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: 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)



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

ACH Report _Example

7424 - Custom Duty Report



Previous operation << >> Next 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 Custom Duty report and journal entry in 7424 company code in WP1 system.

When an import is done in US, there is a duty that must be paid. The system automatically does that when the product is registered in the system by a table behind the system with the percentage of each product. This accrual is posted in account 44900955.

As the payment is done some months after the accrual, it can generate a difference of the value paid and the accrual made because of time or the percentage applicable for the product, or other reasons.

The GBUs want to maintain the account updated, releasing the accrual excess to P&L.

So, this is basically a reconciliation of the account and a report for the GBU about the Customs Duty.

1.2. Scope

Detail the scope (legal entities, etc.)

This procedure is applicable for 7424 company codes in WP1 system.

It needs to be done on D-1 or D+1, depending on when we receive the direct payment details from accounts purchase team and the items are posted into SAP. Only after that we can process with this procedure, which is normally D-1.

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 the Reconciliation

3.1.1. I Confirm the ACH Direct Shipment Payments Are Posted

The accounts payable team will send a report by email with the ACH Report for direct payments related to custom duties.

Only after this email you can start the reconciliation and this procedure.

Normally it is on D-1, but sometimes the AP team can send the report only on D+1.

Confirm with AP Team in Curitiba before starting. The report is like ACH Report _Example and the email is like below:

3.1.2. I Get the Reconciliation File

Go to Gdrive folder 7424 - Custom Duty Report and download the last version of the reconciliation file "7424 - 44900955 - US Customs Duties Accruals MM.YYYY".

There is a option to take it on ARA tool as well, but it will not be updated as in ARA it is reconciled the last month only.


To explain the file's tab:

GBU Pivot = pivot showing the details per GBU and comparing the value with SAP account;

Detail = line items in the account taken in SAP;

JE = cost center and values to prepare the journal entry to release the accrual to P&L;

Custom Duty by Month = it shows the accrual, duty and write-off values per GBU. Very useful to have a controlling per month. The green cells already have been written off;

KE30 D01 Month YYYY = summary of the KE30 value field D01, where the Custom Duty hits;

Total by Product YYYY = total by material and GBU for the month;

KE30 YYYY = line items from KE30 value field D01 to be possible to make previous tabs;

Profit center = summary of the profit centers of the company with GBU;


3.1.3. I Update the Reconciliation to Current Date

Differently from ARA, which reconciles the previous period figures, in this case you need to reconcile up to current date of the closing.

So, it is better to do that only on D-1 or D+1 to guarantee everything is posted.


Firstly, update the tab "Detail" in the reconciliation file.

Go to FBL3N, include account 44900955, company 7424, period from the last date updated in the reconciliation and the end of the current month and the layout is /ARANAM-CUST:

Extract and paste the line items in tab "detail".

Complete the columns below:

Column N = GBU Name = make a vlookup from profit center to get the GBU name in tab "profit center". Be careful with M&A projects or changes in the internal structures; It can not have #N/A values; Consider the assignment column for the items that do not have profit center. If even this is not possible to determine the GBU, enter in document and try to find in the counter part the material, plant, etc;

Column O = Description = consider three types: Accruals (doc type RV); Duty (doc type KR) and WO (doc type SB for the write-offs);

Column P = Dec Y-1 = the beginning balance;

Column Q = F15 = variation of the year;

Column R = current month of the year; there is a formula which sum the column P + Q (begin + variation values); Make sure to change the column name with the current month;


After that, update the pivot table in tab "GBU Pivot" and compare the value with FS10N transaction in SAP for the account. It should match the begin and final value, If it does not match, then something is wrong in tab "Detail".


After that, update tab "Custom Duty by Month" with current month. Normally, the criteria for write-off is bellow:

Aroma Performance = the business controller see the values per quarter and decides to write-off or not. Advise the responsable if the amount is a debit in the balance sheet;

Novecare = let 2 months of accrual in the account only. The other values should be written-off;

Silica = this GBU does not make accruals, so the duty paid can be written off to P&L directly;

Special Chem = they pay their duties with a third party, so write-off the accruals;

Technology Solutions = you can write-off the monthly value to balance zero;

The values in green have been written-off, the values without color is open in the account.

3.1.4. I Write Off the Possible Values

Prepare the journal entry to write-off the possible values.

You can download the file "7424 - Duty Accrual Write Off Month YYYY" in the folder 7424 - Custom Duty Report.

Make sure to post in account 98150509 + cost centers below:


Aroma Performance = 0249-7008 + assignment SLDI;

Novecare = 0249-7007 + assignment CSNR;

Silica = 0249-7016 + assignment SLNR;

Technology Solutions = 8021-7101 + assignment TSNR;

Special Chem = 8021-7101 + assignment RENR;

Text = Duty Accruals Write Off;


Be careful about the posting key as the amount signal can change. You should zero account 44900955 and reclass to 98150509, so keep this logic when preparing the posting file (the posting key can be different between GBUs);

The justification can be "Internal procedure for the duty accruals account. This is to write-off the differences in accruals and duty payments by GBU.".

Include the values in tab "JE" and post it through the applicable tool.

3.1.5. I Update the Reconciliation to After Write-Off Posting

Once posted, update the tab details with the new posting line items from previous step. Update the tabs "GBU Pivot Table", "Custom Duty by Month" as well. Make sure that the write-offs were posted correctly, removing the value from balance sheet.


After that, update tab "KE30 YYYY" going to KE24 transaction and include:

currency type = 10

period/year = current period;

company code = 7424;

include the D01 value field and exclude everything that is zero;

layout = /PVZ-DUTY

extract it and paste in tab "KE30 YYYY" right after the previous period;

After that, update the pivot table in tabs Total by "Product YYYY" and "KE30 D01 Month YYYY".


Make sure everything is matching and updated.

3.2. I Share the Reconciliation With the Contacts

3.2.1. I Share the Reconciliation With the Contacts

Send the reconciliation and the written-off amounts by email to contacts below:

CAM - Martin Bright martin.bright@solvay.com

The accounting platform team related to this company;

Controllers below, normally business controllers (the contact may change, these are the contacts in the moment of this procedure preparation - try to see the previous month email and compare if this list is updated):

Coatis -
Andre Pinto andre.pinto@solvay.com

Silica -
Jose Olguin jose.olguin@solvay.com

Aroma
Imtyaz Lokhandwala imtiyaz.lokhandwala@solvay.com

Special Chem / Technology Solutions
Edward Mackay Edward.mackay@solvay.com
Remy Faudou remi.faudou@solvay.com
Jean-marie Giard jeanmarie.giard@solvay.com

Novecare
Leisa Humble leisa.humble@solvay.com

Oil&Gas
Danica Wang danica.wang@solvay.com


The email subject can be "7424 - Customs Duties Accrual - Month YYYY" and the text is below:


Dear all,

The accrual booked in previous months was enough to cover Customs Duty charges for (include previous month) booked in (include current month) for Aroma. For Novecare, Silica and Technology Solutions, we will book the entry to move the Duty Payments / Accruals to the Cost Center as usual.

For Novecare, as per agreement with the GBU, we will keep 2 months worth of accruals and release the residual balance to the Cost Center.

The Impact in the P&L is the following in USD:
positive = debit
negative = credit
Include a screenshot of the tab "JE"

Attached you can find the file with the details by GBU and Product for the Customs Duty Charges, please let me know if you have any questions.

Thank you and best regards


Attach the reconciliation updated after the write-offs and include the ACH report sent by AP in this email as well.

End of document.