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)

CK40N


Forms

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

7424 - Costing Run Variances - Template

Costing Run Errors

SCE


Attachments

NAM Contacts

7424 - Costing Run list of Errors & Warnings

https://drive.google.com/drive/folders/0BzJjTiQz5SQEY0N5Xzh2R2NRUGs (name the file and link it)(error)



Previous OP << >> Next OP



1. Objective and Scope

1.1. Objective of this Operation

This document aims to give instructions on how to prepare the Analysis File from the Future Standard Cost Estimate to be sent to the Controllers and Front Office (change Front Office)(error).

Controllers analyze the costs previously in SAP to correct any errors before closing if needed, validate the material prices and validate the significant variances of Antecip. Reval and %Var. costing/MM.
Costing run calculates the standard cost estimate for the next period based on end-month figures of the closing period. After calculation, SBS Service Center NAM team sends detailed reports to the controllers and front office team to support their analysis so they can identify the major changes, anticipate possible issues to correct before closing and justify high variances when needed. The reports are sent in different moments of the month for each purpose – as further explained in this document. Target is having the minimum level of errors as possible. 

First the material's price is analyzed and the first errors identified. Then, when it’s near to closure, the variances are daily reported and treated while the errors corrections are still monitored. On D-1 after all remaining variances are properly justified and the errors are all corrected, the prices are marked and set up for every material movement of the next period.

1.2. Scope

This procedure applies to company 7424 - Solvay USA Inc. - All Plants.


2. Definitions

See Finance Glossary:


3. Tasks description

3.1. Responsibilities

Reports Preparation: SBS Service Center NAM Team

Analysis, Variances Justification and Corrections: Plant Controllers/FRAs

Validation: NAM SBS RtR (change RtR)(error) RCOM

3.2. Periodicity

  • D+10
    Sample report to Controllers to have a preview of the material's price and a report to have a preview of the errors.

  • D+11
    Sample report to Controllers to have a preview of the material's price. Errors report are sent separately by plant, indicating a correction proposal for each error.

  • D-5 to D-1
    On these days it's also sent a report to Controllers to analyze the %Var. costing/MM over 10% or below -10%, and Anticip. reval. over 50k or below -50K. The list of errors is sent to the plants separately between “Errors to be fixed”, “Errors to be ignored” and “Errors to be deleted”.

3.3. I perform the costing run report (please confirm the title)(error)

 1) Go to CK40N, use costing run code 7424SCE and fill the date - the first day of the next month
 

2) Click on “Costing Results”, and then on “Analysis” 


3) Click on  and select layout /FILIPESCE
 

4) Click on  then "spreadsheet" and "table" to extract to Excel file

5) Open the file “SCE” attached on this documentation and use the tab “Report” to paste the information extracted from SAP

6) Create a new "C" column, name it as “MATPLANT” and concatenate results from columns A (Material) and B (Plant)

3.4. I perform the %Var. costing/MM and the Anticip. reval. report (please confirm the title)(error)

The template below is used to highlight the amounts greater than 10% or below -10% for "%Var. costing/MM", and greater than 50K or below -50K for "Anticip. Reval.". It will be automatically highlighted in red, column I and M.

Template File: 7424 - Costing Run Variances - Template (update)(error)

 

Tab Summary Anticip. Reval: Lists materials with high anticipate reval and plant;
Tabs by day: Used by controllers to justify the variances on price change over 10%

The comments will be automatically transferred from one day to another, which means that if there is a comment in a price variance in D-4, it will be automatically copied to D-3 until D-1. → Just double check if all rows are with formulas.


1) In D-5 copy this file in the folder "7424 - Costing Run - Variances", name it as "7424 - Costing Run Variances – Month"

2) Use a filter by color on column I, copy and paste the highlighted amounts into this new report in G. Drive, in the columns corresponding to the day reported. Copy from column A to U.

3) Use a filter by color on column L, check if there is some line that doesn’t have the column “I” highlighted (values more or less than 10%). Copy and paste this line into the G. Drive as well.

4) Copy the data from columns Material, Plant, and MATPLANT for all these lines, and paste in tab "Summary Anticip. Reval".

5) Update the data in column A1. After pasting data, hide column "C"

Tab Summary Anticip. Reval


6) The amounts for Anticip.Reval greater than 50K or below -50K will be highlighted, just make sure that all is correct.


 

7) After closing, upload the final file on AODocs by D5 using path below.

My Libraries > NAM Internal Controls > Cost Accounting > WP1 Costing Run - Variances Explanation
(please link to the path)(error)

3.5. I perform the costing run errors report (please confirm the title)(error)

Corrections Guide: 

7424 - Costing Run list of Errors & Warnings


The report can be prepared using the macro attached or manually as showed below.

1) Go to transaction CK40N and extract all the error messages clicking on the log of the three steps below of costing run:
Selection
Struct. Explosion
Costing


Exclude all message type “I” – Information



 

2) Classify the errors as following:

    • Errors to be fixed:

Message type E
“No Price…”
“Blocked…”
“Production Version…”
Cost estimate for material XXXXXX contains errors -> Planned Price 
Material XXXX in plant XXXX has material status Z0 : Blocked for all
Material XXXX in plant XXXX w/o cost comp split: price acc to val strategy

    • Errors to be ignored:
      “Cost Center x, activity type y: Activity price differs….”
      “Routing x either does not exists or contains no operations”

    • Errors to be deleted:
      “Deletion indicator…”
      “Material x in plant y has no accounting data”
      “No suitable or valid production version found”
      Material XXXX in plant XXXX: No cost est. exists -> raw mat. cost estimate

3) Upload the D11 errors report on Google Drive link below by plant and notify the corresponding plant controllers and RCOM.

https://drive.google.com/drive/folders/0BzJjTiQz5SQEY0N5Xzh2R2NRUGs (name the file and link it)(error)

3.6. I send all the reports

When all the reports are done, send them to: 

  • Plant Controllers/FRAs
  • Business Controllers and Finance Directors/GCCOs
  • NAM SBS RtR (change RtR)(error) ROPM
  • NAM SBS RtR (change RtR)(error) RCOM
  • Local SC T-CO Member


To see the updated contact list please use GDrive link: NAM Contacts.

 

End of document.