1. © Tally Solutions Pvt. Ltd. All Rights Reserved Tally.ERP 9 for Micro-finance Organizations

2. © 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

3. © Tally Solutions Pvt. Ltd. All Rights Reserved 3 3 Structure of Micro-finance Organizations’ Operations Micro-finance Management MIS Reports Membership Management Accounts & Payroll Funds & Loan Management

4. © Tally Solutions Pvt. Ltd. All Rights Reserved 4 4 Micro-finance Organization – An Overview

5. © Tally Solutions Pvt. Ltd. All Rights Reserved 5 5 Micro-finance – Membership Management Micro-finance Management MIS Reports Membership Management Accounts & Payroll Funds & Loan Management

6. © Tally Solutions Pvt. Ltd. All Rights Reserved 6 6 Process Flow – Membership Management

7. © Tally Solutions Pvt. Ltd. All Rights Reserved 7 7 Primary Requirement – Membership Management Category / ModuleMajor RequirementExplanation Membership Management Member details with income information Micro-finance organization need to record the member details like: Member personal information Name, occupation, date of birth, joining date, address, contact number, retirement date Member financial information Type 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 levelMicro-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 classificationsMembers 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.

8. © Tally Solutions Pvt. Ltd. All Rights Reserved 8 8 Tally.ERP 9 Fitment – Membership Management SL No.RequirementPart of Tally.ERP 9Part of Solution 1Member basic details managementYes 2Member picturesYes 3Income detailsYes 4Nominee detailsYes 5Member insurance policy detailsYes 6Loan co-obligant/co-signer detailsYes 7Unique member number (Folio number)Yes 8Retirement detailsYes 9Family member detailsYes 10Regular installment detailsYes 11Member started micro-finance business detailsYes 12Association at state, district, taluk, section office levelsYes

9. © Tally Solutions Pvt. Ltd. All Rights Reserved 9 9 Micro-finance – Funds & Loan Management Micro-finance Management MIS Reports Membership Management Accounts & Payroll Funds & Loan Management

10. © Tally Solutions Pvt. Ltd. All Rights Reserved 10 Process Flow – Funds & Loan Management

11. © Tally Solutions Pvt. Ltd. All Rights Reserved 11 Primary Requirement – Funds & Loan Management Category / ModuleMajor RequirementExplanation Funds & Loan Management Funds managementMicro-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 InsuranceMicro-finance companies provide option for the members to save through savings account and also provide insurances Loan disbursementMembers 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 activitySeveral 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 collectionDifferent 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 managementSeveral loan installments are to be recovered from different members. The partial payments, delayed payments, skipped installments are tracked.

12. © Tally Solutions Pvt. Ltd. All Rights Reserved 12 Tally.ERP 9 Fitment – Funds & Loan Management Contd.. SL No.RequirementPart of Tally.ERP 9Part of Solution 1Member savings account managementYes 2Member savings account interest paymentYes 3Retirement and pension managementYes 4Death relief fundYes 5Trip fundYes 6Member collateral managementYes 7Bank funds managementYes 8Donations managementYes 9Investor funds managementYes 10Government funds and subsidy managementYes 11Recording individual contributions of partiesYes 12Community activity managementYes

13. © Tally Solutions Pvt. Ltd. All Rights Reserved 13 Tally.ERP 9 Fitment – Funds & Loan Management SL No.RequirementPart of Tally.ERP 9Part of Solution 13Loan demand creationYes 14Educational loan managementYes 15Vehicle loan managementYes 16Festival loan managementYes 17Gold loan managementYes 18Marriage loan managementYes 19Funeral assistance managementYes 20Store loan managementYes 21Income generation schemesYes 22Loan payment historyYes 23Loan payment template generationYes 24Member loan applicationsYes Contd..

14. © Tally Solutions Pvt. Ltd. All Rights Reserved 14 Tally.ERP 9 Fitment – Funds & Loan Management SL No.RequirementPart of Tally.ERP 9Part of Solution 25Partial loan disbursementsYes 26Multiple installment managementYes 27Interest calculationYes 28Transaction wise interest calculationYes 29Reducing principle interest calculationYes 30Multiple interest ratesYes 31Pending receivablesYes 32Loan duration modificationYes 33Loan interest rate modificationsYes 34Interest collection reportYes 35Dividend payment reportYes 36Installment remindersYes Contd..

15. © Tally Solutions Pvt. Ltd. All Rights Reserved 15 Tally.ERP 9 Fitment – Funds & Loan Management SL No.RequirementPart of Tally.ERP 9Part of Solution 37SMS reminder supportYes 38Loan disbursement reportYes 39Delayed payment handlingYes 40Skipped installmentsYes 41Debt recovery from collateralsYes 42Receipts printing for installmentsYes 43Deduction from salary – debt recoveryYes 44Automated creation of installments based on repayment period, amount and number of installations Yes

16. © Tally Solutions Pvt. Ltd. All Rights Reserved 16 Micro-finance – Accounts & Payroll Micro-finance Management MIS Reports Membership Management Accounts & Payroll Funds & Loan Management

17. © Tally Solutions Pvt. Ltd. All Rights Reserved 17 Primary Requirement – Accounts & Payroll Category / ModuleMajor RequirementExplanation Accounts & PayrollStatement of accountsBalance 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 flowsAs 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 managementEmployee and support staff database with different levels, pay head configuration makes salary payment a challenging task. Auditing – direct and remoteAnnual 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 managementMore than one branches are present and it is important to track the revenue and expenses individually and as group. Remote access and SMSAll the company details can be accessed from anywhere, at anytime. Details should be retrievable from mobile phones.

18. © Tally Solutions Pvt. Ltd. All Rights Reserved 18 Tally.ERP 9 Fitment – Accounts & Payroll Contd.. SL No.RequirementPart of Tally.ERP 9Part of Solution 1Balance sheet – Schedule VIYes 2Profit and loss statement – Schedule VIYes 3Daily receipts and paymentsYes 4Multiple payment mode handlingYes 5Income managementYes 6Foreign currency managementYes 7Level management (state, district, taluk etc.)Yes 8Outstanding receivable and payableYes 9Trial balanceYes 10Multiple cheque payment optionYes 11Reminder letter, e-mails to the membersYes 12Employee database handlingYes

19. © Tally Solutions Pvt. Ltd. All Rights Reserved 19 Tally.ERP 9 Fitment – Accounts & Payroll Contd.. SL No.RequirementPart of Tally.ERP 9Part of Solution 13Payroll management for company drivers and staffYes 14TDS, PF, ESI, bonus, income tax for employeeYes 15Employee attendance and cost trackingYes 16Payment adviceYes 17Pay slip managementYes 18Branch transfer managementYes 19Branch accounts and other details synchronizationYes 20Branch-wise revenue management and cost trackingYes 21Company groupingYes 22Cash flow, fund flow statementsYes 23Ageing analysis of receivables, debtor wiseYes 24Scenario managementYes

20. © Tally Solutions Pvt. Ltd. All Rights Reserved 20 Tally.ERP 9 Fitment – Accounts & Payroll SL No.RequirementPart of Tally.ERP 9Part of Solution 25Ratio analysisYes 26Statutory compliance: Service tax, TDSYes 27Interest calculationYes 28Remote auditingYes 29Budget and varianceYes 30Bank reconciliationYes 31Remote accessYes

21. © Tally Solutions Pvt. Ltd. All Rights Reserved 21 Micro-finance – MIS Reports Micro-finance Management MIS Reports Membership Management Accounts & Payroll Funds & Loan Management

22. © Tally Solutions Pvt. Ltd. All Rights Reserved 22 Primary Requirement – MIS Reports Category / ModuleMajor RequirementExplanation MIS ReportsAggregate reportMicro-finance companies that are operating at different levels like district, taluk and section offices need to track the progress at each level Loan summarySeveral 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 InstallmentsInstallment reports showing how many installments are pending, delayed, skipped are important for management. Fund utilizationInvestor funded, government funded or community funded projects need tracking of funds and the where these are utilized. Member detailsMembership 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.

23. © Tally Solutions Pvt. Ltd. All Rights Reserved 23 Tally.ERP 9 Fitment – MIS Reports Contd.. SL No.RequirementPart of Tally.ERP 9Part of Solution 1District level reportsYes 2Taluk level reportsYes 3Branch office level reportsYes 4Loan summary reportsYes 5Loan installment summary reportYes 6Pending installment reportYes 7Skipped installment reportYes 8Delayed installment reportYes 9Activity reports (different program-wise eg. Education, marriage) Yes 10Fund utilization reportYes 11Member listYes 12Member-wise dividend reportYes

24. © Tally Solutions Pvt. Ltd. All Rights Reserved 24 Tally.ERP 9 Fitment – MIS Reports SL No.RequirementPart of Tally.ERP 9Part of Solution 13Retirement report for membersYes 14XML supportYes 15Excel supportYes 16Data import/export between locationsYes 17Existing data migrationYes

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