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 YYYY Tax Department_YTD MM'YY Act vs Budget - Example 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 tax budget file for tax team.
With this report, it can be compared the budget vs actual costs in the tax cost centers in different company codes in US and Canada.
1.2. Scope
Detail the scope (legal entities, etc.)
This procedure is applicable to companies below:
7424 - WP1;
4045 - PF1;
7008 - WP1;
6032 - WP1;
7752 - WP1;
This procedure is done on D+5 and reviewed and delivered on D+6 monthly for the previous period already closed.
The contact is the tax team - Damian Cioni (Head of US Tax Department).
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 Get the File and Retrieve the Data
3.1.1.I Get the Report File
As this report is made every month and consists in the accumulated of actual costs items in the year, you need to download the last period report. You can find it on the last month’s email or in the applicable tool, usually with the subject “US Tax - Budget File MM.YYYY”.
Or it can be found in Gdrive folder US - Tax Budget File.
When we send out the report to tax, it is reviewed and changed the tab "vendors" and sent back to us by the same email. With this, ALWAYS get the returned report from tax team to begin the next month report.
3.1.2. I Understand the Report File
The file have many tabs, but it is very organized.
The red tabs are the ones that compares the budget vs actual costs;
- Different costs are included here and so its budget. We need to include the actual costs for each line and update the formula to compare the budget vs actual;
The tabs that have cost centers indicated are related to the cost center line items (excluding the assessment lines) and categorized;
- These tabs have the SAP information;
The tabs in yellow are pivot tables for each of the cost center data, showing the categorization groups per month;
- These tabs are updated every month to be organized in the correct categories;
The tab vendor is not touched by us. It is used by the tax team to have a control of the invoices by vendor, etc;
- This is the one that tax team returns to us after their review;
An example of the file can be seen in this link YYYY Tax Department_YTD MM'YY Act vs Budget - Example this is only an example, as previously stated, get the correct file to continue updating it monthly.
3.1.3. I Retrieve the Data
You need to update the cost center tabs with the previous month closed.
to do that, go to SAP system (PF1 or WP1 according to the cost center), KSB1 transaction, insert the period, cost center and layout for each system:
PF1 - GE-TXBUDGET
WP1 - /PVZ-BUDGET
extract the line items to excel and delete the lines that are P&L final cycles assessment.
To identify that, normally the document header tax begins with the cycle code. Do not delete the IAS19 cycle as it is not the P&L assessment cycle.
In this case delete the lines with 0249P2 (final cycle). Note that the 742419 cycle is there, so let it there (not final cycle to balance the cost center);
Copy and paste it to the respective cost center tab in the report file;
Do it for every cost centers tab.
3.2. I Update the Report
3.2.1. I Categorize the Cost Centers Items
The first step after getting the data from SAP is to categorize the items in the cost centers tabs, column category at the right of the data.
You can categorize it with help from previous months files, but here are some examples:
Document Header Text:
PP* = payroll;
IAS19 Cycle = payroll;
Restructuring = payroll;
Bonus = payroll;
TE = T&E/Pcard;
Always take in consideration the document header text, the account, purchase order/invoice, case, etc. If there is a doubt, ask the person who requested the post.
3.2.2. I Update the Pivot Table
After categorizing the line items, go to Pivot table tab (yellow tabs) and update the data.
The Pivot table will show the category value per month:
3.2.3. I Update the Act vs Budget Tab
This is applicable for the red tabs:
1 - First of all, update the Header with the report month.
In this case, columns L, P, Q, R:
2 - After that, update the formula in column "YTD Budget" in orange. The formula needs to get the YTD budget, but the current quarter needs to be updated according to each month.
Example in Q1
1st month = Q1 budget*1/3
2nd month = Q1 budget*2/3
3rd month = Q1 budget
Example in Q2
1st month = Q1 budget + (Q2 budget*1/3)
2nd month = Q1 budget + (Q2 budget*2/3)
3rd month = Q1 budget + Q2 budget
And so on.
Formula:
3 - Update the YTD Actual by getting the value from pivot table for the respective category.
For example, in this case the vendor is KPMG and the description is SRED Tax Credit Study:
So, it will be taken the SRED category in the pivot table with the actual cost for that:
With this, the column "Fav (|Unfav) Var" will generate a positive (favorable) or negative (unfavorable) number as it subtracts the budget - actual costs. It indicates the budget position YTD.
4 - Some costs are not considered in the budget as labor costs, fines and penalties, etc. So it is included below in the file, but the logic is the same:
5 - At the end of each red tab, there is a check to ensure everything is being considered in the tab.
It compares the total included as actual and the total in the cost center tab.
The goal is to have no difference, if there is any difference, then something is missed to be included on the red tab or something is not being considered in the cost center tab.
Make sure to have the difference zero.
3.3. I Send the Report
3.3.1. I Send the Report to Tax Team
Normally it is sent on D+6, but make sure to review the file before sending it.
It can be sent by email or the applicable tool and the subject can be: “US Tax - Budget File MM.YYYY”.
The contact is Damian Cioni - damian.cioni@solvay.com (Head of US Tax Department).
If you notice something inconsistent or if you had to add more lines, advise the tax team.
End of document.