CHAPTER FIFTEENProcess Narratives for the Transaction Accumulation, Reconciliation, and Sub-Ledger Close Process

PROCESS NARRATIVE 1: JOURNAL ENTRY (JE) PROCESS

Introduction: This section provides examples of process narratives for the key processes within the Transaction Accumulation, Reconciliation, and Sub-Ledger Close process. This information can be used to improve internal controls and business process. Improvements to current internal controls and business processes will support a faster closer process. Here is the process narrative for the Journal Entry (JE) process.

Process Activity Description
  1. Month-End Journal Entry Preparation and Posting: JEs are prepared to post fiscal transactions to the applicable ERP system general ledger. The JE workflow process has predetermined approval limitations. Upon manual approval of journal entry, accountant begins journal entry workflow process by uploading journal entry into the workflow process.
  2. Data Entry: The accountant enters JE data into the template.
  3. Records Management: The accountant attaches the copy to the original JE, created from the template, and the transaction is filed according to the company's file management process.
  4. Month-End Checklist: The accountant enters document number into the month-end checklist, which is reviewed by management for completion and accuracy.

PROCESS NARRATIVE 2: MANAGEMENT APPROVAL OF JOURNAL ENTRIES

Introduction: This section provides examples of process narratives for the key ...

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