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: Central Finance Processes & Compliance

Responsibility area: Ensure figures reporting

Table of contents 

By default the table of contents displays Heading 1 & Heading 2 (other levels can be added)


Scope
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)

ZZF_BFC_FI_FLOW_AN - BFC flow analysis

ZZF_BFC_FI_FLOW_VA - BFC Flow Variances

ZZF_BFC_LIST - BFC/BOIC - List collecting tables

Attachments








1. Objective and Scope

1.1. Objective of this Operation

The aim of the operation is to understand the reason behind the BFC blocking controls and to solve them in their origin.

1.2. Scope

All PF1, WP1 and PI1 companies.

2. Definitions

See Finance Glossary:

  • ...


2.1 Update of the BFC Guidebooks

Every time there is the need to update any of the BFC Guidebooks available (Central Provisions, Dividends, Equity, IFRS16, Investments, P&L by Activity/Partner, Tangible &Intangible Assets, Working Capital: Inventories, Working Capital: Payables/Receivables), edit mode access has to be requested to SU FAC team distribution list  sbs.financesl-fin_acc_su_gl@solvay.com, after the change has been previously approved by the team in charge of the topic.


In order for the edit mode access to be granted, it is mandatory to have the following parameters answered:
  • Update #    (in order to list the number of updates made)
  • Blocking Control subject to update    (in order to identify the Blocking control in question)
  • Description of change    (in order to understand the reason for the update)
  • Update performed by    (in order to track who initiate the update)
  • Date of update     (in order to track the timing of the update)
  • Approved by    (in order to track who approved the update)
  • Date of approval    (in order to track the timing of the approval of the update)
  • Comments (in order to add additional remarks and/or comments)
All this information must be displayed in the sheet "Update tracking" of the Guidebook to update.



After all modifications are done, please revert back to SU FAC team distribution list sbs.financesl-fin_acc_su_gl@solvay.com, clarifying that all changes have been done according to the procedure in place.

After this SU FAC team will then remove the edit access.


3. Tasks description

BFC performs several consistency checks and only allows package publication once these consistency checks are all validated. When inconsistencies are found, this information is retrieved as blocking controls which have to be solved to have a valid package. These blocking controls can be manually corrected in a BFC package, however it is fundamental to correct the inconsistencies found in the source of the information, this is to correct data entries in SAP. This will prevent the same blocking situation in subsequent reporting periods.

3.1. I understand what is the definition of a blocking control

BFC performs several consistency checks and only allows package publication once these consistency checks are all validated. When inconsistencies are found, this information is retrieved as blocking controls which have to be solved to have a valid package. These blocking controls can be manually corrected in a BFC package, however it is fundamental to correct the inconsistencies found in the source of the information, this is to correct data entries in SAP. This will prevent the same blocking situation in subsequent reporting periods.

3.2. I identify and read the blocking control information


A => the status indicates the result of the control performed. Icon   means that there is a blocking control which does not allow to publish the package until it is solved

B => each blocking control is identified with a specific code. It's possible to have several blocking controls with the same control code in the same period.

C => represents the description of the control itself and provides information on the check the tool performs. In this specific case F15 must be equal to 0 and as it is not a blocking control was generated.

D => the factor is the formula of the control, it can be on accounts (headings), flows or partners. In this example, the control is specific to account (heading) L15600.

E => the difference provides information on the exact amount which is reported inconsistently.

F => tolerance is the threshold for which blocking controls are generated. If inconsistencies are found below this amount, no technical control is generated.

G => provides information on the linked schedules for which the control is generated.


We can then understand that the given blocking control is generated because in schedule L6430 - IAS19 Provisions for employee benefits - amount 44 135Kcurrency is reported in heading L15600 as a variance in F15. This heading cannot have any variance reported as F15.

Below you may find a few examples of the consistency checks executed by the tool.

3.2.1. I solve problems on partner S9999 Third Parties

Flow analysis :

  • Check of global amount for each flow

  • (1 814 350) on account #A26000 / Flow F31 relates to partner 06020 Advanced Biochemical (Thailand)  it seems Ok

Action plan :

Analyse the transaction and change partner or flow.

If the general flows are OK, flow F31 declared on partner 06020 Advanced Biochemical (Thailand) shall move to flow F50.

3.2.2. I solve problems problems of flows by partners


Flow analysis:

  • Check of global amount for each flow

  • Small amount declared on partner S9999 Third Parties  check => OK, it is consistent

  • On partner 65113 Rhodia Poliamida Brasil, flow F50 equals F15 =>  it seems to be not OK

  • Flow F15 on partners 65113 Rhodia Poliamida Brasil and 60787 Alaver SA are the same  it seems to be not OK

Action plan :

Change flow F50 from partner 65113 Rhodia Poliamida Brasil to partner 60787 Alaver SA


3.2.3. I understand the consistency of flows and partners


Flow analysis :

  • Check of global amount for each flow

  • No amount declared on partner S9999 Third Parties  check = OK, it is consistent

  • (1 814 350) on account #L16800/Flow F31 relates only to partner 00974 Vinythai  it seems OK

3.2.3.1 I understand the rules behind the flows

Flows are used in BFC to show historical changes in accounts from the opening to their closing. Main rules to follow :

  • Long term : F20 or F30  no F15

  • Equity: no F15

  • Provisions:  no F15

  • Flow F35 : cash impact (should have no impact on P&L)

  • Flows F25 / F36: impact in REBITDA or income tax charge

  • Flows F24 / F37: impact in Non recurring items

  • Flow F56: impact in financial result (no cash)

Specific flows : Flows F31 / F50 / F60 / F70

  • They should reflect non cash impacts

  • Flows F31 and F50 should be balanced in the package

  • Flow F50 should reflect the reclassification of the opening balance

  • Flow F60 should be validated by central team

  • Flow F70 should be balanced at Conso Level  information sharing

Important :

Special flows require the usage of a specific document type for extractions in SAP/BFC interfaces

Doc type Z3 => F01/F70/F98

Doc type Z4 => F50/F60/F61

 

End of document.