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: 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)


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)



Forms

7. Insert the links accordingly and change the link text with the Form name



Attachments

8. Add the link to attachments or external links




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1. Objective and Scope

1.1. Objective of this Operation

The goal of this check is to guarantee that all Solvay companies are allocating correctly the Depreciation costs to final BFC headings related to Depreciation (making a consistency check between the BS and PL Depreciation).


1.2. Scope

WW


2. Definitions

See Finance Glossary:

  • ...


3. Depreciation Check



3.1. I receive the file with the central check of the depreciation

3.1. I check if my companies have deltas


3.2. I analyze the deltas

3.2.1. I confirm the amount in BS

The amount coming from BS appears in the file split by BS Headings, starting on column AD, and being the total on column Y.

If there was no manual adjustment in BFC, this amount should be the same as the amount in SAP in the Asset History Sheet.


Transaction AR02



If the amount is not the same, it means that a manual adjustment was done in BFC BS. To solve the delta, this adjustment must also be done in BFC PL.

Note: In some situations there is a gap not considered in F25, and which should appear in AR02 under F33. If this is the case, we should consider it also OK.


3.2.2. I confirm the amount in PL

The original amounts are posted in cost centers and then should be allocated via cycles using the correct allocation structures or Cost Elements.


Transaction S_ALR_87013615:





In this case, as we don't have any credit amount, it means that the allocation was done directly to COPA.


If the amount on the debit side is not the same as the BFC amount, it means that the cycle allocations are not being done properly, or that there was a manual adjustment in BFC PL.


3.2.2.1. Analysis for CC allocating directly to COPA

Note: Each Cost Element is linked to a certain Value Field (via Cost Element Group ZFC-PA), but in fact the Value Field is directly maintained in the cycle, so we can have a different (incorrect) link. Because of that, if needed we can check manually the final Value Field of each CC, independently from the Cost Element.


Example of analysis:


Transaction S_ALR_87013615:



Transaction KE24 - COPA amounts:


The entire amount is allocated to a Depreciation PL heading, so it's OK:



3.2.2.2. Analysis for indirect CC

The original amounts are posted in cost centers, then after should be allocated to other cost objects using the correct cost elements for depreciation.


Example of analysis:


Transaction S_ALR_87013615:



In this case we have an issue: we had 151€ of depreciation that were allocated to Fixed Costs, which is wrong.


1st step: Check if it was already solved during the year:


In this case, every month we have deltas, meaning that the cycle is still wrong, so we need to check which is the cycle that balances this CC and analyze it.


In this case the cycle is created as below, which means that all amounts posted on this CC (without any restriction on the Cost Element) will be allocated to Labor (Fixed Costs):



The correct way to allocate this CC is to split the amount between Fixed Costs and Depreciation. How?


Segment 1 to allocate all Depreciation costs to Amortization:


Segment 2 to allocate all Fixed Costs to Fixed Costs:



NOTE:

This split between type of costs can be done using different segments (as shown above), but can also be done using only 1 segment with the correct allocation structure

It's necessary to check in the cycles rules the correct way to allocate the respective CC (unless there is some specific and justified reason requested by the controller to allocate otherwise)



End of document.