Finport Technologies Inc / Products

System for bank units “Finport Profitability Calculation» (FPC)

While considering the activity of any bank institution, it is important to estimate the efficiency of its work through analyzing both general indicators, such as gross profit or expenses for a certain period of time, and internal processes that form general bank indicators.
The information system “Finport Profitability Calculation” (FPC) allows to perform such analysis on the basis of a managerial accounting procedure - Profit Centers Calculation.

The goal of the procedure is to distribute income and expenses (result) between the functional or structural units of bank – competence centers. Such centers are divided into two categories – competence centers where funds inflow is observed (profit centers) and centers with funds outflow (cost centers).

The procedure basing on the documentation on items helps to distribute integral financial result for the period between competence centers. Finally, we have a situation representing the contribution of each competence center concerning profit and expenses of a bank. Then expenses of the cost centers are compared with incomes of the profit centers, and all expenses are allocated to the respective profit centers. Hence, we received the allocation of gross bank profit to profit centers according to the competence of each center for inflow and outflow of funds.

According to this procedure, the financial result is split-up into four parts:

Funding (income or expense on refinancing);
Net result;
FX error (error from calculating result basing on FX rates);
Other errors (errors committed while calculating financial income/expense – difference between factual result and result implicated by the deals data).

The financial result of a bank for the period is represented as an item table of a managerial and financial accounting every record in which contains information necessary to calculate and attribute to particular P&L items and competence centers.
The table is used in the procedure of Profit Centers Calculation the result of which is represented as Profit and Loss Account (P&L) with further split-up into P&L items and competence centers.

To form this account, records of the table are allocated between competence centers and refer to particular P&L item according to the rules defined by the allocations table. A record can be allocated between several competence centers and P&L items. Records can be reallocated from one competence center to another according to the rules defined by the direct transfers table. Finally, the financial result of the competence centers is transferred to profit centers according to the rules defined by the overhead transfers table.