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, new_zealand, emea_transversal, apac_transversal

    • 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. Name the title of each section using OPD methodology naming convention - Infinitive verb without the “to”, mainly action verb...something) - " I do something..."

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




Domain: Costing



Responsibility area: Perform product costing monthly closing-ML


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

Z1F_CLOSURE_CORR



Forms

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



Attachments

8. Add the link to attachments or external links




Previous OP << >> Next OP



1. Objective and Scope

1.1. Objective of this Operation

Within the same Solvay legal entity a single product may have different purposes and usages encouraging potential synergies between the Business Units (BUs):

  • The BU A manufactures and sells the product Y
  • The BU B uses the product Y(*) to manufacture the product Z

The involved BUs may negotiate a fixed price that is is reviewed with an agreed frequency. This is known as the transfer price.

As the the product Y manufacturing cost in BU A ≠ product Y transfer  price in BU, a margin is generated in BU A. This is the so called Internal Margin flow.


1.2. Scope

Finance Operations:

Run transaction Z1K_INTERNAL_MARGIN during closure, setting the Value Field VVD61 to 0.


2. Definitions


See Finance Glossary:

  • ...

3. Tasks description


3.1. I understand the process of internal margin


During the month the product’s transfer between BUs is processed as-is.
The price difference between the product’s cost in BU A and BU B is posted to P&L in value field VVD61 (D61 Elim.Margin Inv), linked to BFC heading R15430.

During the closure, the transaction Z1K_INTERNAL_MARGIN is executed. This transaction performs the following actions:

    • It cancels the product’s transfer operation impact in the P&L

    • It posts a new document identifying the following elements from BU A.

      • Sales in value field VVINT (INT Internal Sales), linked to BFC heading R10000

      • COS split by Fix/Var/Dep costs:


3.2. I correct the stock in transit side effect






End of document.