Public Financial Management System (earlier known as CPSMS) Expenditure Filing on PFMS For IMWP Government of India Ministry of Finance Department of Expenditure Office of Controller General of Accounts

Pre-requisites for making transfer/ payments on PFMS Registration of agencies and its approval User Creation Bulk customization Vendor registration Ensuring availability of funds in Bank Account Activation of Bank Account for E-payment

Financial transactions that can be done on PFMS Recognition of historical transactions Real-time accounting (payment & accounting with voucher generation) E-payment/transfer to agencies, vendors, staff & beneficiaries Advance settlement & expenditure filing 5. A consolidated FMR/SoE for the above becomes available to users/program managers

Process of making payments on PFMS- Summary User Creation- creation of Maker and Checker Maker and Checker can be any assistant in the officer of the concerned agency duly authorised Creation of Bulk customisation template Creation / registration of vendor Ensuring availability of funds Adding opening balances Receiving fund released/ transferred by granting institution Bank account activation for e-payment Making payment Adding payee Maker makes the payment order & checker approved the payment order Generation of payment advice Printing of payment advice Submission of the signed payment advice to the concerned bank to finally release payment. Vouchers can be generated after payment transaction which can be printed and used in the books of accounts. Ex post facto expenditure already done can be entered in the PFMS system using expenditure filing. Vouchers can also be generated in this case

Users Creation (Maker, Checker & additional AgencyAdmn or Users) There is provision for creation of other users in PFMS Login on PFMS as AgencyAdm (with ID and PW entered/received while registering agency) Go to the following Menus: Master>Add User>choose the user to be created>fill all the fields>Submit Log in credential will be mailed to the newly created User on his/her mail id. Follow the similar process for creating Checker/Agency Data Approver or additional Users

Details to be filled in for creation of users

Bulk customization/creation of template for funds transfer, advances, expenditure filing Bulk customization option can be used for bulk fund transfer – for eg fund transfer from SLNA to WCDC, SLNA to PIAs, payment of salary, payment of wages form muster etc. Login on PFMS as AgencyAdm and go to the following Menus: Master>Bulk customization>click on Manage> Select or enter the required details and click on SAVE button. Template gets created and starts appearing to the user for doing fund transfer, advances & expenditure transactions in bulk. Templates can be for single use or for multiple use. Templates can be created as per use and deleted as per requirement.

Template creation needs no approval and any number of templates can be created or disabled or deleted any time as per requirement of the agency. System also provides facility for Bulk Customization using Excel file as well.

Creation/Registration of Vendor This provision useful to make payments to suppliers of goods and services at all the levels of the hierarchy. Login and go to the Menus: Master>Vendor>click on Add New>fill up the required detail>add bank account details>click on SAVE button Vendors can be created without bank account details also. Created vendor will appear to the user under the ADVANCE Module for release of advances.

Vendor creation screen

Ensuring availability of funds To start payments, PFMS does not automatically take the opening balance at the start of the year. The process of making funds available starts with entering opening balance as per Cash Book 2. By receiving funds released/transferred by the granting institution (central govt. or upper level funding agency or State Treasury as the case may be) 3. By receiving funds from other sources

Menus for receipt of funds from different sources

Bank Account Activation for E-Payment Even though there are number of bank accounts registered and mapped with various agencies, these bank accounts cannot be automatically used for e-payments. This facility has to be activated for the required accounts. Login in as AgencyAdm>go to menu “Bank’>click on sub-menu ‘Account Activation E-Payment’>a new screen appears>select scheme>click on search button>all bank accounts registered with agency appear>check the box against the bank account to be used for E-Payment>select account activation type (PPA, DSC, CINB)>click on submit>request goes to Project Office (PFMS) which approves the bank account requested for activation. With this the same bank account(s) get recognised in banks` CBS for E-payment.

Funds Transfer to parallel or down-the-line agencies Maker Logs in>click on menu TRANSFER>Add New>a new screen pops up

Select the desired customization for funds transfer (right hand top red hyperlink)

Following screen appears

Select the bank account>enter Order No Select the bank account>enter Order No.>Upload the sanction/order no.>select/enter sanction or order date and transactions date>enter the total amount to be transferred to agencies>check the box against recipient agency>select component(s)>enter amount to be transferred for the component> similar process to be followed for other recipient agencies>amounts entered for different agencies and components should tally with the total amount entered the upper field>click on SUBMIT button> a message “The Transaction has been saved successfully with Voucher Number” will pop on the screen>click on Ok button to proceed further In the PFMS system, there is also a provision to transfer funds for a only particular components. If that is done, the agency down the line can book expenditure for that component only. At present we will use bulk transfer to subordinate or par level agencies for the sake of ease.

On clicking OK button a screen appears with the message “Amount being transfered saved successfully Do you want to proceed with payee details? Click on YES button to proceed further.

The system takes you to next stage as below The system takes you to next stage as below.> verify the details and click on NEXT Button

On clicking next button following screen appears with E-payment details. Verify the details and click on CONFIRM Button.

A message ‘Payee details saved successfully’ appears

Click on NEXT Button, following screen appears Click on NEXT Button, following screen appears. You can still edit the payee details.

Click on ‘SUBMIT FOR APPROVAL Button Click on ‘SUBMIT FOR APPROVAL Button. The process stands completed at Maker level. Now Checker/Approver logs in, verifies the details and approve the payment batch/file

When checker click on APROVE Button a dialogue box appears When checker click on APROVE Button a dialogue box appears. Checker needs to click on CONFIRM button to approve the payment file.

After approval by the checker the following screen appears with a message ‘Record approved successfully’.

Generation of Payment Advice As soon as the payment/transaction is approved by the Checker the payment data travels to Agency bank for affording credit to payee agency’s bank a/cs. System simultaneously generates a Payment Advice addressed to the Agency Bank along with name and contact details of the Designated Officer of Central/Head Office of the Agency Bank.

Printing a Payment Advice To take out a print out of Payment Advice, click on the Print Payment Advice link appearing in blue at bottom. This advice needs to be signed by two authorised signatories (signatory will be the person who can operate the account) and then got delivered to Agency Bank branch for necessary action at their end, i.e. to credit payee agency’s bank account.

Payment Advice to Bank

Voucher for the transactions is available at the following link as given below: Transfer>Voucher Printing Transfer

On clicking the Voucher

Voucher for E-transfer of funds

Important The process for transfer of funds to a single agency is similar; only difference is that the Bulk Template will not be clicked. The process for release of advances to Vendors/executing agencies/suppliers is also similar, only difference being that the targeted vendors/executing agency will be selected. For this, the vendors/parties/executing agencies will need to be created in before the release using the Master menu. The menu for settlement of advance is given under the main menu ‘ADVANCE’. Functionality to enter opening balances for projects started in previous years is available under the main menu ‘ADVANCE’.

Steps for expenditure filing (post facto accounting) in brief are as under: Go to the module “Expenditure” and click on “add new” A new page “Create Expenditure Details” will appear. Fill in all the relevant information such as sanction no., date, expenditure amount, etc Select the components of expenditure, revenue/capital expenditure. Click on the button “Save” - A new page for entering the payee details will appear.

Select instrument type and click on ‘add’. Fill in all the information such as amount, date of cheque and click on the button “confirm”. A message “Payee details has been confirmed successfully” will appear. Click on the button “Submit for Approval”. A message “Expenditure has been Submitted successfully” will appear Click on “Approve/Reject” button.

After entering the remarks, we can approve/reject it. If it is approved, a message “Expenditure has been Approved successfully” will appear on the screen. This completes the steps for entering an expenditure

Other Important Functionalities to create/add: Users (editing users` details, disabling, resetting PWs) Bulk customization Vendors Master Project with period, location and components Scheme Allocations/Budget Scheme Components (components for establishment, etc. are required to be specified by IWMP)

Add New Scheme or bank Account Agency Mapping Managing child or other agencies Editing agencies` details (including bank account, funding level, additional funding agency)

Thanks