This application used the data from Project Costs applications (you can see more details in the functional documentation for this application) and the objective of this application is to allow BFC Capex vs BW project reporting (PeC and Cash) data reconciliation: it mainly means providing a detailed view of all BFC CAPEX components (PeC/AuC, PeC/FXA, Fixed Asset Supplier, and Lease debt), to be available on a wide range of axes also shared with BW PeC and Cash solution.
This fine analysis grid of CAPEX should allow to:
- Definitively reduce remaining variances when linked to a technical issue
- Explaining variances when they are legitimate and/or irreductible (perimeter, business rules…)
For these queries the access is provided based on the BW menu and it's done via Service one.
VERSION | DATE | MODIFIED BY | DESCRIPTION |
0.01 | 31.08.2023 | Inês Vilares | Initial draft |
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Data Sources Note: list of all applications and various environment |
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2.0 Business Process
CAPEX stands for "Capital Expenditure." It refers to the money a company spends to acquire, upgrade, or maintain physical assets such as buildings, machinery, equipment, vehicles, or technology infrastructure. Capital expenditures are typically made with the expectation that they will provide benefits to the company over an extended period, often several years.
Key points about CAPEX include:
- Long-term Investments: CAPEX represents investments in assets that are expected to generate value for the company over an extended period, as opposed to day-to-day operational expenses (OPEX).
- Depreciation: Many CAPEX items are subject to depreciation, which means their value is allocated over their useful life for accounting and tax purposes. This helps companies match the cost of the asset with the revenue it generates.
- Examples: Common examples of CAPEX include building a new manufacturing facility, purchasing heavy machinery, upgrading computer servers, acquiring vehicles for a delivery fleet, or expanding a company's physical infrastructure.
- Strategic Decision: Decisions related to CAPEX are often strategic in nature, as they can significantly impact a company's future growth, productivity, and competitive position.
- Budgeting: Companies carefully plan and budget for CAPEX expenditures to ensure they have the necessary funds available for these long-term investments.
- Financial Analysis: Analysts and investors often scrutinize a company's CAPEX spending to assess its growth prospects and financial health. High CAPEX can indicate aggressive expansion plans, while low CAPEX may suggest a more conservative approach.
- Regulatory and Accounting Considerations: CAPEX spending can have tax implications and may need to comply with accounting standards, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).
It's important to distinguish CAPEX from OPEX (Operating Expenditure). OPEX includes day-to-day expenses like salaries, rent, utilities, and office supplies, which are necessary for a company's ongoing operations. CAPEX, on the other hand, is focused on investments in assets that will provide long-term value and benefits to the company.
3.0 Application Feature Overview
For this application find below all the workbooks available:
CAPEX Invest. Projects
| Reports | Definition | Prompts | BW Workbook Query | Query Technical Name |
|---|---|---|---|---|
| CAPEX BFC data - Invest. (Core Workbook) | This report show the values for the YTD for each month and the amounts for each month. The structure contains all the BFC accounts related with the investment data for CAPEX. | Mandatory:
Optional:
| BW_WBK_CX_0011 | BW_QRY_MVFICX01_0011 |
| CAPEX FA adjust. analysis L40800 (Core Workbook) | This report shows the data related with the values from SAP FI for the Projects and compare this data with the information from the BFC Heading L40800 (closing - open values) for the Fixed Asset Supliers. | Mandatory:
Optional:
| BW_WBK_CX_0009 | BW_QRY_MVFICX01_0009 |
| CAPEX Invest. Project to BFC synthesis (Core Workbook) | BW_WBK_CX_0018 | |||
| CAPEX Invest. Project vs FI analysis (Core Wrokbook) | BW_WBK_CX_0014 |
CAPEX Lease Contracts
| Reports | Definition | Prompts | BW Workbook Query | Query Technical Name |
|---|---|---|---|---|
| CAPEX Lease B/S by Flows (Core Workbook) | BW_WBK_CX_0016 | |||
| CAPEX Lease BFC Interface (Core Workbook) | BW_WBK_CX_0015 | |||
| CAPEX Lease Colmar check (Core Workbook) | BW_WBK_CX_0023 | |||
| CAPEX Lease Debt/RoU based on RE Act./Plan. Cash flow (Core Workbook) | BW_WBK_CX_0019 | |||
| CAPEX Lease Future Cash flow for Budgeting (Core Workbook) | BW_WBK_CX_0020 | |||
| CAPEX Lease GL extract for KPI automation (Core Workflow) | BW_WBK_CX_0001 | |||
| CAPEX Lease REFX RoU (Core Workbook) | BW_WBK_CX_0017 | |||
| CAPEX Lease Rolling Future Cash flow for L6605 (Core Workbook) | BW_WBK_CX_0022 |
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 | BW reports under CX - CAPEX Analysis |
| Provider | MVFICX01 |
Source of Data
Integration in a single reporting tool of 3 kinds of data to be compared, in Rhodia (WP1) and Solvay Legacy (PF1) area:
- BFC CAPEX data, uploaded and available in BW;
- SAP FI CAPEX data, which are a view of BFC CAPEX data, but detailed on several axes also shared with PeC & Cash solution (Asset, WBSE…);
- Existing PeC and Cash data (SAP PM, PS and FI), but enhanced to new axes also shared with BFC/FI CAPEX data (PRS Company code, BFC account…)
SAP BW High Level View
5.0 Non-functional Descriptions
Please populate the relevant section and delete those that are not applicable.
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.