Public Financial Management System (earlier known as CPSMS)

Government of India Ministry of Finance

Department of Expenditure

Office of Controller General of Accounts

Expenditure Filing on PFMS

For IMWP

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

1. Recognition of historical transactions

2. Real-time accounting (payment & accounting

with voucher generation)

3. E-payment/transfer to agencies, vendors,

staff & beneficiaries

4. 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.

1. 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 e u Ba k > li k o su -menu

A ou t A ti atio E-Pa e t >a e s ree appears>sele t 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.>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> li k o SUBMIT utto > a essage 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 essage 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.>

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. You can still edit the payee details.

• Cli k o SUBMIT FOR APPROVAL Butto . 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. Checker needs to click

on CONFIRM button to approve the payment

file.

• After approval by the checker the following

s ree appears ith a essage 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

pa ee age s a k a/ s. S ste 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

age s a k a ou t.

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

ai e u ADVANCE . • Functionality to enter opening balances for projects

started in previous years is available under the main

e u ADVANCE .

Steps for expenditure filing (post facto

accounting) in brief are as under:

– Go to the odule E pe diture a d li k o add

e

– A e page Create E pe diture Details ill appear.

– Fill in all the relevant information such as sanction

no., date, expenditure amount, etc

– Select the components of expenditure,

revenue/capital expenditure.

– Cli k o the utto Sa e

- A new page for entering the payee details will

appear.

– Sele t i stru e t t pe a d li k o add . – Fill in all the information such as amount, date of

cheque a d li k o the utto o fir . – A essage Pa ee details has ee o fir ed

su essfull ill appear. – Cli k o the utto Su it for Appro al . – A essage E pe diture has ee Su itted

su essfull ill appear – Cli k o Appro e/Reje t utto .

– After entering the remarks, we can approve/reject

it.

– If it is appro ed, a essage E pe diture has ee Appro ed su essfull ill appear o 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