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)


Forms

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

CCCC Manual Accounts 

(please add a link to the file)(error)

Attachments



Previous OP << >> Next OP



1. Objective and Scope

1.1. Objective of this Operation

The purpose of this document is to guide 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 companies (please complete)(error)


2. Definitions

See Finance Glossary:


3. Tasks description 

3.1. I fill the tab "MB5L"(please confirm the titles and section numbering)(error)

Enter on transaction MB5L and fill the company code.

Flag the options:

  • Select balance, Previous period
  • Totals Only 


Use layout:  /Inventory

 


Open the file “CCCC Manual Accounts” (please add a link to the file)(error) and take a picture of the MB5L screen and paste in the file (MB5L tab).


Please unhide the columns T-X and fill the table with information of accounts and the Stock Account. After that, hide the columns again (U-X). 


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 fill the tab "Z4F3"

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 fill the tab "Inventory Accounts YYYY"

Go to the transaction /PBS/FBL3N and insert the variant /JC-INV REC, open items until the last day of the reporting period.

Obs.: The report has two tabs for inventory accounts line items: 

  • "Accumulated Balance- Inv. Acc." → it's for accumulated balance for previous years. 
  • "Inventory Accounts 2018" → 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, by making a filter on field "Year/Month". If you noticed there is a document from previous year that's reversed in current year, the tab "Accumulated Balance- Inv. Acc" must be updated as well.


Extract the report to spreadsheet and convert column O to number:


Copy and paste the data in tab "Inventory Accounts YYYY" 

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. 

Obs.: if there is formula error on somewhere it should be checked.

3.3.1. I check and update, if necessary, the tab "PC Lookup" 

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 data base (columns I and J).

3.4. I check the tab "CCC Summary"

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.

3.5. I fill other tabs

There are another tabs related to these entry types that needs to be filled in order to give a detailed variance by quarter.

3.5.1. I fill the tab "Revaluation"

Unhide column "Reval Details". 

Make a filter by reference VALUATION on column "I Reference" on tab "Inventory Accounts YYYY". Copy the data from column G-material til column P - enterprise. Paste the data in tab "Reval details", keeping the data from last quarter. Update the formulas on columns A+B. 


This information will be populated on tab "Revaluation", showing the quarter variance by material, plant and GBU. Ensure that all materials and plant are listed here, if not so it could generate difference. You might select all material + plant of tab "Reval details", remove the duplicated and paste the data updated on "Revaluation'. 

(Keep column "Reval details" hidden)


     


The total described in Summary must match with Revaluation tab.

Update the column "K" with the quarter variances: Q2-Q1 / Q3-Q2 / Q4-Q3

3.5.2. I fill the tab "Shipped not billed"

At closure, the transaction ZWFAT135 is executed for "Stock In transit - Shipped not billed", take the report generated from this and paste on tab "Shipped not billed". 

3.5.3. I fill the "Stock Depreciation"

If the items for Stock Depreciation are assigned by GBU correctly in "Inventory Accounts YYYY", the report in tab "Stock depreciation" will be populated properly as well. Ensure the total balance is the same of total in Summary.


Update the column "I"  and "J" with the quarter variances: Q2-Q1 / Q3-Q2 / Q4-Q3. 

3.5.4. I fill the tab "WIP"

The WIP entries are posted as accruals (posted and reversed next month), therefore when we extract the inventory accounts balance as open items, the report brings only the last month entries. So in order to keep the quarterly register, we have tab "WIP details", which will populate a pivot table in tab "WIP" to split the balance by plant, GBU and quarter. 


Make a filter by entry type WIP on column "Q" on tab "Inventory Accounts YYYY". Copy the data from column E- document til column R - quarter. Unhide tab "WIP details" and paste the data, keeping the data from last quarter. 

Refresh pivot table in "WIP" tab. 

The total for quarter must be same as of total in Summary.

 

3.6. I update and fill the 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. Update this with data for the quarter and fill columns N and O based on ticket received.

3.7. I send the report to RCOM

Sent this report to RCOM – Regional Costing Manager. 

3.8. I upload the report on AODocs

After the report is approved by the RCOM, upload it on AODocs on "NAM Internal Controls" folder.

Enter on AODocs tool through the Google Apps.


On the left side of the screen, select the Labels: SBS → Record to Report (update this name: Record to Report)(error)


Enter on the "NAM Internal Controls" folder. Still on the left side, click on Cost Accounting. 


Click on "NEW" and then on "New Costing Controls". 


Fill the fields with the following data:

  • Document tittle: "Inventory Accounts Reconciliation" plus company code;
  • Control Type: WP1 Inventory Accounts Reconciliation;
  • GBU: GBU ALL;
  • Year/Month: The same of the report;
  • Company Code: CCCC;
  • Plant: Leave this field in blank;
  • Status: Completed.


Attach the report.

Click on the Green icon on the upper right side, to save the file. 


End of document.