Asset Management Pre-Period Close (40.4)
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Asset Management Pre-Period Close (40.4)
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Business Process Overview
The Asset Management Pre-Period Close business process is within the Asset Accounting and Management (AAM) business process grouping. AAM includes a collection of business processes that:
- Manage the records of agency property that supports Statewide operations, including financial and custodial information;
- Establish the controls that ensure the integrity of stateside financial reporting; and
- Perform preparation for month-end and year-end closing activities.
This business process highlights the activities to be completed to close the Asset Management Module in General Ledger (GL). The Asset Management Pre-Period Close business process applies to both the month-end and year-end close. The completion of these tasks every month facilitates a timely year-end close of the Asset Management (AM) Module. The Agency AM Asset Processor monitors and executes pre-closing asset tasks such as: identification of assets to be recorded; clearing the pending items populated from the Accounts Payable (AP) Module; completing pending transfers or dispositions; running scheduled depreciation; and system closing jobs.
The period pre-close activities are intended to monitor and manage agency business operations and facilitate statewide reporting purposes. Authorized agency users perform a monthly review and close-out of pending transactions in preparation for GL period close. In addition, system jobs are run to update pertinent tables, and the Asset Management Subledger is updated to General Ledger.
Dependencies and Constraints
Dependencies and Constraints describe any conditions or criteria that impact how or when the business process should be executed. These could be set within Florida PALM or from external sources (i.e., Law or Rule).
- Any asset transactions not completed before period close are completed in the subsequent period.
- The Asset Management Pre-Period Close Business Process is dependent on transaction processing in the ordinary course of business and resolution of failed transactions in the appropriate period.
- Journal entries are accounted for as part of the normal business processes.
- An Agency AM Asset Processor is responsible for completing pending transactions that will be reported in the current period.
Business Process Diagram
Business Roles
The Business Process Flow Diagrams use horizontal swim lanes to depict where activities are performed by different parties or systems. Each swim lane is titled with a role, either agency-based or within DFS, and in some cases, are representative of an external entity or system. The swim lanes may change from page to page within a single business subprocess as more or fewer roles are required to execute sections of the business subprocess.
- Agency AM Asset Processor: agency role responsible for creating and maintaining asset records in Florida PALM
- Florida PALM GL Batch Processor: role responsible for period-end close processing activities
Business Process Flows Details
The tables below describe steps in each business subprocess as reflected on the Business Process Flow Diagrams. The tables also reflect information associated with each step describing the intent of the specific process. Florida PALM screenshots are included within the sections to allow connections to be made from specific business subprocess steps to screens within Florida PALM. This information should be read in conjunction with the Business Process Flow Diagrams.
Process Step Title | Description of Process | |
|---|---|---|
1 | Identify Asset Records to be Created | The Agency AM Asset Custodian identifies priority assets, such as high-dollar acquisitions, to be recorded in the current period. The Agency AM Asset Processor also identifies asset records to be created based on new acquisitions. |
2 | Create/Update Asset Records | The Agency AM Asset Processor enters data in Florida PALM to record acquisitions found in the Identified Asset Records to be Created process (Step 1) such as:
The Agency AM Asset Processor updates existing Florida PALM asset records based on:
If the Agency AM Asset Processor identifies asset records that are missing or out-of-date, he/she follows the procedures outlined in 40.1.2-6 Create/Update Asset Records in Florida PALM. |
3 | Review Pending AP Interface Transaction | Data in the Transaction Loader Tables should be reviewed to determine corrective actions before processing of new asset data integrated from AP. The Agency AM Asset Processor may delete a transaction or update the asset physical and cost information, such as category, custodian, location, and acquisition date. The Asset Staging Report and the Asset Pending Report are used to identify corrections needed. If the Agency AM Asset Processor identifies Pending AP Interface Transaction that need to be corrected or deleted, he/she follows the procedures outlined in 40.1.1-6 Review Load Data/Correct Information in Florida PALM. |
4 | Complete Pending Transfer/Disposal | Pending transactions and incomplete processes must be finalized, before monthly closing, for proper recording and reporting. The Agency AM Asset Processor evaluates pending authorized inter-agency asset transfers and uses the AM InterUnit Transfer function or submits the Inbound Asset Transfer & Disposal Interface to initiate the inter-agency transfer approval workflow. If the Agency AM Asset Processor identifies incomplete inter-agency transfer transactions, he/she follows the procedures outlined in 40.2.2-4 Initiate Approval Workflow to complete transactions in Florida PALM. The Agency AM Asset Processor evaluates pending authorized intra-agency asset transfers and uses the AM IntraUnit Transfer function or submits the Inbound Asset Transfer & Disposal Interface to initiate the intra-agency transfer approval workflow. If the Agency AM Asset Processor identifies incomplete intra-agency transfer transactions, he/she follows the procedures outlined in 40.2.3-4 Initiate Approval Workflow to complete transactions in Florida PALM. The Agency AM Asset Processor evaluates pending authorized asset disposals and uses the AM Asset Disposal Worksheet or transmits a completed Inbound Asset Transfer & Disposal Interface to Florida PALM. If the Agency AM Asset Processor identifies incomplete disposal transactions, he/she follows the procedures outlined in 40.2.4-5 Initiate Approval Workflow to complete transactions in Florida PALM. |
5 | Run Transaction Loader | Florida PALM or the Agency AM Asset Processor executes the Transaction Loader Process, which selects assets approved for transfer or disposal, to start the process of updating various core Asset Management tables. The Transaction Loader Edit (AMIFEDIT) process will need to run prior to the Transaction Loader (AMIF1000) process in the batch schedule design. |
6 | Calculate Depreciation | If the asset is depreciable, Florida PALM initiates the Calculate Depreciation process based on an established schedule. This process calculates the depreciation for an asset for its entire useful life based on the depreciation attributes selected for the Asset – cost, salvage value, and useful life. Calculate Depreciation may also be initiated on demand for individual asset transactions. This process must be run when core asset transactions are processed such as:
If the asset is non-depreciable, Florida PALM by-passes the Calculate Depreciation, and completes the Create Accounting Entries process. |
7 | Complete Asset Transactions | After Depreciation Calculation is successfully executed against each Asset, Florida PALM (per enterprise schedule) or the Agency AM Asset Processor runs the following core processes to acquire updated Asset information and create accounting transactions. Load Depreciation Reporting Table process - This process loads the Depreciation Reporting table (DEPR_RPT) with life-to-date depreciation expense data. Content of DEPR_RPT table provides the basis for most depreciation reports. Load Asset Net Book Value Process - This process loads the Asset Net Book Value table (ASSET_NBV_TBL) with data used for Asset Net Book Value reports. Depreciation Close - This process generates period depreciation accounting entries for all depreciable assets in a particular accounting period. The process should be run for an accounting period that has not yet been closed. Create Accounting Entries - This process generates accounting entries for all financial transactions unrelated to depreciation. Examples for accounting entries are asset cost, increase of asset cost, and transfer of assets. |
8 | Generate GL Journals | Journal Generator (JGEN) processes posted accounting entry data from the Florida PALM source modules, summarizes the data, and creates journals in the General Ledger. The Journal Generator process will edit, budget check, and post the journal entries created during the process. Please see 10.2 Enter and Process Journals for more information on source module journal entries. |
9 | General Ledger Allocation | Governmental Funds account for one fiscal year of information and cannot own assets with a useful life over one year. Fixed assets acquired through a Governmental Fund must be accounted for in an Ownership Fund. A Mapping Table that establishes the Governmental/Ownership Fund relationship is configured in GL. This table must be maintained with the addition of new Governmental Funds and/or updates to corresponding Ownership Fund, configured in GL by the Agency COA Maintainer. The Mapping Table uses existing Governmental Funds to systematically reclassify values to predetermined Ownership Fund values. General Ledger Allocation reclassifies AM journal data for owned asset, leased asset, associated depreciation expense, and accumulated depreciation resulting from acquisition of assets with Governmental Funds, to the corresponding Ownership Fund. The reclassification occurs in the General Ledger module via the General Ledger Allocation process. |
10 | Outbound Asset Extract | Florida PALM provides an outbound file with data of asset additions, updates, transfers, and disposals. This file can be access on demand by users with appropriate security. The Outbound Asset Extract includes asset records marked as Fully Sensitive and asset records marked as Partially Sensitive. |
Close Depreciation Page
Accounting Events
Accounting events originate during transaction processing in the applicable source module. The accounting events impact the source module, Commitment Control ledgers, and the General Ledger (Actuals).
- Source Module accounting entries require user input (U) of the primary line (i.e., expenditure, revenues) with an automated (S) system offsetting line (i.e., payable, receivable) during transaction entry. The source model transaction must pass Edit Check, Budget Check, and Cash Check (on applicable entries) prior to posting the transaction.
- The Run Budget Check (Commitment Control) process automatically affects balances in the appropriate budget ledger (i.e., appropriation, spendable cash) if the transaction passes the budget check process.
- After the transaction is posted in the source module, an automated system process summarizes and posts the entries in the General Ledger module to the Actuals Ledger.
The table below provides the most common accounting events applicable to this business process.
Accounting Event | Source Module Accounting Entry | Commitment Control Ledger(s) Impact | General Ledger (Actuals) Entry | |
|---|---|---|---|---|
N/A | N/A | N/A | N/A | N/A |
Reports
Key Reports are displayed as icons with the Report Number on this Business Process. The table below provides the reports identified to be produced at a particular process step or is used to support the completion of a process step.
Report Number | Report RICEFW ID | Report Description | Report Source | Report Frequency | Audience |
|---|---|---|---|---|---|
R1 | AMR068 | Summary of Assets – a report of total assets and changes made to asset records for a given period. The report includes changes in asset status, Useful Life, or re-categorization. | Data Warehouse | Periodic, Monthly | Agency, DFS |
R2 | Asset Workflow Status Report – lists asset transfer or disposal transactions that are pending for approval, have been approved or denied | Data Warehouse | Periodic, Monthly | Agency | |
R5 | AMR014 | Asset Disposition Report – a report of asset dispositions by type. The report provides totals for the asset dispositions and details regarding the asset descriptions, custodians, and dates of acquisition and disposition. This report is used to monitor asset dispositions for compliance with applicable statutory and other requirements and supports details required for financial reporting | Data Warehouse | Periodic, Monthly | Agency |
R6 | AMR020 | Asset Physical Inventory Report – asset records in Florida PALM. The report can be used to identify assets not accounted for and asset records that require updates to locations, custodians, or conditions | Data Warehouse | Periodic, Monthly | Agency |
Interfaces
The table below provides the Interfaces identified on the Business Process.
Interface Number | Interface Description | Interface Frequency | Source | Target |
|---|---|---|---|---|
Outbound Asset Extract - Outbound asset extract file containing both physical and cost information. | Daily | Florida PALM | Agency Business Systems |
Forms
The table below provides the forms identified on this Business Process.
Form Number | Form Description | Audience |
|---|---|---|
N/A |
Workflows
The table below provides the workflows identified on this Business Process.
Workflow Number | Workflow Description | Audience |
|---|---|---|
AMW001 | Asset Request Workflow - This electronic Workflow establishes an approval path for asset dispositions including assets that require additional approvals outside of owning agency. This Workflow also establishes an approval path for asset transfers, alert the receiving organization of the item(s) being transferred, and sends assets received by the property custodian to the property fiscal agent for approval and completion of the asset record. | Agency, A&A |
Version History
Date | Revision Description |
|---|---|
07/23/2024 | Original Version |
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