9.4 - Manage fixed-asset project accounting
PCF ID: 10731 | Elements: 12 | Metrics Available: Y | Benchmarkable: 3
Definition
Managing accounts for large funds-invested projects. Manage and account for fixed assets projects (capital projects), which required significant capital investments over many years.
Overview
This process group covers manage fixed-asset project accounting within the broader context of Manage Financial Resources.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 9.4.1 | Perform capital planning and project approval | 10751 | 4 | Y |
| 9.4.2 | Perform capital project accounting | 10752 | 5 | Y |
9.4.1 - Perform capital planning and project approval
PCF ID: 10751
Definition: Preparing a project finance report to solicit approvals in capital projects. Prepare budgets for projects that require heavy investments. Report on project finances to solicit approvals from management.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.4.1.1 | Develop capital investment policies and procedures | 10844 | 0 | N |
| 9.4.1.2 | Develop and approve capital expenditure plans and budgets | 10845 | 0 | N |
| 9.4.1.3 | Review and approve capital projects and fixed-asset acquisitions | 10846 | 0 | N |
| 9.4.1.4 | Conduct financial justification for project approval | 10847 | 0 | N |
9.4.1.1 - Develop capital investment policies and procedures
Definition: Creating procedures and policies to follow for investing in capital projects. Create rules and regulations regarding large investment plans, which require in-depth forecasting for expenditure and revenue.
9.4.1.2 - Develop and approve capital expenditure plans and budgets
Definition: Creating budgets, and soliciting approvals for capital projects. Prepare budgets for projects that require heavy investments. Secure approvals from management.
9.4.1.3 - Review and approve capital projects and fixed-asset acquisitions
Definition: Evaluating and supporting capital investments in projects and fixed assets. Confirm details of capital projects. Secure approvals from managements for large investments.
9.4.1.4 - Conduct financial justification for project approval
Definition: Reviewing all project business cases in order to substantiate projected financial gains. Validate any project's business case. Juxtapose the benefits derived from moving a project forward against the associated costs.
9.4.2 - Perform capital project accounting
PCF ID: 10752
Definition: Accounting for large-scale and large-cost investments. Manage and account for ongoing activities related to capital projects, including setting up new projects, recording project transactions, monitoring and tracking spending, closing and capitalizing projects, and measuring the financial returns on completed projects.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.4.2.1 | Create project account codes | 10848 | 0 | N |
| 9.4.2.2 | Record project-related transactions | 10849 | 0 | N |
| 9.4.2.3 | Monitor and track capital projects and budget spending | 10850 | 0 | N |
| 9.4.2.4 | Close/capitalize projects | 10851 | 0 | N |
| 9.4.2.5 | Measure financial returns on completed capital projects | 10852 | 0 | N |
9.4.2.1 - Create project account codes
Definition: Giving reference codes for every project.
9.4.2.2 - Record project-related transactions
Definition: Noting every transaction during a project in a common financial database. Document all transactions associated with any project. Maintain a centralized repository of all such financial data.
9.4.2.3 - Monitor and track capital projects and budget spending
Definition: Evaluating project progress and funds invested. Observe and track significant funds invested on any long-term project. Compare to budget.
9.4.2.4 - Close/capitalize projects
Definition: Checking for returns generated from projects for decision making. Evaluate capital projects that require heavy investments. Decide whether to proceed based on the revenues generated.
9.4.2.5 - Measure financial returns on completed capital projects
Definition: Comparing a finished project's profitability with forecasted returns. Scrutinize revenues generated by completed projects that required heavy investments. Determine profitability.
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 12 elements
| ID | Name | Definition |
|---|---|---|
| 9.4 | Manage fixed-asset project accounting | Managing accounts for large funds-invested projects. Manage and account for fixed assets projects (c... |
| 9.4.1 | Perform capital planning and project app... | Preparing a project finance report to solicit approvals in capital projects. Prepare budgets for pro... |
| 9.4.1.1 | Develop capital investment policies and ... | Creating procedures and policies to follow for investing in capital projects. Create rules and regul... |
| 9.4.1.2 | Develop and approve capital expenditure ... | Creating budgets, and soliciting approvals for capital projects. Prepare budgets for projects that r... |
| 9.4.1.3 | Review and approve capital projects and ... | Evaluating and supporting capital investments in projects and fixed assets. Confirm details of capit... |
| 9.4.1.4 | Conduct financial justification for proj... | Reviewing all project business cases in order to substantiate projected financial gains. Validate an... |
| 9.4.2 | Perform capital project accounting | Accounting for large-scale and large-cost investments. Manage and account for ongoing activities rel... |
| 9.4.2.1 | Create project account codes | Giving reference codes for every project. |
| 9.4.2.2 | Record project-related transactions | Noting every transaction during a project in a common financial database. Document all transactions ... |
| 9.4.2.3 | Monitor and track capital projects and b... | Evaluating project progress and funds invested. Observe and track significant funds invested on any ... |
| 9.4.2.4 | Close/capitalize projects | Checking for returns generated from projects for decision making. Evaluate capital projects that req... |
| 9.4.2.5 | Measure financial returns on completed c... | Comparing a finished project's profitability with forecasted returns. Scrutinize revenues generated ... |
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