1. Objective and Scope

1.1. Objective of this Operation

The objective of this procedure is to prepare and book the monthly accruals and calculate actual tax amount of coal.   

The tax on coal is calculated by € of material consumption which is measured in GJ (Giga Julios – unit measure of energy). Due to this fact it is necessary to apply a conversion factor.

When each boat arrives (usually from Russia) to the port, the coal is analised and the calorific power of the coal is measured. When the quantities are low most probably the coal was transported by truck but is rare.

This coal is used to generate:

• steam for Sodium Carbonate production
• electricity
  • self consumption
  • sold to external parties or rarely self consumed in emergency situations 

1.2. Scope

This procedure applies to company 0245 Solvay Quimica SL.

2. Definitions

Definitions should be added in the Finance Glossary - Add definition and link it to respective Letter in Finance Glossary 

See Finance Glossary:

• ...

3. Tasks description

Part 1 - Monthly Accrual regarding Tax on Coal - Recurrent ES0245T144, performed monthly. 

Part 2 – Calculate actual tax amount of coal, has to be done until 15^th day and quarterly. 

3.1. I prepare and book the monthly accruals

This task should be performed after the reception of the email from the plant, from david.polanco@solvay.com, with subject: “IMPUESTO HULLA MM/YYYY”. This e-mail send to us has the prevision in tons of the consumption of coal.

1) It is necessary to fill this information in file in google docs: 

Open tab "YYYY", and in "toneladas consumo" use the amount provided in the ticket.

Note: Only yellow cells are to be filled. 

2) Go to transaction FBL3N variant /TAX_ON_COAL, layout TAX_ON_COAL and update period to month n-1, to know the amount to fill in “Ton. compradas con impto”, add quantity and material 103995: 

Look to each invoice to search for any national purchase of coal to add. If there are any fill in “Ton. compradas con impto”: 

3) To fill the information in cell “Factor conversion”:

Go to BW: queue iMEP – Energy Interface - BW_WBK_CO_0001

 Fill out the prompt with the following information:

On tab "Cons.Quant." you will be able to take the necessary information:

To obtain "factor de conversión" it is necessary to divide HOUILLE -GJ (FY) by HOUILLE (TO), in this case 561 286/22 318: 25,149

4) After, the amounts of recurrent ES0245T144 will be filled automatically, generated by the calculation before:

3.1.1. I perform the recurrent ES0245T144

Fill the posting file with these two values, or use document number 5010025196 as reference.

3.2. I Calculate actual tax amount of coal (quarterly)

This step consists in calculating the tax with the percentages of last year provided by the auditors in the first trimester. 

1) Open tab "Pago Xo  Trimestre YYYY" (X=Trimestre; YYYY=Year):

A- To check the amount to consider in “Ton. compradas con impto” (purchases with tax):

Go to transaction FBL3N variant /TAX_ON_COAL, layout TAX_ON_COAL and update period to month n-1, to know the amount to fill in “Ton. compradas con impto”, add quantity and material 103995: 

Note: update to quarterly period n-1 

It is possible that we have purchases to Spanish vendors. These should also be included in the tax calculation. Look for the image of each invoice (related to the WE documents displayed) to see if there is any national purchase of coal to add.

(example in tab “Tn con impuesto 1o trimestre 2019” in the support file)

B- Real quantities in yellow copied from BW "iMEP - pF1 SD Steam costs database (Core Query).

Example for December 2020:

 We need to repeat the calculation done monthly FY/TO and insert the outcome in "factor conversión" in each month of the quarter. Also, we use this BW to know the amounts to insert in "toneladas consumidas" and "GJ consumidos", for example, in October it was 18.967 (TO) and 471.453 (FY).

After full filing the yellow cells, post recurrent document with reference ES0245T149, or use document number 5010024835.

Make sure the amount calculated in the file equals the open amount in account 2450000000:

3.3. I Regularize the previous year with the new percentages provided by the auditors (quarterly)

Example of regularization of year 2018 in 2019 in 

1) Columns from A to D need to be fulfilled based on file Impuesto hulla;

2) Consumo Y-1 Electricidad and Consumo Y-1 Autoconsumo need to be fulfilled based on previous year data which is in the same file

Note: 2018 and previous years are stored in a separate folder. See data below regarding year 2018 for a better understanding

3.2. Send the necessary information to E&Y

Every trimester, send the file above to E&Y (Anna.LozanoQuesada@es.ey.com>, Joel.Sanas.Del.Pino@es.ey.com ) before the 15th:

1) It is important to monitor the account 2450000000 to ensure that the assignments are correct and previous months cleared. If has small differences use post scheme below:

End of document.