FlexFin - Automation for Microfinance Organizations
FlexFin is a configurable software complex designed for accounting (analytical and synthetic) in pawnshops and microfinance organizations. The main requirement during the development of the software complex was resilience to changes in legislation and policies, which is typical for countries with developing credit union structures. A distinctive feature of the complex is its adaptability to the legislation and chart of accounts of a specific country, achieved through the implementation of the concept of a financial instrument with a set of characteristic properties and its own behavior based on logical accounts. The system allows for adding additional financial instruments and defining their behavior. Accounting in the software complex is conducted on personal accounts, which contain the main ledger code and information about the financial instrument - the account owner. The behavior of the instrument is determined by a set of template rules configured by the system administrator. Templates are based on logical accounts, which are then associated with personal accounts. These properties position the software complex at the conceptual level of "adaptable automated accounting systems."
I. General Properties of the System:
Open architecture:
The system allows for the connection of extension models. Extension modules can be created using any .Net compatible programming language, enabling third-party developers to extend the system's functionality. For example, the system's operation can be integrated with ATM systems, other payment systems, reporting and analytical systems, etc.
High degree of reliability and fault tolerance:
The system enables regular automatic backup of the database to external storage media (implemented using MS SQL Server tools). The core of the system ensures the integrity of business objects when performing operations in the system.
Scalability:
The system can function in small, medium, large, and very large credit unions, thus it is not limited by the volumes of credit union operations. The system's performance depends on the server hardware and MS SQL Server version. The basic configuration of the software complex includes MS SQL Server Express Edition, which does not increase the overall cost.
Control over the correctness of operations:
Operations in the system are carried out using templates, which simplify data entry and ensure the correctness of transactions.
Security and authentication system:
The software complex inherits the user authentication mechanism of the operating system, ensuring security guaranteed by the OS developers and simplifying system security administration overall.
The system allows for the differentiation of access rights to execute specific templates by defined user groups. Thus, credit workers only have access to execute templates related to credits, and so forth.
Accounting operations (entries) have several states: entered, posted, canceled, etc. Transition from one state to another can only be performed by a user endowed with specific rights.
The system core logs data changes. The log contains the time, author of the modification, property name, value before modification, and value after modification. The log can subsequently be used as a valuable source of information about the reasons for data changes.
Localization :
The system can easily be localized according to the end user's needs.
Customizable Print Forms :
The system includes a built-in report editor and, if necessary, allows for the creation and modification of output document forms.
Analytical Capabilities :
The system has four types of chart of accounts: actual, planned, forecast, and auxiliary. This allows for obtaining analytical data for the past, present, and near future.
Registry of Linked Documents :
The system allows for storing and quickly accessing documents related to financial instruments (enterprise balances, photos and videos of collateral, copies of contracts, etc.).
Account Balances Locking :
The presence of a built-in mechanism for controlling account balances allows for setting minimum and maximum balances, providing the ability to limit balances within established limits.
II. Basic Configuration Functions:
Since the system has a flexible configurable architecture, the basic functionality listed below can be expanded without the need to involve developers.
2.1 Credit Module
| Module Function | Description |
|---|---|
| Creating and modifying loan disbursement and repayment schedules. | The system automatically creates schedules with specific frequencies (monthly, quarterly, etc.) and allows for manual adjustments. |
| Collateral management. | The system can account for various types of collateral such as real estate, securities, etc., as well as guarantees from other credit union members. In the case of guarantees, the system blocks the account for the guaranteed amount, allowing deposits but not permitting withdrawals below the blocked amount. |
| Principal debt accounting. | The system allows for gradual disbursement and repayment of loans according to the schedule, as well as operations related to loan review and automatic repayment of debt from guarantor accounts or borrower's own accounts. |
| Interest calculation. | The system calculates interest daily at the end of the day according to the chosen method: 365/366 days per year or actual days. |
| Overdue loan management. | Capability to transfer loans to overdue status, create reserves for overdue loans if necessary, switch to non-accrual status, and accrue interest on off-balance sheet accounts. |
| Interest repayment. | Ability to repay interest according to the schedule, both manually and automatically, from guarantor or borrower accounts. |
| Interest and non-interest penalties. | Allows for the calculation of penalty interest and imposition of one-time fines both manually and automatically. |
2.2 Deposit Module
| Module Function | Description |
|---|---|
| Creating and modifying deposit replenishment and withdrawal schedules. | The system automatically creates schedules with specific frequencies (monthly, quarterly, etc.) and allows for manual adjustments. |
| Interest calculation. | The system calculates interest daily at the end of the day according to the chosen method: 365/366 days per year or actual days. |
| Interest withdrawal. | Capability to withdraw interest according to the schedule, both manually and automatically, and automatic reinvestment of accrued interest. |
| Term and savings deposit management. | The system allows for partial replenishment and withdrawal of deposits according to the schedule, automatic transfer of term deposits to designated accounts upon maturity. |
2.3 Founding Contributions Accounting Module
| Module Function | Description |
|---|---|
| Founding contribution replenishment and reduction. | The system allows for the accounting of multiple shares of one member according to the credit union's policy, with the ability to create various share products. |
| Dividend calculation. | The system automatically calculates dividends upon user request for all members, automatically deducting dividend taxes. |
| Dividend withdrawal. | Ability to automatically transfer accrued dividends to share contributions for all shareholders who have not requested dividends. |