1. Objective and Scope

1.1 Objective of this Operation

The aim of the operation is to have all the mandatory masterdata in SAP ready for the process to run automatically and without any constraints before the BFC upload, for heading L15800, L45800, X0810, X0820, R45100, R45200 and R45300.

1.2 Scope

All PF1 and WP1 impacted by Restructuring provisions.

2. Definitions

See Finance Glossary

Restructuring includes all measures designed to permanently adapt structures, production and employees (production, sales, administrative) to economic changes.
Restructuring plans include site closure and/or stop of activity. They should be distinguished from "Recovery plans", which result in decrease in staff and that are reported under "R38220 - Recovery plans" above REBIT.
The cost of all arrangements associated with the restructuring decision should be provided for in the year in which the decision to restructure is made.
Restructuring costs are broken down into:

• R45100 - Restructuring expenses of the period excluding depreciation
• R45200 - Use of restructuring provisions
• R45300 - Restructuring provisions
• R45500 - Restructuring - Impairment of fixed assets
• R45600 - Restructuring - Write-down of inventories / receivables

R45500 & R45600 are out of scope of this procedure
Restructuring costs include:

• severance pay.
• compensation for the early termination of operating leases.
• all exit costs arising from restructurings, including impairment losses recognized on discontinued assets due to the closure of a site or operation.

They are recognized net of reductions in employee benefits already accrued, in case of loss of these benefits by employees.
Restructuring expenses of the period excluding depreciation (R45100)
These are actual restructuring expenses, which relate to existing provisions (made in previous periods).
Are included, the following expenses types:

• Staff costs and other social costs:
  • severance indemnities (for involuntary or voluntary leave)
  • indemnities for a previous notice not worked
  • leave reclassification
  • grants and aids in the creation of enterprises
  • outplacement costs
  • expertise costs of an audit firm
  • professional fees
  • etc...
• Charges (gains) associated with a shutdown (site, production unit, activity, commercial and administrative offices), causing the cessation of a going concern at the site level:
  • rent/lease and contract termination fees
  • destruction and restoration costs
  • gains from the sale of destruction materials (e.g.: scrap metal)
  • professional fees

Use of restructuring provisions (R45200)
This relates to the use (cash-out) made on restructuring provisions relating to period expenses (expenses reported under R45100).
Notes:

• R45200 should always correspond to the opposite amount posted on R45100.
• The corresponding heading of R45200 in the statement of financial position is "L45800 - short-term provisions for restructuring".

Restructuring provisions (R45300)
In here are reported the full charges of these provisions in the P/L (without cash counterpart):

• the new provisions (new measures)See above under R45100 for the related expenses types.
• The restructuring provisions are reviewed quarterly with the cost controllers.

Notes:

• The corresponding heading of R45300 in the statement of financial position is "L15800 / L45800 - long-term / short-term provisions for restructuring".
• Before reported new restructuring provisions, the agreement from the Consolidation Department is required in order to ensure these provisions relate well to a restructuring plan and not a recovery plan (competitive plan).

When recording in SAP, the following Balance Sheet accounts & P&L Accounts combined with the transaction types must be used:

3. Tasks description

In order to have all masterdata ready for the automatization of cashout and also for the Interface from GT CALAME to SAP, a group of mandatory information has to be set in place. Before having it ready, I must be informed that the plan is approved by GAReporting and when to be implemented.

3.1. I collect information on the new provision´s nature and BFC site code

I ask GAReporting Finance team information on the new provision plan, namely the name of it (if already defined), its nature (if social costs or site closure costs related) and the BFC site code.

3.2. I check if the required GL accounts and cost centers are created in SAP

To easily check if all requirements are created in SAP, I fill in the masterdata check for Restructuring file attached.

3.3. I check if the SAP table is fulfilled with the new site code

I check if the new site code is available in the SM30 transaction, table ZZF_BFC_SITE, for both PF1 and WP1 systems.

3.4. I check if the new site code is available in BFC to include it if necessary

I check if the new site code is available in BFC by entering it and moving to schedule L6310, click in add new site code and then check the list of existing site codes.

3.5. I request the creation of the new site code in the BFC system

I request the creation of the new site code in the BFC system by sending an email to the BFC Admin team with the necessary requirements:

BFC site

Site name

Site type

End of document.