1. Objective and Scope

1.1. Objective of this Operation

This procedure explains how to handle the personal costs in Spain. 
Based on the data in HR SAP system, on a monthly basis a payroll posting by company is generated via ALE from HR SAP systems to FI SAP system. This posting includes the payroll expenses paid but also the smoothing expenses of other payroll payments done in a yearly basis (like Extra payment of June and November, end of year premium, bonus …etc.). Additionally, this posting includes also the booking of other expenses related to personnel costs like: pension costs and insurance life premiums.
In this monthly FI posting the expenses are allocated directly to the cost center of the employee with his own primary cost elements. 

This procedure describe the actions to be done on a recurrent basis in order to assess the accuracy of the Financial Statements at company level.

These actions are mainly focus on:

• Check if the posting has been correctely posted;
• Split the information posted document in different assignments, to allow a better follow up of the personal cost operations and provisions;
• Check that the amounts of balance sheet accounts related to provisions in FI are equal with the amounts from HR;
• Clearing and checking the B/S payroll account, 2455000000 to follow up the payments done and the payroll posting amount.

1.2. Scope

This procedure is valid for Spanish company 0245 - Solvay Quimica Spain.

2. Definitions

See Finance Glossary:

• ERP
• FI
• GL
• HR

3. Tasks description

3.1. I perform the personal costs operations

On the 20^th of each month, you will receive from local HR team and through Freshdesk ticket some information and files with the HR details. These files will allow the consistency check between HR and FI. 
The files naming follow the same criteria each month, the month and the year the information refers to. This way, the information you may receive for use along the procedure are:

• Ticket confirming the upload of the reconciliation file in AODOCS "ES Reconciliation HR-FI_MMYYYY", that will be the basis of your analysis;
• Ticket "Retenciones y provisiones MM.YYYY" with the files related to the SOLES_E1_Witholding_MMYYYY and  SOLES_E1_Prov.Acumuladas MMYYYY;
• Tichet "CCN / 352 y PA20 MM.YYYY" with the files related to the details of PA20 and /352 Wage types.

Attached to this procedure is also one excel file ES Personal Costs - Template that will help you to perform all the steps, calculations and postings required and explained through the procedure.

3.1.1. I check the payroll posting

1^st Step

Confirm that the HR posting is correctely booked in the company. To do it, check that the amounts at account level on the HR Excel Payroll file match with the posting done in SAP following the steps hereafter:

• Open the file ES Personal Costs - Template
• Open the excel file named "ES Reconciliation HR-FI_MMYYYY" 
  
  
  
  
  • Once this file is open, copy the values from column B to H and paste them to the file ES Personal Costs - Template (sheet E1_Account List) (in column B) without performing any change. 
    
    
    
• Run the macro created in the file by clicking on the button "Payroll".
  This macro will perform the following actions:

1. 1. Sort the excel file by account and adjust the header text;
   2. Create new columns to split the account number from the text of the account, the cost object number from the cost object name and the wage type number from it's description;
   3. It is also creating a new column and performing the addition of column debit and column credit.
   4. Update the pivot tables/formulas used to perform the comparison between SAP and the HR file and the creation of the posting file.

• Once the macro is finished, you might obtain a file like: 
  
  

2^nd Step

Go to SAP, run transaction FB03, click on "Document List" and insert the variant ES PAYROLL that is created to search in the system for all the postings done for:

• Company Code: 0245
• Posting Date: Current Period (01/MM/YY to 31/MM/YY)
• Reference Transaction: HRPAY 

              


Execute it and you will obtain the list of payroll postings done in the period: 

You should double click on it to get the document overview. Then, to check the total amounts at account level change the layout to /ES PAYROLL:

3^rd Step

Copy from FB03 the information related to the accounts and the amounts posted. 

Paste it in the file ES Personal Costs - Template (sheet Step 3.1.1 - grey cells). This will allow you to compare step 1 (columns Debit-t and Credit –T) with step 2 at account level: 




In case of differences (check different from zero):

• If you have received more files than usual, remember that two postings were done so you must add the accounts/amounts of the second posting also;
• If for each account the amount is not the same in both list advise HR team, it should mean that the Excel file is wrong;
• If the accounts with difference are: 2455003230, 2455000009, 2455005501 or 2322010000 only after Local feedback you can continue with the procedure, otherwise you can proceed just informing in the end the accounts with difference;
• If for all accounts the amount is the same, the check is OK and no communication is needed. 

4^th Step

The final step is to go to OAOR transaction, classs name: BKPF, class type: BO and attach the excel File "ES Reconciliation HR-FI_MMYYYY" to the SAP documents (document type H0).

Execute and after that click in object to attach the document.

3.1.2. I perform the posting to split the data

In order to do a better follow up of some personal cost operations, in some defined accounts, is necessary to split in several lines the amount posted in the general ledgers according to the HR details. 

The split will be done based on the file "Soles_Posting_YYYY_MM"sent by HR department once the HR closing is performed for the following accounts: 

• 2455003230 Payroll-end of year premium 
• 2455000009 Smoothing personnel costs 
• 2455005501 Payroll-13 month 
• 2455025000 Bonus accruals 
• 2322010000 Services Accruals 

The purpose of this is to split the monthly amount by wage type.

1. Select the company that you are currently working on;
2. Select the year and month you are currently working on;
   
3. You will have to confirm that the pivot table is getting the correct amounts from the sheet "E1_Account List" and retrieving all the wage types;
   
4. Copy all the wages type from the pivot table to the correspondent account. This will prepare your posting on step 2.1.2. (confirm this step)
   

Repeat the same steps for accounts 2455000009, 2455005501 and 2322010000.

So, the lines posted are the ones inside the frame - the first line of posting document is highlighted in red, the remaining are highlighted in orange: 

In the end for each one of that defined accounts, clear the documents with assignment YYYYMMDD (posting date of the payroll document, see step 3.1.1). The document types to be cleared are H0 and H1. If there are differences cummunicate to your local contact the figures.

If the final check is OK, go to sheet "2.1.2. Posting File", where you will find the ZZF_POSTING_FILE template filled with the posting details. In this sheet confirm that:

• The company code is updated;
• Add the posting, document date (31/MM/YY) and posting period (MM);
• Update the header text with the Freshdesk ticket number. 

Afterwards should clear the accounts as explained in the previous step (H0 from HR and S1 posted to split the data). 

3.1.3. I perform the posting to transfer the expenses account

3.1.3.1. I perform the posting for account 2455003230

Due to a voluntary customization of the wage types, on a monthly basis it must be checked if there are any amounts to be transferred from the account 6250000000 (estimation of personnel costs) to account 6200030000 (miscellaneous Premiums). 

3.1.5. I check the personal accruals amounts

We have to check if the amounts on accounts 245500009, 2455005501 and 2455003230 on FI statements at company level are the same as the ones recorded in EuHreka employee by employee at company level. 
This check will be done by comparing the HR-Provision Excel File and the detail by assignment of that accounts. Finance Operations should list the open items of that accounts, summarized by company/account/assignment and compare the amounts in SAP FI with the ones on HR at wage type level, taking into account that the wage type code in HR Provisions Excel file are defined as the first 3 position of the assignment code on SAP postings. 

Detailed operations: 

1) We open the HR Provisions Excel file received named "E1_Provisions_CCCC_MMYY" with a format like : 



Copy this information to sheet "E1_Provisions" of the ES Personal Costs - Template (to be confirmed) file. 

2) Then we need to list the open items for the mentioned accounts at 31/MM/YYYY with the transaction FBL3N using variant ES-CTB02 and layout /ES-CTB01.

We will obtain a list by company/assignment as exemplified hereafter: 



With this information you must will fill the table in sheet "Step 2.1.4 – table INPUT from SAP" of the ES Personal Costs - Template (to be confirmed) file and we will obtain the comparison as follows: 



The table is making a comparison between the information sent by HR and the splitting done at account and wage type level. 

Whenever there is a difference 3S (change 3S) should communicate the difference to Local FI by sending this file although it's usual to have differences and there are some checks that can be done before reporting to Local Finance: 

3) Go to FBL3N and check the assignments - they should follow the exact codification of the file. It's easy to see if there is something wrong "612-BONUS-2012" is not the same as "612-BONUS 2012" 



4) Confirm that the assignment 609-CGIQ values are compared with the addition of the values of wage type codes 609A-619A-629A; 6A6-SUPL compared with the addition of 6A6A+ 6A6P and 6I0-IPC compared with the addition of 6I0A+6I0P; 

5) There are moments where we have amounts reflected in accounting referring to two different years, this happens because we are accruing something that will be paid next year. During the current year the provision assumes the code A, when the year changes and until it's paid assumes the code P thing that may generate some differences. 
To resume:

• • Wage type finishing with A – concerns to the actual amount of the provision at the current date.
  • Wage type finishing with P – concerns to the accumulated provisions that are accrued and paid one year after the accrual period. 

For a better understanding of the analysis to be done, look to the example for wage type 6V0 - Provision Bonus+ROE: 

We have the information that the wage type 6V0P is zero in HR provisions file although in accounting we have a credit balance of 438.429,24. 
Analyzing the details of the posting done we can see that besides the accounting of the provision for the current month 6V0R there are also other wage types booked. 

This means that there was a payment of BONUS + ROE + Rem Variable in March 2012 that concerns to 2011 and besides that there was also calculated a delta between what was accrued and effectively paid. 
In this specific case the difference highlighted in the table is not real and we just need to change the assignment for those specific lines to reduce the difference: 

After this final adjust a small difference remains: 

This check must be done on a monthly basis since we have different payment dates for each HR accruals and even among the sites the payments can be different. For that reason is not easy and possible to have these assignments correctly filled when performing the postings through the file ES Personal Costs - Template (to be confirmed). 

3.1.6. I clear the payroll payment account

On D-1, 3S (change 3S) will clear the following documents lines in account 2455000000, considering the conditions below:

• The lines of the payroll posting document of Month M
• The payments postings ( document Type G*) in month M
• Any other documents in that account with assignment : MM or KM 

The following rules must be applied:

1) If there is a difference of 5 EURO or less , the documents will be cleared by posting the difference as follows : 

2) If the difference is bigger, the assignment field of the line items should be changed to "MMYY" (where MM is the month and YY the year). 

In this case no clearing should be done 

3.1.7. I perform miscellaneous postings

There are some recurrent operations that must be posted once the payroll has been issued, the amount of this operations are detailed in the HR Payroll Excel file. 

3S (change 3S) must search in that file the amounts related to the following wage types and should create a posting using FB01 as follow:

• Document type H1;
• Postings keys 40 ( debit) or 50 (credit ) / 14 (for costumer);
• Due date: last day of the month;
• Entry date as posting and document date;
• And the following fields: 

3.1.8. I perform the posting of the reversal of previous year estimation of personal costs

This step will be done once a year on March, D+15. 

The accrued estimations related to Bonus of year N posted on account 625000000 should be reversed on year N+1 on the account 6251000000 at company level. The posting date of the estimations should be link to the payment of the expenses estimated , but as the amounts are known since the closing of the year N , we will define that the postings will be performed at the same entry date ( March D+15 ):

1) To prepare the posting we will use the data obtained running the transaction FBL3N, variant ES-CTB02 and layout /ES-CTB01, for open line items in posting period 31/12/Y-1. 

We will obtain a list by company/assignment as : 

2) Only for assignments 6VO we will perform a posting as follows :

• • Posting Date and Posting Document: see table below (It depends from the assignment)
  • Debit Account: 6250000000
  • Credit Account: 6251000000
  • Cost Center: see table below
  • Amount: Total amount at assignment level obtain in previous step
  • Text : Reversal Estimation Y-1 + Assignment code 

Cost centers by company:

Posting and document date:

3.1.9. I perform miscellaneous interplant postings

In that step we post some revenues collected from Solvay Iberica employees for which the source of the information are files named "E1_xxx_witholding_MMYY.xls". 
The files will contain several amounts splitted by wage type. Each wage type will mean a line on the posting and we explain the posting to be done in function of the name of the file. 

3.1.9.1. I post the information from file E1_TOR_ Witholding_MMYY - company 0245

We receive a file like the following, if we display the file we see the following information: 

We will create on company 0245 a posting with transaction FB01, document type S1 and posting / document date end of month and take the assignment model ES0245-001. 

The following operations should be done:

1) Change the amounts retrieve from the assignment model and replace it by the ones of the file taking as a key the column " CC Nomina " from the file and the first four position of the field " Text " of the posting; 

2) Change on the posting document the values MM ( month ) and YY ( year ) by the ones of the posting date; 

3) Record in the last line number the total amount indicated in the file (by this way in case of any mistake on the previous updated amounts the posting will be unbalanced ); 

4) Enter base line date (end of month) for posting in account 2416220000. 

The following display show the operations described above. 


Finally post the intercompany document. 

3.1.9.2. I post the information from file E1_DNE_ Witholding_MMYY 

We receive a file like the following, if we display the file we see the following information:

We will create two excel file posting with that information: one in company 3454 and another for company 5696. 

3.1.9.2.1. I post in company 3454

Use the following Excel file model and update the fields (in red): 

• Posting date/document : end of the month
• Amount : copy the values from the Excel file ( for each line on the posting file choose the amounts where the values of column " CC Nomina " of the E1_DNE_witholding:_MMAA file match with the first positions of the field " Text " on the posting file )
• Text: change the values MM ( month ) and YY ( year ) for the ones of the posting document. 

Post the document with the transaction ZZF_POSTING_FILE. 

See an example of the Excel posting file : 

3.1.9.2.2. I post in company 5696

We save the file and create a ticket to 3S (change 3S) AP in order to post the file.

We open the attached field: 
and replace:

• the amounts for the one related to the line 6542 Seguro Colectivo de vida of the file E1:DNE_witholding_MMYY
• The document and posting date by the end of current month
• The values MMYY ( month and year ) of the text , for the ones related to the posting document.

3.1.10. I perform the CO posting – MA kilometers costs

In the production companies of Martorell ( 5696 ) there is a need to transfer the Kilometers expenses posted through the payroll process from the cost center to a defined orders. This should be done each month posting the following CO Posting. 
Reference doc. 201790821 (4/2011). 

But before post it, is necessary to check if the amounts by company and by cost center has been changed from the last update of the file. 

For that reason, each month should be compared the amounts posted in FI-GL on account 6141030000 and document type H0 (dynamic selections) with the amounts on the file (use the transaction FBL3N, layout /MA_KM_2.1.9). 

For Company 5696 sender Cost center is MH* or HK*. 
For Company 0303 sender Cost center is HR*. 

Copy from SAP the cost centers and the respective amount into sheet 3.1.9 in Macro ES Payroll. 
In case of any difference (delta column), send the Excel file to CTB-Martorell asking to update it. 
In case of new cost center with the amount in SAP please contact Local accountant through e-mail: ctbmartorell@solvay.com

3.1.11. I distribute the social security of expatriates

For SOLVIN, company 5696, the cycle MA0210 must be launch using transaction KSV5. 
For SOLVA IBERICA, company 3454, the cycle SO0210 must be launch using transaction KSV5. 
For SOLVAY QUIMICA, company 0245 the following must be done:

• Run Cycle SQZ100 using transaction KSV5;
• Settle Orders – 1059002440 and 1059002441 / 1059002480 and 1059002481
• Settle Associated Croco (change Croco) Order – 2052005720 / 2052005860
• Generate the Croco Invoice (change Croco)

3.1.12. I allocate manually the PLUSACTIVIDAD (please confirm this title)

At February 2014 it was booked the yearly provision correspondent to the PLUSACTIVIDAD in company 0245. This amount must be manually allocated to the corresponding cost centers during 2014. 

We need to take the amounts in column "Importe Mes", and book these amounts manually on a monthly basis. 

You can see in the file the detail of CECO and the general account must be 6200000000. 


You can use document number 5010014372/0245 as reference, just change the vase number and the month.

3.2. I prepare the booking and perform the necessary postngs - CCN /352 y PA20 - "EXCESO CUOTA PATRONAL" and "SALARIO ACCIDENTADOS" (please confirm the title)

On a monthly basis, we will receive from HR local team an Excel file with the details of wage types /352 and PA20 (Freshdesk ticket) description 0245_CCN / 352 y PA20 MMYYYY). 

We will take this information, prepare the booking and perform the necessary postings in accounting taking the attached file as a template.

• Wage type /352 - EXCESO CUOTA PATRONAL (PROPIOS ASEGURADORES) 
  Debit account 2454000000 and credit account 621000000 (by cost center, in case there is no cost center available in one of the lines use ST80084109).

• Wage type PA20 - SALARIO ACCIDENTADOS (PROPIOS ASEGURADORES) 
  Debit account 2454000000 and credit account 6230000000 (by cost center, in case there is no cost center available in one of the lines use ST80084109).

End of document.