Table of contents 

1. Objective and Scope 

   The purpose of this document is to have a detailed procedure on how to answer to the Audit questions for the External audit.

   This operating procedure (OP) applies to all requests related to the External Audit.

1. Reference Documents

   • Google sheet file to sort & filter the Customer Services contacts (Team Leaders or managers) per Legal Entity & Global Business Unit - Internal control CS mapping Test contacts list.xlsx
   • AODOCS training: https://aodocs.altirnao.com/?locale=en_US&aodocs-domain=solvay.com#Menu_libraryHome/LibraryId_QJF6elP0HIjwm18kBW
   • AODOCS questions: https://aodocs.altirnao.com/?locale=en_US&aodocs-domain=solvay.com#Menu_listDoc/LibraryId_QJF6elP0HIjwm18kBW/ViewId_QP4Cjyv31EEH1NFMv9/Filter_%257B%2522QJiCgjOtdAjlHJplcJ%2522:%2522QJJ1pdJ000000mMrF2%2522%257D

   
   

   
   

2. Definitions

• CCS/CSR: Customer Care Representative/Customer Service Representative = Commercial Assistant
• GBU: Global Business Unit
• CCT AR: Customer Credit & Trade Accounts Receivable
• OP: Operating procedure
• SBS: In the current document, “Solvay Business Services” will be replaced by its abbreviation “SBS”.
• CMR: Convention relative au contrat de transport international de Marchandises par route
  
  

Audit questions

1.1   Extraction of customer balances by company

In case of this question, the objective is to request a client balance in a specific date. See an example request from Deloitte:

Despite transaction S_ALR_87012172 is mentioned on the request, we were contacted to use S_ALR_87012173 as it show the line items, therefore it is described below both transactions:

Open S_ALR_87012172

Fill the following fields:

• Company code (use the information Deloitte has provided, normally an excel file with the scope)
• Fiscal Year
• Output control:

- Normal Balances

- Special G/L Balances

Then we should divide the extraction bewteen interco and third party customers. Therefore click on  and choose “Trading Partner” field, go to “Select Single Values” and choose “Not Equal to “ by clicking twice under the field as below:

This will show the balance for the interco customers.

To show the balance for the third party customers choose equal to “Single value” and leave it empty.

Execute

The following result will be retrieved:

Export it to excel file and add it to the auditing tool.

Run in background:

In order to run this procedure for several companies without waiting hours or avoiding error of time, we can run it in background as below:

Choose the variants below:

Choose Program and “Execute in Background”

Insert your printer and click on Properties as below:

Click twice in “Time of printing” and choose “Send to SAP Spooler Only for now and Execute 

Then choose Immediate and Save

Go to SM37 transaction

When the job is finished, click twice on

After click above

Warning: In order to print all the pages click on  and insert 999999 as below:

To save the file follow the steps below:

Result:

Export it to excel file and add it to the auditing tool.

Transaction S_ALR_87012173

Insert the company code with “Open items” with the date mentioned by the Audit company and run  . The following result is showed:

Export it to excel file and add it to the auditing tool.

1.2   Roll forward per Company

In case of the question below, the objective is to extract the trade receivables between one specific date (in this case 01.10.2016 and 31.12.2016 and between 30.09.2016 and 31.12.2016).

Open FBL5N transaction. See example below:

Insert the following fields as below:

• Company code: we can insert all companies codes requested;
• All items: from 31.10 to 31.12 and then to repeat between 30.09 and 31.12;
• Tick on “Normal items” and “Special G/L transactions”

Before saving the file in your desktop, make sure you add the following fields: “Company code”, “G/L account”, “Posting date” and “Tax code” by clicking on button  as below:

Result:

Export it to excel file and add it to the auditing tool.

1.3   TRADE receivable - please provide us with computation of end of year discounts

In case of this question, the objective is to extract the rebates figures. 

Warning: If the request includes an amount a threshold, Deloitte auditors will filter it

PF1 system

Use transaction Z1V_Rebate_list

Insert company code per company code provided by Auditors in “Sales Organization” field, choose “Detail” and insert the dates in “Valid from” until “Valid to” (in this case 01.01.2015 to 31.12.2015).

Warning: This has to be done per company code

See result below:

Export it to excel file and add it to the auditing tool.

Note: If no result appears that means that for that company there is nothing

WP1 system

 Use transaction ZWOC01

Insert the company code in “Company code” field and the dates in the “Validity period”.

Export it to excel file and add it to the auditing tool.

1.4   Sales cut-off

The objective of this question is in IFRS perimeter for turnover recognition. According to the used incoterm in the sales, the turnover is recognized at the plant departure or at the delivery place.

The main two questions we usually receive by Audit company are the following:

The main rule to be applied is:

• For incoterm at arrival, the CSR should request the signed delivery note or CMR to the Customers as Delivery Proof

• For incoterm at Departure, Jean Baptiste Cercueil is the defined test contact and will spread the requests to the relevant site contact to have the departure proof

The rules for document proofs are the following:

• Incoterm "D": Delivery note or transport documents signed by the customers at arrival
• Incoterm CIP: Delivery note or transport documents signed by the carrier at departure from the plant + internal documents SAP (i.e. print screens)
• Incoterm FCA: Delivery note or transport documents signed by the carrier  at departure from the plant + internal documents SAP (i.e. print screens)
• Incoterm CIF: Bill of Lading with date of Vessel departure either print screen of Transport Management System or forwarder
• Consignment Stocks: Customer consumption declaration sent to the Customer Service for invoicing a the end of agreed period + invoice of the consumption.
• Pipe consumption (as direct connection in bulk) : No delivery note in real. Only mail confirmation of the consumption with the GBU controller can be provided.

Remark: If Rail transport, Document of transport is a Train letter. Usually not signed

To get the proofs:

• Incoterm "D": contact the Customer Service concerned to obtain the document from the customer or from Logistic department of the plant to retrieve the scan in the Transport Management System.

=> List of CS Contacts

• all other Incoterms at departure : Contact the Logistic department of the plants concerned to obtain the document signed at departure

            => jean-baptiste.cercueil@solvay.com (as we don’t have the contacts of all Logistic departments, we should send an email to Logistic Process Expert)

US Freight conditions
COL : Collect. Le client paye le transport , mais Solvay organise le transport. Le prix de vente de l article n inclut pas le transport
CPU : Customer Pick up. Le client organise et paye le transport. Le prix de vente de l article n inclut pas le transport
PPD : Prepaid Solvay paye et organise le transport. Le prix de vente de l article inclut le transport
PPA Prepaid and add means the supplier of goods will prepay the freight and add the shipping cost to the product quote

Example of the documents it was requested in 2017:

https://drive.google.com/file/d/16eytZdMM6cD-s_9j0Q4fQ9icImi91v-Zyw8AaS_DAYM/view

1.4.1  Documents for External customers

For all documents to external customers, first thing to be checked is the incoterms on each billing. Normally the file provided by Deloitte already has the information. If not, we can see it in the order number in the “Billing document” tab.

Example:

Therefore, for all incoterms which are D (start by “D”), Customer service team should be contacted by AR team. We should use the contacts under the file below

https://docs.google.com/spreadsheets/d/11T-arAYasjj3UMhMPenJnB05V2OP1GkWAkHAPFoeM_M/edit

1. Open VA03 transaction with the billing document and check the business related:

1. Then check in the file “Internal control CS mapping Test contacts list” in company 0005 the CSR responsible for that business (in this case Catherine Keymeulen):

1. Send an email to CSR asking the document

For all the other incoterms we have to contact Logistic team (in this case Jean-Baptiste Cercueil who will deploy the question to the persons who has the document requested) requesting the delivery note signed by the transport company and the insurance document to see who has the responsibility when the goods leave the plan.

1.4.2  Triangular flow

In this case two possibilities can occur:

• There is the IV invoice mentioned in Deloitte’s file and we need to find out the F2 invoice document to external Customers which means that there is a first flow between two Solvay entities and then a second one with an external customer
• Replenishment orders between 2 Solvay legal companies (for WP1 we can identify it is a Replenishment whenever the delivery number starts by 28*)

1^st Case

Example:

Billing 96615316 with delivery 71165517

VF03

And click on Enter

Display document flow 

Click above the Standard Order for the same delivery

And click on 

Click again on the and you will find the information regarding the new delivery and shipment number:

Having this information, we should contact the Customer Service for incoterm D and Jean-Baptiste Cercueil for all the ones (at departure).

2nd Case

Regarding the Replenishment, we should go to VF03 with the IV invoice provided by Deloitte (in this case 96615421) and click on Enter:

Then click on 

You can see that it is mentioned Replenishment below.

Click above the , go to  and go the  to check the attachment. Download it and give this to Deloitte.

ADD the part when there isn’t an attachment

See below other examples of Auditors question:

"Can you please provide the detail of transaction z1f_incoterms_audit for company 306 (01.01.2015 vs 31.12.2015)? Basically I need to have the allocation between delivery notes and sales invoices/billing documents."

Use Transactions z1f_incoterms_audit in PF1 and ZWFA88A in WP1

Choose the following variants in PF1 and WP1 and adjust the posting date and company codes according Deloitte request:

PF1

WP1

Execute 

Export it to excel file and add it to the auditing tool.

Example of the file:

For the following questions below, please forward it to Customer Service Leaders or designated person in Customer Service team according to the file below: https://docs.google.com/a/solvay.com/spreadsheets/d/142bVdnTJqI9JDEtEXARjkS4CVBqjzSf-ity5UKqtM2g/edit?usp=sharing

1.5   Proof of payment

In case of this question, the Auditors would like to get the payment proof; therefore we should search the bank statement in SAP and provide them the printscreen.

In case we haven’t received yet the customer payment, they ask the delivery note. In this case, AR team should ask to relevant services the proof of the sending of the products, i.e. Transport document signed at departure or at arrival depending of the incoterm.

If goods are delivered and not paid, Customer service or Cash collection team could give extra information on payment issues (ie. claims, dispute, post-invoicing ongoing,etc.).

1.6   Invoices and Delivery notes not sequentially

The question above should be sent to the Customer Service Process Expert: Marie-Ange Carrier

The question above should be sent to the Logistics Process Expert: Jean-Baptiste Cercueil

1.7   Trade Receivables – Open items

In this question, the auditors want an extraction of the open items at X date for some companies (you should consult an official list with the companies).

Open FBL5N transaction with the following layout and assure that the field “Tax code” is inserted in the extraction:

Export it to excel file and add it to the auditing tool.

1.8   Collection deferral agreements with customers

This question should be transferred to Process Expert Credit Management

1.9   Accounts receivable impairment

This question should be transferred to Process Expert Credit Management

1.10     Ageing of accounts receivable

This question should be transferred to Process Expert Credit Management

1.11     Trade Receivables – Credit notes justification

The objective of this question is to justify all the credit notes and Credit notes to issue (rebates) higher than 200 K EUR (in this case).

Example below of Deloitte request:

For this question we need to search credit notes and credit notes to issue, therefore please follow the two steps mentioned below:

1. Run transaction FBL5N with the period requested by the Auditors, add the field  to the selection and add “H” (for credits).

See below:

Add as well the range for the amount (in case if there is a threshold):

For PF1 exclude from the result document types:

• DS
• DZ
• AB
• S1
• G*
• KC

In WP1 include only the following document types:

• RV
• DG
• DR

1. Run transaction FBL3N with the “Credit notes to issue” g/l account (41100500 for WP1 and 2351000000 for PF1) and add the range of amount greater or equal to 200K EUR as below:

Afterwards, with the result of these two transactions, follow the guidelines below:

• For croco invoices, contact RtR Interco team (sbs-deliveryww-rtr.bo.transv.interco@solvay.com). Having the answer please attach the email and credit note copy to the Deloitte’s question
• For sales credit notes, attach the copy of the credit note to the Deloitte question and send an email to the respective Customer Service asking more details
• For documents which we have released within “Post Invoicing” procedure, we should search the ticket number in Freshdesk with the instructions and add it to the Deloitte question as well the copy of the credit note
• For the documents open in “Credit notes to issue”, send an email to the user asking a justification

1.12     Sales variation

Below we can find two examples of questions we might receive form the auditors in which they would like to have more information regarding the variation in balances in trade receivables in specific customers from one year to other.

These questions should be forwarded to the “Company Accounting Director” (please check in the following link: 1 - LEGAL ENTITY CARD). 

1.13     Jets analysis

In this case AR team is informed that the auditors made a JETS selection for some companies and we would need to give them the info requested. See the example below in which we were informed by RtR team that we should provide some information:

https://drive.google.com/drive/folders/0B4zhZc6xLHAuT0lseWVMYTgyQjg

See below the two examples in which we had to provide the justification:

First example:

In the first case, we were asked to justify a provision done by AR team. The justification was attached in SAP business workplace. See below the steps to find the correct folder.

Go to the following button at the left side of the general screen whenever you access PF1 or WP1 systems:

Then choose the folder “Shared folders”:

Afterwards, access to the following folders:

Below our justification:

Second example:

In this request, we were asked to justify a posting executed by a user from other team inside OtC. In this case, AR team should send an email to user and ask him to send us the justification. See below the example of the email sent:

Afterwards, AR team should add the justification to the SAP Business workplace as requested by the Auditors.

1.14     Open items

Use FBL5N transaction

Insert the company code, the date requested by the Audit team and assure that “Normal items” and “Special G/L transactions” are selected. Run  . The following result is showed:

Add the field “Tax code” to the layout.

The answer should be inserted in the tool provided for this purpose.

2      Circularization

This chapter is related to the circularization letters in which we send for some customers, previously selected by Deloitte, the balance amount at a specific date and asking them to confirm or reject by answering directly to Deloitte.

Warning: Deloitte should give AR team the scope with the companies codes

The procedure is the following:

1. AR team extracts the customer balances for the companies requested by Deloitte
2. Deloitte give to AR the list with the customers sample
3. AR team extract the customer balances, email address and VAT code and send back to Deloitte contact (for some customers the balances should be sent by post – legal requirements)
4. Deloitte will send the emails/letters to the customers with the balances
5. Customer will confirm/reject the balance and send the answer to Deloitte or to AR team directly
6. Deloitte will create a list with question and ask AR team to justify whenever the balance we have sent is different from the customer. In this case, AR should analyze the possible reason of discrepancy and justify it to Deloitte

2.1   Extract Customer Balances

The first thing to do is to extract the customer balances for the companies shared by Deloitte in the current year. Deloitte will use this extraction then to select the sample of customers to be contacted.

Open S_ALR_87012172

Fill the following fields:

• Company code (use the information Deloitte has provided, normally an excel file with the scope)
• Fiscal Year
• Reporting Periods: 1 to the month you want to extract (in this case Deloitte has request for some companies 31.10 and others 31.12)
• Output control:

- Normal Balances

 - Special G/L Balance

Run in background

As the extraction includes several companies, it is better to run the job in background.

Enter in the transaction and insert the selections you would like to extract. Then follow the instructions below:

Choose Program and “Execute in Background”

Insert your printer and click on Properties as below:

Click twice in “Time of printing” and choose “Send to SAP Spooler Only for now and Execute 

Then choose Immediate and Save 

Go to SM37 transaction

When the job is finished, click twice on 

After click above 

Warning: In order to print all the pages click on  and insert 999999 as below:

Result:

Afterwards, send this extraction to Deloitte who will then send you the customers selection for which they would like to send the circularization emails/letters. See example below (October 2015):

In this case includes 184 customers for which they need the email, VAT and Balance at 31.10.2015.

1º step is to retrieve VAT and Email address

• The sample has customers from PF1 and WP1 including customer assigned to Solvay SA/Solvay SFA and customers not assigned, so the first thing to do was to convert RCS numbers to PRS ones. Use transaction SE16N with table KNA1 in PI1 system. Inside we should deselect all the fields with button  and select only these two:

Inside “RCS customer code” field, we should introduce the numbers and Execute

Then we are able to retrieve PRS numbers and add it to the sample table

• Having all PRS numbers we should go to transaction SE16N and choose table KNA1 for the NIF e KNB1 for the email. See below:

VAT – Table KNA1

Deselect all entries using button  and select only “Customer” and “VAT Reg. No.”. Then insert all “PRS” numbers in tab “Customer”

Execute

For some customers it is not mandatory to have NIF, so the field might be blank for some customers.

EMAIL – Table KNB1

Deselect all entries using button  and select only “Customer”, “Company code” and “Clrk’s Internet” as in the image below. Then insert all “PRS” numbers in tab “Customer”.

Despite the total number to analyse is 109, in this transaction it only appear 99. For these ones, it should be analysed.

2º step is to extract the Balance open items at 31.10.2015 (in this case)

Use transaction F.27 there is a variant created for this purpose:

In this transaction we can massively insert several customers belonging to the same company code and all the extractions will be dowloaded directly in Drive C/TEMP

Enter in F.27 transaction, choose the variant mentioned above and insert the fields as below:

Insert the company code and all the customers which balance we need to take for that company code. Variant to be chosen is 

Execute 

All the pdfs will be automatically extracted to Drive C/TEMP

2.2   No replies

In case Deloitte don’t receive answers from some customers, they contact AR team asking to contact the customers to send the answer. Thus, we should ask Cash Collections team to contact the customers.

6.  Appendix

End of document.