The issue is to appropriately describe the uses that Mifos will enable in terms
of cash management and accounting. That is, in the current release, we have
limited functionality and all implementations will need to pay attention to the
manner in which the application is used. This starts with the "straightline"
rather than edge cases.
Use cases at an MFI
Loan officers take money to and from the field and need to reconcile these
amounts with portfolio accounting (interest earned, interest paid, loans
disbursed, loans repayed, savings deposited, fees and penalties paid)
Cash moves between the local MFI branch and the head office via third parties
Cash moves between the local MFI branch and the local formal banking
Reconcile movememt of cash between local formal banking branches
Reconcile movements between internal accounts that are held in a single local
Interest and fees are earned and recognized either on an accural or cash basis
by the MFI
Interest paid on savings accounts are recognized as expense
Project interest payable and interest receivable
Use cases supported in Mifos
Designate portfolio transaction for loan product is either from local treasury
(aka Petty Cash) or from account (bank) during product definition
Pre-fixed transactions to/from accounts in the GL setup
Recognizing cash income from fees, interest
Recognizing cash expenses for savings
Generating amts due in future - based on schedule of payments
Note source of funds for product
Generate interest receivable based on schedule --> in reports
How to apply the Mifos functionality to the use cases
Maintain a ledger of movement of cash between different entities (bank
accounts) that exist outside of Mifos GL entries
For cash basis and internal treasury scenario, use petty cash and create entry
for cash in/out prior to daily activity from collection sheets.
For cash basis and external treasuries (local bank accounts), do one of
several approaches: 1) create entries of cash into bank accounts before making
savings/loans transactions 2) create entries of cash into bank accounts after
making savings/loans transactions 3) create entries in cash account and then
keep movement to/from external treasuries in separate ledger
In all scenarios, it is best to create transactions that as accurately as
possible reflect the true movement of cash. [principle of accounting]
--> this will require the functionality of "ad-hoc" entries into Mifos.
These need further detail work and testing during field work.
Platform: All, OS: All
Closing all old issues so that issue tracker is clean for v1.1 QA processes.
clean up, update to target milestone Release 1.0
cleanup old issue.
Re-opening this issue as it contains good data on use cases relative to building in accounting functionality in Mifos and improved cash management.
(as indicated by Ed)
We will use the content from this issue in a more actionable manner in other issues that will address some of the needs.
Some of the needs around accounting will be addressed on the roadmap for accounting.
The needs around cash management are on the roadmap for Marie J
In the interests of focusing on specific actionable items, i am closing this issue, and will edit or open new ones with specifics