One of the challenges that saccos face is access to timely and correct information. The FinITC Sacco Management Solution does not have this limitation because all information is found in one common database.
1.1. Real Time
Another typical problem is that information entered in excel files is frequently not available in real-time. This means that records may be updated only at certain intervals during a period (hour, day, week, or month). The advantage of the FinITC Sacco Management Solution is that as soon as data is entered into the system, it becomes instantly available. The disadvantage is that incorrectly entered data will be seen also. Users must be cautious when they enter data into the system. It is very important that only correct data reside in the system.
1.2. Beyond Sacco Processes
With the FinITC Sacco Management system, saccos can process activity beyond the known sacco processes. For example, the sacco management systems can support investments and financial accounting.
1.3. Roles and Authorization
Although information in the Sacco management system is readily available, proper authorization is required. Access to data is frequently determined by one's job role and responsibilities within the sacco. For example, a sacco member is authorized to create, view, and modify his/her sacco loan, but cannot create new sacco members.
1.4. The Sacco System
The FinITC Sacco Management System is a fully integrated relational database system that lets you enter and maintain financial and other sacco business activities in one place. The FinITC Sacco System has modules such as General Ledger, Receivables, Cash Management, Loan Management and Investments.
Installation
Yes, the product is cloud by design. No installation files are required. Using a Sacco Management System in the cloud means always being up-to-date with the latest version of the product.
2.1. Sign Up
To create an account, contact your Sacco Administrators. An e-mail shall be set to you containing your username and a One Time Password.
You will be prompted create a new password. The password must have some Capital letters, Small letters and some numbers. It should be atleast 8 characters otherwise the system will through an error of a weak password.
Once the password has been created, you will be in position to login using your e-mail and password.
2.2. Create an Account
Member Accounts are created by the SACCO Administrators by creating a member card which sends and e-mail notification to the member.
2.3. Member Login
Use your Company e-mail or Sacco Member No. and the default password to log on to the system. In case you do not have a default password, Use the "I forgot my Password" action on the login page and a One Time Password shall be sent to your company e-mail. The system will prompt you to change the password at first login.
System Overview
This section introduces the general concepts of the user interface design of the Sacco Management System. With the user interface, you can focus, prioritize, and apply your expertise. Key data is visualized so that you better understand your business. The user interface has different components, which are discussed.
3.1. Home Page - Administrators
Once the Administrator has been authenticated and authorized, they will be redirected to the home page.
3.2. Home Page - Member
Once the Sacco Member has been authenticated and authorized, they will be redirected to the member home page.
3.3. Navigation bar
The navigation pane appears on the top of the user interface. You use the navigation pane to switch between different menus. From the navigation bar, you can open list places. An example of a list place is the member list. From a list place, you can open individual cards or documents. The navigation pane displays one menu at a time. Depending on your user profile, various activity buttons may be available
3.4. Menu Items
Items on the navigation bar are grouped into Lists(working data), pages (filtered working data), tasks (actions to perform), reports (analysis of data), archive (historical information) and setup (application area configuration settings). Below are the Sacco Details menu items.
3.5. Pages - Lists
Pages are the main way to display and organize data. Pages offer a visual experience. Every user has a home page, customized to the individual needs and tasks that each user performs. Other types of pages, such as list pages might display lists of general ledger accounts, members or bank accounts, whereas others such as worksheet pages focus on user tasks.
3.6. Filter & Search
You use the filter box to display accounts, members, entries, or other records by specifying criteria for fields in a table. The example below searches and filters out all G/L accounts with a word Loan
3.7. Card Page
You use a card page to view and edit one record or entity from a list of records. The card page displays selected fields from the record. An example of how to use a card page is for creating / editing a sacco member.
3.8. Enter and Edit Information
The way to add and edit information in fields depends on the type of field. When you enter information into fields, the system provides the format for the type of information that you enter in the following types of fields. Date fields - accept only date parameters, Number fields - accept only numbers, Text fields - accept information in any format, Code fields accept only predefined codes, FlowFields display amounts and quantities calculated by the system, for example the Balance field for G/L accounts. The system provides flexibility when you enter dates. It displays a calendar from which the user selects the required date.
3.9. Send to Word, Excel and PDF
Any page can be exported to a Word, Excel, or PDF. For example, to send a member list to Excel, On the member list, click the Member List drop down, Select Excel from the drop down list.
3.10. Sort Information
With the sorting functionality in System, you can decide the order in which information is displayed. For example, if you have many general ledger entries, you can choose to order them by one of the available fields. To change the sorting order of a list, Click the up and down arrows next to the field to sort by that specific field.
General Setup
The General Setup window is used to specify a default setting for the general ledger and other application areas. The general setup must be completed for each sacco that is set up in the system.
4.1. Sacco Setup Card
The Sacco Setup contains the basic setup defaults such as the Share capital, membership fees, number series, notification settings among others. It can be accessed by clicking Sacco on the navigation bar, Sacco Details > Sacco Setup
4.2. Accounting Period
With accounting periods, users can create time references in the system. A fiscal year consists of several accounting periods. The shortest possible fiscal year consists of one accounting period with one month. You can use the Years window both open Fiscal Years and Define Accounting periods. Creating a new year will automatically create accounting periods each of one month. The accounting Periods can be viewed by clicking Sacco > Sacco Details > Periods.
General Ledger
Two main components of the General Ledger application area are the Chart of Accounts and General Journals. These will be discussed in this section.
5.1. Chart of Accounts
The Chart of Accounts provides quick access to G/L Accounts and balances. This is the heart of the Sacco Management System. Every process executed in the Sacco Management System ends up in the Chart of Accounts
5.2. Creating and Posting Journal Entries
Users can create and post journal entries. To enter lines in a general journal, On the navigation bar, click Finance > General Ledgers > General Journals. Click the Number in the "Edit Journal" column. This will open the selected General Journal Batch. Enter the relevant fields and click Save.
5.3. Post General Journal Lines
To post the general journal line, Scroll to the right of the Journal line and click the icon below Post Caption. Click Yes to post the journal line. In order to post multiple journal lines, click the Post Batch and Click Yes.
5.4. Reviewing Posted Entries
On the navigation pane, click Finance > General Ledger > Under the Archives Group, select General Ledger Entries. Click the Entry No. field to sort by either ascending or descending. Two entries are created to complete the double entry.
Receivables
Receivables are claims for payment held by the Sacco for services rendered to the sacco members such as loan disbursments and member registration fees that sacco members have ordered but not paid for.
6.1. Create a Sacco Member
As the accountant manager at Royal Investment Sacco, you are responsible for setting up new members. A new member, Mathew Bugembe, has contacted your SACCO and requested to start saving with the Sacco. You have agreed on the SACCO policies and you must create a member card for the member in the database so that receiving of membership fees can start. Refer to Section 2.2: Create an Account.
6.2. Upload Standing Orders
SACCO members make standing orders to DFCU sacco account. The system has a provision of batch upload of member standing orders to affect the SACCO ledgers. The file to be uploaded must be a csv column and must have four columns i.e. Date (YYYY-MM-D), Member No., Description and Amount. This populates the system general journals. Once the journals are posted, member accounts will be credited.
Self Service
The Sacco Management System allows sacco members to access their information and perform routine tasks with limited interaction with the sacco administrator. Sacco Members can download their member statements, make sacco deposits, withdraws and requistions for sacco loans.
7.1. Update Profile
Use the Member No. provided by the Sacco Administrator and the default password to log on to the system. The system will prompt you to change the password at first login. Once the password has been changed, Click Update Registration Details under the quick actions to update your member profile and finally click save. You can also choose a picture and signature from your local computer and upload it to your profile as shown below.
7.2. Register as a Member
After updating your profile by following the steps highlighted above, attach a scanned standing order showing how your monthly deduction should be made. Click the Register as member button to register as a member. This will send an e-mail notification to the SACCO administrator.
7.3. Print Member Application Form
Edit the Member Card by clicking the edit Action or Update registration details. Click the Print Member Application form. This form can be printed and stored on file.
7.4. Confirm Member Registration
This is done by the sacco administrator by navigating to the member list either through click More info on the member tile on the home page or by Clicking Sacco on the navigation bar > Sacco Details and selecting Members under the list group. The administrator then reviews the member information and then clicks Confirm member. This automatically creates a shares journal line.
7.5. Shares Journal Line
At the point of registration, a member is required to have at least one share. Each share is UGX 20,000. This is setup in the Sacco Setup. Shares are recognized by Debiting the Member Savings Account and Crediting the Shares Account. The system automatically creates the journal lines once the member has been confirmed.
7.6. Shares Ledger Entries
Once the Application for membership has been posted, the transaction shall be committed the ledgers by debiting the member savings and crediting the shares accounts as shown below. This will also reflect on the member statement.
7.7. Deposits
Money can be deposited on the SACCO account either by using Mobile Money or through the Bank. Once the transaction has hit the SACCO account, the SACCO administrator can register the transaction through the journals (by uploading bank statements) to reflect in the SACCO ledgers. Alternatively, the SACCO member can also register the transaction by clicking "Sacco > Sacco Details" and then selecting "Deposits" under the list Group. Click New , populate the required fields and click save.
7.8. Send Deposit for Approval
In order to send the contribution/deposit for approval, edit the Deposit by click the pencil/edit action and attach a deposit slip or screenshot if it is an online payment. Click Send Approval Request. The Approver/Sacco Administrator will click on the Request To approve Tile on the home page to view the request and either decide to approve or Reject it.
7.9. Review Contributions Journal Lines
When the contribution/Deposit is approved by the Sacco Accountant, the system automatically generates General Journal Lines in the Contribution batch. These journal lines can be accessed by Clicking Finance > General Ledger > General Journals. The Edit Journal column will show the number of entries created. Click on that number to open the journal. The system debits the Bank Account (Asset) and credits the Member Savings Account (Liability). It also attaches the Member No. as shown in the figure below. Posting the entry to have the balance reflect on the member statement. Refer to section 5.3. Post General Journal Line.
7.10. Loan Application
The members logs on to the self service portal using their member no. and password. On the home page under the news feed, the member is in position to view how their loan eligibility. Click on more info under the Loans tile to access the loan list and apply for the loan.
The Loan eligibility is as follows; For members whose savings amount is UGX 5m and below, the maximum borrowing is 2 times the member savings up to a cap of UGX 5m, for members whose savings are above UGX 5m but not more than 15m, the maximum borrowing shall be 1.5 times member savings up to a cap of UGX 15m, for members whose savings are above UGX 15m but not more than UGX 25m, the maximum borrowing shall be 1.25 times member savings up to a maximum of 25m and for members whose savings are above UGX 25m, the maximum borrowing shall be 1 times member savings.
7.11. Loan Limits
Under the Sacco menu, click Sacco details and select Sacco setup under Setup. Click the Loan limits to view a list of loan limits, loan tenor, loan cap, loan multiplier, as per the saving categories.
7.12. Capture Loan Details
Click new under the Loans List to create a new loan. Enter the Amount, No. of installments, and the purpose of the loan. Click Save to save the loan. Once the loan has been saved, click edit to attach a standing order that shows how the loan will be repaid. This must be in pdf. You can now send the loan for approval by clicking Send Request as shown in the figure below.
7.13. Loan Calculator
The Loan Calculator allows members to input various parameters related to a loan, such as the loan amount and number of repayment periods. Based on these inputs, the calculator then calculates and displays key information about the loan, including: Monthly Payments, Total Interest Paid, Amortization Schedule and other related loan costs such as administration fee. Click Loan Calculator to view it as highlighted in the screenshot above.
7.14. Requests To Approve
As an administrator, you have access to the tile for requests to Approve on your home page. Click more info under the Request To Approve tile to access the list of Request to Approve. You can decide to either Approve or Reject the Request. Please note while rejecting a request, the system prompts the user to enter a reject comment.
7.15. Loan Disbursement Journal Line
Once the Loan has been approved, the system automatically creates journal lines. It debits the Loan Account (Asset Account ) and Credits the Bank Account (Also an Asset Account). The administrator is required to post the journal so that the ledger accounts are affected.
7.16. Generate Loan Repayment Journal Lines
When the loan repayments are due, the system will show the administrator the loans that are due repayment on their home page under the quick actions. The administrator is required to generate loan repayment journals by clicking the "Generate Loan Repayment Journal" as shown in the figure below.
7.17. Loan Repayment Journals
The system generates 3 journal lines. One for the loan repayment i.e. Debit Member Savings and Credit the Loan Account, The second one to acknowledge the interest income by Debiting the Member Savings and Crediting the Interest from Member loans account and the last one to register the administration fee income by Debiting the member savings and Crediting the Administration fee account.
Review the journals and post them so that the relevant accounts are affected.
7.18. View Savings Satement
Log in as a member, under the Quick Actions, click View Savings Statements.
7.19. View Loans Statement
Log in as a member, under the Quick Actions, click View Loans Statements.
7.20. Loan Top-ups
When a member requests for a loan top-up, a new loan is created by getting the top-up amount, adding the outstanding loan, the interest of that month the loan top-up is request, and the outstanding loan fee. The process of applying for a loan top-up is identical to that of a loan, except, the member clicks on the tile for the loan top-ups. The loan limits discussed earlier in this documentation also apply for the loan top-ups. A member also has an option of specifying the new installment periods while applying for a loan top-up. The loan top-up also goes through an approval process and once it has been fully approved. The new loan amortization schedule is created.
7.21. Loan Pay-offs
To full pay off an outstanding loan, the system calculates the outstanding loan amount and adds outstanding loan admin fee and the interest for the current month of the pay-off is made. When a member partially pays off a loan, the system computes the outstanding loan, include the outstanding loan fee, and then creates a new loan schedule. The only difference is that the tenor/period of the loan will be equal to the remaining months as per the old schedule. This process of making loan pay-offs is identical to that of the loan. However, the pay-off amount is deducted from the member savings and thus there is no need of attaching a standing order.
7.22. News Feed
The system shows what a member can borrow at a give time. It also displays the member borrowing limits. This is visible on the home page under the News Feed
7.22. Saving Withdrawals
Members can withdraw their savings. However, the system does not allow them to withdraw more than their outstanding loan if any. The system is configured to hold member savings for members with outstanding loans. To request for a withdrawal, click more info under the withdrawal tile and click new to create a new record.
Sacco Investments
Saccos transform member savings to investments. The FinITC Sacco Management Systeme ships with an investment module that allows sacco accountants to invest in Fixed Deposits, Treasury Bills and Treasury Bonds.
FAQs
Explore a list of frequently asked questions (FAQs) and answers in relation to the FinITC Sacco Management System.
