Provision Control (ATFA490 - SIGAATF)

The Provision Control routine registers the new provision control process and project execution to meet the accounting rule ICPC 01 - Concession Contracts according to Statute 11,638 from December 2007 on the process of convergence between Brazilian and international accounting rules.

It is possible to query, add, edit, delete, copy, update, account transactions, [revert, review, lock/unlock, execute, make execution effective, and reverse execution.

Requirements

• The MV_ATFPROV parameter must be set to 365.
• A Chart of Accounts must be registered.
• Registration of Financial Indexes of the Calculated type.
• Update of the Indexes registered using the financial indexes.
• Addition of APV Index and Rate.
• Register the default entries as follows:

Procedures

Adding a provision control:

1. Click Add.
2. On the Provision tab:
3. Fill out the fields below accordingly:

• Code: the code referring to the provision control. The value of this field is unique.
• Review: The review of provision transaction.  Field automatically filled out.
• Description: Description of the provision control.
• Start Date: The start date of the provision control.
• Calculation Type: This field defines the calculation type to be applied to the provision control.

• Index: indicate the code of the index to be applied to the provision control calculations. [F3] query available (FNI).

• APV Index: Indicate the code of the APV index to be applied to the provision control. [F3] query available (FIT).

• APV Rate: Rate of the APV index to be applied to the provision control. This field is automatically filled out with the last rate registered on a date equal to or before the start date of the provision control.

• Account: Ledger account used for accounting the provision control calculations. [F3] query available (CT1).

• Cost Center: The cost Center used for accounting for the provision control calculations. [F3] query available (CTT).

• Item: the Accounting Item used for accounting for the provision control calculations. [F3] query available (CTD).
• Value Class: Value Class used for accounting the provision control calculations. [F3] query available (CTH).
• Status: The Status field cannot be edited and its value upon adding is 0 (generated).
• Locked: This field cannot be edited while adding. It indicates whether the register of provision control is available or locked for use and whether its starting value is No.
• Gross Total: Calculated field which indicates the total sum of the items of the provision spreadsheet
• Present Total: Calculated field which indicates the total sum of the items of the present value spreadsheet
• Proj. St. Dt: The start date of the project. This field determines the reference date for the distribution calculation.
• Recognit Dt.: Date of recognition of the provision. This field calculates the number of days for the APV determining the discount rate for provision and the beginning of the provision transactions.

4. In the Provision Items tab:

• Item: Code of the item referring to the provision control. The value of this field is filled out automatically, starting with 0001.
• End Date: The date on which the provision of this item is to be ended. You must indicate the last day of the month/year to which this item of the provision control refers.
• Gross Value: Gross value of the execution provision of the provision control item.
• Present Val.: Present value of the execution provision of the provision control item. This field is calculated based on the Gross Value brought to the present value by the APV rate indicated in the register header.

         The present value is calculated following the steps below:

• The APV rate is converted to a daily basis by the formula:

         Daily Rate = (1+(APV Rate /100))^(1/Number of days of the Rate)  

The number of days of the rate depends on the periodicity indicated in the Financial Indexes register (routine FINA017), as follows:

• Annual: 360 days (Business Year)
• Half-yearly: 180 days
• Quarterly: 90 days
• Monthly: 30 days
• The Present Value of the Provision Item is calculated by the formula:
• Present Value = Gross Value / (Daily Rate ^ Number of Days of Provision)
• The number of days of provision is the number of months between the start of the provision and the end date of the provision item times 30.5.

5. Check the information and confirm.

Editing the provision control register:

1. Select the desired provision control
2. Click Edit.
3. Make the necessary changes and confirm them.