Expenditure, Advance and

Transfer (EAT)
Module

Standard Operating Procedure

(SOP)
September 2017
Version 1.0

Public Financial Management System

Controller General of Accounts
Department of Expenditure
Ministry of Finance
 Expenditure, Advance and Transfer (EAT) – Standard Operating Procedure

1. Purpose
The objective of Expenditure, Advance and Transfer (EAT) module of Public
Financial Management System (PFMS) is to help Program Implementing Agencies
(PIAs) in filing of expenditure, transferring funds, advances and its settlement.
This Standard Operating Procedure (SoP) provides an overview of activities to be
undertaken for filing of Expenditure, Advance and Transfer. A step by step guide
for each activity is provided in the detailed user manuals (referenced in this SoP).

2. User Manuals for Reference

Activity Manual
Implementation of Expenditure, PFMS User Manual – EAT
Advance and Transfer (EAT)
PFMS User Manual – Role of
Creation of Maker and Checker
Administrator
PFMS User Manual – Vendor Registration
Creation of Vendor
and Management
PFMS User Manual – Enrollment of
Enrollment of Digital Signature
Digital Signature
The following activities need to be completed by the Program Division (PD) for
implementation of EAT:
 PIA Registration
 Hierarchy Mapping
 Identifying Components

3. Prerequisite to implement EAT

A set of activities and sub-activities need to be completed by the PIAs before filing
implementation of EAT are as follows:

3.1 Creation of maker and checker

(Refer PFMS User Manual – Role of Administrator)
Every PIA will have an administrator by default, who needs to create the next level
of users, i.e., maker and checker. More than one maker and checker can be defined
for different schemes mapped to a particular PIA. At each PIA level, maker and
checker needs to be created.

a) Maker: Maker is the data operator (one who enters all transactions in PFMS)
b) Checker: Checker is the data approver (one who verifies and approves/rejects
the transactions entered by the maker/data operator and also authorises the
payments).
Go to Masters >Users>Add New. Fill in all the required details on the “create agency
user” page and submit. The message “Record saved successfully, your password

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 Expenditure, Advance and Transfer (EAT) – Standard Operating Procedure

has been sent on your email address” will be displayed. After obtaining the
password, the operator and approver can login through their respective login
credentials.

3.2 Vendor Registration

(Refer PFMS User Manual – Vendor Registration and Management)

The vendor/beneficiary list can be created from the Masters Menu by adding new
vendor or beneficiary. Vendors can be of different types such as Personal,
Commercial, Institutional, Small business finance, Small scale industries, NGO,
Govt. Official and Departmental officer. Vendor can be registered individually or by
bulk customization through ‘Excel’ upload.

To register new vendor, go to “Master>Vendor>Add new. On the page “create

vendor”, enter all the details such as vendor type, PAN number, TIN number, etc.
Click ‘Add Bank Details’ to add the bank account number of Vendor to be created.
Click ‘Save’ to create the vendor. A message “Vendor added successfully. Please
note the unique code for registered vendor for future use” will be displayed. For
vendor type “Government Official- Imprest Advance” and “Departmental Officer”,
Bank details will not be required.

3.3 Payment Authorization

There are two ways a PIA can make e-payments to beneficiaries/vendor through
PFMS portal - Print Payment and Advice (PPA) and Digital Signature Certificate
(DSC). PIA needs to activate the method it intends to use for making e-payments
through EAT module.

To activate the PPA, go to Bank>Bank Account E-payment. On the “Activation of

bank account” page select the scheme, enter the account number and submit. A
request is raised with the respective bank. Once the bank validates, payment
authorization is successful and PIA can start using the PPA for making e-payments.

PIA need to complete Enrollment of Digital Signature on the PFMS portal. PIA
approver should login and go to “Masters>DSC Management>Enroll DSC. On the
Digital Signature Enrollment page click on the link “Digital Certificate Enrollment”
(Hyperlink on the right side of the screen can be used to install DSC driver and
JAVA plugin). PIA approver need to select the certificate and complete installation
process. After entering the Personal Identification Number (PIN), “Enrolled
Successfully” message is displayed after successful PIN validation.

After clicking ‘OK’, user should wait for 5 minutes to get “View Certificate Details
and Proceed For Enrollment” button on the screen and proceed with certificate
enrollment. On this screen, user shall select Scheme and Purpose for which
payments are to be done. For digitally signing on the beneficiary list option
“Digitally Sign Beneficiary List” option will be selected and for digitally authorizing
payment through PFMS, “Digitally Sign Payment File” option will be selected. Once
the digital certificate is enrolled successfully, it is then available to the concerned

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 Expenditure, Advance and Transfer (EAT) – Standard Operating Procedure

approving authority for approval. Post approval, DSC can be used to sign payment
files.

3.4 Customise for bulk payment

A bulk customisation master is created for repeated bulk transfer/payments to
multiple PIAs/beneficiaries. Separate customisation for expenditure, advance and
transfer need to be created. Also, separate customisation for each implementation
level has to be created.

Go to Masters>Bulk Customization>Manage. Fill all the necessary details on the

“Scheme Bulk Customization” page. After submitting the details, a message
“Record saved successfully” will appear on the screen. Also, the customization will
appear in a grid. In order to make bulk transfer/payments user need to select the
scheme first and then select the already created Customization name and enter the
required details.

3.5 Enter opening balance

The opening balance as per the cash book as on first day of financial year or from
the date when the PIAs starts using the EAT module is to be entered on the PFMS
portal.This cannot be later than 1 October, 2017. If PIA start filing in the
expenditure (for already incurred expenditure) in PFMS from the beginning of the
financial year, the balance will be taken as on 1st April of that financial year. Entry
related to outstanding advances can also be captured.

If PIA has been using PFMS EAT module prior to 1 October 2017, all receipts and
expenditure after the date of entering the opening balance will have to be
accounted for in PFMS. Opening balance need to be entered only once in the PFMS.

For entering opening balance, the data operator will login into PFMS portal and
select My Funds>Opening Balance from the menu. Click on the “Add Opening
Balance” on the “Manage Opening Balance” page. After entering all the details, click
on “Save” button. A message “Opening balance saved successfully” will be
displayed. Once the data is submitted by the data operator (Maker), it will be sent
to Data Approver (Checker) for his approval.

Data approver will log in and go to My funds>Opening Balance. On the “Manage

Opening Balance” page, click on “Bulk” button under Scheme Component to open
the opening balance details page. The approver can approve/reject/cancel
transaction by clicking on “Approve/Reject/Cancel Transaction” button.

3.6 Capture receipts of funds

Funds received from the central government, receipts from other PIAs, funds
returned from other PIAs, receipts from interest income and any other receipts can
be viewed, verified and received on PFMS for the purpose of accounting in the
books. This is necessary in order to synchronise balance in EAT module with that
of Bank and to ensure that adequate balance is available in the system to make
payments.

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 Expenditure, Advance and Transfer (EAT) – Standard Operating Procedure

Agency Administrator need to login and select My Fund> Received from Central
Govt. from the menu. A new page will open showing all the details of
sanctions/releases from Central Government. Click on the Sanction Number to
verify the details. Click on “Received” button to receive the amount. In case the
sanction does not pertain to the PIA, it can be returned by clicking on “Not
Received”.

4. Activities involved in EAT

4.1 Expenditure Filing
This section is for capturing all expenses incurred directly by the PIAs like salary
expenses, office expenses, etc.

For expenditure filing go to “Expenditure>Add New” and open the page “Create
Expenditure Details”. Fill all the details such as scheme name, account number,
payee, Sanction no., gross amount, etc., and Select “Scheme component”, “Select
expense type”, “Enter Amount or Percentage”. Click on “Add” button. The gross
amount and component/s amount should tally to proceed further. Click on “Save”
button.

Upon saving the entry, the user will be prompted for entering the payee details.
Click ‘Yes’ to proceed for entering payee details. “Payee Details” will appear on the
screen. Select Account No. and instrument type (Cheque/DD/RTGS/ECS/PPA/
Digital Signature) and click on “Add” button. Then fill the instrument details and
date and click on “NEXT” button. Mention ‘Narration for Passbook’ in the space
provided. For adding Deduction details like TDS from payment (if any), Select ‘Yes’
option under “Do You want to Add Deduction Details?”. Click on “Next” button and
select deduction type. Enter Amount/Percentage to be deducted and click on ‘Add
Deduction’. The net amount plus deducted amount should match with the total
amount of advance. Click on “Confirm” button. A message “Payee details saved
successfully” will appear. Click on “Next” button.

The data operator has to submit the expenditure transaction for approval by the
data approver. Click on “Submit for Approval” button. Once the expenditure
transaction is submitted by the operator, the approver will login, go to
“Expenditure>Approve” and after verifying the details, approve the expenditure to
complete the process.

4.1.1 Treatment of Deductions

For the expenditures where deductions are involved, gross amount will be booked.
After making the deductions, the net amount will be paid. The deduction so
effected will be adjusted in the system using the miscellaneous deduction link. No
separate expenditure will be booked for the deduction already made.

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 Expenditure, Advance and Transfer (EAT) – Standard Operating Procedure

4.2 Advance Payment

Advance payment is made to a vendor or supplier for getting a service or product.
Also, an advance is given to an official for getting a work done. Once the intended
work is completed, the beneficiary/vendor/supplier submits the voucher and
return the balance amount, if any, for settling the advance.

Go to “Advance>Add new”. “Create Fund Advances” page will open. Fill all the
details and click on “Save” button. A message “Funds details saved successfully. Do
you want to proceed with payee details” will appear on the screen. Click ‘Yes’ to
enter payee details as explained in “Expenditure Filling section”. After entering
payee details, data operator will submit the advance transaction for approval by
data approver. The approver will login and go to “Advances>Approve” and after
verifying the details, approve the advance to complete the process. For settlement of
Advance paid the operator will log in and go to Advances-Advance Settlement and
provide details against sanction number and which is approved by the approver
through his log in.

4.3 Fund Transfer

Fund can be transferred individually or in bulk by parent PIA to the child PIA. Bulk
transfer means transfer of funds simultaneously to more than one PIA. The transfer
can be made by the parent PIA to a child PIA only if the child PIA is registered
(automatic mapping).

For doing a Funds Transfer go to “Transfers>Add New”. The “Funds Transfer

Screen” appears. Enter all the details such as scheme name, bank account,
Letter/Office order no., transferring amount, components, Etc. and click on
“submit” button. Voucher number is generated, click “ok” to continue. A message
“Amount being transferred saved successfully, Do you want to proceed with payee
details?” will appear on the screen. Click on “Yes” button to add payee details as
explained in “Expenditure Filling section”.

After entering payee details, data operator will submit the transfer transaction for
approval by data approver. The approver will login and go to “Transfer>Approve”
and after verifying the details, approve the fund transfer to complete the process.

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For any assistance, please contact PFMS support staff:
Email: cseat.pfms@gov.in Helpdesk: 011-65678001, 65678002