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© 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
© Tally Solutions Pvt. Ltd. All Rights Reserved 3 3
Structure of Micro-finance Organizations’ Operations
Micro-financeManagement
MIS Reports
Membership Management
Accounts& Payroll
Funds & Loan Management
© Tally Solutions Pvt. Ltd. All Rights Reserved 4 4
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
© Tally Solutions Pvt. Ltd. All Rights Reserved 5 5
Micro-finance – Membership Management
Micro-financeManagement
MIS Reports
Membership Management
Accounts& Payroll
Funds & Loan Management
© Tally Solutions Pvt. Ltd. All Rights Reserved 6 6
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
© Tally Solutions Pvt. Ltd. All Rights Reserved 7 7
Primary Requirement – Membership Management
Category / Module Major Requirement Explanation
Membership Management
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 Solutions Pvt. Ltd. All Rights Reserved 8 8
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
© Tally Solutions Pvt. Ltd. All Rights Reserved 9 9
Micro-finance – Funds & Loan Management
Micro-financeManagement
MIS Reports
Membership Management
Accounts& Payroll
Funds & Loan Management
© Tally Solutions Pvt. Ltd. All Rights Reserved 10 10
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
© Tally Solutions Pvt. Ltd. All Rights Reserved 11 11
Primary Requirement – Funds & Loan Management
Category / Module Major Requirement Explanation
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 Solutions Pvt. Ltd. All Rights Reserved 12 12
Tally.ERP 9 Fitment – Funds & Loan Management
Contd..
SL No. Requirement Part of Tally.ERP 9 Part of Solution
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
© Tally Solutions Pvt. Ltd. All Rights Reserved 13 13
Tally.ERP 9 Fitment – Funds & Loan Management
SL No. Requirement Part of Tally.ERP 9 Part of Solution
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..
© Tally Solutions Pvt. Ltd. All Rights Reserved 14 14
Tally.ERP 9 Fitment – Funds & Loan Management
SL No. Requirement Part of Tally.ERP 9 Part of Solution
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..
© Tally Solutions Pvt. Ltd. All Rights Reserved 15 15
Tally.ERP 9 Fitment – Funds & Loan Management
SL No. Requirement Part of Tally.ERP 9 Part of Solution
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
© Tally Solutions Pvt. Ltd. All Rights Reserved 16 16
Micro-finance – Accounts & Payroll
Micro-financeManagement
MIS Reports
Membership Management
Accounts& Payroll
Funds & Loan Management
© Tally Solutions Pvt. Ltd. All Rights Reserved 17 17
Primary Requirement – Accounts & Payroll
Category / Module Major Requirement Explanation
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 Solutions Pvt. Ltd. All Rights Reserved 18 18
Tally.ERP 9 Fitment – Accounts & Payroll
Contd..
SL No. Requirement Part of Tally.ERP 9 Part of Solution
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
© Tally Solutions Pvt. Ltd. All Rights Reserved 19 19
Tally.ERP 9 Fitment – Accounts & Payroll
Contd..
SL No. Requirement Part of Tally.ERP 9 Part of Solution
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
© Tally Solutions Pvt. Ltd. All Rights Reserved 20 20
Tally.ERP 9 Fitment – Accounts & Payroll
SL No. Requirement Part of Tally.ERP 9 Part of Solution
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
© Tally Solutions Pvt. Ltd. All Rights Reserved 21 21
Micro-finance – MIS Reports
Micro-financeManagement
MIS Reports
Membership Management
Accounts& Payroll
Funds & Loan Management
© Tally Solutions Pvt. Ltd. All Rights Reserved 22 22
Primary Requirement – MIS Reports
Category / Module Major Requirement Explanation
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 Solutions Pvt. Ltd. All Rights Reserved 23 23
Tally.ERP 9 Fitment – MIS Reports
Contd..
SL No. Requirement Part of Tally.ERP 9 Part of Solution
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 Solutions Pvt. Ltd. All Rights Reserved 24 24
Tally.ERP 9 Fitment – MIS Reports
SL No. Requirement Part of Tally.ERP 9 Part of Solution
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
© Tally Solutions Pvt. Ltd. All Rights Reserved 25 25
Thank You
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