1. Objective and Scope
The purpose of this document is to describe the monthly process to update "ACTUAL/REEL" exchange rates in BFC.
"ACTUAL/REEL" exchange rates are used in the following reporting categories to convert, during the Consolidation runs, package submitted in Local currency to Consolidation currency (main currency being EUROS):
- ACTUAL2 - IFRS Consolidation operated every month
- ACTUAL1-TAX - Tax reporting cycles operated in Q1, Q2, Q3 , October Hard Close and final Year End
- ACTUAL3 - Annual appendices required to complete Solvay Annual Report (analysis of Net Financial Indebtedness, commitments, related parties…) - requested in September and at Year End
- ACTUAL0 - Statutory net equity for dividends valuation / Financial information on Non Consolidated companies / "CBCR - Country by Country Report" (OECD requirement) - requested on quarterly basis
- RSB - Restatement of Y-1 Financial Statements to current Y Perimeter and Exchange Rates
Below are the 6 types of conversion rates updated in this monthly process:
- TC - Closing rate - used for Balance Sheet Closing balance and some specific flows
- TMN - Average cumulative rate - used for P&L and some variation flows from BS
- TMN-1 - Average rate Dec.Y-1
- TO - Opening rate (equals to Dec.Y-1 closing rate ) - used for Balance Sheet opening balance and some specific flows
- TCN-1 - Closing rate N-1 (closing rate / same period of previous year)
- TMYN-1 - Average rate N-1 (average rate / same period of previous year)
In addition to "ACTUAL/REEL" tables, BFC Admin is also responsible for the update of 2 other Exchange Rates tables - PREV and SIMULATION - used in Controlling categories
- PREV rates are used for Budget purposes
- SIMULATION rates for Business Forecast reviews
- both are communicated by the Corporate Controlling team to BFC Admin every quarter
2. Quantum files
Quantum is the Treasury system managing centrally Solvay official exchange rates and distributing them across the SAP applications.
On the last working day of the month, Quantum (through e-mail address QUANTUM-Solvay@avantgardportal.com) automatically sends 4 emails (one per each file) to BFCAdmin-ext@solvay.com with the following contents:
- QUANTUM : YYYY.MM Rates Interface for BFC contains YYYY.MM_BFC_Rates_Interface_FromQT.txt file
- QUANTUM : YYYY.MM Monthly Rates for BFC contains YYYY.MM-BFC_MonthlyRates_FromQT.xls file
- QUANTUM : YYYY.MM Quarterly Rates for BFC contains YYYY.MM-BFC_QuarterlyRates_FromQT.xls file
- QUANTUM : YYYY.MM Year's Rates for BFCcontains YYYY.MM-BFC_YearRates_FromQT.xls file
In case there are any issues with the files the point of contact is bilal.sleiman@solvay.com or sofia.barrias@solvay.com (in case Bilal Sleiman is not reachable) from Finance & Treasury domain in IT organization.
3. BFC upload
The file YYYY.MM_BFC_Rates_Interface_FromQT.txt received from Quantum has the correct format ready to be uploaded in BFC.
3.1 Create REEL YYYY.MM table in BFCTop
Before being able to upload YYYY.MM reel exchange rates from the txt file, creation of the table in BFC is first required.
From the previous period, do a Save as.
Save the new table 
and close.
Open the new table
Select all lines, except the frozen rates, and press DELETE to erase previous month rates.
3.2 Import Quantum file
Import YYYY.MM_BFC_Rates_Interface_FromQT.txt file into BFC.
6 lines expected to be rejected: Currency CNH not created in BFC table as not required in the IFRS Consolidation.
Save the table
3.3 Run Excel retrieval file to check consistency
Before piloting the exchange rates table to BFCProd it is recommended to run a consistency check on the rates just uploaded into BFCTop.
Connect to BFCTop through BFC Excel Link WEB
Excel retrieval file - Exchange Rates checks.xls - is saved in this folder in the remote desktop \\Acew1ptsefcp1\BFC-SHARE\ER
The file can also be found in the Gdrive https://docs.google.com/spreadsheets/d/1uvIbkcr1y7OCtAdjnsZB0qtirU6D_4-2/edit?usp=sharing&ouid=101127428078004514097&rtpof=true&sd=true
How to proceed with these checks:
- Update period in cell C1
- Connect to BFCTop and refresh the file
- From column E to J there's a retrieve of what we've just uploaded into BFC with the interface file.
- In columns M and N there's a comparison of TO (Opening Rate) and TMN-1 (Closing rate) with TC and TMN rates from Dec Y-1 table. No differences are expected.
- In columns P and Q there's a comparison of TCN-1 (Closing Rate Y-1) and TMN-1 (Aver. Rate Y-1) with TC and TMN extracted from the Y-1 table. No differences are expected.
- In Columns V and W there's a calculation of the TC and TMN variations (%) compared to previous month.
- There's a conditional formatting in these cells: variations >= or <= 50% are highlighted in red and those cases should be communicated to GAR Conso team by email as a warning message of high currency variation.
3.4 Piloting to BFC_Production database
Task EXPL-ADMIN has to be used to pilot REEL Exchange Rates table inserting the REEL table of the month.
4. Exchange Rates publication in Aodocs (GAR team site)
Besides BFC update, BFC Admin is also in charge of updating every month the actual (REEL) exchange rates file published in Aodocs.
The information received in the 3 files from Quantum (Monthly, Quarterly and Yearly rates) are in the exact same format as the 3 tabs in Aodocs file and therefore only a copy/paste is necessary.
4.1 Beginning of the year (in January YYYY) - creation of the new file for year YYYY
- In AODOC library open the Exchange Rate file from previous year (YYYY-1)
- Select option "Open in a new tab" to open it in google drive
- File opened in Google Drive
- Menu "File" option "make a copy" to duplicate the document
- In the new File generated by copy:
- rename it "ExcRates YYYY SOLVAY"
- adapt columns titles in each tab
- remove previous exchange rates values (YYYY values will come from monthly updates)
- Load the new file into AODOC:
- click on "NEW" button
- select "DocClass BFC and Doc Training"
- "Choose a file" window => select 1st option "import file from your My Drive"
- Then select Google Drive and search and select the new file => the upload starts
- Once loaded the new file appears in AODOC and its storage has become an AODOC storage (the file belongs to AODOC, no more to My drive)
4.2 Monthly updates
Open the Exchange Rates YYYY file in Aodocs
From Quantum file YYYY.MM-BFC_MonthlyRates_FromQT.xls copy the last column to Aodocs file tab Monthly calculation
From Quantum file YYYY.MM-BFC_QuarterlyRates_FromQT.xls copy the last column to Aodocs file tab Quarterly calculation
From YYYY.MM-BFC_YearRates_FromQT.xls copy the last 2 columns to Aodocs file tab Year rates
Once the 3 tabs of Aodocs file have been updated close the file (changes are automatically saved).
5. Communication
Once exchange rates have been piloted to BFC_Production and Aodocs file has been updated, BFC Admin should communicate to Solvay's Finance community and external partners (outsourcing companies, Solvay Actuaries, Businesses sold under TSA ...) that exchange rates are available in BFC and can be accessed through Aodocs file.
The distribution lists are updated in this file BFC exc.rates file contacts and 2 separate emails should be sent:
- one mail to Solvay contacts & BFC Admin in cc (listed in 1st tab)
- one mail to external partners & BFC Admin in cc (listed in 2nd tab)
Note: When someone (external partner) asks to be added to the distribution list, BFC Admin should check with Sonia Gonçalves or Caroline MATHIEU-STOÏSSICH as MAGD referents if the contact can be added and which is the validity period.
Mail to Solvay contacts (including the link to Aodocs file):
Mail to external partners (Aodocs file sent in attachment as they have no access to Solvay AODOC library):
END OF THIS PROCEDURE