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: SU Management Accounting / Investments & Divestments



Responsibility area: Ensure asset insurance update


  1. Objective and Scope
  2. Definitions 
  3. Tasks description


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



Attachments

8. Add the link to attachments or external links




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. Objective and Scope

1.1. Objective of this Operation

The purpose of this document is to describe the role of MAC SU I&D in the property insurance appraisal process, which takes place in December (for PF1) and January (for WP1) of each year, in order to have at each time the most approximated value of replacement cost for the company assets.


1.2. Scope

This procedure applies to all companies within the Solvay Group, and to all Service Centers.

2. Definitions

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

See Finance Glossary:

  • M&E : machines and equipment 

3. Tasks description

3.1. I get the asset insurance indexes per country PF1 and WP1 

3.1.1. I request to Corporate Insurance (Emily Cox),by the end of November, the information / documentation that allows the identification of the insurance indexes per country. Example of email request:

It is MAC SU I&D responsibility  obtaining by the end of each year the necessary information to quantify the multiplier to apply for the adjustment of the replacement cost. This information is present in the FM Global Reports – “Property Loss Prevention Data Sheets” received by the Corporate Insurance Department.

3.1.2. I archive in google drive - Fixed Assets - Yearly Revaluation (Insurance) - the information received per year. Example of the information received and archived in 2019: 

...

3.2. I calculate the multiplier for PF1 

3.2.1. I update the multiplier for each year by country and by Buildings vs M&E using the multiplier informed by the Corporate insurance if already calculated or when no index is available, you can use the inflation rate.

I use google sheet - Trends_table_by_country_2019 - I update the multiplier and I calculate the average between Buildings and M&E multiplier. If it wasn't informed by Corporate Insurance, use inflation rate - site: https://tradingeconomics.com/country-list/inflation-rate

I get Inflation rate and achieved in the google sheet - Trends_table_by_country_2019:

3.2.2. I calculate the multiplier (index earlier date divided by the index of the older date (ex: index as of Dec. 2020 / index Dec. 2019)) or use the multiplier informed by the Corporate insurance if already calculated. For countries for which no index is available, you can use the inflation rate.

I use google sheet - PF1 Insurance index 2019  -  I insert the index average between Buildings and M&E and multiply with previous year multiplier to get the new multiplier to be inserted in SAP tables. 

3.3.  I update the SAP indexes PF1

3.3.1. I make a new entry in SAP table with transaction S_ALR_87009182 during December before the closure:

For PF1 companies no distinction is made between Buildings and Equipment. The multiplier is the same for both asset classes, and obtained by average of the corresponding indexes.

I select the line of the country I want to update, I go to Index Figures on the left side and create a “New Entry” in the applicable year (for example, by the end of 2020 a new entry must be done with the year 2021):

I repeat the procedure for all countries. 

3.4. I calculate the multiplier for WP1

3.4.1. I update the multiplier for each year by country and by Buildings vs M&E using the multiplier informed by the Corporate insurance if already calculated or when no index is available, you can use the inflation rate. (same as PF1)

I use google sheet - Trends_table_by_country_2019 - I update the multiplier and I calculate the average between Buildings and M&E multiplier. If it wasn't informed by Corporate Insurance, use inflation rate - site: https://tradingeconomics.com/country-list/inflation-rate (same as PF1)

I get Inflation rate and achieved in the google sheet - Trends_table_by_country_2019 (same as PF1):

3.4.2. I calculate the multiplier (index earlier date divided by the index of the older date (ex: index as of Dec. 2020 / index Dec. 2019)) or use the multiplier informed by the Corporate insurance if already calculated. For countries for which no index is available, you can use the inflation rate.

I use google sheet - FM GLOBAL - WW COSTS TRENDS2019  -  I update the multiplier for Buildings and the multiplier for Equipment, in the cells with yellow (image below), which will automatically update the multiplier (Coeff. Reval) of each asset class in each country:

3.5 I update the SAP indexes WP1

3.5.1. I copy information above in the file to the SAP table  ZWFAT232:


3.5.2. I go to transaction ZWFAI058:

And I fill with the following information:

  • Company to reevaluate 
  • Fiscal year to which the revaluation is applicable (for instance, beginning of year 2022 the revaluation will be made for fiscal year 2021)
  • Test run means that no update is made. Only information about the values calculated are provided in the log. Don’t forget to remove it for the real process
  • Reverse revaluation is used when we need to cancel a previous revaluation performed for the related fiscal year
  • No input file is the option to select when for this company there is no individual process file
  • Logical Unix File Option must be activated for a run in background mode. The program will check the presence of the file in the directory exploit/FA/data. The name of the file is the one defined
  • Local File option allow to select the file locally on the PC → Remark: these options are exclusives.  That means only one can be selected.

  • Display protocol and Save protocol: this part concerns the log of the program. There is no need to change it. Default values are taken automatically when you press <ENTER>.

    Run the program.

    Note that to run in background, a request should be done to IS ( is-adagio-sap-operations@solvay.com). The transaction should not be run simultaneously for several companies because it causes severe load of the system:

End of document.