1. Objective and Scope
The purpose of this document is to describe the monthly process to update "ACTUAL/REEL" exchange rates in BFC.
REEL exchange rates are used in the following reporting categories to convert package-level local currency to conso currency:
ACTUAL2 - IFRS reporting cycles and consolidation operated on monthly and quarterly basis
ACTUAL1-TAX - Tax reporting cycles in Q1, Q2 and Q3.
ACTUAL3 - Annual appendices required to complete Solvay annual report (analysis of Net Financial Indebtedness, commitments, related parties…)
ACTUAL0 - Shareholding and investments analysis / Country by Country Report (OCDE requirement)
Below are the 6 types of conversion rates updated in this monthly process:
TC - Closing rate
TMN - Average rate
TMN-1 - Average rate Dec.Y-1
TO - Opening rate (Dec.Y-1 closing rate )
TCN-1 - Closing rate N-1 (closing rate / same period of previous year)
TMYN-1 - Average rate N-1 (average rate / same period of previous year)
In addition to ACTUAL/REEL, BFC Admin is also responsible for the update of 2 other exchange rate categories PREV and SIMULATION.
PREV rates are used for Budget purposes and SIMULATION rates for Business Forecast reviews and both are informed by the Corporate Controlling team every quarter.
2. Quantum files
Quantum is the Treasury system managing centrally Solvay official exchange rates and distributing them across the SAP applications.
On the last working day of the month, Quantum (through e-mail address QUANTUM-Solvay@avantgardportal.com) automatically sends 4 emails (one per each file) to BFCAdmin-ext@solvay.com with the following contents:
- QUANTUM : YYYY.MM Rates Interface for BFC contains YYYY.MM_BFC_Rates_Interface_FromQT.txt file
- QUANTUM : YYYY.MM Monthly Rates for BFC contains YYYY.MM-BFC_MonthlyRates_FromQT.xls file
- QUANTUM : YYYY.MM Quarterly Rates for BFC contains YYYY.MM-BFC_QuarterlyRates_FromQT.xls file
- QUANTUM : YYYY.MM Year's Rates for BFCcontains YYYY.MM-BFC_YearRates_FromQT.xls file
In case there are any issues with the files the point of contact is bilal.sleiman@solvay.com or sofia.barrias@solvay.com (in case Bilal Sleiman is not reachable) from IS Finance & Treasury | IT FINANCE SERVICE LINE.
3. BFC upload
The file YYYY.MM_BFC_Rates_Interface_FromQT.txt received from Quantum has the correct format ready to be uploaded in BFC.
3.1 Create REEL YYYY.MM table in BFCTop
Before being able to upload YYYY.MM reel exchange rates from the txt file, creation of the table in BFC is first required.
From the previous period, do a Save as.
Save the new table 
and close.
Open the new table
Select all lines, except the frozen rates, and press DELETE to erase previous month rates.
3.2 Import Quantum file
Import YYYY.MM_BFC_Rates_Interface_FromQT.txt file into BFC.
6 lines expected to be rejected: Currency CNH not created in BFC table as not required in the IFRS Consolidation.
Save the table
3.3 Run Excel retrieval file to check consistency
Before piloting the exchange rates table to BFCProd it is recommended to run a consistency check on the rates just uploaded into BFCTop.
Excel retrieval file - Exchange Rates checks.xls - is saved in this folder:
How to proceed with these checks:
- Update period in cell C1
- Connect to BFCTop and refresh the file
- From column E to J there's a retrieve of what we've just uploaded into BFC with the interface file.
- In columns M and N there's a comparison of TO (Opening Rate) and TMN-1 (Closing rate) with TC and TMN rates from Dec Y-1 table. No differences are expected.
- In columns P and Q there's a comparison of TCN-1 (Closing Rate Y-1) and TMN-1 (Aver. Rate Y-1) with TC and TMN extracted from the Y-1 table. No differences are expected.
- In Columns V and W there's a calculation of the TC and TMN variations (%) compared to previous month.
- There's a conditional formatting in these cells: variations >= or <= 50% are highlighted in red and those cases should be communicated to GAR Conso team by email as a warning message of high currency variation.
3.4 Piloting to BFC_Production database
Task EXPL-ADMIN has to be used to pilot REEL Exchange Rates table inserting the REEL table of the month.
4. Exchange Rates publication in Aodocs (GAR team site)
Besides BFC update, BFC Admin is also in charge of updating every month the actual (REEL) exchange rates file published in Aodocs.
The information received in the 3 files from Quantum (Monthly, Quarterly and Yearly rates) are in the exact same format as the 3 tabs in Aodocs file and therefore only a copy/paste is necessary.
Open the Exchange Rates YYYY file in Aodocs
From Quantum file YYYY.MM-BFC_MonthlyRates_FromQT.xls copy the last column to Aodocs file tab Monthly calculation
From Quantum file YYYY.MM-BFC_QuarterlyRates_FromQT.xls copy the last column to Aodocs file tab Quarterly calculation
From YYYY.MM-BFC_YearRates_FromQT.xls copy the last 2 columns to Aodocs file tab Year rates
Once the 3 tabs of Aodocs file have been updated close the file (changes are automatically saved).
5. Communication
Once exchange rates have been piloted to BFC_Production and Aodocs file has been updated, BFC Admin should communicate to Solvay's Finance community and external partners (outsourcing companies, Solvay Actuaries, Businesses sold under TSA ...) that exchange rates are available in BFC and can be accessed through Aodocs file.
The distribution lists are updated in this file BFC exc.rates file contacts and 2 separate emails should be sent:
- one mail to Solvay contacts (listed in 1st tab)
- one mail to external partners (listed in 1st tab)
Mail to Solvay contacts (link to Aodocs file):
Mail to external partners (Aodocs file sent in attachment):
END OF THIS PROCEDURE