Scribd Logo
Upload

Welcome to Scribd!

  • 184 views

    Process Flow Diagram: Asset Purchase

    Uploaded by

    Prabhakar Vanam
    The document outlines the process flows for asset purchase, depreciation, and work in progress at NCAOR. It shows that the Ministry of Science sanctions the yearly budget, which is then allocated by NCAOR committee to capital expenses and asset purchases. Assets are purchased through a tendering process and invoices are verified before capitalization. Depreciation is calculated annually using the straight-line method. For assets still under construction, payments are made in advance and settled upon work completion, before the asset is transferred and depreciated.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Process Flow Diagram: Asset Purchase

    Uploaded by

    Prabhakar Vanam
    184 views3 pages
    The document outlines the process flows for asset purchase, depreciation, and work in progress at NCAOR. It shows that the Ministry of Science sanctions the yearly budget, which is then allocated by NCAOR committee to capital expenses and asset purchases. Assets are purchased through a tendering process and invoices are verified before capitalization. Depreciation is calculated annually using the straight-line method. For assets still under construction, payments are made in advance and settled upon work completion, before the asset is transferred and depreciated.

    Original Description:

    Fixed Assets_Process_FI03

    Original Title

    Fixed Assets_Process_FI03

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document outlines the process flows for asset purchase, depreciation, and work in progress at NCAOR. It shows that the Ministry of Science sanctions the yearly budget, which is then allocated by NCAOR committee to capital expenses and asset purchases. Assets are purchased through a tendering process and invoices are verified before capitalization. Depreciation is calculated annually using the straight-line method. For assets still under construction, payments are made in advance and settled upon work completion, before the asset is transferred and depreciated.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    184 views3 pages

    Process Flow Diagram: Asset Purchase

    Uploaded by

    Prabhakar Vanam
    The document outlines the process flows for asset purchase, depreciation, and work in progress at NCAOR. It shows that the Ministry of Science sanctions the yearly budget, which is then allocated by NCAOR committee to capital expenses and asset purchases. Assets are purchased through a tendering process and invoices are verified before capitalization. Depreciation is calculated annually using the straight-line method. For assets still under construction, payments are made in advance and settled upon work completion, before the asset is transferred and depreciated.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Process Flow Diagram

    Asset Purchase

    MoES (Ministry of Science) MoES (Mistry of science) sanction the yearly

    PURCHASE SECTION
    will sanction yearly wise wise budget as Grants In Aid(GIA) for NCAOR
    Start projects/programs then NCAOR committee
    budget to NCAOR
    will allocate the budget for Revenue
    expenditure and capital expenses - assets

    NCAOR Committee will initiate


    the asset purchase

    Purchase
    Assets are being purchased
    through tendering process by
    Purchase Dept

    Original/ Proforma /
    NO Duplicate Invoice Duly
    certified by concern off/
    RV/PO Initial approval
    Invoice received from the (Terms and condition for
    The suppler shall be Purchase Section/Concern payment)
    informed of the specific Section with Administration
    reason immediately under and Financial approval
    intimation to Procurement
    Section

    Accounts department after receiving the


    confirmation from security/stores (RV:
    Receipt Voucher/Bill of entry-Customs
    will provide ) duly signed by the Indenter,
    Accounts dept. verify
    Stores keeper and Procurement officer for
    with the confirmation
    Invoices will be send back to the physical receipt of the fixed assets/
    NO from security /stores for
    concern dept the physical receipt of correctness or commissioning certificate
    the fixed assets from Engineer.

    YES
    FINANCE SECTION

    Once confirmation is received


    assets are capitalized and
    transaction will be entered in
    books of accounts

    Asset Main Group


    (Project wise)

    Asset Sub-Group

    Group /Individual Asset


    Creation

    End
    Process Flow Diagram
    Assets Depreciation

    Asset Capitalization
    Start Asset capitalization

    Straight line Method


    (Com Act 1956)

    If asset purchase before If asset purchase after


    30-Sep-xxxx 30-Sep-xxxx (01.Oct.xxx)

    100% Depreciation will be 50% Depreciation will be


    calculated for the year calculated for the year
    FINANCE SECTION

    Accounting/concern dept
    Accounting section will department will calculate the asset
    calculate the depreciation in depreciation every year in excel
    excel and enter into the according companies act 1956 then
    books of accounts enter in books of accounts.

    End of the useful life asset


    value should not be ZERO
    just keep 1 INR as asset
    value

    End
    Process Flow Diagram
    Asset Work In Progress

    Advance amount pay to the


    Start contractor through
    accounting dept

    Advance settlement
    through UC (Utilization
    Certificate) from
    contractor

    Asset Work In Progress (WIP)

    Once work is completed


    Handing over report to be
    submitted by the concern
    contractor

    Asset will be transferred to


    main asset and depreciation
    will be calculated

    End

    You might also like