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 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 billing request and journal entry for Freeport rent in 7424 company code in WP1 system.
There is a part of the plant in 7424 that is used by Special Chemicals GBU and the third party Vencorex US Inc. Due to that, there is a rent contract with quarterly installments (payments) and every Q4 the value is increased by 2% (section 4.01 of the contract).
The installment are related to previous quarter. For example, in Q2 billing that we issue to the customer, it refers to Q1 business and so on. So, every September (billing done in Q4) the value is updated as stated above.
Furthermore, we need to relocate the cost value to deduct it from the plant cost with a journal entry.
1.2. Scope
Detail the scope (legal entities, etc.)
This procedure is applicable for 7424 company code on quarters.
It needs to be done until D-2, so it is preferable doing that in the mid month, because if something goes wrong, there will be time to correct.
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 Update and Request the Billing to Customer
3.1.1. I Update the Billing Request
Go to Gdrive folder 7424 - Freeport Rent and download the last version of the billing request form "7424 - Freeport Rent Billing Request Q# YYYY".
Populate it or check if everything is ok with the information below:
Sender Company Code = 74249
Nature of the document (Invoice/Credit Note) = Invoice
Header text on invoice = FREEPORT RENT Month 1 YYYY - Month 2 YYYY (update this information the options are Sep-Nov, Dec-Feb, Mar-May, Jun-Aug)
Invoice Type ( FI or SD) = SD
Internal Customer (Y/N) = N
ERP Customer N° = 2039865
Customer Name = VENCOREX US INC
In the Posting Details SD Invoice WP1 section:
Cost element = 98113305
Sender Cost Center = 7424-7310
Invoicing WBS in the billing entity = E74249CHOA2027829-01 (you can confirm it with Intercompany Team if any changes on this);
Currency = USD
Amount = check the document "Freeport Rent Billing Schedule" in Gdrive folder 7424 - Freeport Rent to see the applicable amount according to the quarter that the billing refers to;
Text on invoice with GL and CC for receiver company = FREEPORT RENT Month 1 YYYY - Month 2 YYYY (update this information the options are Sep-Nov, Dec-Feb, Mar-May, Jun-Aug);
Save it in the excel file.
3.1.2. I Send the Request to Intercompany Team
Send a request to intercompany team by the applicable tool and attach the billing request form from previous step.
3.2. I Prepare the Journal Entry
3.2.1. I Prepare the Journal Entry
After the billing posting, we need to post a reclassification entry to deduct the billing cost value in the plant cost and not consider it as a service cost.
Go to 7424 - Freeport Rent and download the last version of the document named "7424 - Freeport Rent COS Q#.YYYY". It is a posting file and should be as below:
Doc type = SB;
Header Text = Reclass Freeport Rent;
Doc date and Posting Date = date of the posting;
C - 50 - GL Account 98300900 + cost center 0251-1100 (transferring the value to this cost center);
D - 40 - GL Account 98300810 + cost center 7424-7310 (removing the value from this cost center);
value = billing value;
Text = Reclass Freeport Rent COS;
The justification can be = "To book the reclass of the cost related to Freeport rent invoice to hit R25470 - FC absorption - reducing the plant cost" and include the screenshot of the billing request.
Post it by the applicable tool.
Just for information, in general, the scheme is:
1- billing - 50 / B34 IC Admin Expense / R33310
1- billing - 40 / I50 G&A Other specia / R33310
2- JE billing - 50 / B40 Sales Adm&COM FI / R11200 / 98113305 / 7424-7310 / -100
2- JE billing - 40 / Customer
3- JE COS - 50 / E90 FC absorption / R25470 / 98300900 / 0251-1100 / -100
3- JE COS - 40 / H60 CoS Deprec / R27200 / 98300810 / 7424-7310 / 100
After that, check the cost centers to certify all were posted correctly.
End of document.