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: Central Finance Processes & Compliance |
Responsibility area: Coordinate symbolic accounts creation between HR and Finance |
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 |
1. Objective and Scope
1.1. Objective of this Operation
The aim of this operation is to describe what are the features to have in mind when a new symbolic account to link wage types to GL accounts in Finance environments
1.2. Scope
The scope of this operation is PF1 and WP1 target systems.
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 a request from HtR to create a new symbolic account for a new wage type.
Wage types are the basic elements for payroll. Any operations impacting the payroll are identified in the system using “Wage types”.
Every time a new wage type is to be created, it must be linked to a symbolic account.
This symbolic account can already exist or not. If not, HtR Payroll team should send an information and request it to distribution list SBS.FinanceSL-Fin_Acc_SU_GL_Payroll@solvay.com, containing all the information needed for a correct mapping.
In the request, there should be an explanation of the reason for the adjustment, background (including the scope, if global or country based), nature of the wage type (accruals, impact in the net paid, no impact in the net paid, without impact in the payroll posting)
I have to take into consideration that the Wage types are defined by country and that the same WT code may have different meanings depending of the country.
Global WT codes exist for WW operations – these can be easily identified because they either are 4G or 9G* (G* for Global).
The link between “Wage types” in HR system and “GL accounts” in Accounting system is managed through “Symbolic accounts”
3.2. I assess the nature of the wage type.
I assess the nature of the wage type and ask for more details if needed. I should take into consideration the following:
Wage types can be grouped into different categories:
• directly linked to the net paid
→ gross salary elements
→ social security due by the employee
→ withholding tax due by the employee
→ other reduction due by the employee (ex : participation on company car)
→ net premium
• linked to the salary w/o impact on the net paid
→ social charges and other advantages paid by the employer
• accruals
→ Bonus accruals
→ Holidays paid accruals
→ Etc.
• w/o impact on the payroll posting
→ used for calculation of the payroll (ex : advantage on company car, mobile phone)
Based on the nature, we can have to impact only:
1. Profit and Loss accounts (gross salary elements/net premium/social charges and other advantages paid by the employer);
2. Balance sheet accounts (social security due by the employee, withholding tax due by the employee, etc.)
3. Profit and Loss accounts and Balance Sheet accounts for the accruals (accruals and reversal of accruals)
There is a direct link between the nature of the account and the transaction:
Transaction
HRC - Expense Account (P&L account)
HRF - Balance Sheet Account
HRK - Vendor Account
HRA - Technical Account
3.3. I request the update of the T030 with the new symbolic account in the target finance system.
I request the update of T030 with the new symbolic account, based on:
→ country;
→ company code to impact (if it is PF1 or WP1 system);
→ category of the wage type and consequently the nature of the account to impact
After having in mind the country, the target system and the nature of the wage type to me mapped, I request the update of T030 by adding information to the following fields:
1. Chart of accounts (COCA for PF1; Z001 for WP1)
2. Transaction:
(reflects
HRC - Expense Account (P&L account)
HRF - Balance Sheet Account
HRK - Vendor Account
HRA - Technical Account)
3. Valuation group code (corresponds to the symbolic account);
4. Account modification (corresponds to the code of the country)
5. GL account debit ((should be the same as GL account credit)
6. GL account credit (should be the same as GL account debit)
Example of a Profit and Loss update (premium wage type), for Portugal, PF1 system:
1. Chart of accounts: COCA;
2. Transaction: HRC
3. Valuation group code: C090
4. Account modification: PT1/PT2
5. GL account debit: 6200030000
6. GL account credit: 6200030000
Send the request to IS-GAC team, in the ticket system available, with this information.
Service One > Finance Services > IT- General Accounting & Close (GAC/Treasury & Invoice to Cash (TITC)/Other Processes
End of document.