Banks, like all business houses compute their profits and losses and assess their financial position at the end of each financial year, which typically extends to 12 months -- from January to December or from March to April. However, this could be changed, depending upon the Bank’s policies and regulatory requirements. For interim reporting needs, the financial year is further divided into accounting periods, the duration of which is again determined by the bank’s accounting requirements. For example, your bank’s Board of Directors meets once a month therefore, you would divide the financial cycle into monthly periods. The financial year and the accounting periods are referred to in the Oracle Trade Finance system as the ‘Financial Cycle’ and the ‘Financial Periods’ respectively and are maintained at the bank level by your Head Office branch. At the end of each financial period and financial cycle you can generate profit and loss statement and a balance sheet. The system also offers you the flexibility of keeping a financial period/financial cycle open, allowing you to post adjustments to it and obtain a revised profit or loss statement/balance sheet. You can maintain these details in the ‘Period Code Maintenance’ screen.

This topic contains the following sub-topic:

• Maintain Period Code
  This topic describes the systematic instruction to Maintain Period Code.