized.
• The working capital indicator does NOT take into account the capitalized amounts. This amount is in fact reported with the CAPEX indicator (PS)

Technical explanations:

• To filter out all the capitalized purchases we can use the “Indicator : Cap Goods” of the item

1. / NO = Item is not capitalized
   X / YES = Item is capitalized and must be removed from working capital amount

Business Assignments

For data coming from FIGL, FIAP and MM, the base of the business assignment is the Profit Center. From the profit center we then use the Industral Axis to define the business structure.

For data coming from FIAR, the base is the IECRA. From the IECRA we then use the Market Axis to define the business structure.

Example of the profit center hierarchy that is used to define the Industrial Axis.

Analyzing Not assigned

+On MM (Stock data):

• If there is a profit center
• Profit center may be linked to no Business Unit in the hierarchy* Verify the hierarchy
• Profit center is linked to a Non Assigned business unit in the hierarchy* Verify the hierarchy
• There is no profit center
• The material/plant master data has no profit center assigned to it* Update the master data

+On FIAP/FIGL data:

• If there is a profit center
• Profit center may be linked to no Business Unit in the hierarchy* Verify the hierarchy
• Profit center is linked to a Non Assigned business unit in the hierarchy* Verify the hierarchy
• There is no profit center
• The document is a manual document without analytical element (profit center, cost center, order or WBS element)* Check with local finance why a manual document and why no element .

+On FIAR data:

• There is no IECRA
• The RCS program was not able to find a CDSA for the document. May be a manual document
• à * heck with local finance why a manual document and why no element*.

+Non assigned in Single-Business unit company :

If you have non-assigned values for companies which should be 100% assigned to a single business unit, contact the BW team: it is possible to set a default BU by company.

Currency conversion

The BW working capital reports are all based on amounts in Local Currency Those amounts come directly from RCS.

If user selects a currency in the prompt the query will convert, otherwise it will return the values in local currency.

This conversion is based on the ZRHO rate (coming from RCS).

• See private documenation on BW Currency Conversion

The current available rate s applied to ALL data (even past data) independently of the date.

For base amount we use the Debit/Credit Amount 0DEB_CRE_LC or FIGL/FIAR/FIAP data and the Stock Value for IM data.

We then apply conversion type ZRH2 for Working Capital - CTK_ZRHWC :

• Based on * ate ZRHO* :

• Uses the rate available for date = * revious Day Exit (Working Cap) -* DATEWC00

• We use the target currency from variable * urrency (Single Value, Optional)*- CURVAR01

Queries documentation

• BW - Working Capital for GBU Webtemplate
• BW - Working Capital for GBU (Core Workbook)

Dataflow in BW

Dataflow

For the BW Working Capital we use 4 sources of data:

Vocabulary:

FIGL: General Ledger

FIAP: Account Payable

FIAR: Account Receivable

Technical dataflow:

MPR_WC01 and MPR_WC02

Those 2 multiproviders are identical. The only difference is the authorization objects. They should have some providers in source, same key figures and same navigational attributes

Authorization objects

• MPR_WC02 Global Working Capital (Access by GBU) :

In MPR_WC02 the authorisation objectif is only the GBU. This is because the target population is usually zone-wide or world-wide on 1 single business. Idea is to allow them to run the report on their perimeter without having to enter all the companies (in some cases dozens).

• MPR_WC01 Global Working Capital (Access by Company code)

Im MPR_WC01 the authorisation access is only by company. This is because the target population (Accounting/site controlling) is usually GBU-wide on a single company. Specially these users need to be able to see the data that is not assigned to any GBU.

Maintenance : Manual management of Info objects master data

+0COMP_CODE – Company code:

• Contribution percentage (C_CONTRIB): 100 normally. Can be 0 for obsolete companies. Other value if company has a partial contribution (Ex : Butachimie = 50)
• Default Profit Center (C_DEFPCTR): Default profit center for FIGL/FIAP data when there is no profit center or a dummy profit center (9999).
• Default Controlling Area (C_DEFAREA) : Controlling area of the default profit center

+0GL_ACCOUNT – GL Account:

• GL Account Working Capital Type (C_GL_TYPE) : Type of the GL Account (stock, FIAP, FIAR)
• GL Account Working Capital SubType (C_GL_STYP): Sub type of the GL Account.
• Magnitude Account (C_MGN_ACC): Code of the magnitude account mapped to this GL account.

+C_GLBFILT – Global filter:

• Contains the list of rules used to know for all GL Accounts where they must be loaded (FIAP, FIAR or STOCK)