tally.erp 9 for micro finance management

© Tally Solutions Pvt. Ltd. All Rights Reserved

Tally.ERP 9 for Micro-finance Organizations

© Tally Solutions Pvt. Ltd. All Rights Reserved 2 2

Agenda

• Micro-finance Organization – An Overview

• Structure of Micro-finance Organizations’ Operations

• Tally.ERP 9 for Micro-finance Organization

• Business Process Flow

• Primary Requirement

• Tally.ERP 9 – Fitment


Structure of Micro-finance Organizations’ Operations

Micro-financeManagement

MIS Reports

Membership Management

Accounts& Payroll

Funds & Loan Management


Micro-finance Organization – An Overview

MEMBERSHIP MANAGEMENT

MICRO-FINANCE SOLUTION ON TALLY.ERP 9

LOAN DISBURSEMENT

MIS REPORTSACCOUNTS & PAYROLLFUNDS & LOAN MANAGEMENT

FUNDS MANAGEMENTLOAN RECOVERY &

RECEIPTS

· Member details

- Basic details with member photos

- Income details

- Nominee details

- Co-obligant details

- Member insurance policy details

- Income based member groups

- Micro business based groups

- Default installments configuration

- Family member details

· Association levels

- State

- District

- Taluk

- Section office/branch office

· Unique member (Folio) account number

· Member savings accounts

· Member insurance

· Retirement and pension management

· Death relief fund

· Trip fund

· Member collaterals

· Bank funds management

· Donations management

· Investor funds management

· Government funds subsidy management

· Record individual contribution

· Community activity management

· Loan demand creation

· Activity based loans

- Education loan

- Vehicle loan(eg: farmer)

- Festival loan

- Gold loan

- Marriage loan

- Funeral assistance

- Store loan

- Income generation

· Loan payment template

· Member loan applications

· Loan repayment history

· Partial loans disbursement

· Loan disbursement report

· Automatic creation of installment liability

· Multiple installments

· Interest calculation

- Transaction wise interest

- Reducing principle

- Multiple interest rates

· Pending receivables

· Interest rate & loan duration modification

· Interest collection report

· Dividend payments for investments

· Installment SMS reminders

· Delayed payment handling

· Skipped installments

· Debt recovery from collateral

· Receipts printing

· Deduction from salary against loan

· Credit management

· Income management

· Employee payroll & cost tracking

· Reminder letters

· Foreign currency handling

· Branch management and branch-wise reports

· Multiple payment options

· Budgeting and variance

· Accounts payable

· Statement of accounts

· Expenditure reports

· Outstanding reports

· Cash flow and fund flows

· Loan reports – aggregate levels

- State / district /taluk level

- Section and branch office

· Pending installment report

· Skipped or delayed installments

· Installment paid

· Balance amount

· Remote access to reports

· International program funded activity reports

· Member summary reports

· Member wise dividend reports

· Loan type summary

· Business type based loan report

· Retirement reports


Micro-finance – Membership Management


MIS Reports


Accounts& Payroll



Process Flow – Membership Management

MEMBERSHIP MANAGEMENT

Potential client wants to be member of the society and

approaches the society

After a meeting with nominee and the client, membership is

approved and is notified

Unique membership number is generated for each

customer

Representative speaks to the client and explains the membership criteria

Client Information

Customer applies to the membership and provides all

the details with a nominee

Representative prints the terms and conditions and hands it over to the client

Customer application is rejected and is informed

of the reasons

Member association at district, taluk, section office

are updated

· Member details

- Basic details with member photos

- Income details

- Nominee details

- Co-obligant details

- Member insurance policy details

- Income based member groups

- Micro business based groups

- Default installments configuration

- Family member details

· Association levels

- State

- District

- Taluk

- Section office/branch office

· Unique member (Folio) account number

Client details arestored in the database


Primary Requirement – Membership Management

Category / Module Major Requirement Explanation


Member details with income information

Micro-finance organization need to record the member details like:Member personal informationName, occupation, date of birth, joining date, address, contact number, retirement dateMember financial informationType of business, income, insurance details

Nominee and co-obligant information

Loan related information needs to be captured as this is an important aspect of micro-credit for micro-finance companies.The member nominee, loan co-obligant details, interest settings are important during loan disbursement

Association level Micro-finance companies which operate at different levels like states, district, taluk, section offices need reports at different levels. The member accounts are also to be maintained at the different levels.

Member classifications Members can be classified based on the micro business enterprise they involve in. Classification based on payment history, income and religion will be useful for statistical purposes.


Tally.ERP 9 Fitment – Membership Management

SL No. Requirement Part of Tally.ERP 9 Part of Solution

1 Member basic details management Yes

2 Member pictures Yes

3 Income details Yes

4 Nominee details Yes

5 Member insurance policy details Yes

6 Loan co-obligant/co-signer details Yes

7 Unique member number (Folio number) Yes

8 Retirement details Yes

9 Family member details Yes

10 Regular installment details Yes

11 Member started micro-finance business details Yes

12 Association at state, district, taluk, section office levels Yes


Micro-finance – Funds & Loan Management


MIS Reports


Accounts& Payroll



Process Flow – Funds & Loan Management

LOANS MANAGEMENT

Loan & Installment

Details

Company receives the loan applications

Loan details arestored in the database

Members pay the installments on agreed dates and receive

a receipt

LOAN DISBURSEMENT

LOAN RECOVERY & RECEIPTS

DEMAND GENERATIONMembers apply for the loans

in a prescribed format mentioning the reason and

repayment time details

Loans are given to the clients based on different criteria

Interest rates and the collection period are marked

Members agree for number of installments

Application processing is done based on the available

funds and priority

Member salary is deducted for the installment amount

Loan defaults are recovered from collateral

Members provide the collateral details for the loan

Debt recovery details are stored in the database

Members receive a reminder prior to the day of loan installment payment


Primary Requirement – Funds & Loan Management



Funds management Micro-finance companies get the funds from investors, government programs, community funds, world bank and other companies. Proper fund tracking is needed to understand the utilization and reporting

Insurance Micro-finance companies provide option for the members to save through savings account and also provide insurances

Loan disbursement Members apply for micro-credit for different reasons like education, marriage, vehicle, festival and several events. It is useful for tracking the reasons of loan to understand the pattern.

Community activity Several micro-finance companies aid community initiatives and income generation activities. It is useful to track the loans specific to these activities that empower the community

Loan collection Different interest rates are available based on type of loan, payment history of members, purpose of loan and repayment period. The interest calculation and reminder system is very important to effectively handle different loans.

Installment management Several loan installments are to be recovered from different members. The partial payments, delayed payments, skipped installments are tracked.


Tally.ERP 9 Fitment – Funds & Loan Management

Contd..


1 Member savings account management Yes

2 Member savings account interest payment Yes

3 Retirement and pension management Yes

4 Death relief fund Yes

5 Trip fund Yes

6 Member collateral management Yes

7 Bank funds management Yes

8 Donations management Yes

9 Investor funds management Yes

10 Government funds and subsidy management Yes

11 Recording individual contributions of parties Yes

12 Community activity management Yes




13 Loan demand creation Yes

14 Educational loan management Yes

15 Vehicle loan management Yes

16 Festival loan management Yes

17 Gold loan management Yes

18 Marriage loan management Yes

19 Funeral assistance management Yes

20 Store loan management Yes

21 Income generation schemes Yes

22 Loan payment history Yes

23 Loan payment template generation Yes

24 Member loan applications Yes

Contd..




25 Partial loan disbursements Yes

26 Multiple installment management Yes

27 Interest calculation Yes

28 Transaction wise interest calculation Yes

29 Reducing principle interest calculation Yes

30 Multiple interest rates Yes

31 Pending receivables Yes

32 Loan duration modification Yes

33 Loan interest rate modifications Yes

34 Interest collection report Yes

35 Dividend payment report Yes

36 Installment reminders Yes

Contd..




37 SMS reminder support Yes

38 Loan disbursement report Yes

39 Delayed payment handling Yes

40 Skipped installments Yes

41 Debt recovery from collaterals Yes

42 Receipts printing for installments Yes

43 Deduction from salary – debt recovery Yes

44 Automated creation of installments based on repayment period, amount and number of installations

Yes


Micro-finance – Accounts & Payroll


MIS Reports


Accounts& Payroll



Primary Requirement – Accounts & Payroll


Accounts & Payroll Statement of accounts Balance sheet, profit and loss statements in schedule VI format, trial balance are needed for the management to track the loans, incomes and expenses. For profit micro-finance companies need to track incomes effectively.

Cash flow and fund flows As the micro-finance companies deal with cash with members and all the installments are also paid using cash, tracking of the cash in hand becomes important.As different funds are used from government, member investments, community funds or other sources it becomes important what fund was used for what activities.

Payroll management Employee and support staff database with different levels, pay head configuration makes salary payment a challenging task.

Auditing – direct and remote Annual auditing is an important factor for every business. Micro-finance companies need to get audited by CA for, assets declared, TDS paid and other details.

Branch management More than one branches are present and it is important to track the revenue and expenses individually and as group.

Remote access and SMS All the company details can be accessed from anywhere, at anytime. Details should be retrievable from mobile phones.


Tally.ERP 9 Fitment – Accounts & Payroll

Contd..


1 Balance sheet – Schedule VI Yes

2 Profit and loss statement – Schedule VI Yes

3 Daily receipts and payments Yes

4 Multiple payment mode handling Yes

5 Income management Yes

6 Foreign currency management Yes

7 Level management (state, district, taluk etc.) Yes

8 Outstanding receivable and payable Yes

9 Trial balance Yes

10 Multiple cheque payment option Yes

11 Reminder letter, e-mails to the members Yes

12 Employee database handling Yes



Contd..


13 Payroll management for company drivers and staff Yes

14 TDS, PF, ESI, bonus, income tax for employee Yes

15 Employee attendance and cost tracking Yes

16 Payment advice Yes

17 Pay slip management Yes

18 Branch transfer management Yes

19 Branch accounts and other details synchronization Yes

20 Branch-wise revenue management and cost tracking Yes

21 Company grouping Yes

22 Cash flow, fund flow statements Yes

23 Ageing analysis of receivables, debtor wise Yes

24 Scenario management Yes




25 Ratio analysis Yes

26 Statutory compliance: Service tax, TDS Yes

27 Interest calculation Yes

28 Remote auditing Yes

29 Budget and variance Yes

30 Bank reconciliation Yes

31 Remote access Yes


Micro-finance – MIS Reports


MIS Reports


Accounts& Payroll



Primary Requirement – MIS Reports


MIS Reports Aggregate report Micro-finance companies that are operating at different levels like district, taluk and section offices need to track the progress at each level

Loan summary Several loans are given for different purposes like education, marriage and starting a new business and this needs to be tracked. Payment history is important for giving loans and deciding interest rates.

Pending Installments Installment reports showing how many installments are pending, delayed, skipped are important for management.

Fund utilization Investor funded, government funded or community funded projects need tracking of funds and the where these are utilized.

Member details Membership reports, member retirement report, member-wise loan reports will be needed for the management to understand the performance.

Cost center-wise balance sheet and P&L

By defining projects as cost centers, company can get profit and loss details. This helps in understanding how a branch is performing, how each district is performing.

Excel integration and data migration

Ability to migrate data from the existing systems through excel, XML format is very important without interruption to business.


Tally.ERP 9 Fitment – MIS Reports

Contd..


1 District level reports Yes

2 Taluk level reports Yes

3 Branch office level reports Yes

4 Loan summary reports Yes

5 Loan installment summary report Yes

6 Pending installment report Yes

7 Skipped installment report Yes

8 Delayed installment report Yes

9 Activity reports (different program-wise eg. Education, marriage)

Yes

10 Fund utilization report Yes

11 Member list Yes

12 Member-wise dividend report Yes


Tally.ERP 9 Fitment – MIS Reports


13 Retirement report for members Yes

14 XML support Yes

15 Excel support Yes

16 Data import/export between locations Yes

17 Existing data migration Yes


Thank You

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tally.erp 9 for micro finance management

Documents

reasons of loan

type of loan

purpose of loan

loan installments

bank funds management

loan coobligant details

community funds

fitment tally solutions