ROi Accounting Cycle
Ronald D. Provinge
ACC 421
July 25, 2011
Howard Pickering

ROi Accounting Cycle
The Sisters of Mercy Health System began in 1831 and includes 26 hospitals, more than 36,000 coworkers, and more than 4,600 medical staff members. The not-for-profit health organization services seven states with total assets exceeding four billion. Resource Optimization and Innovation (ROi) is one of many divisions Mercy owns. Responsible for the supply chain side of Mercy, ROi employs more than 1400 members and delivers pharmaceutical and medical supplies. This branch of Mercy is responsible for its own accounting and financial reporting because although it is owned by a not-for-profit company, ROi is a for-profit company. The accounting cycle for ROi is the same as many other companies; “a methodical set of rules to ensure the accuracy and conformity of financial statements” (Investopedia, 2011).
An accounting cycle starts with a transaction occurring between two parties that create documentation, or source documents, showing what needs to take place. ROi’s accounting cycle begins when a customer adds an order for medical supplies for the hospital in the Lawson software that links the hospital’s ordering system with ROi’s supply network. The costs for these orders are calculated by the Lawson software that credits or debits the corresponding accounts in the accounting software used by the finance department. The accounting clerk, Joanna Root, retains the company paperwork, incorporating accounts payable documentation, records, and imports daily worksheets into the general ledger system. After the documentation and verification of receipts from accounts payables, Joanna prints and mails the checks.
A vital part of the accounting cycle at ROi begins with Wilson Vault, Damon Blake, and Emily Nack; the three staff accountants. The staff accountant handle