Tasks to be completed when documenting an operation (from creation to publication)1. Enter the Title of the operation / page2. Add the following Labels :
3. Fill in all fields as described above4. 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: Country Accounting 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)
Scope3. Remove the icon when not applicable ERP4. Remove the icon(s) when not applicable
Frequency5. Remove the icon(s) when not applicable
References6. Add the link to SAP transaction(s) (when it exists) Forms7. Insert the links accordingly and change the link text with the Form name CAT TAX Q# YYYY - Month YYYY Template 7424 - Recharge of QQ YYYY CAT for Ohio and Oregon Template Attachments8. Add the link to attachments or external links Previous operation << |
1. Objective and Scope
1.1. Objective of this Operation
WHY - Describe the objective of the operation
The purpose of this document is to explain how to perform the CAT TAX Billing and Journal Entry for 7424 on WP1 system.
The CAT is an annual tax imposed on the privilege of doing business in Ohio and Oregon, measured by taxable gross receipts from most business activities.
7424 pays it for entire US companies and recharge it between GBUs internally and to other US companies.
The contact with the details is tax team, nowadays Damian Cioni - damian.cioni@solvay.com - State and Local Tax Manager.
1.2. Scope
Detail the scope (legal entities, etc.)
This procedure is applicable for 7424 company code on quarters.
The billing period is related to previous quarter, so one quarter delay.
Example: Q3 tax is paid and recharged on Q4. Q4 tax is paid and recharged on Q1 next year and so on.
It needs to be done until D-2 when it is the intercompany billings deadline for intercompany team.
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
WHAT and HOW - Main content of the operation
The content should be mainly organized in 2 levels of Headings to ensure a proper link with the Table of Contents.
Select the level of heading in the "Paragraph" option.
3.1. I Receive the Files and Prepare the Journal Entry
3.1.1. I Receive the Files
Tax team sends the report by email with both files, one for Oregon and other for Ohio. If not, check with Damian Cioni.
It is a file that shows the split by GBU and companies.
After receive it, put the compile the files in one file in different tabs.
3.1.2. I Check the Value With SAP
Check if the total value if it matches with account 44900700 in 7424. It needs to be the same. If not, check with the contact in tax team.
3.1.3. I Prepare the Journal Entry to Cost Center
Move the total value from account 44900700 to cost center 0249-5040 and account 98325210.
This is the best way to recharge costs, do not do it from balance sheet.
Do not forget the justification with the email received from tax team, it can be a screenshot only.
Send it to be posted by the applicable tool by the robot.
3.2. I Prepare the Summary Tab, Journal Entry and Billing
3.2.1. I Prepare the Summary Tab
In the template CAT TAX Q# YYYY - Month YYYY Template, the summary tab contains the information for the journal entry and billing requests.
It can be found in Gdrive folder US - CAT TAX.
The layout is:
Legal entity;
Name;
GBU;
sender information;
receiver information;
value in Oregon and Ohio and the total;
and comments.
This is to organize the information only.
If there is any new GBU, check with the controller where the value should be posted.
Basically:
CI = TS;
CEM = Composites materials;
4290 = Peroxides = Hydrogen+ Wet Chemicals;
Make a check in the totals to certify it is everything ok.
Use it to complete next steps.
3.2.2. I Transfer the 7424 Value to GBU Cost Centers
Transfer the 7424 part to other cost centers according to the previous step file inside the 7424 to allocate to each GBU.
It is basically from cost center 0249-5040 and account 98325210 to cost center (according to summary tab) and the same account 98325210.
Do not forget the justification with the screenshot of the tab summary.
Send it to be posted by the applicable tool by the robot.
Now, the 7424 value is split between the GBUs inside the company.
3.2.3. I Prepare the Billing Request
Use the template 7424 - Recharge of QQ YYYY CAT for Ohio and Oregon Template. Include the values for as it is in tab summary, but here there are Intercompany WBSs used by Intercompany team to create the invoices.
Just confirm if the LE is applicable, if there is no GBU change from one year to another, etc.
Then, send it to intercompany team by the applicable tool to be created the invoices to recharge the costs from 7424.
3.2.4. I Check the Cost Center
After the invoices issued, make sure the cost center 0249-5040 will be zero for the CAT values (not the entire cost center, as it may have other type of costs not included in this procedure).
It should have been invoiced or transferred to another cost center.
If it is not zero for the CAT values, or something was not done or the value in SAP was different from the report sent by tax team (step 3.1.2).
End of document.