1. Objective and Scope

1.1 Objective of this Operation

Solvay is organized in: 

• Cluster: top level of the Group structure,
• Global Business units (GBU): main operational and financial sub-division,
• Group of activities : sub-division of a GBU,
• BFC activity 1: main level of the BFC reporting,
• BFC activity 2 : sub-division of “activity 1”, based on an “industrial axis” – it is mainly used in WP1 and is also known as “CGU”. In PF1 it corresponds to the Activity 1.
• Lower reporting levels : PIF in PF1

This structure is used to provide the proper reports for business follow-up

The purpose of this document is to provide the operational / technical details describing the maintenance of a Business structure in WP1.

1.2 Scope

This procedure covers the implementation of a new business structure in SAP WP1.

2. Definitions

See Finance - Glossary

• BFC
• IECRA
• IS
• GAR

3. Tasks description

3.1. I receive the information that a new business structure needs to be implemented in WP1

All requests for data under the responsibility of Finance Data & reporting must be made through the “MDWF” workflow.

For complex changes and topics, there are usually several preliminary contacts and the workflow is created when the solution has been designed and agreed.

In terms of reporting axes, the information can also be provided by an email from Corporate Controlling. 

3.2. I analyze and validate the information provided in the request

The description of the process of defining Reporting axes in the systems linked WP1 can be divided into 5 sub-processes, for an easier understanding:

1. New “BFC activity 1”

2. New IECRA in an existing Activity 1

3. Implementation of an existing PF1 activity 1 in WP1

4. Reorganization of reporting elements “below activity 1”

5. Update of Group structure “above activity 1”

All the structure implemented by Data administrators and IS Materials & Structure Data team can be displayed in SAP transaction (Report ZWFAR571 - Reporting structure axes), which is a combination of axis managed at GBU level (Data administrators) and tables updated to link SAP codes to BFC codes.

3.3. I implement a new "BFC activity 1"

The introduction of a new “BFC Activity 1” is requested by the GBU and approved by GAR / Corporate Controlling, who assign its code in BFC.

After GAR’s approval, the GBU needs to communicate to Finance Data & Reporting the necessary elements in order to activate the set-up process.

3.3.1. Determination in the accounting process 

The BFC activity 1 is mainly materialized in SAP WP1 by :

• An IECRA that is the combination of:
  • a division: groups of similar products or product lines produced with the same technology.
  • and a distribution channel: channel through which saleable materials or services reach the customer. 
• IECRA are grouped into CDPRF (=Profit center carat) - A CDPRF corresponds to the "Activity 1" in BFC
• CDPRF are grouped into ENTRP (enterprise codes) - The ENTRP corresponds to the "Group of Activities" in BFC
• ENTRP are then grouped into ZSECT - The ZSECT code corresponds to the GBU in BFC

Determination of the IECRA in the P&L

• For sales & standard costs of goods sold, The IECRA is determined with the combination of the division and a the distribution channel = DV x DC
• For purchase price & process orders variances and the inventory revaluation, the IECRA is determined with the profit center maintained in the material code. There is a unique link Profit Center-IECRA
• For cost centers, the IECRA is maintained in the assessment cycle. 

Determination of the IECRA in the Working Capital:

• For Account receivables, the IECRA is determined
  • for FI postings with the counterpart accounts (P&L), 
  • for manual postings between balance sheet accounts, with the profit center inserted manually in the posting (when the field is open for the account.)
  • with the table ZWFAT205 to be updated when the profit center is not entered in the original posting, 

3.3.2. Objects to be maintained in WP1

The creation of a new “BFC activity 1” may require the maintenance of all or some of the following WP1 objects:

• Combination of Distribution channel (DC) x Division (DV) = IECRA code.
• Creation or update of the link between Distribution Channel x Division and the chain IECRA/CDPRF/ENTRP/ZSECT (transaction ZWOC54A).
  • ZSECT for the GBU (eg. ZSECT00078 TECHNOLOGY SOLUTIONS)
  • ENTRP for the “group of BFC activities” (eg. ENTRP00190 TECHNOLOGY SOLUTIONS)
  • CDPRF for the “BFC Activity 1 (eg. CDPRF00716 PHOSPHORUS DERIVATIVES) 
  • IECRA for the “IECRA” (eg. IECRA01219 PHOSPHORUS DERIVATIVES) 

3.3.3. SAP implementation: roles and actors

The implementation of a new “BFC activity 1” requires the following steps:

• GAR informs of the creation of a “BFC activity 1” with its BFC code
• Finance Data & Reporting works with GBU’s administrators or with IS Materials & Structure Data team (when there's have no administrator for the GBU), and with GBU controllers when necessary to define the data needed for the new BFC activity 
• GBU data administrators request, with a template to IS Materials & Structure Data team, the creation of a new link DC x DV in transaction ZWOC54A (ticket) then he creates the structure in ZWOC54A, linking the combination DC x DV to IECRA / CDPRF / ENTRP / ZSECT
• The GBU controller sends a request to Finance Data & Reporting including the new combination DC x DV with its link to 
• 
  
• to IECRA / CDPRF / ENTRP / ZSECT

• The GBU controller defines with the GBU Marketing & Sales department, the appropriate product hierarchy structure. The GBU controller makes a request to Finance Data & Reporting team, including the following elements :
  • New BFC Activity 1;
  • “PIF” contained in the hierarchies, specifying whether they are new PIF or re-assignment of existing PIF – giving the product hierarchy of the new PIFs;
  • For each PIF, the list of the involved industrial origins (either linked to actual production, or external purchases or “mix of bulks” in external storages). In case of Rhodia Legacy GBU, RCS code of these product divisions;
  • For each PIF, the list of the plants for which automatic determination of the business area is needed to derive the new business area;
  • Possible additional profit centers to be created to include the partner company.

The implementation of a new “BFC Activity 1” requires the following steps:

• Corporate controlling informs the “community” of the creation of a “BFC activity 1” with its BFC code and position in the Reporting chain.

CD x Div link to IECRA

IECRA link to Activity 1 (CDPRF in SAP) /ENTRP/ZSECT 

• Finance Data analyzes the request and, if all clear and ok:

  • Checks transaction ZWFAR571 (class ZS2 (new year) or ZS1 (during the year)) to validate that new combination/ structure appears.

• • Updates table ZWFAT228 to link : 

• • CDPRF code to BFC activity 1 code, 

  • ENTRP code to BFC group of activities if a new group of activities has been created

  • ZSECT code link to BFC GBU code

• • Checks in transaction KES2 if the new COPA characteristics codes is already available.

• • Updates table ZWFAT111 company code XEU1 for BW & BI4 reports

  • Updates ZWFAT111 at company level using GBU document. To be repeated for all companies quoted in the GBU document :

• • GBU doc / GBU xx / sheet “DC- Vte” and “DC Interco” to identify by Sale organization the cross DC (distribution channel) x division and sheet Soc (link sales org - company code ) to find in witch companies ZWFAT111 has to be updated or with SM30 on view V_TVKO_ASSIGN.

Example:

• Sheet DC- Vte

• BR33 / 9NxSB / IECRA in ZWFAR571 IECRA01219 

• ZWFAR571 : 9NSB IECRA01219 PHOSPHORUS DERIVATIV  

• GBU doc TS sheet Soc BR33 link to the entity 

• So you have to create in table ZWFAT111, company 7523 the link IECRA1219/ market TSDP

3.4. I implement a new IECRA in an existing Activity 1

This sub-process deals with the request of a new distribution channel (new market) or new product division within an existing “activity 1”.

Typically, this type of decision is made by the GBU Global Controller.

The GBU needs to communicate to Finance Data the necessary elements in order to activate the set-up process.

3.4.1. SAP Objects

A new IECRA involves the following SAP objects:

• Distribution channel (DC) x Division link to IECRA ( ZWFAR571)

• IECRA link to Activity 1 (CDPRF in SAP) /ENTRP/ZSECT (ZWFAT228)

3.4.2. SAP implementation: roles and actors

The implementation of a new IECRA requires the following steps:

• GBU data administrators request, with a template to IS Materials & Structure Data team, the creation of a new link DC x Div in transaction ZWOC54A (freshdesk ticket). 

• The GBU data administrator creates the structure in ZWOC54A, linking the combination DC x Div to IECRA / CDPRF / ENTRP / ZSEECT

• The GBU controller makes a request to Finance Data including the elements defined in step above or Finance Data formalizes in one Worflow the structure validated together.

  DC x Div link to IECRA

  IECRA link to Activity 1 (CDPRF in SAP) 

  
  

• Finance Data analyzes the request and, if all clear and ok:

  • Checks transaction ZWFAR571 (class ZS2 (new year) or ZS1 (during the year)) to validate that new combination/ structure appears.

• • Updates table ZWFAT228 to link CDPRF code to BFC activity 1 code 

• • Checks in transaction KES2 if the new COPA characteristics codes is already available.

• • Updates table ZWFAT111 company code XEU1 for BW & BI4 reports

  • Updates ZWFAT111 at company level using GBU document. To be repeated for all companies quoted in the GBU document :

• • • GBU doc / GBU xx / sheet “DC- Vte” and “DC Interco” to identify by Sale organization the cross DC (distribution channel) x division and sheet Soc (link sales org - company code ) to find in witch companies ZWFAT111 has to be updated or with SM30 on view V_TVKO_ASSIGN.

3.5. I implement an existing PF1 activity 1 in WP1

This sub-process deals with the request of a new distribution channel (new market) or new product division within an existing “activity 1”.

Depending on the type of flows to implement (sales of products, services or only post costs on one cost center) the process will be different.

The SAP Objects, roles and actors are the same as "New IECRA in an existing Activity 1" process.

3.6. I implement a reorganization of reporting elements "below Activity 1"

This sub-process deals with the request to change the link for IECRA’s to BFC activity 1.

Typically, this type of decision is made by the GBU Global Controller.

There are 3 types of updates:

• Type A: Means that the GBU has decided to reduce the number of IECRA’s.
• Type B: Activity 1 change: Means that the GBU has decided to reduce the number of their BFC activities or change the link between IECRA’s and activities 1.
• Type C: New IECRA’s linked to existing activity 1:Means that the GBU has created new IECRA’s in an existing activity 1

The GBU needs to communicate to Finance Data the necessary elements in order to activate the set-up process.

3.6.1. Type A

• Open a freshdesk ticket to IS requesting to add *OBS* at the beginning of IECRA description in KES2

• Update table ZWFAT111 in XEU1 & in all companies impacted with date end of validity 31.12 of next year, to avoid COPA issues. If activity 1 linked to IECRA also became obsolete, create a new entry for one year on another activity 1 defined with the GBU.

• Update all intercompany tables ZWFAT041, ZWFAT042, ZWFAT043 for the obsolete IECRA. 

3.6.2. Type B

• Update table ZWFAT111 in XEU1 & in all companies impacted: Create a new line by copy with the new validity date from (Most of the time the first of January of the current year to 31.12.9999 and the end of validity for the old line will be updated automatically.

• Update tables ZWFAT111 in XEU1 & in all companies impacted: Create a new line for the new IECRA’s linked to the activity 1.

  
  

3.7. I implement a reorganization of reporting elements “above activity 1”

At the end of each year, the Corporate Management decides on the modifications of the group structures, in terms of Operating Segment (clusters), groups of GBU, GBU, group of activities and “activity 1 and 2”.

The update of Group structure “above activity 1” is requested by the GBU and formally accepted / decided by Corporate controlling, who implements the required changes in BFC. 

After Corporate controlling approval, corporate controlling & the GBU (administrators or contact defined for the GBU) needs to communicate to Finance Data the necessary elements in order to implement changes in the ERP’s.

3.7.1. SAP Objects

• GBU data administrators, with ZWOC54A transaction in SAP, update the link between CDPRF/ENTRP/ZSECT and create, if necessary, new ENTRP code for new group of activities, new ZSECT code for new GBUs
  • ZSECT for the GBU (ZSECT00078 TECHNOLOGY SOLUTIONS)
  • ENTRP for the “group of BFC activities 1” (ENTRP00190 TECHNOLOGY SOLUTIONS)
  • CDPRF for the “BFC Activity 1 (CDPRF00716 PHOSPHORUS DERIVATIVES) 
  
  
• Finance Data analyzes the request and, if all clear and ok:
  

  • Checks transaction ZWFAR571 (class ZS2 (new year) or ZS1 (during the year)) to validate that new combination/ structure appears.

  • Updates table ZWFAT228 to link CDPRF code to BFC activity 1 code 

  • Checks in transaction KES2 if the new COPA characteristics codes is already available.

  • Updates table ZWFAT113 in all impacted company codes

  • Update intercompany table ZWFAT044 in all impacted company codes, on request.

  • Update the Profit centers hierarchy, if activity 2 has to be moved under a new ENTRP code or ENTRP code have to be move under a new ZSECT code. Be careful that IECRA code in profit center link to VS link to activity 2 must be in same ENTRP code as activity 1.

3.7.2. SAP implementation: roles and actors

The implementation of a change of organization above “Act1” requires the following steps :

• Finance Data fixes a date for implementing the change, together with the GBU Controller and the Service Center manager (usually at the end of the year) 

• At the given date, Finance Data implements the change in the tables and the profit center hierarchies.

3.8. I request CGI team to create / update the COPA characteristics

For new entries/codes, COPA characteristics are automatically updated.

Check in transaction KES2 if the new/updated elements are already available. 

If not, open a Freshdesk ticket to IS, asking to update it accordingly: