Guideline on Common Financial Management Business Process 4.1 - Manage Other Capital Assets
Long description for image: Figure 9: Process Asset Disposal (Subprocess 4.1.7) – Level 3 Process Flow
The figure is a process flow diagram comprising activities, connectors, inputs, outputs, gateways and decisions.
This diagram depicts the Level 3 process flow for Subprocess 4.1.7 – Process Asset Disposal. The process flow begins with connectors from the following three subprocesses:
- Subprocess 4.1.4 – Conduct Periodic Analysis of Assets Under Construction;
- Subprocess 4.1.5 – Conduct Periodic Physical Asset Count; and
- Subprocess 4.1.6 – Conduct Periodic Asset Assessment.
The output from the connectors for these three subprocesses is titled “Disposal information,” which flows to Activity 4.1.7.1 – Obtain Authorization for Disposal. Activity 4.1.7.1 – Obtain Authorization for Disposal has input titled “Ad hoc requirement.”
The flow continues to a decision titled “Authorization obtained?” The NO flow for “Authorization obtained?” continues to connectors for the following six subprocesses:
- Subprocess 4.1.1 – Create or Update Asset Record;
- Subprocess 4.1.2 – Calculate Monthly Amortization;
- Subprocess 4.1.3 – Undertake Ongoing Asset Repairs and Maintenance, which is identified as outside the scope of the Manage Other Capital Assets business process;
- Subprocess 4.1.4 – Conduct Periodic Analysis of Assets Under Construction;
- Subprocess 4.1.5 – Conduct Periodic Physical Asset Count; and
- Subprocess 4.1.6 – Conduct Periodic Asset Assessment.
One or more of the six connectors can be selected.
The YES flow for “Authorization obtained?” continues to Activity 4.1.7.2 – Change Asset Status to “Not in Service.” The flow advances to a decision titled “Physical asset disposal required?” The YES flow for “Physical asset disposal required? continues to Activity 4.1.7.3 – Physically Dispose of Asset, which is identified as outside the scope of the Manage Other Capital Assets business process. Activity 4.1.7.3 – Physically Dispose of Asset and the NO flow for “Physical asset disposal required?” result in the output titled “Disposal information.”
The flow advances to two activities that are completed concurrently. The first is Activity 4.1.7.4 – Record Disposal in Asset Record. The second is Activity 4.1.7.5 – Record Journal Entry, which flows to a connector for Business Process 8.2 – Manage Financial Close.
Both Activity 4.1.7.4 – Record Disposal in Asset Record and Activity 4.1.7.5 – Record Journal Entry continue to a decision titled “Collection of proceeds from external party required?” The NO flow for “Collection of proceeds from external party required?” ends Subprocess 4.1.7 – Process Asset Disposal. The YES flow for “Collection of proceeds from external party required?” results in the output titled “Supporting information and documentation,” which flows to Business Process 2.1 – Manage Revenue, Receivables and Receipts.
Business Process 4.1 – Manage Other Capital Assets is now complete.