The Profitability and Performance Management (PaPM) is a native SAP HANA solution that maintains and executes complex calculations, rules and simulations for automatizing and improving all manual calculations. Before the CBS model was done in excel and this application was built to improve efficiency, reduce cash leakage and reduce non-compliance risk to reconsider the services invoicing process.
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.
The Segmented P&L solution was introduce after to improve the process which was very complex and in excel and in this way the users 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.
Describe the key User profiles that exist for the application.
General role/Viewer role:
Approver role: Ask what is the role Ludovic
VERSION | DATE | MODIFIED BY | DESCRIPTION |
0.01 | 02.11.2023 | Inês Vilares | Initial draft |
| Data Product Type |
|
| Technologies |
|
Data Sources Note: list of all applications and various environment |
|
2.0 Business Process
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.
CBS Calculation - Old Process:
CBS Calculation - New Process (PAPM):
3.0 Application Feature Overview
Information about the existent Workbooks and the respective BW queries.
| Reports | Definition | Prompts | BW Workbook Query | Query Technical Name |
|---|---|---|---|---|
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
| Domain | Finance |
|---|---|
| Application | |
| Provider |