Accounting Integration in Mifos

UNLOCKING THE POTENTIAL OF MICROFINANCE

Accounting Set-Up During Mifos configuration, enter your chart of accounts into Mifos to include

all portfolio-related GL Codes During product set-up, configure GL Codes for each product’s transaction type

(Loan disbursals, loan repayments, savings deposits, etc) Mifos records GL entries for each transaction and can be viewed on the

Transaction History page

Each transaction row has GL Code, Date of

transaction, debit/credit amounts

Configurable in Mifos

Flexible Export options from Mifos:o Export support for all financial transactions types:

• Loan disbursals, principal, interest and fee repayments• Client, Group, and Center Fees• Savings deposits, withdrawals, and interest postings

o Can be any level of detail and in variety of formats• Sliced/diced by branch, loan product, transaction type, date• Summarized to General Ledger level• Typical formats: Report or CSV

o Export run daily in Mifos (either at Head or Branch Office)

Flexible Import options to Accounting Systemo Data imported or manually entered into accounting systemo Certain formats can be directly imported, depending on which accounting software is

choseno Examples:

• Pastel – CSV can be formatted to a Pastel template and then imported• QuickBooks – IIF format (tab-delimited file) imported directly into QuickBooks

Integration of Mifos and Accounting Software

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Accounting Integration: Example #1 (SECDEP)

MIFOS MIS Platform

Accounting System

Daily export of summarized Mifos

transactions

Import or manually enter into accounting

system

Basic integration with Mifos

Example 1: Basic Integration

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General Ledger report run EOD everyday Summation of all transactions at Head Office Data then manually entered into Accounting system

Accounting Integration: Example #2 (Jitegemea)

Basic integration, plus reconciliation with bank accounts

MIFOS MIS Platform

Daily export of Mifos transactions summarized at

center level

Import transaction data by center

Enter bank statements with deposit slip

amounts

Reconcile deposit slips with Mifos data, and transfer to

respective GL accounts

Bank Accounts

Accounting System

Data from Mifos is reconciled with bank data to ensure imported numbers match Bank statements with deposit slip amounts are entered into Accounting system Then, daily Mifos export files are imported

Example #2: Financial Reconciliation

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After imported data from Mifos is accepted, all Mifos receipts are reconciled with banking deposit slips and the sums in the Bank Control account are transferred into respective GL accounts

Example:

(2)Import file from MifosLoan installments 500Collected interest 50Collected savings 100

320  deposit slip  (1) 330  deposit slip  (1)

Bank Control Account

(3)    50020,000  Recorded when loan check is issued

Principal Receivable

19,500

Accounting Integration: Example #3 (ENDA)

MIFOS MIS Platform

Accounting System

Integrations with both cash management and accounting systems

Daily export of Mifos transactions by branch

and product typeImport or manually

enter into accounting system

Cash Management

System

Validation for Mifos transactions, and other reports related to other

expenses

CSV of Mifos transactions at

individual transaction level

Example #3 – Detailed Reports

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Report is run for each branch and each loan product Contains report date, loan amount disbursed and amounts paid (principal, interest, different

fee types, etc)

Loan portfolio data can be extracted from Mifos and combined with data from Accounting for Operational Reporting (SEEP, etc)

Examples of Metrics (information from Mifos in red / Accounting in blue)o Operating Expense Ratio = Operating Expense / Average Gross

Loan Portfolio o Cost Per Active Client = Operating Expense / Average Number of

Active Clients o Average Loan Disbursed = Value of Loan Disbursed / Number of

Loans Disbursedo Portfolio at Risk (PAR) Ratio = PAR > 30 Days +Value of

Renegotiated Loans / Gross Loan Portfolioo Risk Coverage Ratio = Impairment Loss Allowance / Portfolio at

Risk > 30 days + Value of Renegotiated Loans

Operational Reporting

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Mifos

Loan Portfolio Report– Portfolio Quality

Productivity Ratios– Number of Active Loans per

Loan Officer

Accounting

Balance Sheet Income Statement Cash Flow Statement Return on Investment (ROI)

Operational Reporting

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Examples of Reports

Mifos and Accounting

Operational Data Donor Reports

Profitability and Portfolio Quality Management Reports

Efficient and Productivity Ratios and Asset/Liability Management

Examples of Ratios

Operational Reporting

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Examples of Graphs Average Loan Disbursed, Operating Expense Ratio, etc

Operational Reporting

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