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: Treasury Accounting

Responsibility area: Ensure the monthly activities in Quantum

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

Please remove the icon when not applicable.


ERP

4. Remove the icon(s) when not applicable

Please remove the icon when not applicable.
Frequency

5. Remove the icon(s) when not applicable

Please remove the icon 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



 

 

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1. Objective and Scope

1.1. Objective of this Operation

Purpose: in order to maintain a trial balance of GL account balances on a YTD basis in Quantum, there are a couple of prerequisites.

  • to apply currency translation on GL account balances (in order to translate balances in non-base currency to the base currency in which the TB is expressed).
  • to “clean” the P/L accounts at the end of the reporting period/year to zero and post this against Retained Earnings

The year end close accounting process in Quantum performs exactly this, it will, based on the year end date and selection of the GL owner, clear all P/L balances at year end date, and post it against the retained earnings GL account.


1.2. Scope

Detail the scope (legal entities, etc.)

Worldwide

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. Year end close (only relevant at year-end)

After the usual monthly closure of TMS and the necessary checks, in order to execute year end close process, it is necessary to have defined Retained Earnings GL accounts (templates) for each currency in which there are P/L balances.

If some G/L accounts are missing you have to create it at IFRS level and in Entity level.




3.1. Confirm if the user has access to post into an Interim closed period


  • Go to Configuration → User

Insert your user in Short name box and Enter


3.2. Periods open


  • Before the Year End process guarantee that the periods are open.

To open the periods perform the following steps:


Go to Accounting → G/L close

Choose variant CLOSURE 2020 and make sure the New Close Date is the last day of November closure:

Add all companies under Syensqo scope.

Select FULL CLOSE

Click Run

3.3. Execute the Year end closure


    NOTE: Before start the Year End process, confirm that only the Interim period is closed for 31.12.YYYY and last Full closure date is 30.11.YYYY


  • Go to Accounting → GL Year End


Select and the query 2020, the below processing screen pops up:



warning Make sure that all the companies are included.


Run in  and update.

Save the excel files.


Filtering criteria per query include:

a) General ledger owners (same principle as in interim and full close, the query can be set up for one or multiple GL owners) - recommendation is to have a query in year end close for same grouping as defined in month end close

b) Year end date: this should be aligned with the year end date as defined in the ledger property of the entity (i.e. 31/12)

c) Use accounting period: not used

d) The process also allows the option/tick mark to simultaneously close the periods (just like the month end closing process as explained in sections 2 and 6 above). This is optional, as closing process at month end can also be executed using the regular process - which is actually recommended for consistency reasons

e) Ignore account revaluation warning: recommended to flag this box, in case there is no currency translation applied on GL account balances


warningPOSSIBLE ERROR: "There is more than one Retained Earnings account for company 2232"

Select the message log:


In this case, if more than one Retained earning account exist (usually linked to the Hybrid Bonds), besides the ones necessary by currency, we need to deactivate those accounts.



  • To deactivate the accounts, go to Static → G/L Account Template

Click on and select Accounting type IFRS

Search for 304* accounts and deactivate all the 304* accounts except the currency ones

Select the line of the correspondent account, click on and select DeActivate



NOTE: After the Year end closure the deactivated accounts must be reactivated in order to allow the correct posting schemes to work.


  • After the necessary Retain Earnings accounts deactivated run the Year End Close in Preview and if is ok
  • To reactivate the accounts follow the same steps as initially done for the deactivation, select the correspondent line, go to and select Activate




3.4. Perform consistency check

After the Year End process concluded in Quantum, perform the check in excel "GL accounts confirmation from Quantum" to guarantee that all P/L balances at year end date are posted against the retained earnings GL accounts.

Go to Reporting → General Ledger Transactions

Query: Report for GL Interface

View: Report for GL Interface

Export the information and update the excel file stored in LUCAP and perform the check.

\\lucapfs01sco.oxo.priv\LUCAP-USERS\TREASURY ACCOUNTING (P2)\MONTH END CLOSING\YYYY\MM.YYYY\TMS Year end YYYY

3.5. Periods close


  • After the Year End process concluded guarantee that the periods are closed.

Is expected that the periods were closed on step 3.2., however, to confirm it we need to perform the following steps:


Go to Accounting → G/L close

Choose variant CLOSURE 2020 and make sure the New Close Date is the last day of the year.

Add all companies under Syensqo scope.

Select FULL CLOSE

Click Run



NOTE: At the end of the process, make sure that the date in columns Last Full Close Date and Last Interim Close Date are both the last day of the year

End of document.