Value-Added Report Pattern Based On Business Process Management

With the e nvironment o f g lobal c ompetition, B usiness P rocess M anagement b ecomes a main mode of business operation in 21st century. It brings a demand of improving the management accounting system. This paper analyzes the information demands of business process management and brings forward a value-added report pattern based on business process management, which supports the implement and performance evaluation of it.The new report pattern combines Total Value-Added concept with Value Chain theory and Business Process Management. First, as a contract bond of stakeholders, enterprise's objective is to achieve greatest total value-added by using every resource during the process of input and output. Then, value chain analysis and business process management are two different methods of improving value-added ability. Their basic elements are activities and their objectives are achieving greatest total value-added. At last, total value-added is composed of process value-added and process value-added is composed of activity value-added. So the new report pattern reveals the form of total value-added and provides the core information of process value-added and activity value-added to managers.For accounting method, the paper brings forward Activity-Based Value-Adding which benefits from Activity-Based Costing. That means measuring input cost and output value at the same time, and then subtracting input cost from output value gives activity value-added. The paper also provides some recognition standards of activity's output value, such as setting up a value proportion standard, which can measure or distribute activity's output value reasonably. This paper also introduces the accounting process, record designment, account setting and value-added report etc. There are two simple cases to explain the accounting process and report preparation.Besides above, the author discusses that how to use the information provided by new report pattern to evaluate the performance of process and activity in operation. For level of business process and activity, it sets up three kinds of indicators, which are the ability of value-added, time efficiency and fulfillment quality. For level of business operation, it combines with balance card and emphasizes using yalue-added information from stakeholders' views, such as setting up total value-added financial indicators, etc.At last, this paper lists some factors, which influence the implement and application of new report pattern. The writer also looks forward to have a further research, which focuses on the combination of company management and company governance. That is to develop the value-added report pattern based on business process management into a new financial report pattern, which can reveal the form and the distribution of total value-added and present the equity of every stakeholder.