Introduction to Accounting at Rochester Institute of Technology: RIT Accounting Policies, Procedures and Protocol Chapter X: Accounting Processes Revised September 8, 2007 1 X. Accounting Processes A. Overview: Financial information flows into the general ledger from a variety of sources. Accounting staff are responsible for reviewing all data before posting it to the ledger to ensure the accuracy and integrity of the Institute’s financial information. Objectives: In this chapter you will learn about: • how financial information flows between Oracle subledgers and other applications into the Oracle General Ledger application • how Accounting processes data in the general ledger each day • the steps that are taken to ensure that all financial data is complete for a month-end closing • the fiscal year-end closing process B. Flow of Information in Accounting Financial transactions occur in various subledgers within the Oracle Financial/Human Resource applications. a. For example, when an hourly employee is hired, employee data is entered into the Oracle HR system (box 1). b. The employee information is transferred to the Kronos automated time & attendance system (box a). c. During the payroll process, the employee’s time is transferred to the Oracle Payroll application (box 6). d. Once the payroll is processed, the salary information is transferred to the interface table (box surrounding the general ledger). e. A journal entry is created when the data is imported to the general ledger (black box). f. Accounting posts the journal entry to the general ledger. g. At the end of the month, departments may request Payroll Distribution reports on line, which will print at the department’s Oracle networked printer (box f). In addition to the subledgers, external data is also brought into the Oracle General Ledger application through Oracle ADI software (Application Desktop Integrator).