Finance setup

This article introduces the platform's internal accounting and how to integrate it with external accounting systems.

Internal accounting system

Account types

A list of all account types can be found under "Finance setup / Account types".

Below are the typical accounts:

Account type	Mandatory	Description
Application commitment	Required	Every application must maintain an account to record all changes related to the commitment amount. For example, when a commitment is approved, the account balance increases, indicating that a necessary amount has been reserved for that specific commitment.
Application payment	Required	Every application must maintain an account to record all changes related to payout. For example, when a payment is approved and executed, the account balance increases, indicating that the money has been paid out to the applicant.
Application repayment	Required	Every application must maintain an account to record all changes related to the repayment. For example, when an invoice payment is received, the account balance increases, indicating the applicant has paid back the pool.
Pool round commitment	Required	Every pool round must maintain an account to record all changes related to the commitment amount. For example, when a commitment is approved, the account balance decreases, indicating that the pool has set aside the necessary funds to fulfill the commitment.
Pool round payment	Required	Every pool round must maintain an account to record all changes related to payout. For example, when a payment is approved and executed, the account balance decreases, indicating that the money has been paid out to the applicant.
Pool round repayment	Required	Every pool round must maintain an account to record all changes related to repayment. For example, when an invoice payment is received, the account balance decreases, indicating the pool has received the payback.
Pool round commitment cancellation	Optional	A pool round can maintain a separate account to record all changes related to canceled commitments. Some businesses might demand that all canceled commitments be kept in a separate account from the pool round commitment account. For example, when a commitment is canceled, the pool round commitment cancellation account balance increases while the application commitment account decreases, indicating the pool has canceled the reserved amount.

Transaction flows

A transaction flow is a business flow that generates a finance transaction that moves the fund from one account to another. A list of all transaction flows can be found under "Finance setup / Transaction flows".

Transaction flow	Description
Approve application commitment	When a caseworker approves a commitment, the system will generate a finance transaction to reserve the funds for that specific commitment.
Approve additional commitment	When a caseworker approves an additional commitment, the system will generate a finance transaction to reserve the funds for that specific commitment.
Approve commitment cancellation	When a caseworker approves a commitment cancellation, the pool will generate a finance transaction to cancel the fund reservation. Depending on the business requirement, the canceled fund can be used for other commitments or managed separately.
Receive application invoice	When receiving an invoice payment, the system will generate a finance transaction to record the payback.
Execute payment	When executing a payment to the applicant, the system will generate a finance transaction to record the payout.

Transaction types

A list of all transaction types can be found under "Finance setup / Transaction types".

A transaction type determines how a transaction is executed, i.e., it specifies the movement of funds from one account (debit) to another account (credit), and identifies the transaction flows that can trigger it. Each transaction flow can only be associated with one transaction type.

Below are typical transaction types:

• Application commitment

  • Description: When a caseworker approves a commitment, the system will generate a finance transaction to reserve the funds for that specific commitment.

  • Flow: Approve application commitment

  • Debit account type: Pool round commitment

  • Credit account type: Application commitment

• Additional commitment

  • Description: When a caseworker approves an additional commitment, the system will generate a finance transaction to reserve the funds for that specific commitment.

  • Flow: Approve additional commitment

  • Debit account type: Pool round commitment

  • Credit account type: Application commitment

• Commitment cancellation

  • Description: When a caseworker approves a commitment cancellation, the pool will generate a finance transaction to cancel the fund reservation. Depending on the business requirement, the canceled fund can be used for other commitments or managed separately.

  • Flow: Approve commitment cancellation

  • Debit account type: Application commitment

  • Credit account type:

    • Option 1: Pool round commitment
    • Option 2: Pool round commitment cancellation

• Payment execution

  • Description: When executing a payment to the applicant, the system will generate a finance transaction to record the payout.

  • Flow: Execute payment

  • Debit account type: Pool round payment

  • Credit account type: Application payment

• Repayment invoice

  • Description: When receiving an invoice payment, the system will generate a finance transaction to record the payback.

  • Flow: Execute payment

  • Debit account type: Pool round repayment

  • Credit account type: Application repayment

Integrate with external accounting systems

The grant management solution can integrate with Navision and other accounting systems that support file exchange protocols, such as SFTP and FTP. Below are some highlights.

You can set up the external account structure inside the system.

You can set up different processes to handle incoming and outgoing data flows.

Each batch process is dedicated to a specific set of transactions sent or received through a given data stream.

You are free to customize different transaction templates: