Mifos 2.1 Accounting Integration with Tally ERP 9

Owned by UdaiU (Unlicensed)
Last updated: Sept 11, 2011 by Lindsey Livingston (Unlicensed)Version comment

FAQ

Why we need accounting integration with Mifos?
- Mifos is a financial software used by Micro Finance Institutes (MFI).  Every financial (even non-financial) institution has the responsibility of maintaining accounting information for various purposes (eg. auditing). For maintaining this accounting information, these institutes use an accounting software.  Mifos maintains transactions which can be converted into accounting information. Most of the MFIs do the Mifos transactions to accounting information conversion manually or by using a home grown solution (scripting).  Currently, there is not an automated way to transfer transaction information from Mifos to an accounting software.

Why not just build accounting into Mifos?
- MFIs have other various types of operations and accounting information apart from Mifos transactions, however Mifos can only provide accounting information related to Mifos.  Also, Mifos can not replace accounting software that is required by an institute. In many different countries accounting software is used to show reliability of their accounting data.  External Auditors are also more familiar with the known accounting software and consider the software as standard. Due to the reason explained, MFI still have to transfer accounting information tracked by Mifos to their accounting software.

Setting up Tally ERP 9 for Mifos Accounting Integration.

Every Accounting System has a "Chart of Account" (COA). Mifos also maintains financial transaction mapped to a COA.

Mifos COA can be configured to match your Accounting System.

http://mifos.org/functional-specifications/mifos-system-setup/chart-accounts

Tally ERP 9 Setup for Mifos

  1. Set up branches as cost centers in Tally: Branch name in Tally should be the same in MIFOS
  2. Synchronize ledger/GL accounts of MIFOS and Tally: Alias of ledger account in Tally should be the same as GL account code in MIFOS
  3. Set up automatic numbering of vouchers in Tally

Successful setup is given as an example in these  User Stories

http://mifosforge.jira.com/browse/MIFOS-3536

http://mifosforge.jira.com/browse/MIFOS-3116

Exporting Accounting Data from Mifos

Mifos 2.1 has Accounting data export capability enabled by default.

Login -> Admin tab -> Under section "Manage Imports and Exports" - > View accounting exports

The Tally XML format can be downloaded per day basis from this interface.

This XML contains vouchers that can be imported into Tally using "Tally XML Import" functionality of Tally ERP 9.