Business structures are organized around 5 levels aggregating each others in a global hierarchy (following a "Russian dolls" principle - 1 level can belong to only one upper level and never two):

• CLUSTER = Operating segment
  • This is the upper level of the hierarchy
  • Codification rule : 4 letters 
  • Corresponds to the level of external communication on Solvay Businesses performance 
  • Only used for retrieval purposes, not as entry point for data entry
  • Example: CHEM "Chemicals", MATE "Materials", SOLU "Solutions"...
  • Approval process for creation of new CLUSTER / update of content: Corporate Controlling

• SEGMOP = Group of GBU's = Operational Segment
  
  • This is the 2nd level of the hierarchy
  • Codification rule : 3 letters 
  • Used internally to group GBU's - not a level subject to external communication
  • Only used for retrieval purposes, not as entry point for data entry
  • Examples in Cluster CHEM "Chemicals": GCT "Coatis", GEB "Vinythai"...
  • Approval process for creation of new SEGMOP/ update of content: Corporate Controlling

• ENTREP = GBU = Global Business Unit
  
  • This is the 3rd level of the hierarchy
  • Codification rule : 2 letters 
  • Used internally  - corresponds to the Business organization and management with Global Director, Finance teams...
  • Only used for retrieval purposes, not as entry point for data entry
  • Examples in Segmop GCT "Coatis"": CT "Coatis", FI "Fibras"
  • Exception / constraint on codification: do not choose codes starting with "D", "Dx" codes dedicated to Discop GBU's (examples: DO "Discop Acetow" / DM "Discop Performance Polyamides"...), creation subject to request and approval from GAR
  • Approval process for creation of new GBU : Corporate Controlling , on proposal made initially by Businesses
  • Approval process for update on GBU's content : Businesses

• BU = Business Unit
  
  • This is the 4th level of the hierarchy
  • Codification rule :  5 letters - the 2 first letters are the ones of the belonging GBU code
  • Used internally  - allows each GBU to sub divide its activities (criteria considered to split can be external market, external application, product lines...)
  • Only used for retrieval purposes, not as entry point for data entry
  • Examples in GBU FI "Fibras"": FITEX " Fibras Textile"
  • Exception/constraint: do not choose codes starting with "D", "DxDIS" codes dedicated to Discop BU's (examples: DODIS "Discop Acetow"...)
  • Approval process for creation of new BU / update of content : Businesses
  • Note that Business requests are subject to challenge from SBS FSL teams if they bring complexity (in setup and maintenance) without any demonstrated added value for performance follow up

5th and last level combines 2 different dimensions : MARK "Activity1" and CGU "Activity2"

• MARK "Activity1"
  • Level for data entry in the IFRS reporting packages to enter P&L components and Acc Receivables
  • Level also directly used in BFC customizing (category scenario, consolidation rules, reports, Business users accesses...) and in Journal manual entries from Corporate (GAR and Controlling)
  • Codification rule :
    • Different practices coming from the past Solvay legacy (letters & digits - digits corresponding to Division codes from former Cheops conso tool from Solvay) and Rhodia legacy (letters)
      • example on the right side on GBU CH "Special Chem":
        • BU CHRAR coming from the Rhodia legacy includes Activity 1 codes made of letters only (ex CHAT)
        • while BU CHFLO "Fluorine" coming from the Solvay legacy includes Activity1 codes made of both letters & digits (ex CH3A)
    • Best practice: it is recommended to cross check that any new Activity1 code proposed for BFC (for both Solvay and Rhodia legacies) does not exist already :
      • 1) in Solvay ERP's (PF1, WP1) with FSL SU MAC Master Data team
      • and 2) in BFC dimension builder (BFC Admin team to take care of it)

• CGU "Activity2"
  • Level for data entry in the IFRS reporting packages to enter Working capital, Fixed assets and Investments
  • Level also directly used in BFC customizing (category scenario, consolidation rules, reports, Business users accesses...) and in Journal manual entries from Corporate (GAR and Controlling)
  • Codification rule :
    • As for MARK dimension, different practices coming from the past Solvay and Rhodia legacies
      • example on the right side on GBU CH "Special Chem":
        • BU CHRAR coming from Rhodia legacy includes Activity 2 codes made of letters & digits (ex CHCGU113)
        • while BU CHFLO "Fluorine" coming from the Solvay legacy includes Activity2 codes made of letters & digits but not organized with the same sequence (ex CHCGU3AP)
    • Best practice: it is recommended to cross check that any new Activity2 code proposed for BFC (for both Solvay and Rhodia legacies) does not exist already:
      • 1) in Solvay ERP (PF1, WP1) with FSL SU MAC Master Data team
      • and 2) in BFC dimension builder (BFC Admin team to take care of it)

• Approval process for both MARK and CGU:
  • Approval process for creation of new MARK and GBU : Businesses
  • Note that Business requests are subject to challenge from SBS FSL teams if they bring complexity (in setup and maintenance) without any demonstrated added value for performance follow up

• BFC Admin team:
  • Create and update the Reference file gathering the BFC Business structures changes for Y+1
    • File maintained in a Google sheet format - Link to example "2022 Business structures"
    • When finalized , Reference file is posted in GAR AODOC Team site  - 1 folder per year Year Business Structure files

• • "Y+1" Reference file is created from save as of "Y current business structures" Reference file
  • Then it is updated highlighting the different type of changes required for Y+1 (received from Corporate Controlling): 
    • New objects to be created and used from Y+1 reportings - yellow back ground in the example above
      • As explained earlier in this procedure, BFC Admin will propose the BFC codification, checking with FSL SU MAC Master Data team that no constraint with ERP's
    • Old objects not to be used anymore from Y+1 reportings - pink back ground in the example above
    • Change of links (transfers) inside hierarchies - red back ground in the example above

• Once changes collected and new required codifications validated, BFC Admin will perform the associated BFC customizing
• Updates Business users accesses and Business filters, when required, occurs before January Y+1 reporting

Sequence of creation: From upper levels to lower ones

• In case of creation of new objects at each level of the hierarchies and linked each others , it is recommended to start the creation at the upper level of the hierarchy.
  • Example below creation of a new Activity 1 associated to a new BU => BFC Admin will create 1st the upper level (BU) and then after the lower one (MARK)

• Also recommended to start 1st creating new CGU "Activity2" codes and then after new MARK "Activity1"

Connect to BFC_Top:

Select the “Dimension Builder” module in the "Setup" domain.

Then select the MARK and CGU dimensions and expand the hierarchy to access to the upper levels.

4.1.1 Creation of new CGU "Activity 2"

A CGU can be created from scratch in the option "New Reference Member", or through “Save As” from an existing CGU code.

In the tabs “General” and "Translation", enter the information in the following fields as indicated in the Reference file:

• Code
• Short description - EN & FR (same ones)
• Long description - EN & FR (same ones)

In the tab “Properties”,

• Group of activities: COMPULSORY characteristic
  • Enter the belonging BU value defined in the Reference File

• Changes: 
  • Before Jan Y+1: "NEW" value to be selected - this is will prevent from usage in on going Y reportings
  • End of January Y+1, "NEW" value will be removed and field will stay empty => the new object will be available for usage in Y+1 reportings

4.1.2 Creation of new MARK "Activity 1"

A MARK "Activity 1" can be created from scratch in the option "New Reference Member", or through “Save As” from an existing MARK code.

In the tabs “General” and "Translation", enter the information in the following fields as indicated in the Reference file:

• Code
• Short description - EN & FR (same ones)
• Long description - EN & FR (same ones)

In the tab “Properties”,

• Group of activities: COMPULSORY characteristic
  • Enter the belonging BU value defined in the Reference File

• MARKET type: COMPULSORY characteristic
  • 4 different possible values:
    • M "Market " - most common value
    • E "Entreprise" - this value has to be selected for new MARK created to host unallocated activities of the GBU (codes such as xxNR)
    • PM "Generic market partner code"  - this value has to be used for new fictive MARK created to host inter BU's sales inside the same GBU (codes xx-INTERBU where xx stands for the GBU code) - usually 1 generic market partner code created for each GBU
    • DISCOP - this value has to be used for new MARK created to host Discontinued activities (post M&A items) - such value are requested by Corporate teams
  • Refer to the value indicated in the Reference File

• CGU value (valeur de CGU des marchés): COMPULSORY characteristic
  • This field allows to link MARK and CGU, link that is needed to manage elimination of margins in inventories in the IFRS consolidation process (Margin elimination in P&L requiring a MARK value and in Bal Sheet Stocks requiring a CGU value)
  • Refer to the value indicated in the Reference File

Special case of 1 CGU transferred and split into 2 or more CGUs: In the corresponding "new" MARK codes we can assign only one CGU. 

Example: In 2022, TSDP and TSFU were transferred from TSDPH to TSMIN BU. Corresponding CGU associated to both TSDP and TSFU was split into 2 "new" CGUs. Business must choose which CGU should be assigned to TSDP and TSFU replacing the old CGU.

• Changes: 
  • Before Jan Y+1: "NEW" value to be entered - this is will prevent from usage in on going Y reportings
  • End of January Y+1, "NEW" value will be remove and field will stay empty => the new object will be available for usage in Y+1 reportings

4.1.3 Creation of new BU

A BU can be created from scratch in the option "New Reference Member", or through “Save As” from an existing BU code.

Note that it can be created either using the MARK or the CGU hierarchy (no need to create twice in each as 1 single BU table common to both hierarchies).

Note: No need on BU level to manage the specific f characteristics existing on MARK and CGU (change, RSB transfer, value for margin in inventories...) as BU level is not used for data entry but only for retrieval purposes.

In the tabs “General” and "Translation", enter the information in the following fields as indicated in the Reference file:

• Code
• Short description - EN & FR (same ones)
• Long description - EN & FR (same ones)

In the tab “Properties”,

• Enterprise: COMPULSORY characteristic
  • Enter the belonging GBU value defined in the Reference File

• Filter "MARCHACTUELS" for MARK dimension:
  • contains MARK with empty value (meaning of the "cross" blue icon) on "Changes" characteristic

• Filter "CGUACTUELS" for CGU dimension:
  • contains CGU with empty value (meaning of the "cross" blue icon) on "Changes" characteristic

In the tab “Properties” (either CGU or MARK table), 

• Changes: 
  • "NEW" value to be removed and field to stay empty - follow the instructions from the Reference file to get the list of objects subject to this switch end of January 

• Filter "MARCHACTUELS" for MARK dimension:
  • only contains MARK with empty value (meaning of the "cross" blue icon) on "Changes" characteristic

• Filter "CGUACTUELS" for CGU dimension:
  • only contains CGU with empty value (meaning of the "cross" blue icon) on "Changes" characteristic

In the tab “Properties” (either CGU or MARK table), 

• Changes: 
  • OLD value to be selected - follow the instructions from the Reference file to get the list of objects to be put as OLD (pink background) 

• CGU (or MARK) used in RSB transfer: OPTIONAL characteristic
  • this filed is used in RSB consolidation rules to automate some transfers between CGU (or MARK) from an old to a new code) 
  • Value , if any, has to be communicated in the Reference file - if empty, field has to stay empty

In the tab “Translation” (either CGU or MARK table), 

• • Both FR and EN translations to be updated to indicate  - follow the instructions from the Reference file to get the list of objects to be put as OLD (pink background) 

Transfers / change of links are highlighted with red background in the Reference file - they can be:

• either transfers of a CGU "Activity2" or a MARK "Activity1" from one BU to another BU
• or move of a BU "Business Unit" from one GBU to another GBU
• or move from a GBU from one SEGMOP to another SEGMOP
• or move from a SEGMOP from one CLUSTER to another CLUSTER

Example in 2022 Business structures changes: TSDP and TSFU moving from BU TSDPH yo BU TSMIN

In the tab “Properties” (either CGU or MARK or BU or GBU or SEGMOP table), 

• Changes: 
  • Replace the existing upper level code by the new one
  • in the example listed before: on MARK "TSDP" change the BU ("Group of activities") code from TSDPH to TSMIN

Step1 - BFC Admin team to perform consistency checks in BFC_TOP (customizing database):

In each MARK and CGU table,

• Select "Load data" mode and display in columns all characteristics  + EN & FR descriptions
  • Filter on "last changed" to see the latest customized objects
  • Compare changes done (codes, descriptions, values on characteristics) versus Reference file to ensure nothing has been missed

• Select "Hierarchy" mode, expand the Hierarchy and
  • Search for NEW objects created from Reference file to check their description and right place in the hierarchy
  • Search for OLD objects listed in Reference file to check that their description has been well updated ("no more used to be used from ...")
  • Search for TRANSFERS listed in reference file to check that they have been moved at the right place in the hierarchy

Example for NEW object NBGH (MARK) and NBGH2 (BU)

Example for NEW object NBGH (MARK) and NBGH2 (BU)

Example for TRANSFERS of TSDP (MARK) from TSDPH (BU) to TSMIN (BU)

Example for NEW object NBGH (MARK) and NBGH2 (BU)

Step 2 - BFC Admin team to pilot changes from BFC_Top (Customizing database) to BFC_WORK (Testing database) for review and validation from Corporate Controlling

• BFC_TOP: Objects to piloted : MARK and CGU references tables members (it includes the full hierarchies content: BU, GBU...)
• BFC_TOP: Type of task to be used: FCWORK code (not to confuse with sending of tasks to Production)

• Connect to BFC_WORK, launch Scan and Reception of FCWORK task
  • Check in Dimension Builder in both MARK and CGU tables that objects (NEW / OLD / TRANSFERS) are there
• Inform Corporate Controlling asking for review and final authorization to pilot to BFC production

• Task to be prepared in BFC_TOP: EXPL-GESTION task including MARK and CGU Reference table members

• Launch the sending of the task 
• Connect to BFC_PRODUCTION
  • Launch Scan
  • Once Scan terminated, launch the reception of EXPL-GESTION task
  • Check in Dimension Builder in both MARK and CGU tables that objects (NEW / OLD / TRANSFERS) are there
• Confirm to Corporate Controlling the effective transport of Business structures changes to Production
• Complete the related Internal Controls (archiving of authorization obtained from Corporate Controlling to pilot to production) - refer to BFC Internal controls procedure

Timing : Dec Y + "on flow" during Y+1 each time there is a change

Reference file gathering the BFC Business structures changes for Y+1

• Maintained in a Google sheet format - Link to example "2022 Business structures"
• When finalized , Reference file has to be posted in GAR AODOC Team site \ BFC Doc and Training \ 06. Business Information  - 1 folder per year
• When different versions applicable for the same year, each version has to be posted keeping the past ones (important to keep tracking of the past versions and justification in front of external Auditors)

Process to upload Business Structure file in GAR AODOC link here to Business Structure folder :

 Step  1 - At each beginning of the year YYYY, created the folder YYYY in AODOC

Step 2 - Download in Excel format Business Structure file from GDrive to local desktop (impossible to import directly a GDrive file to AODOC)

Step 3 - Import the Business Structure file (Excel format) to AODOC :

• click on "NEW"
• select "DOCUMENT"
• select "Upload and Convert"
• select the file saved on local desktop and click on "Open"

• Message appears confirming the cteation in AODOC
• Click on "Open created document" to check that the file has been well uploaded

• The file opened must have the same display than the source file loacetd in BFC Admin G Drive

• Close it and go back in AODOC folder to check the file is posted at the right place : sub folder YYYY of library 06.Business Information

Example : July 2021 creation of new GBU code O&G "Oil&Gas"made of activities previously hosted in both CS "Novecare" and TS" Technology solutions" GBU's

• Contact taken with O&G GBU FD Mark Dahlinger requesting the list of impacted users to get access to the new GBU and confirmation if their existing accesses on CS and TS GBU's should be kept or not

• In the BFC_Production database:

• Dimension builder - Filters on MARK and CGU dimensions : new filters created to manage the different combinations of GBU's listed in GBU FD's file, integrating in their content the new GBU

• Users module  - Data entry-analysis access: new values created to manage the different combinations of GBU's listed in GBU FD's file, integrating in their content the new MARK and CGU filters created in the step before

• Users module - Data access groups: new values created to manage the different combinations of GBU's listed in GBU FD's file and integrating in their content the new "Data entry-analysis access" values created in the step before

• Users module  - Users account : User Samantha Harris - Data Access Group updated with the new Data access group "BU OG+CS" value created (added OG "Oil&Gas" GBU while CS "Novecare" access kept (as requested in GBU FD file))

• In the BFC_Production database:

• Dimension builder  - Filter mode - Filters on MARK AND CGU dimensions : new filters created to manage the merge of the the GBUs