Create Business Processes 1

Terminal Learning Objective Action: Create Business Processes Conditions: You are a Budget Analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency with: Define and Determine Business Process Functions 2

What are Business Processes? Cost objects used to capture costs of cross-functional activities. The execution of a given Business Process is the result of participation between Cost Centers. The Business Process uses different resources provided by the Cost Centers. Allow the Army to allocate costs to receiving objects based on the rate of consumption. Processes are linked together in sender/receiver relationships to pass costs between one another in order to assign cost to the receiving entity. Coming together is a beginning; Keeping together is progress; Working together is success. Quote (Henry Ford) 3

Business Processes (Cont.) Business Processes serve in cost accounting for organizational procedures that cross Cost Center boundaries. Can consume the output of multiple Cost Centers in a controlling area, and the costs can then be allocated to multiple Cost Centers that receive the benefits of the outputs. 4

Process Flow Chart 5

Business Processes Applications To facilitate specialized analysis and reporting, where the view of what activities are occurring within an organization is needed. Examples: Performance benchmarking Service level agreements Outsourcing decision-making, etc. Possible application: IMCOM: Track costs by Service and by SSP and allocate to Customers. TRADOC: Track costs related to providing certain Courses. Anywhere CO ABC Model is used What is Benchmarking? The search for the best practices within and across industries or Organization. Outsourcing decision or produce in house – which is more cost efficient. 6

GFEBS Cost Objects VS. Legacy Data Elements 7

GFEBS Elements (Cont.) Relationship to Legacy Elements: Business Processes can be used to collect managerial information previously represented by point accounts, functional cost accounts or Account Processing Codes (APC). Criteria for Establishing and Changing: Established to collect the costs of organizational procedures (such as SSP) and to distribute them to the Receiver-Benefiting CC and other cost objects. Should be used when allocation of cost is based on rate of consumption. Examples: Meals served Sq ft cleaned files processed 8

Create a Business Process Before creating the Standard Hierarchy must be defined. The highest node of the hierarchy is normally the first Business Process group that is created. Multiple Business Process groups can be created. The Standard Hierarchy will include all Business Process Groups. Business Processes are known as Activity Identifiers in SFIS. If an Activity Identifier is a cost object then it must be aligned with one or more Program Codes and Line of Business Codes. Control is centralized in order to ensure standardization when distributing costs between commands. Standardization may occur at HQDA, Commands, or Installations based on the requirements for cost distribution. 9

Conduct Practical Exercises 10 10

Walkthrough: Create Business Process Transaction Code: CP01 Conduct Practical Exercise 4.1 Use this procedure to create a Business Process. A Business Process represents a Service Support Program (SSP) which rolls up to branch within the Army hierarchy. There may be many different branches charging time to an SSP. The Business Process is assigned a rate and you can charge the business process out to another cost center. Using Business Processes, you can charge costs out to another entity; however, you cannot charge out cost using an Internal Order or WBS Element. The Business Process is like a hybrid object between a cost center and an activity type, it puts The ability to do all of the following at one time within one transaction: Assign the business process to a cost center with a rate and then charge out from the cost center using the Activity type. Perform this procedure after receiving notification that a business process needs to be created. 11

Walkthrough: Change Business Process Transaction Code: CP02 Conduct Practical Exercise 4.2 Use this procedure to change a Business Process that has been created. 12

LSA #1 Check on Learning Q1: What are Business Processes? A1: Q2: What will Business Processes allow the Army to do? A2:   Q1: What are Business Processes? A1: Q2: What will Business Processes allow the Army to do? A2: Facilitator’s Note: Additional Question to consider for the student; Q: In general how will Business Processes be used in GFEBS? A: Q: True or false? Business Processes can be linked together in sender/receiver relationships to pass costs between one another in order to get total cost of an overall process? 13

LSA #1 Summary 14

Questions 15

TLO Summary Action: Create Business Processes Conditions: You are a Budget Analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency with: Define and Determine Business Process Functions 16