1.6 Maintain Period Code

This topic describes the systematic instructions to maintain period code.

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 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 Treasury Period Code Maintenance screen.

The financial year and the accounting periods are referred to in the Treasury 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.

1. On the Home page, specify STDTRPRC in the text box, and click next arrow.

   The Treasury Period Code Maintenance screen is displayed.

   Figure 1-4 Treasury Period Code Maintenance

   
   Description of "Figure 1-4 Treasury Period Code Maintenance"
2. On the Treasury Period Code Maintenance screen, specify the fields.

   For more information on fields, refer to the below table.

   The financial cycle of your bank giving the start date and end date of each financial year.

   The period group - financial periods into which each financial cycle is to be divided.

   Table 1-4 Treasury Period Code Maintenance - Field Description

   Field	Description
   Financial Cycle	Specify the financial cycle code. For each financial cycle you maintain the following parameters: This is a code for the financial cycle. It acts as an identifier for the cycle. For example, while posting adjustments into a previous financial cycle- you would identify the year through this code. Input the code using a maximum of 9 characters, alphanumeric. For example, the financial cycle extends from 1st April to 31st March in India. A bank here could define its code for the year 1996-97 as FY 1996-97.
   Description	This describes the financial cycle. Enter description using a maximum of 35 characters, alphanumeric. Taking the above example, you could enter Financial Year - 1996-97.
   Start Date	Displays the first day of this financial cycle.
   End Date	Select the last day in the calendar of this financial cycle.
   Period Group	Specify the below period group fields. The financial cycle defined above, can be divided into different accounting periods. To define individual accounting periods click on the first row under period code. A period called FIN is created by the system. This is an open ended period coinciding with the last day of the financial cycle. You can maintain the following parameters for each accounting period within a financial cycle:
   Period Code	Specify the period code. This code identifies the accounting period. Enter a code using a maximum of 3 characters, alphanumeric. For example, if your period length is a quarter you can enter - Q1 for the first period; Q2 for the second; Q3 for the third and so on. If your period length is a bimonthly you can enter BM1, BM2. If your period length coincides with a month you can input M1 and M2.
   Start Date	Indicates the first day of the corresponding period.
   End Date	Indicates the last date of the corresponding period. End date of a period should always end on a month end. Note: The period codes could be of varying lengths but no gaps should be left between periods The duration of two periods should not overlap You can modify the period code of the current or a future period; however, a past period cannot be modified even if it has not been closed All details maintained in the Period Code Screen are automatically applied to any new branch opened by you in the Branch Parameters Screen The current financial cycle code and the current period code are displayed in the Treasury Branch Parameters Maintenance screen