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: Costing

Responsibility area: Supervise Inventory Valuation

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)

ZCO_SPAREPARTS; ZWFA10A; MRN1; ZFI_INVENTORY_SMOG; ZWFA23A; MRN0; ZWDV11


Forms

7. Insert the links accordingly and change the link text with the OP nam



Attachments

8. Add the link to attachments or external links

Inventory Impairment

posting scheme for inventory reserve

Hard-Close instruction for inventory reserve



Previous OP << >> Next OP



1. Objective and Scope

1.1. Objective of this Operation

WHY - Describe the objective of the operation

(complete)(error)

1.2. Scope

Detail the scope (legal entities, etc.)

(complete)(error)

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

3.1. Background (confirm this section)(error)



General Rules - Depreciation


3.2. Responsibilities


SU MAC runs the transactions and prepares the Excel files with proposal of rotation and financial depreciation.

Controllers are responsible to analyze the posting proposal sent by SU MAC  and provide the final validation for the depreciation amounts to be posted, indicating the changes to be done to the original posting proposal. In some cases, an additional comment on the largest variances between depreciation proposed and validated is required.

Regarding industrial supplies and Gen & Tech (exc. Packaging) the Accounting Platform Team is responsible to perform IFRS vs LOCAL GAAP postings  - see specificity on PF1: Industrial Supplies - DE Specificities

3.3. I run inventory valuation reports




IFRS accounts

The Z1K_SPAREPARTS transaction only uses the G/L account 6310000000 on the debit side which is a limitation for Germany companies, once they use dedicated accounts depending on the material. For industrial supplies it should be used the G/L account 6310000020 and for Gen & Tech (exc. Packaging) the G/L account 6310000050, according the following matrix: PF1 Germany WD_Inventories accounts.

To guarantee the correct reporting, a manual reclassification will have to be performed by Accounting Platform Team.

Debit PL account 6310000020 AND/OR 6310000050 (in order to determine the amount to be transferred take into consideration the balance account, whether it is 2119010000 Industrial supplies or 2119000000 Gen & Tech (exc. Packaging).

Credit PL account 6310000000

Eliminations accounts

The Z1K_SPAREPARTS transaction only posts in IFRS. Therefore, elimination will have to be manually performed by the Accounting Platform Team:

Debit BS account B119010009

Credit PL account F310000029

  • Gen & Tech (exc. Packaging): not to eliminate (no difference IFRS vs LOCAL GAAP)

3.4. I calculate inventory reserves

The process is currently processed with the support of one excel template that needs to be updated with the extractions from each transaction mention in section 3.3.

Worksheet "Read Me" in the template:

  • The excel template contains a Read Me worksheet with the details of how to extract data and fill in each worksheet.
  • Some files, might contain one Excel Macro to extract automatically the data from SAP and fill in each worksheet.

Prepare Spare Parts data (3.3.1):

  1. Go to report Z1K_spareparts
  2. Select variant /SLOWTURN-SP
  3. Update the company code
  4. Update the year and month
  5. After running, extract to excel
  6. Copy to worksheet "SP reserves", starting cell A2

Prepare Raw Materials & Packaging data (3.3.2):

  1. Go to report Z1K_spareparts
  2. Select variant /SLOWTURN-RM
  3. Update the company code
  4. Update the year and month
  5. After running, extract to excel
  6. Copy to worksheet "RMPACK reserves", starting cell A2

Prepare Finished Goods Data (3.3.3):

  1. Got to SQ00
  2. Select query/user group SXS-PRD1
  3. Run table Z1K_UPIS3
  4. Select Variant "INV RESERVES" with the complany, plant (if necessary) and period/Year
  5. After running, extract to excel
  6. Copy to worksheet "FG reserves", starting cell A2


Select query/user group SXS-PRD1


Run table Z1K_UPIS3


Select Variant "INV RESERVES" with the complany, plant (if necessary) and period/Year




3.5. I send the report to the GBUs

3.5.1. I generate the proposition files


Extract the data in spreadsheet format from ZCO_SPAREPARTS and ZFI_INVENTORY_SMOG

and copy the data to inventory reserves template field A2 in both "RMFG reserves" & "Industrial supplies reserves"


Having the extractions done in section 3.4 related to PF1, each worksheet needs to be completed

Worksheet "Read Me" in the template:

  • The excel template contains a Read Me worksheet with the details of how to extract data and fill in each worksheet.
  • Some files, might contain one Excel Macro to extract automatically the data from SAP and fill in each worksheet.

Prepare Spare Parts data (3.3.1):

  1. Copy the extraction to worksheet "SP reserves", starting cell A2
    1. Check the last columns are not overwrite, as these contain the formulas to calculate the reserves

Copy the extraction to cell A2

Have in mind that not to overwrite the last columns:


These columns are the ones containing the formulas to calculate the final reserve by material

Prepare Raw Materials & Packaging data (3.3.2):

  1. Copy the extraction to to worksheet "RMPACK reserves", starting cell A2
    1. Check the last columns are not overwrite, as these contain the formulas to calculate the reserves

Copy the extraction to cell A2


Have in mind that not to overwrite the last columns:


These columns are the ones containing the formulas to calculate the final reserve by material


Prepare Finished Goods Data (3.3.3):

  1. Copy the extraction to worksheet "FG reserves", starting cell A2


Worksheet "Full stock extraction" :

  • Extract through BW, the stock of the company for the period in analysis
  1. Refresh this worksheet through Analysis/Prompt
  2. Select date (Last day of the month in analysis)
  3. Select the company code


Go to "prompt" to perform the refresh


Select the date and company

Worksheet "Reserve accounts" :

  1. Refresh this worksheet through Analysis/Prompt
  2. Select date (Last day of the month in analysis)
  3. Select the company code

Go to "prompt" to perform the refresh


Select the date and company

Worksheet "Summary" in the template:

  • The total amount of the columns with the calculated reserve, should be in column G
  • The total amount of company stock retrieved in worksheet "full stock extraction" should be in column C
  • The total amount of the Balance sheet accounts coming from worksheet "reserve accounts" should be in column F



Template




3.5.2. I prepare the proposition files

Ensure all the data in other sheets are reflected into tab Summary 


To finalize the template before send it to the Controllers, some consistency checks need to be done.

Prepare Spare Parts data (3.3.1):

  1. Check that no formula is missing in the last columns

Have in mind that not to overwrite the last columns:

Formula to determine if there is % to be calculated

IF(R2="X";0;IF(AN2>365;10%;0%))

Where column R is related to "critical spare part" and Column AN is related to the "slow days".

The formulas can change, depending on additional criteria implemented for a given company


Prepare Raw Materials & Packaging data (3.3.2):

  1. Check that no formula is missing in the last columns

Have in mind that not to overwrite the last columns:

Formula for Column AO - Material type. Will provide what type of material is.

=IF(C2="Z000";"RM";IF(C2="Z05L";"FUEL";IF(C2="Z05P";"FUEL";IF(C2="Z05Q";"FUEL";IF(C2="Z051";"PACK";"RM")))))

Formula for Column AP - it is going to calculate the range of coverage (average stock consumption of the last 12Months against current stock)

=IF(AO2="RM";IFERROR(AJ2/(AE2/12);100);0%)

Formula for column AQ - to identify what will be the % to be used to calculate the reserve

=IF(AP2<12;0%;IF(AP2<25;50%;IF(AP2<37;75%;100%)))

Here, also the formulas can change, depending on additional criteria implemented for a given company


Prepare Finished Goods Data (3.3.3):


Worksheet "Full stock extraction" :

  • Extract through BW, the stock of the company for the period in analysis
  1. Refresh this worksheet through Analysis/Prompt
  2. Select date (Last day of the month in analysis)
  3. Select the company code


Go to "prompt" to perform the refresh


Select the date and company

Worksheet "Reserve accounts" :

  1. Refresh this worksheet through Analysis/Prompt
  2. Select date (Last day of the month in analysis)
  3. Select the company code

Go to "prompt" to perform the refresh


Select the date and company

Worksheet "Summary" in the template:

  1. There is a table to reconcile all stock of the company and retrieve the total amount of reserves posted Vs calculated
    1. Ensure that column E is zero, as this will confirm that all stock of the company is included in the analysis
      1. Any difference, should be analysed
    2. Column H, at this stage of the preparation, this column will not be zero. It will show the different of the current reserve amount to the proposed new reserve amount
  • Find as well the rules and assumptions for the reserves calculated





3.5.3. I send the proposition files

After the file is completed, send the depreciation proposals to the controllers.

In the message clearly indicate the deadline, which should be D-5 at the latest and request the amount validated for Rotation and Financial Depreciation. 


End of document.