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)

MB5L; GR55 - Z4F3; FBL3N; ZWFAI052; ZWFAT135


Forms

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

US - 7424 Inventory Accounts Reconciliation 


Attachments



Previous OP << >> Next OP



1. Objective and Scope

1.1. Objective of this Operation

The purpose of this document is to explain how to prepare the Inventory Accounts Reconciliation.

This reconciliation intends to give a better overview of Inventory Movements, supporting on ARA analysis and Audit process. 

1.2. Scope

This procedure applies to WP1 companies. 


2. Definitions

See Finance Glossary:


3. Tasks description 

3.1. I retrieve stock accounts data via MB5L

Enter on transaction MB5L and fill the company code.

Flag the options:

  • Select balance, Previous period
  • Totals Only 


Use layout:  /DTT AUDIT

 


Take a picture of the MB5L screen and paste in the file (MB5L tab), and also fill manually the box. 

These information of Stock Account will be populated on tab "CCCC Summary", column G, just do a double check to confirm if the values are matching.  

3.2. I retrieve the data from Balance Sheet

Go to transaction GR55 - report group Z4F3:

  • Second period: Last quarter previous year (Q4 Y-1)
  • First period: Last quarter
  • Company code 




Generate the balance sheet report in excel by clicking on Settings → options → 

Copy columns from B2 to E til the end, and paste in tab "Z4F3" starting in B2.


The information of these two periods will be populated on tab "CCCC Summary" column E and F.

3.3. I retrieve open items data

Go to the transaction FBL3N and insert the variant ARA.INV.REC 

Parameters of variant:

  • GL accounts that receive manual entries (all FI excluding MB5L accounts - which are automatic);



  • All items for the reconciliation period 
  • Layout /ARA.INV.REC


The report has two tabs for inventory accounts line items: 

  • "Accumulated Balance- Inv. Acc." → it's for accumulated balance for previous years. 
  • "Inventory Accounts FBL3N → it's for year balance.


Considering that the accumulated balance is already updated on report, we need to take only the balance of current year and reconciliation month. 

Make a filter on column YEAR/MONTH and select only the month. 

Extract the report to spreadsheet and copy & paste values on tab "Inventory Accounts FBL3N"

In this tab there are three additional columns named as:

  • Enterprise: it defines the GBU based on Profit center or Assignment Code. 
  • Entry type: it defines the entry type, that could be Stock Depreciation, Revaluation, COGS, WIP or Journal Entries, based on reference, document header text or text. 
  • Quarter: based on year/month this column defines the quarter. 


If there is formula error on somewhere it should be checked.

3.3.1. I check the profit centers via ZWFAI052

On Tab "PC Lookup", there is the information of all profit center and its Enterprise Description and Market Description. Update it if is needed, checking the profit centers on:

Transaction ZWFAI052:

  • Controlling area: Z028
  • Current date: The last day of the month
  • Profit Center:*


There is a vlookup formula to retrieve the Enterprise according to Profit center, or according to Assignment Code. If the document doesn't have PC neither assignment code, it could be retrieved from details in "CAT" column I and J. For this one we need to define which GBU is the document related for, and update the database (columns I and J).


3.4. I update and review the Detailed Balance and the additional tabs 

In tab "Summary", for each Detailed Balance column, there is an additional tab with more relevant information about the entries. 


  • Revaluation 

Refresh the pivot table and select only the month. Ensure the Grant Total is matching with the total in Summary. 

  • Reval Report  

This is the evidence for the SAP Revaluation program. Copy & Paste the spool retrieved of the execution.

  • In transit 

Refresh the pivot table and select only the month. Ensure the Grant Total is matching with the total in Summary. 

There are two additional tabs for In Transit evidences:
Run each transaction in test mode and export the data. Copy & paste in the report. 
ZWFAT135: Outbound 
ZWFA98A: Inbound (layout /AUTO POST)


  • COGS 

Refresh the pivot table and select only the month. Ensure the Grant Total is matching with the total in Summary.
SAP evidence: ZWFA15P 
Run the transaction for the month and take a print screen. Copy & Paste on COGS tab. 

  • STOCK DEPRECIATION

This tab must be reconciled with the support documentation for each provision. We need to load the support documentation in ARA as well. 
Ask the Controller to provider the concerned documents related to the provision.  

  • WIP 

Refresh the pivot table and select only the month. Ensure the Grant Total is matching with the total in Summary. 
SAP evidence: WIP calculation accruals - template of the journal entries. 

  • JOURNAL ENTRIES 

This report intends to summarize the manual entries and its justifications/support documentation. In the frame of ARA reconciliation and audit process, it's very helpful to have these entries justified.

3.5. I check and reconcile differences, if needed

After doing these steps, the tab "CCCC Summary" is updated with all needed data. The balance for each entry type is split there by columns named in accordance with entry types.

The column "Unexplained" must be zero. If not so, please check what is generating the difference and reconcile it.

3.6. I upload the file in ARA tool

The accounts are the ones under Account item A300* 

End of document.