Tasks to be completed when documenting an operation (from creation to publication)

 1. Enter the Title of the operation / page

2. Add the following Labels : 

    • Scope of applicability: ww, country_accounting 

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam, uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore

    • Unit and Domain according to the List of labels to be used in the Finance Service Line space

      • E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":
        • Labels to be used: ww, financial_accounting, central_fin_proc_compliance

      • E.g. 2: France Operation in Financial Accounting:
        • Labels to be used: country_accounting, france, financial_accounting
          (for country operations, the Domain is always country_accounting)


3. Fill in all fields as described above

 4. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance approval workflow 




Domain: Country Accounting



Responsibility area: N/A


Table of contents 

By default the table of contents displays Heading 1 & Heading 2 (other levels can be added)



Scope

3. Remove the icon when not applicable


ERP

4. Remove the icon(s) when not applicable


Frequency

5. Remove the icon(s) when not applicable

 

 

References

6. Add the link to SAP transaction(s) (when it exists)

FB41; FBL3N; S_ALR_87012277


Forms

7. Insert the links accordingly and change the link text with the OP name

VAT reclass template


Attachments



Previous OP << >> Next OP



1. Objective and Scope

1.1. Objective of this Operation

The purpose of this procedure is to ensure during the monthly closure, that the VAT accounts on the Balance Sheet are empty at the end of the month. The accountant transfers the open VAT-amounts to the Profit & Loss Statement.

1.2. Scope

This procedure applies to the following BE companies:

  • 0003 - Solvay Participations Belgique SA
  • 0007 - Hestia SA
  • 4301 - RESOL & Cie
  • 5990 - Solvay Stock Option


2. Definitions

See Finance Glossary:


3. Tasks description

As companies 0003, 0007 and 4301  are not VAT entitled, the company cannot claim VAT from the Belgian Tax authorities. All VAT SAP GL-accounts should therefore be 0 EUR at month end. 
During the monthly recurring accounting activities, it is however possible that VAT is not taken in P&L and has been recorded on the Balance Sheet. The open VAT-amount should be transferred to the Profit & Loss Statement. ´

Company 5990 is not VAT entitled only regarding the VAT recoverable (2411*), for the VAT payable company stay entitled (2451*). 
During the monthly closing activities, the SLF team performs a control in SAP in order to ensure that all VAT-accounts are empty.

3.1. Responsibilities

Finance operations Team:

  • Finalize the transaction input in SAP.
  • Book VAT on all customers and suppliers invoices in the Profit & Loss Statement.
  • Verify at month end if VAT accounts on the balance sheet accounts are empty and process reclassification in SAP.

3.2. Periodicity

This process should run on D+1.

3.3. I ensure that all VAT accounts are empty

1) Run report S_ALR_87012277, select variant MO-VAT, and update the company and period. Check if the VAT accounts (2411* and 2451*) have balance during the period.

2) Check the total balance of both accounts:

    1. If no movements occurred in the month, there is nothing to do; 
    2. If only one account (2411030032) is available, the difference should be taken to account 6400100001 (see document  5010004476 in company 0007); 
    3. If netting between the VAT asset and liability account is available, the netting should be performed, by creating a posting with one account against the other (2411020000/2451020000) 


3) To perform the postings, transaction FB41 should be used, with document type S1.

4) Check if the all VAT accounts are balanced:

    1. Insert transaction FBL3N; 
    2. Select accounts 2411* and 2451;* 



    3. Select "All postings" starting from the first calendar day of the closing month, till the last calendar day of the closing month; 
    4. Request all "posted" and "parked" items; 
    5. Select layout type "LBD2011";
    6. If there's a 0 balance, the clearing of accounts should be performed; 


Company 5990: tax code for "YU" transfer to P&L , EX:

 i.      TAX code YT – use account 2451040032;

 ii.      TAX code YU – use account 6400100001;


5) At D+2, check if the cost centers used are balanced, and if not, an analysis needs to be performed to identify and re-run the cycles.


End of document.