Financial Supply Chain Management

The Financial Supply Chain Management (FSCM) helps to get complete budget visibility, view estimation requests, pending approval, and transactions approved against the budget estimates. A budget is a financial projection for a definite period, usually a financial year. As it is expressed in financial terms, it is based on the expected expenditure, liability, assets, and income.

Key Features of the Financial Supply Chain Management Module#

• Budget Allocation: The Budget Allocation Functionality enables users to submit budget estimate requests, which are then reviewed, verified, and allocated according to the established approval hierarchy. It also helps organizations track and record their spending within the approved budget limits, whether managed centrally or across different departments.

• Budget Re-appropriation: The Budget Re-Appropriation functionality enables users to reappropriate allocated budgets both within the same department (intra-department) and across different departments (inter-department), as well as between various budget heads and subheads. It allows organizations to manage their funds more flexibly and ensure optimal utilization of resources without exceeding the overall budget

• Budget Revision: Budget revision refers to the process of revising the allocation under various Heads or Subheads during the financial year.

Prerequisites to Initiate the Financial Supply Chain Management#

Configuration of the Base Module with Organizational Unit Types:

• Define and set up the organizational structure, including all unit types (e.g., departments, sections, centres).

Creation of Administrative and User Accounts:

• Creation of Administrative and User Accounts
• Create administrative accounts for module administrators and the users going to work on the module

Roles in the Financial Supply Chain Management#

There are six user roles available in the Financial Supply Chain Management system. These roles can be assigned to administrative users based on their specific responsibilities and job functions.

• fscm_admin: Role to be given to the administrative account, which is responsible for the configuration of the Financial Supply Chain Management module.
• fscm_department: Role to be given to the administrative account that is responsible for raising the estimates in the heads/Subheads of the respective category for the department.
• fscm_hierarchy_verifier: Right to verify the budget estimate request from the department. Role will be auto-assigned on the basis of the configuration in “Approval Hierarchy” in Masters.
• fscm_hierarchy_approver: Right to approve the budget estimate request and allocation in the heads/subheads. Role will be auto-assigned on the basis of the configuration in “Approval Hierarchy” in Masters.
• fscm_hierarchy_default_authority: Right to verify/approve the budget estimate request and allocation in the heads/subheads in the absence of the verifier and approver, respectively. Role will be auto-assigned on the basis of the configuration in “Approval Hierarchy” in Masters.
• fscm_view: Right to view the budget estimate request and allocation in the heads/subheads.
• fscm_gst_admin: Role to be given to the administrative account, which is responsible specifically for the configuration of the GST invoice (Service Master and University Billing Address)

Configuration of the Financial Supply Chain Management#

To start the usage of budget management, the user with fscm_admin needs to complete the following configuration. Configuration can be divided into three parts:

1. Settings of Financial Supply Chain Management
2. Master Configuration
3. Settings of the Account Book

Settings of Financial Supply Chain Management#

• Log in to Samarth by using the credentials with the user role fscm_admin and click Finance.
• Click on Dashboard in the Financial Supply Change Management card to go to the dashboard of the FSCM module.
• Click on Settings to configure the settings for it.

1. Creation of the Financial Year:

   • Click on Configure Financial Year to add the financial year for which the budget of the institution has to be managed.

     • Financial Year Name: Enter the name of the financial year as FY 2025-26
     • Financial Year: Select the appropriate code of the financial year
     • Budget Revision Dates: Select the Budget Revision Dates during the financial years on which the Budget can be tentatively revised
     • Tentative Audit Dates: Select the audit dates that fall after the end of the year in which the audit tentatively takes place.
     • Status: Select the status as Active.
     • Archive Status: This indicates whether the financial year is required for budget-related activities such as allocation, revision, or re-appropriation (transfer). Select ‘No’ if the financial year is required to be used; select ‘Yes’ if it is not required.
     • Do You Want To Use This Financial Year In Vendor And Employee Bills: This option indicates whether the vendor and employee bill is to be processed within the applicable financial year. Select ‘Yes’ if required; otherwise, select ‘No.’

2. Creation of the Account Book:

   • After adding the financial year, click on Account Books to view and create Account Books.

   • Click on Create Account Book to create the account book.

   • Add the following details for the Account book for that particular financial year and click on the Save button.

     • Name: Select the Name for the book of accounts.
     • Financial Year: The financial year for which the book of accounts has to be created.
     • Main OU: If the institution or university has more than one campus, then select the campus for which a book of accounts has to be created; otherwise, select the Parent Organization Unit of all Organization Units.
     • Project/University: Select whether the book of accounts has to be created for the University or the Project.
     • Applicable OU: Select the OU’s for which this book of accounts will be applicable for that particular financial year.
     • Accounting Type: Select the applicable accounting type for the financial year in which the books of accounts are to be created.
     • Currency: Select the currency in which accounting has to be done.
     • Status: Select the status Active to activate the book of accounts, which has to be created.

Master Configuration#

Click on the Masters button to create the reporting tags, budget categories, budget heads, subheads, and bank details to be used in the financial years.

1. Creation of the Tags:

   • Click on the action button against Tags to create the tags for reporting purposes.

   • Click on the Add Tag button to add the Tags.

     • Category: Select the category according to the need, add the details of the Tag to be created, and click on the Save button.
     • Name: Enter the name of the Tag
     • Code: Enter the code of the Tag
     • Description: Enter the description of the Tag
     • Status: Select the status as Active and click on Save button

2. Creation of the Budget Category:

   • Click on the Masters again, and then click on the Budget Categories to add the budget categories.

   • Add the details regarding the budget categories and click on the Save button.

     • Name: Enter the name of the budget category to be created
     • Code: Enter the code for the budget category
     • Description: Enter the description for the budget category
     • Status: Put the status Active for the budget category

3. Creation of the Heads/Subheads:

   • Click on the gear icon against Head Subhead Masters to create the head and subheads of the budget to be used in the financial years.

   • Click on the Add Head Subhead button to add the Head, Subheads

     • Statement Type: Select the statement type of the head, whether the accounting of the head/subhead will be accounted for in the income-expenditure statement or in the balance sheet.
     • Name: Enter the Name of the head/subhead.
     • Code: Give the code for the head/subhead.
     • Category: Select the category of the head/subhead; the categories in the drop-down come from the master, where Budget Categories have been defined.
     • Tags: Select the tag for the reporting purpose for the head/Subhead. The tags in the drop-down come from the master where Tags have been defined.
     • Class: Select the Class whether it is a major head or minor head(subhead). If the class is a subhead, then provide the parent of this subhead, which is the head itself.
     • Description: Provide the description for the head/subhead.
     • Parent Head: When the selected class is ‘Subhead,’ the corresponding parent Head must be selected from the available dropdown list.
     • Carry To Next Year: Select Yes/No. If yes, then the available balance at the end of the financial year will be carried forward to the same head/subhead in the next year.
     • Estimate Applicable or Not: Select Yes/No. If Yes, then the departments will be able to raise a budget estimate request in the head/subhead.
     • Advance Applicable or Not: Select Yes/No. If yes, then the advance can be taken from the head/subhead.
     • Allow budget allocation under this Head?: Select Yes/No, if Yes, then the Budget needs to be allocated in the Major Head only
     • Allow expenditure recording under this Head?: Select Yes/No, if Yes, then the Expenditures needs to be recorded in the Major Head only, and subhead(minor head) cannot be created
     • Status: Select the status Active to make the head/subhead available for use.
     • Component Code: Enter the component code assigned to the respective Head/Subhead on the PFMS portal. If no component code is assigned, leave this field blank.

   • After providing the inputs, click on the Save button to save it.

4. Addition of the Banks:

   • Click on gear icon against the Bank Details to add the account numbers to be used by the university for payment purposes. The bank details correspond to Current Asset heads, also for accounting purposes.

   • Click on the Add Bank Detail button to add the bank details.

     • Bank Name: Select the Bank Name.
     • Bank Identifier: Enter the identification given to the particular bank account.
     • Account No: Enter the Bank Account No.
     • Ifsc Code: Enter the IFSC Code of the Bank Account.
     • Branch Name: Enter the name of the bank branch where the account is maintained.
     • Status: Select the status as Active

   • Then fill in the relevant details

5. Addition of the Vendor Type:

   • Click on gear icon against the Vendor Type in the Masters to add the vendor types to be used in the system.

   • Click on the Add Vendor Type Button and add the relevant details about the vendor type.

     • Vendor Type: Enter the vendor type
     • Pan Applicable: Select whether PAN NO would be required to add the required vendor.
     • Account Applicable: Select whether Bank Account Details would be required to add the required vendor.
     • Status: Select the status as Active
     • Click on the save button to save it.

6. Creation of the Budget Approval Hierarchy:

   • Click on gear icon against Approval Hierarchy to set the approval hierarchy for verification, approval, and allocation of budget against the raised estimates.

   • Click on the Create Approval Hierarchy button.

     • Project/Institute: Select whether the hierarchy needs to be created for the institute or research project.
     • Organization Unit: Select the organization unit or project for which the hierarchy needs to be created i.e for which organization unit or project users will be responsible for the verification of the estimates and approval of the respective estimates raised by the department.
     • Default Authority: Users selected in the default authority can perform any action on behalf of any verifier and approver.
     • Verifier: The User selected with Order 1 will be the first verifier for the estimates raised by the selected OU, and the user with the top order will be able to send it for approval, and if any rectification is needed in the raised estimate, then the verifier can send it back to the respective OU for verification.
     • Approver: The User selected with Order 1 will be the first approver for the selected OU, and the user with the top order will be able to allocate the budget value against the raised estimate.
     • Status: Select the status Active to use the configured hierarchy.
     • Click on the Save button to save the configured hierarchy

7. Service Master:

   • Click on the action button in line with the service master

   • Click on the Add Service button

   • Fill in the details

     • Service Name: Enter the service name provided by the organization.
     • SAC/HSN Code: Enter the HSN or SAC code provided under the Goods and Services Tax (GST) Act.
     • GST Applicable: Select whether the service is taxable under GST Action or not
     • Unit of Measure: Select the unit of measurement(Hours/ Unit/ Pcs) in which the service or supply can be measured
     • Description: Enter the Description
     • Status: Select the status as active

8. University Billing Address:

   • Enter the address of the organization that needs to be shown on the GST Invoice.

9. Application Control:

   • This configuration specifies the functionalities subject to control. Some functionalities will be available for use only if permitted.

     • fscm_allow_affiliated_colleges: This setting allows users to add affiliated college in the university account book
     • fscm_allow_remove_ou: This setting allows users to remove the mapped organization unit from the university account book
     • enable_multiple_revisions: This setting allows users to revise the estimated amount multiple times
     • enable_lock_account_book: This setting allows users to lock the account book. If the account book is locked, no user will be able to make any entry in the account book, for example, bill processing, receipt processing, etc.
     • enable_unlock_account_book: This setting allows the user to unlock the account book.
     • recipient_user_for_otp: This setting allows you to select the user who will receive the OTP for locking and unlocking the Account Book
     • fscm_verify_vendor_ifsc: This setting enables the IFSC code verification functionality through API

Settings of the Account Book#

• Click on the Financial year in the left pane for which the Budget has to be created.
• Click on the Financial year in the left pane for which the Budget has to be created. Now the created book of accounts is visible in the List of Books of Accounts(Accounting) section.
• Click on arrow icon to open the created book of accounts for that particular financial year. The View of accounts will be as follows.
• Now, go to the Settings of the book of accounts for the specific financial year.

There are two settings:

1. Budget Categories Mapping:

   • In the budget categories setting, the created budget categories in the previous step of master configurations can be mapped with the selected financial year.

   • Click on arrow icon against the budget categories in Settings.

   • Click on the Add Category Mapping button to map the category, then select the details of the mapping accordingly and click on save button to Save it.

   • After Saving, the following screen will be visible to indicate the successful desired mapping.

2. Head and Subheads Mapping:

   • In this setting of books and accounts, the mapping of head/subheads to the particular financial year can be done. The heads/subheads that have been created in the masters by using a particular category will be available for mapping only if that particular category is mapped to that financial year in the previous step.

   • Click on the icon against the Head and Subheads in Settings.

   • Click on the Add Mapping button to map the head/subheads, then select the details of the mapping accordingly and click on the save button to Save it.

     • Financial Year: It comes pre-filled.
     • Head/Subhead: Select the Head/Subhead that has to be mapped.
     • Carry To Next Year: Select Yes only if the value in that particular Head/Subhead has to be carried forward at the end of the selected financial year.
     • Estimate Applicable or Not: Select Yes/No. If Yes, then the departments will be able to raise a budget estimate request in the head/subhead.
     • Revision Dates: Select the revision dates on which the budget value will be revised for the selected head/subhead.
     • Status: Put the status Active to use the configured head/subhead.
     • Opening Balance Applicable: Opening balance as of the date, centrally for the selected account book, can be entered here. If the opening balance is in Debit, then the value in Credit will be 0 and vice-versa accordingly.

   • After Saving, the screen will be visible to indicate the successful desired mapping.

Note: The user with fscm_admin will have to configure the above settings to initiate the usage of the Budget management part of the Finance and Supply Chain Management module.

Process of Allocation of the Budget#

After the configuration, the user with the fscm_department role will be able to raise the budget estimates by following the mentioned steps.

Step 1: Budget Estimate Request Creation:

1. Login into the Samarth Portal by using the credentials with the user role fscm_department and click on Finance.

2. Click on Dashboard in the Financial Supply Change Management card to go to the dashboard of the FSCM module.

3. Now Click on the Financial year in the left pane for which the Budget has to be created.

4. Click on arrow icon to open the created book of accounts for that particular financial year.

5. Click on arrow icon against Budget Estimates to open the Budget Estimates for the created book of account for that particular financial year.

6. Click on the Request For Budget button to raise the budget estimate request.

7. Select the Budget Category in the head of which the Budget Estimate request needs to be raised and click on the Save button.

   • Financial Year: The financial year for which budget estimates requests need to be raised in the budget heads of the selected category.
   • Organization Unit: Unit name of the organization for which budget estimates requests need to be raised in the budget heads of the selected category.
   • Budget Category: The Budget Category in the heads of which the Budget Estimate request needs to be raised.
   • Then the success message will appear.

Step 2: Budget Breakup Creation in Budget Estimate:

1. Now to raise the Budget Estimate requests in the Heads under the selected category click on the Budget Breakup button against that category.

2. Click on the Add Breakup button to add the breakup in heads.

3. Select and fill in the below-mentioned and then click on Submit button to Save the Budget Estimate Request:

   • Head: The Head in which the Budget Estimate Request is to be created
   • Currency: Currency of the Budget Estimate
   • Estimate Amount (in Selected Currency): Estimate amount in the selected Currency
   • Estimate Amount (in Rupee): It will get auto-filled after selection of the above fieldset
   • Status: Active

4. Then the Budget Estimate request will be saved in the Draft. To submit it click on the submit button. It will ask permission to submit then click on OK button to submit the saved budget estimate request.

5. Then the approval status will be changed from Draft to Submitted for approval, and the budget estimate request will be sent to the verifier assigned by fscm_admin accordingly.

Step 3: Verification of the Budget Estimate Request:

1. Log in to the Samarth Portal by using the credentials with the user mapped in the hierarchy as fscm_verifier and click on Finance.

2. Click on Dashboard in the Financial Supply Change Management card to go to the dashboard of the FSCM module.

3. Now, click on the Financial year in the left pane for which the Budget has to be created.

4. Click on arrow icon to open the created book of accounts for that particular financial year.

5. Click on arrow icon against Budget Estimates to open the Budget Estimates for the created book of account for that particular financial year.

6. Now, to verify the Budget Estimate requests in the Heads under the selected category, click on the Budget Breakup button against that category.

7. Click on the button against the request to verify it

   • Fill in the details and click on Save button

Verify the request from all the users mapped as verifiers in the hierarchy. Then the approval status will be changed from Submitted for approval to Approval Pending, and the budget estimate request will be sent to the approvers assigned by fscm_admin accordingly.

Step 4: Approval of the Budget Estimate Request:

1. Log in to the Samarth Portal by using the credentials with the user mapped in the hierarchy as fscm_hierarchy_approver, and click on Finance

2. Click on the tick button against the request to approve it, and fill in the Details

   • Amount Allocated: Enter the total amount that has been approved or assigned to this specific budget head.
   • File Reference No: Enter the File Reference Number
   • Approval Date: Select the Approval Date of the Budget
   • Effective Date: Select the Effective Date of the Budget, when the allocated budget will begin to take effect, or when it will be usable.
   • Approval Upload: If there is any document related to the budget approval, it can be uploaded.
   • Status: Select the Status as Approved
   • Click on the Save button

The request must be approved by all users mapped as approvers in the hierarchy. Only the final approver (last-level approver) is authorized to allocate the amount against the request. Once approved, the status will change from ‘Approval Pending’ to ‘Approved,’ and the designated users will be able to record the expenditures.

Process of the Budget Re-Appropriation/Transfer#

To perform the budget re-appropriation, the user with fscm_admin or fscm_department needs to follow the mentioned steps.

Step 1: Budget Re-Appropriation Request Creation:

1. Log in with the user having the role of fscm_admin or fscm_department and click on the Finance

2. Click on the Dashboard of the Financial Supply Chain Management Card

3. Click on the Financial year in the left pane for which the Budget has to be re-appropriated

4. Click on the Arrow button in line with the Account Book in which the Budget re-appropriation needs to be performed

5. Click on the Budget Estimates of the Account Book in which the Budget needs to be re-appropriated

6. Click on the Arrow button and click on the Budget Transfer.

7. Click on the Create button and fill in the Details:

   • Organizational Unit: Select the organizational unit from which the budget will be transferred.
   • Transfer Category From: Choose the budget category from which the funds are being reallocated
   • Transfer Budget Head From: Select the specific budget head under the category that holds the budget to be moved.
   • Budget Sub Head From: Choose the subhead under the budget head, if applicable.
   • Transfer Department To: Select the organizational unit to which the budget will be transferred.
   • Transfer Category To: Choose the budget category receiving the funds.
   • Transfer Budget Head To: Select the specific budget head to which the budget will be added.
   • Budget Sub Head To: Choose the subhead under the target budget head, if applicable.
   • Then click on the Save button

Step 2: Approval of the Budget Re-appropriation Request:

1. Log in with the user having the role of fscm_admin and click on the Finance

2. Click on the Dashboard of the Financial Supply Chain Management Card

3. Click on the Financial year in the left pane for which the Budget has to be re-appropriated

4. Click on the Arrow button in line with the Account Book in which the Budget re-appropriation needs to be performed

5. Click on the Budget Estimates of the Account Book in which the Budget needs to be re-appropriated

6. Click on the Arrow button and click on the Budget Transfer.

7. Click on the Approve Button for the required Transfer request and fill in the details:

   • Approval Status: Select the Approval Status as Approved
   • Approval Date: Select the Approval Date
   • Approval Remarks: Enter the remarks
   • Click on the Save button.

Process of the Budget Revision#

To perform the budget revision, the user with the role of fscm_admin needs to follow the steps outlined below:

Step 1: Updation of the Budget Revision Date:

• Log in with the administrative user having the role of fscm_admin and click on Finance.

• Click on the Dashboard of the Financial Supply Chain Management Card.

• Click on the Financial Year in the left pane for which the Budget has to be revised.

• Click on the Account Book in which the Budget needs to be revised.

• Go to the Settings of the Account Book and click on the Head Subhead Mapping.

• Click on the Update Revision Dates button.

  • Financial Year: It will come pre-filled.
  • Head/Subhead: Select the heads/subheads whose budget allocations need to be revised.
  • Revision Date: Select the revision date on which the budget revision needs to be performed, and click on the Save button.

Step 2: Revision of the Budget Allocations:

• Click on the Financial Year in the left pane for which the Budget has to be revised.

• Click on the arrow button in line with the Account Book in which the Budget needs to be revised.

• Click on the Budget Estimates.

• Click on the Revise Estimate against the category in which the revision needs to be done.

• The heads or subheads having the revision date as the current date will be visible. Then fill in the required details:

  • Head / Subhead: The names of the heads/subheads will be visible where the revision needs to be done.
  • Use Opening Balance as Estimate: If the opening balance is added as estimate, it will show as Yes; otherwise No.
  • Actual Estimate Amount: The estimate amount that has been raised in the head will be visible.
  • Actual Allocation Amount: The amount that has been allocated in the head will be visible.
  • Transferred (-): The amount which has been transferred from this head to another head.
  • Transferred (+): The amount which has been transferred to this head from another head.
  • Planned Expenditure: The amount for which the expenditure has been planned, i.e., the bills are approved but not paid yet.
  • Expenditure Done: The amount for which the expenditure has been recorded.
  • Balance: The balance available in the head after the transfers and expenditures are made.
  • Revised Allocation: The amount that needs to be allocated in the head as revised allocation.
  • Difference: The difference between the Actual Allocation and the Revised Allocation.
  • Balance After Revision: The balance in the head after reducing the expenditures done from the Revised Allocation.

• Remove the rows that are not required to be revised, and click on the Save button.

Reports#

This section consists of multiple types of reports namely:

1. Budget Estimation Report:- The Budget Estimation Report provides a financial overview for the entire financial year. It helps in planning and allocating resources effectively based on estimated expenses and revenues.

2. Budget Transfer Report:- The Budget Transfer Report is used to reallocate budgeted funds between departments or between different budget heads. It facilitates internal adjustments to ensure optimal use of financial resources.

3. Category Head and Subhead Mapping Report:- This report displays budget category data based on the mapping between heads and subheads. It helps in understanding how budget allocations are structured and categorized within the financial system.

4. Expenditure Report:- The Expenditure Report provides a comparison between the planned amount, allocated amount, and actual expenditures. It helps in monitoring budget utilization and tracking financial performance.

5. Nature Wise Head Subhead Mapping Report:- This report presents budget category data based on the mapping of heads and subheads, categorized by nature. It provides a detailed view of how financial allocations are organized according to their nature-specific classifications.

We can generate the reports by applying the filters and clicking on the Submit button.

We can download the excel file of the reports by clicking on Download File button.

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