Objective and Scope

1.1. Objective of this Operation

This document describes the Finance Operations process in order to perform daily and monthly activities as well as successfully execute the necessary steps during month end closing for company Solvay Poland Sp.z.o.o . in SAP WP1 and describes the roles and responsibilities of each actor in this process

1.2. Scope

Finance Operations Team is responsible for handling balance sheet reconciliations, postings, payroll reports and accruals, recurring entries, internal controls, month end closing activities, and any additional activities as requested by the Controller and Company Accounting Manager via e-mail or Helix ticketing system. 

The operating procedure describes general processes used in Finance Operations as well as country specific activities defined for Solvay Poland, company code 6268, maintained in SAP WP1 system.

2. Definitions

See Finance Glossary:

3. Tasks description

3.1. Closing Day -5

3.1.1. Only quarter months

Revenue recognition (IAS 18). 

https://docs.google.com/spreadsheets/d/1eFLe6jAm73XU0AqENaEwNb9rc9-Ro_pO/edit#gid=562817635

T-code ZWFA88A variant 6268_POLAND.

Threshold is in local currency, which is PLN, but the corporate threshold is 250 000 EUR. This is why google exchange conversion is necessary every quarter to update the threshold before executing the report. Use google rate (just put in google “250000 eur to pln”).

Report needs to be sent out to Tomasz Borowski for review and approval. Send the report on Day-5, after that run the report every day but send only if there is a tick on the left side of the report. If everything is ok then send the report also on Day1. Actual posting is done after all invoices are issued and sales period closed (customer period in OB52) issued and sales period closed (customer period in OB52). 

3.2. Closing Day -4

3.2.1. Only quarter months

Revenue recognition (IAS 18). 

T-code ZWFA88A variant 6268_POLAND. See details in D-5.

3.3. Closing Day -3

3.3.1. Only quarter months

Revenue recognition (IAS 18). 

T-code ZWFA88A variant 6268_POLAND. See details in D-5.

3.3.2. Environment recurring entry check

1. Automatic job in FCC:

2. Go to FBL3N and check accounts 47900100, 40150310, 15940001 if postings have been done.

3.3.3. Payroll postings

• Payroll files are sent by e-mail by Agnieszka Jastak:

• All files should be saved in Gdrive here. BNP 002 account is used for salary payments only

• There are 2 things that are booked from original email:

  • Word file: Zestawienie do przelewow
  • Excel with 4 tabs: Salary deduction 202202

• Copy the file 6268 Salary posting file MM.YYYY from previous month in the current month folder

• Use the file "Zestawienie do przelewow" to enter the amounts in 6268 Salary posting file MM.YYYY

• First line is the total amount from the Salary account BNP 002. Check if it matches with total from Word document

• Post the file

• Clear account BNP 002 (51000880)

• File: 'Salary deduction YYYYMM"

There are 4 tabs on this file and for all must be done posting. There is an example of posting on every sheet in Jan 2020. Use it for reference. CHECK THE AMOUNTS and adjust accordingly.

• Tab: Lunch

• Tab "Deduction - Other"

• Tab - Deductions for "Benefits"

Use posting file 6268 Sports posting file MM.YYYY

• PPK pension fund

Use the file from the previous month “PPK posting MM.YYYY”. Update the data in PPK posting file based on the information from “Salary deduction YYYYMM”, tab PPK:

1.) Employee contributions (1st table) - write in posting file only the totals

2.) Employer contribution (2nd table) - copy in posting file amounts per employee and cost centers per employee. 

3.) Additional Employee contribution (3rd table) - write in posting file only the totals

• Clear the salary account 42900100. 

Account 42900100 should be 0 after all postings are done, if it is not, investigate what is the reason. 

To clear, use T-code F-03. 

• PPK payment around 7th day of the month

Around the 7th day of the month, there is a payment for PPK (both employee and employer contributions) from the BNP 002  account (account 50060880 in SAP Wp1). 

Use the file 6268 PPK posting file bank MM.YYYY to create the posting. 

3.4. Closing Day -2

3.4.1. Only quarter months

Revenue recognition (IAS 18). 

T-code ZWFA88A variant 6268_POLAND. See details in D-5.

3.5. Closing Day -1

3.5.1. Only quarter months

Revenue recognition (IAS 18). 

T-code ZWFA88A variant 6268_POLAND. See details in D-5.

MAC 3.5.2. BW - Unassigned items in Working Capital

• Need to check if there are no unassigned items in WC report. Open a new Excel file. Go to file - Analysis and select Open Workbook. After that choose Select Open workbook from the SAP NetWeaver platform.

• Next press OK, click on Folders and choose WC RCS BFC interface (Core Workbook)

• Enter the Calendar Day (last day of the closing month) and Company code.

• When all data is extracted, go to sheet WC

• Check postings for which the Profit Center is missing. It needs to be added. 

1. BFC Activity 1 - receivable #
2. BFC Activity 2 - payable, inventory #

• Right click on the amount with the missing business - Go To - BW working capital. 
• Then it is possible to see the postings and lines for which the profit center is missing, thus, it will not go to the Business in BFC.
• Need to find the correct PC or IECRA. Example:

• Choose T-code FBL5N (Customer) or FBL1N (Vendor). Choose some period (several months) with all items, find some invoice where PC or CC is mentioned and the same should be used for current or if you can not find - ask Tomasz Borowski to advise the correct profit center.
  • Profit center for vendor
  • IECRA for customer
• T-code - ZWFAI052 - to see all profit centers for company (to check which profit center correspond to cost center and IECRA)
• To change them in the system, complete manually in t-code ZWFA111 or fill in the correct sheet in the file CA - BW Unassigned items in X drive, Change PC folder. Save that sheet in CSV format and upload in WP1 using t-code ZWFA111.

When it is corrected, the report updates in several hours in excel. Check this report also on Day 2 to avoid new unassigned items. Correct if needed.

3.5.3. Accounts clearing

Details

Go to Monthly activities - Clearing

3.6. Closing Day 1

3.6.1. Only quarter months

Revenue recognition (IAS 18). 

T-code ZWFA88A variant 6268_POLAND. See details in D-5.

On Day1 send the report to Tomasz secondly.

3.6.2. AP AND AR DAY 1

T-code: F.05

SAVE ALL DATA in GDRIVE for reconciliation purposes: 

https://drive.google.com/drive/folders/1VpQJIifixv_CfxtiouGcuzOb8DZUtqq0 

AP Day1

Choose variant:

Update the information:

Save to Excel (GDrive), for Day 1 you can just take screenshots and save them in a Word file.

Then press “Postings”:

Take screenshots and add them to the saved excel (Google Sheets)

AR Day 1

Empty because there were no bookings in foreign currency:

Process batch using t-code SM35. You can find your batch by your username in the “Created by” field. Select your batch, press “Process” and select Process/foreground and Dympro standard save, and press “Process” again.

Check “Display errors only” and “Process”

3.6.3. Bank reconciliation

Deadlines - for BNP until 18:00. For CICC until next day 12:00pm

Below are currently active bank accounts for 6268:

Bank reconciliation file is located in Gdrive Banks. File 6268 MMYYY_BNP_CICC Bank reconciliation:

BNP  

1. For BNP, check if all postings are done using T-code FBL3N, a variant for 6268_BNP. If there are still open items on the bank subaccounts, post them from the bank statements and clear all accounts. 
2. Take screenshots of the balance on every bank account on the last day of the month and copy the reconciliation file. Write the amount in the table. And download and save the statements for the whole month for each account.
3. Check the balance of every bank account in SAP, using T-code FS10N. Take the screenshot and copy in the reconciliation file, write the amount in the table (SAP balance at Month End (Doc. Currency).
4. If the amount in local currency differs in EUR and USD bank accounts, perform bank account revaluation. Use the tab ”BNP REVAL” from Bank reconciliation file;

The rate is taken from T-code ZRATE in SAP

Use T-code F-05 to post the revaluation

The following accounts are used: 

Reverse in the next period except if the balance is 0

CICC

1. Take screenshots of the balance on every bank account on the last day of the month and copy to reconciliation file. Write the amount in the table. 

2. Check the balance of every bank account in SAP, using T-code FS10N. Take the screenshot and copy in the reconciliation file, write the amount in table (SAP balance at Month End (Doc. Currency).

3. If the amount in local currency differs in EUR and USD bank accounts, perform bank account revaluation. Use the tab ”CICC REVAL” from Bank reconciliation file;

1. 1. The rate is taken from T-code ZRATE in SAP
   2. Use T-code F-05 to post the revaluation
   3. The following accounts are used: 
   4. 

Statements for CICC are here:

https://flpnwc-pk1x6uaumo.dispatcher.hana.ondemand.com/sites/solia-cicc#MyOnlineportal-Display

Upload the Bank reconciliation file in SAP, ARA until Day5:

3.6.4. Customer and vendor period closed

Until 18:00 Local Time go to OB52, enter Company Code  and close customers/D (sales entries are done in all ERPs) and vendors/K. Variant:6268

3.7. Closing Day 2

3.7.1. AP AR Other – Day 2 

T-code: F.05

Variants

List - Save - File - In Google Drive

SAVE ALL DATA in GDRIVE for reconciliation purposes: 

https://drive.google.com/drive/folders/1VpQJIifixv_CfxtiouGcuzOb8DZUtqq0

AP – Day 2

Accounts: 40100109 and 40150109

Save in the Google drive

Then press Postings:

AR – Day 2

Accounts: 41100109 and 41150109

Then press Postings:

SM35:

Final view: 

MAC 3.7.2. BW - Unassigned items in Working Capital

Just check one more time WC report if there are no new unassigned items in the report. See details in 5.1. BW - Unassigned items in Working Capital

3.7.3. Accounts clearing

Details

Go to Monthly activities - Clearing

3.7.4. Check if Cost centers are cleared

Use t-code S_ALR_87013635 to check that everything is allocated (check just the current period).

All amounts in "Actual in ObjCur" needs to be blank, except Statistics fields

Just information - below are all cycles for 6268:

3.7.5. Period closed OB52

Around 18:00 Local Time go to OB52 and close all the periods. Ask a colleague from the MAC team if everything is done and you can close.

3.8. Closing Day 3

MAC 3.8.1. BW - Prepare Working Capital report for upload to BFC

• Open a new Excel file. Go to file - Analysis and select Open Workbook. After that choose Select Open workbook from the SAP NetWeaver platform. See how to create report in here
• When all data is extracted, go to sheet WC and check if PC or IECRA is not missing. 

BFC Activity 1 - receivable #

BFC Activity 2 - payable, inventory #

• If something is missing, need to correct (in SAP and this time also add in Excel because you need to upload WC report to BFC). If everything is ok prepare WC report for BFC:
  • Copy information from all tabs starting from L6725 Pay. & Inv. in new excel workbook

• • Correct these lines to SICGU016
    

• • Correct this line to CBCGU182

• • Save file in CSV format (see screenshots below)
  • Save the report in Gdrive BFC folder as csv file:

• • When the WC report is ready, send it to Sofia Soares and Ines Pais.

3.8.2. BW report upload in BFC

The reports have to be uploaded in BFC as csv file with add date (see screenshot)

3.8.3. BFC Extract and Load

Check if periods are closed using t-code OB52

If there was no approval from Tomasz that we can start BFC upload, we need to ask.

Actual 1 - quarterly 

Run all Actual 1 transactions:

• Actual1 ZWFA67A: use variant

• Actual1 ZZF_BFC_COLLECTIVE: Use variant

• Actual1 - ZZF_BFC_CONVERSION

• Actual1- ZZF_BFC_TRANSFER

Use variant *6268*

Change the file location

Actual 2 - monthly and quarterly

Go to FCC and run 5 jobs, use variant 6268 for each of them. Please note, there are separate variants for monthly and quarterly Actual2 reports

• ZWFA67A
• ZWFA113
• ZWFAT038A
• ZZF_BFC_COLLECTIVE
• ZZF_BFC_CONVERSION (FYI B1- family Actual1)

The last one ZZF_BFC_TRANSFER has to be requested by Robot instead of transaction.

However, before making the request it is necessary to upload BW and IFRS16 reports (check in emails from Vanda Costa about BOIC import and email from Anna Grande about IFRS16 upload) in BFC to avoid blocking controls that are solved by these reports. When it is done, go to https://docs.google.com/forms/d/e/1FAIpQLScdBdxOoM388I4bEg3chumCf7mpAAPa7jGOnWKXKiboWmzyzw/viewform?c=0&w=1

And fill out the form as indicated below. BFC package should be closed while uploading.

Full execution is for the first time load, SAP vs BFC is used when changes are made.

When the robot confirms execution of transfer, open a package and start job with the blocking controls.

If robot is not working, do the manual upload (run Actual 2 t-codes and upload file to BFC)

Actual 3 - September and December closing

Actual 3 guidlines: https://wiki.solvay.com/pages/releaseview.action?spaceKey=CostOP&title=Actual3+Guidelines

Resposibility of Accounting platform:

Create a file and fill these tabs according to instructions:

• L6864 –Net Financial Indebtedness
• L7110 – Transactions with Related Parties (Headings X5040, X5040, X5060)

and then send a file to a colleague (Ieva Driksna) to check and fill in other parts.

3.8.4. Solving blocking controls

1. When the list of blocking controls is available, take a screenshot and copy it to blocking controls file for the current year: https://drive.google.com/drive/folders/1_5s0vuH0cGxs2ZDz--M78o2IiFGfsvEf

2. Compare with the previous months to check if any of them are repeated. If so, follow the previous path to solve the control.

3. If the control is new, check by description which items don’t match and by how much, then go to indicated headings and see what needs to be corrected.

4. For each step take a snip and add to the file so that there would be a guide for the next months.

5. If there are tax controls (quarter close), let Tomasz (CAM) know when you are done with all the others so that he could correct those. 

3.9. Closing Day 4

3.9.1. ARA bank reconciliation

Attach reconciliation file and relevant statements to accounts and certify.

For sub accounts you can use Bulk certify marking these accounts.

3.9.2. Manual entries over threshold

1. Run t-code:S_ALR_87012291. Use variant for 6268
2. 
3. Go to: List-export-spreadsheet and save as excel file
4. You have to delete doc. types - KG (Vendor credit memo); KR (Vendor invoice); DR (Customer invoice) - posted by AP and AR
5. You have to delete lines which are generated automatically by some users: OPSCHEDULE, OPSCHEDULEBR, OPSCHEDULEUK, ADMSAP, RFC_PF1_WP1, PT300200. Use t-code SU01D to check original user name Location of the file in Gdrive: Manual entries over threshold
6. Prepare a new tab with a list of postings over threshold 250 k EUR. Use Google rate to convert from EUR to PLN. 
7. 

8. Copy these values to the tab “List over threshold”.

9. Then in a separate tab you need to reflect backup for posting, Go to t-code FB03 and check each doc. No. Copy justification from attachment. Or FD ticket to a new tab named after the doc, no,

10. Once the report is done, you need to upload it : https://aodocs.altirnao.com/?locale=en_US&aodocs-domain=solvay.com#Menu_listDoc/LibraryId_Qmva9BJ6ZGOgYNTZxA/ViewId_Qn0n3RkuZdROtmM2Qi/ViewParams_%257B%2522searchInSubFolders%2522:false,%2522searchInAttachments%2522:true%257D

3.9.3. Internal control - SAP vs BFC

Add the report in Aodoc here

4. Monthly activities

4.1. BS Reconciliations

G- drive: Reconciliation ARA

Upload the reconciliation file (exact tab) in sap, ARA per account:

Reconciliation files and backups are here:

https://drive.google.com/drive/folders/1_6se2QwXJdTA8atxmQLW_yxPLr0GGj_X

Details on how to update the BS rec file can be found in the Guide tab.

4.2. Clearing

Use T-code F-03 to clear the accounts. Clearing date current date or last date of the previous month if clearing done during closing.

T-code FBL3N, check account 40000000-59999999 to see if there are items that can be cleared (Balance 0 or by assignment balance is 0). Variant 6268 Clearing.

Dynamic selection

F-03. Choose the indicated items by number, or, select all and unselect all other lines so that balance is zero. Then save.

NOTE: Don’t clear account 56030120 and all the other IFRS16 and HR accounts

Charge off Difference

Example account 58999900

Post to 40, GL 98622003:

4.3. Bank postings

Bank for 6268 should be checked on a daily basis. Currently there is only BNP bank that should be checked, 6 bank accounts as indicated below:

BNP Login page Identification details are personal.

To check the pending unposted/uncleared items in SAP, go to FBL3N and use variant: 6268_BNP-C

Open Items as of Today. 

You will see all BNP subaccounts (incoming and outgoing transfers) based on above SAP bank accounts that are not cleared. 

4.3.1. Example account 50060879 (outgoing payment for bank account 51000879)

The postings with type “ZP” are done by the Lisbon Purchasing team. They will match with outgoing vendor payments from the BNP bank account on the respective date. If everything matches, type “SK” and “ZP” should be cleared against each other. In case it doesn’t match, you need to check with the payments team. 

In case, there are additional outgoing transactions that don’t match with ZP postings, we need to perform the postings. The transactions can be related to Employees, Payments to government (CIT, PIT, VAT), payments to vendors or others. The date, beneficiary and reason should be checked on the bank statement. 

Data in posting file: 

Company code: 6268

Transaction code: FB01

Doc type: ZP (vendor) or DZ (customer) for bank postings

Doc date: Date of transaction on the bank statement

Posting date: Date of transaction on the bank statement

Posting period: Month of transaction on the bank statement

Currency: PLN, EUR or USD depending on the bank account currency

Header Text: Identify the account, e.g. BNP 006 DD/MM/YYYY (date of transaction)

Examples of posting files can be found here in respective year folder.

4.3.2. Example account 50060885:

There is a Split payment procedure for 6268. The bank account 51000885 is used for split payments and usually matches with 51000879.

Update the posting file:

4.3.3 Example account 50060879

Open items as of 11.12.2020

Check BNP statement:

Update the posting file based on information given in the statement:

Always when posting to vendor (also employee) outgoing payments use Posting Key 25 and put Payment block B.

In case of doubts of the correct account to be used, please check previous postings or check the Bank reconciliation Coding cheat sheet (sheet Coding on the file). If no account is found, ask Kinga Kasprzycka or Tomasz Borowski.

Check Vendor and employee number (account) in T-code FBL1N. 

Clear the GL accounts after postings are done. 

NOTE: 50060880 - salary account (cleared after the salary posting)

4.4. Standard journal entry (posting file)

1. Ticket received in Freshdesk. Put yourself as an agent; see if there are any additional comments from the requester. 
2. Open file, sheet Template, check the dates, copy ticket number in the case field, check if PnL accounts (9xxx) have CC or WBS, click Run Controls or press F9 for the older version of the file. 
3. Open sheet Posting file, check if ticket number is indicated in Reference, if all is fine, Save As as Excel Workbook.
4. Upload file in ZZF_POSTING_FILE, change date format to dots.
5. 
6. Execute
7. If posting is a reversal, change S8  to SB. Other errors, click Enter. For flow types F50, F60, F61 - there will always be a doc. type error. Copy posting file to a new Excel and change the doc. type to Z4.
8. Then close Freshdesk ticket. In the reply indicate the document number of the posted Journal Entry, indicate if any adjustments were made that could be relevant in case anyone checks the ticket and the posting. Fill out the properties field as indicated below, taking into account that it is not possible to close the ticket if fields RTR-Subprocess, RTR Category, Nr of Posting Files, as well as fields Ticket without evidences and Ticket with errors sent to SC are not filled.

4.5. Recurring entries

4.5.1. Check recurring entry documents - transaction F.15

And press “execute”

4.5.2. Create new recurring entries FBD1

4.5.3. Change recurring entries FBD2

4.5.4. Run recurring entries F.14

4.5.5. Process batch SM35

End of document.