1.0 Overview


This application used the data from Working Capital application (FI) and the Project Costs applications (PS), you can see more details in the functional documentation for the respectives applications.

The objective of this application is to allow BFC Capex vs BW project reporting (PeC and Cash) data reconciliation: it mainly means providing a detailed view of all BFC CAPEX components (PeC/AuC, PeC/FXA, Fixed Asset Supplier, and Lease debt), to be available on a wide range of axes also shared with BW PeC and Cash solution.

This fine analysis grid of CAPEX should allow to: 

  • Definitively reduce remaining variances when linked to a technical issue
  • Explaining variances when they are legitimate and/or irreductible (perimeter, business rules…) 

For these queries the access is provided based on the BW menu and it's done via Service one. 

Target Users:

Controlling teams.

VERSION

DATE

MODIFIED BY 

DESCRIPTION

0.01

31.08.2023

Inês Vilares

Initial draft










Data Product Type 
  • Dashboard
  • Report
  • Advanced analytics
  • AI 
  • Others <specify which one>
Technologies
  • BW
  • Tableau
  • Qliksense
  • Talend
  • Dataiku
  • Others <specify which one>

Data Sources 

Note: list of all applications and various environment

  • SAP PF1 (Production environment)
  • SAP WP1
  • SAP PI1
  • BW (versions)
  • iCare CRM 
  • CORE CRM
  • BFC 
  • Others <specify the name of the source> 

2.0 Business Process

CAPEX stands for "Capital Expenditure." It refers to the money a company spends to acquire, upgrade, or maintain physical assets such as buildings, machinery, equipment, vehicles, or technology infrastructure. Capital expenditures are typically made with the expectation that they will provide benefits to the company over an extended period, often several years.

Key points about CAPEX include:

  • Long-term Investments: CAPEX represents investments in assets that are expected to generate value for the company over an extended period, as opposed to day-to-day operational expenses (OPEX).
  • Depreciation: Many CAPEX items are subject to depreciation, which means their value is allocated over their useful life for accounting and tax purposes. This helps companies match the cost of the asset with the revenue it generates.
    • Examples: Common examples of CAPEX include building a new manufacturing facility, purchasing heavy machinery, upgrading computer servers, acquiring vehicles for a delivery fleet, or expanding a company's physical infrastructure.
  • Strategic Decision: Decisions related to CAPEX are often strategic in nature, as they can significantly impact a company's future growth, productivity, and competitive position.
  • Budgeting: Companies carefully plan and budget for CAPEX expenditures to ensure they have the necessary funds available for these long-term investments.
  • Financial Analysis: Analysts and investors often scrutinize a company's CAPEX spending to assess its growth prospects and financial health. High CAPEX can indicate aggressive expansion plans, while low CAPEX may suggest a more conservative approach.
  • Regulatory and Accounting Considerations: CAPEX spending can have tax implications and may need to comply with accounting standards, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).

It's important to distinguish CAPEX from OPEX (Operating Expenditure). OPEX includes day-to-day expenses like salaries, rent, utilities, and office supplies, which are necessary for a company's ongoing operations. CAPEX, on the other hand, is focused on investments in assets that will provide long-term value and benefits to the company.

3.0 Application Feature Overview

For this application find below all the workbooks available:

CAPEX Invest. Projects

ReportsDefinitionPromptsBW Workbook QueryQuery Technical Name
CAPEX BFC data - Invest. (Core Workbook)

This report show the values for the YTD for each month and the amounts for each month. 

The structure contains all the BFC accounts related with the investment data for CAPEX. 

Mandatory:

  • BFC Legal View;
  • Calendar year/Month;
  • Exchange Rate Type.

Optional:

  • Authorization Scope;
  • PRS Company Code;
  • Curr. conversion;
  • 1 - BFC GBU.
BW_WBK_CX_0011BW_QRY_MVFICX01_0011
CAPEX FA adjust. analysis L40800 (Core Workbook)This report shows the data related with the values from SAP FI data for the Projects and compare this data with the information from the BFC Heading L40800 (closing - open values) for the Fixed Asset Supliers.

Mandatory:

  • Calendar year/Month
  • BFC Legal View;
  • Legal PRS Company Code;
  • Exchange Rate Type.

Optional:

  • Authorization Scope;
  • Curr. conversion;
  • 1 - BFC GBU.
BW_WBK_CX_0009BW_QRY_MVFICX01_0009
CAPEX Invest. Project to BFC synthesis (Core Workbook)

Mandatory:

  • Calendar year/Month
  • Conso. View;
  • Project enlarg. to PM?;
  • Exchange Rate Type.

Optional:

  • Curr. conversion;
  • Authorization Scope;
  • PRS Company Code;
  • 1 - BFC GBU.
BW_WBK_CX_0018BW_QRY_MVFICX01_0018
CAPEX Invest. Project vs FI analysis (Core Wrokbook)

BW_WBK_CX_0014


CAPEX Lease Contracts

ReportsDefinitionPromptsBW Workbook QueryQuery Technical Name
CAPEX Lease B/S by Flows (Core Workbook)

BW_WBK_CX_0016
CAPEX Lease BFC Interface (Core Workbook)

BW_WBK_CX_0015
CAPEX Lease Colmar check (Core Workbook)

BW_WBK_CX_0023
CAPEX Lease Debt/RoU based on RE Act./Plan. Cash flow (Core Workbook)

BW_WBK_CX_0019
CAPEX Lease Future Cash flow for Budgeting (Core Workbook)

BW_WBK_CX_0020
CAPEX Lease GL extract for KPI automation (Core Workflow)

BW_WBK_CX_0001
CAPEX Lease REFX RoU (Core Workbook)

BW_WBK_CX_0017
CAPEX Lease Rolling Future Cash flow for L6605 (Core Workbook)

BW_WBK_CX_0022

4.0 Functional Specification

4.1 General Data/Calculations 

fg

Consolidation View

The query takes the integration rate of the company and the partner from a table managed by GAR (Group Accounting Reporting).

  • If Conso method = 50 (Equity) , 20 (Not Conso.) or 60 (Not Equity), Rate = 0%; 
  • If Conso method = 10 (Fully Conso), Rate = 100%; 
  • If Conso method = 30 (Prop), Rate = Integration percentage

The formula to retrieve the consolidated sales is in line with BFC:

Consolidated Sales  = Amount * Max [ 0, Integration Rate of CY (tingsoc) -  Integration Rate of Partner (tingpart) ]

Internal Sales  = Amount * Min [ Integration Rate of CY (tingsoc), Integration Rate of Partner (tingpart) ]

The integration rate of the partner is managed on the TRADING PARTNER. For specific cases some external customer must be considered as internal for certain company code (joint venture for example) . For cases the Partner integration rate is taken at the crossing Sold To/Company code. 


In this way, the user has 4 options:

  • Option 0 - Legal view: No intercompany eliminations are taking into account;
  • Option 1 - Consolidated view (for Solvay group): Takes into account the intercompany eliminations (using company code master data);
  • Option 2 - same logic as option 1 but the data is the consolidated view for Eco Companies
  • Option 3 - same logic as option 1 but the data is the consolidated view for Sco Companies
GBU Assignment

The concept for GBU doesn't exist in SAP but it’s a requirement to have in BW since in BFC we have this definition.

WP1 Logic: (to be completed)

PF1 Logic: (to be completed)

Exchange Rate

All the PS queries use the same type of currency conversion: 

  • Rate used : CAR3 (See Exchange rates page for details)
  • Time : Fiscal Period

This means that each document will be converted with the rate available for the posting date of that document.

IE : Documents posted in January will be converted with the January rate, even if you run the report in february.

Depending on the key figure, the "Period" will be different :

Budget : the date will be the start of the project (WBS Creation date)

Commitments : Rate available at the theoretical reception date if the date is in the past, or current rate if date in the future.

Plan : Rate available at the month of the plan data.

PEC : Rate available at the reception date.

Cash – Payments : Rate available at the invoice reception date.

Cash – Down payment : Rate available at the down payment posting date.Cash – Non-Purchase requests (Stocks, Hours) : Rate available at the cost reception date

BFC Headings

This is the correspondent account in the BFC official reporting tool for Solvay to report the values. 

BFC FlowsThis indicates the type of movement performed in SAP and how we will allocate this to the respective accounts in BFC tool. Example: we can have flow for acquision, retirement, open values, closing values, etc. 
Annual ClosingEach end of year, the main BW master data (about the structure) which are not time-dependent need to be frozen = no more loading from ECC or flat file on these main master data. To avoid the impact of the new evolution scheduled for next year on the yearly closing a freeze is applied to block the loading to allow the yearly closing period with the same scope done for the year and not with inputs for next year, for some master data, the loading are freeze in the middle of December until end of January. So when there is a new organization, historical data is restated in BW (not in SAP and BFC).

4.2 Process Detail 

4.2.1.  Report/Process Definition 

DomainFinance
ApplicationBW reports under CX - CAPEX Analysis
ProviderMVFICX01

The CAPEX Application was built for different reasons but the main reason it was because exist some issues with the Project Costs solution and the CAPEX solution allow the users to justify and correct sometimes the figures that we have for the investment projects making a link on what we have in Project Cost, in FI and in BFC data. The Project Costs application we don't have any link to the BFC data so this CAPEX application facilitate this reconcilation between BFC CAPEX vs BW PeC and Cash data. 

In this section we will approach:

Source of Data 

Integration in a single reporting tool of 3 kinds of data to be compared, in Rhodia (WP1) and Solvay Legacy (PF1) area:

  • BFC CAPEX data, uploaded and available in BW;
  • SAP FI CAPEX data, which are a view of BFC CAPEX data, but detailed on several axes also shared with PeC & Cash solution (Asset, WBSE…);
  • Existing PeC and Cash data (SAP PM, PS and FI), but enhanced to new axes also shared with BFC/FI CAPEX data (PRS Company code, BFC account…)   


SAP BW High Level View 


The information in BW is coming from the Working Capital scope and PS scope where in here we use the cubes information to fill the Multiprovider with the respective cubes related with the CAPEX information. 

CAPEX Structure 

CAPEX analysis in BW.xlsx ask Pierre 

StructureData information
PeCA20*** and A21*** postings with BFC Flow F20, F23 and F53 (Acquisition)
FA SupplierL40800 YtD and Monthly variation (= F99 closing value - RS100 opening value)
Lease DetbsL16810/L56010 YtD and Monthly variation (= F99 - RS100)

For reporting convenience:

  • YtD and Monthly January key figures are the same;
  • FA Supplier and Lease debts key figures are re signed (* -1).


Calculation for CAPEX:
CAPEX = PeC + FA Supplier + Lease debts


IFRS16 Solution


5.0 Non-functional Descriptions 

5.1 Usability

5.2 Regulatory Compliance

5.3 Security

5.4 Performance

5.5 Reliability

5.6 Scalability

5.7 Compatibility

5.8 Availability

5.9 Refresh of the Data

BFC data Loads:

The loads to BW it's once per day during the closing time (D+3 until D+20).