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: 1. Enter the Domain identified in OPD matrix (for Country specific operations, Domain = Country Accounting)



Responsibility area: 2. Enter the responsibility area described in OPD matrix ("N/A" for Country Accounting Operations)


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 Form name


Deferred Compensation Posting File PF1



Attachments

8. Add the link to attachments or external links




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1. Objective and Scope

1.1. Objective of this Operation

The purpose of this document is to explain how the Deferred Compensation provision is calculated and posted for US Companies.

The Deferred Compensation is a monthly contribution paid by the key executives. The managers choose to defer a part of their remuneration and the funds are deposited in as a saving plan, but these plans are considered as non-qualified, that means the government is not responsible for this funding in case of company’s bankrupt. So, the company is not obligated to fund these amounts.  Under these rules, the company maintains the liability but is not required to deposit funds into the Deferred Compensation accounts.

When an individual retires or leaves the company, he develops a program with the company outlining withdrawals from the plan. Withdrawals are issued from the payroll system. Besides the executive’s contributions, we shall have a saving from the company that happens because the US tax code has limits on the amount companies can contribute to an individual's qualified savings plan. We call these plans 401(K) plans. When contributions exceed these limits, these additional contributions are recorded in the deferred compensation plan. Generally in the second half of the year you will see these types of contributions as highly paid individuals exceed the tax law limits.


1.2. Scope

This procedure is applicable for US companies.


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

Finance Operation team receives a report from HR issued by the plan Trustee that defines the deferred compensation balance by company. The column "Earnings" should be posted to the account of the related company following the procedure below:

  • Receive the information from HR
  • Prepare the file for the journal posting.
  • If there are questions contact HR. As of this issue the individual to call is Sara D'Agostino based in Houston at 713-525-6044. Annually Finance Operation team needs to verify with NAFTA HR that this individual remains the key contact on deferred compensation. 

3.1. I retrieve the data

3.1.1. I search for the ticket

Go to the Freshdesk portal and search for the previous month + Sara Dagostino as the example below:


Open the ticket related to previous month and download the file named Activity Summary (month+year).

3.1.2. I filled the data on the posting file

Copy the values in file Activity Summary tab 'Summary' and paste on template Deferred Compensation Posting File PF1 tab 'CALCULATION':


The earning to be posted will be filled at column J and also in the tab 'TEMPLATE' and 'POSTING FILE'. 

In the tab 'TEMPLATE', change the Doc Date and Posting Date to the first day of the current month, runs the controls and post the document.



3.2. I inform the CAM

Send a case to the CAM with the document number generated.


End of document.