PFMS User Manual of Payment and Accounting Through PFMS

PUBLIC FINANCIAL MANAGEMENT SYSTEM (PFMS)
MANUAL OF PAYMENT AND ACCOUNTING THROUGH

PFMS
Volume II
Toolkit for Drawing &Disbursing Officer
and
Programme Division (Head of Department/Head of Office)
CONTROLLER GENERAL OF ACCOUNTS

DEPARTMENT OF EXPENDITURE
MINISTRY OF FINANCE
NEW DELHI
Website: www.pfms.nic.in
November, 2016
Payment Process Flow in PFMS (Volume II)
PREFACE
The Public Financial Management System (PFMS) is a web-based application for
payment, accounting and reconciliation of Government transactions and integrates various
existing standalone systems. The PFMS software application has been programmed in user
friendly manner. The user of PFMS will find onscreen information to run various modules.
However, an attempt has been made through this User Manual to cover all processes to be
followed in Civil Ministries of Government of India for registration of users, payment,
accounting and reconciliation so as to make it a comprehensive one-stop guidance material.
2. The purpose of this User Manual is to provide a training tool for the managerial and
supervisory staff and above all to the employees dealing with the payment and related
issues in Civil Ministries of Government of India. The effort has been to draft this Manual in
the form of a simple and usable document and as far as possible, to outline the procedures
and the mechanisms involved in its operation for payment.
3. Chapter 1 and Chapter 2 of Volume-II of ‚MANUAL OF PAYMENT &
ACCOUNTING THROUGH PFMS‛ provide steps to be followed for registration and the
functions to be carried out by Program Division (PD) and Drawing & Disbursing officer
(DDO) respectively in a comprehensive manner.

CONTENTS
Table of Contents
GLOSSARY OF IMPORTANT TERMS ............................................................................. 1

1. REGISTRATION OF PROGRAM DIVISION (PD) AND ITS FUNCTIONS .............................. 2
2. REGISTRATION OF DRAWING & DISBURSING OFFICER AND HIS ROLE &
RESPONSIBILITY ....................................................................................................... 49
3. PROCESSING OF NIL BILL IN PFMS............................................................................. 71
4. USER MANUAL ON ‘LETTER OF AUTHORIZATION’ (LOA) FUNCTIONALITY ON PFMS .... 85
GLOSSARY OF IMPORTANT TERMS
Unless there is something averse in the subject or context, the terms defined in
this section are used in this Manual in the sense hereunder explained:
I. AAO - Assistant Accounts Officer

II. CA - Controller of Accounts
III. CCA - Chief Controller of Accounts
IV. CGA - Controller General of Accounts
V. CDDO - Cheque Drawing & Disbursing Officer
VI. Checker - Signifies approving authority
VII. CPSMS - Central Plan Scheme Monitoring System
VIII. DH - Dealing Hand
IX. DPR - Detailed Project Report
X. DSC - Digital Signatory Certificate
XI. FY - Financial Year
XII. GePG - Government e-payment Gateway
XIII. HOD - Head of Department
XIV. HOO - Head of Office
XV. IFD - Integrated Finance Division
XVI. IGA - Inter Government Advice
XVII. Maker - Denotes data entry operator/Dealing Hand
XVIII. NCDDO - Non Cheque Drawings & Disbursing officer
XIX. PAO - Pay & Accounts Officer
XX. Pr. A.O - Principal Accounts Officer
XXI. Pr. CCA - Principal Chief Controller of Accounts
XXII. PD - Program Division (Administrative Division)
XXIII. PFMS - Public Financial Management System
XXIV. S.O - Section Officer
XXV. U.S - Under Secretary
XXVI. Vendor - Denotes payee (To whom payment is to be made)
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CHAPTER-1
REGISTRATION OF PROGRAM DIVISION (PD) AND ITS FUNCTIONS
READY REFERENCE FOR PROGRAMME DIVISION (PD)
1. Registration of Programme Division (PD) in PFMS portal.
(a) Click on ‚Register Sanction ID generation user‛ hyperlink on the home page,
below the Log in button.
(b) Select ‚Program Division‛ as ‚Type of Users‛ from drop-down list.
(c) Select an option from the ‚Controller‛ drop-down list.
(d) Select ‚PAO‛ from drop-down list.
(e) Select ‚DDO‛ from drop-down list.
(f) Fill other columns viz. First name, Last name, Designation, Email, Phone no.,
Mobile No.
(g) Enter Login ID (which u wants to create for your login)
(h) Enter Pass word (which u wants to create for your login)
(i) Enter ‚Hint Question‛, Answer and confirm Answer.
(j) Enter ‚Word Verification‛ letters in text box which are appearing above the Word
verification Text box.
(k) Click the ‚Submit‛ button.
(l) User saved successfully message will appear on the web page.
2. After Registration of Programme Division (PD), PD will be approved by the
DDO.
3. Log in as PD by using user ID and password created and approved by DDO.
a. Mapping of PAO/DDO: Select -
a. User Master and click User Mapping
b. Click on PAO/DDO details.
c. Edit mapping.
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d. Select PAO from drop down list.
e. Tick the PAO and DDO from the shown list.
f. Click Add and save button
g. DDO mapped successfully message will appear on top of the screen.
b. Mapping of existing vendors.
a. User Master and click User Mapping
b. Click on Vendor details.
c. Existing vendors who are registered on PFMS can be searched by
filling details like, Vendor type (personal), vendor name, unique
code, Account No. State and district.
d. After entering details in criteria above, click search button.
e. A list of mapped vendors will appear on the screen.
f. Tick the vendor we want to map.
g. Click Add and save button.
h. Vendor mapped successfully message will appear on screen.
i. The details of mapped vendor will appear in mapped vendor list.
c. Create New Vendor (Beneficiary to whom the payment is to be made)
a. Click the link Masters, then click Vendors and then click Add New.
b. Select Type : Personal
c. Fill Vendor details viz. Name, Father’s name, DOB, Aadhar No., Pan
No. Address, e mail address, Bank details (Bank Name, Account No.).
Although four fields Name, Address, City Mobile No. is mandatory to
save the record, use is advised to fill all the fields.
d. BANK DETAILS : Select Bank name ( ‚Y‛ suffix against Bank Name
indicates that the bank is integrated with PFMS)
e. Enter Account No.
f. Click Add bank details.
g. Click Save.
h. Modification in Vendor’s Details :
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i. Go to Master data > Vendors > Manage
j. After editing in details . click UPDATE
SANCTION GENERATION BY PROGRAMME DIVISION (PD)
a) Click on link SANCTION and then CREATE NEW
b) Create Sanction window will appear on the screen.
c) Fill the File No., IFD/HOD File no., date sanction no. and date in relevant column.
d) Select the scheme. For Non-Plan expenditure this field is left blank.
e) Select PAO
f) Select DDO
g) Select Sanction Type : Expenditure
h) Add : ACCOUNT HEAD DETAILS : Grant , Function Head, Object Head,
Category
i) Enter Amount
j) Click Add Account Heads
k) Enter Vendor details: Vendor type – Personal, Vendor: Select from the mapped
vendor. Enter amount then click Add
l) Click Create Sanction
m) Message will appear: Sanction has been saved successfully, do you want to
proceed with Payee details.
n) Click YES
Message: Payee details have been submitted successfully.
STEPS FOR PROGRAMME DIVISION (PD)
1. Registration of Programme Division (PD) on PFMS portal
2. Approval of Registration of Programme Division (PD) by DDO.
3. Change of password on first log in PFMS portal
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4. Grant/Schemes Mapping
5. Mapping of PAO/DDO Details
6. Creation of new vendor
7. Modification in Vendor’s Details
8. Mapping of already existing vendor on PFMS
9. Sanction Generation by Program Division
10. Modification in already created Sanction, if required.
11. Approval of Sanction by Program Division
1. REGISTRATION OF PROGRAMME DIVISION (PD) ON PFMS PORTAL
(NOTE: If Program Division is already registered on PFMS portal for Plan fund
disbursement; same can be used for Non-Plan payment as well).
In case of new program division, under take the following two steps to register
PROGRAM DIVISION (PD) user on PFMS Portal:
Click the ‚Register Sanction ID Generation Users‛ hyperlink on the home page,
below the ‚Log In‛ button.
1. Select ‚Program Division‛ as ‚Type of Users‛ from drop-down list. It is a mandatory
field, and cannot be left blank.
2. Select an option from the ‚Controller‛ drop-down list. It is also a mandatory field,
and an option should be selected for it.
3. Type ‚First Name‛ in the textbox provided. It is a mandatory field and cannot be left
blank.
4. Type ‚Last Name‛ in the textbox provided. It is a mandatory field and cannot be left
blank.
5. Enter ‚Designation‛ name in the textboxes provided. It is a mandatory field and
cannot be left blank.
6. Enter a valid ‚Email‛ id in the textbox provided. It is a mandatory field and cannot be
left blank. Login details of the registered user will be sent to this email id only.
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7. Enter ‚Phone Number‛ in the textbox provided. It is a mandatory field, and cannot
be left blank.
8. Enter ‚Mobile No.‛ in the textbox provided. It is an optional field, and it can
be left blank.
9. Enter a ‚Login ID‛ in the textbox provided. It is a mandatory field, and it can be
alphanumeric. Login ID can contain minimum of 4 characters.
10.Type ‚Password‛ of your choice in the textbox provided. It is a mandatory field, and
it should contain alphanumeric texts. At least one special character should be
included in the password, and it should not be less than 6 and more than 15
characters.
11. Retype your password in the ‚Confirm Password‛ textbox. It should be same as
entered in the password textbox. It is also a mandatory field.
12. Select a ‚Hint Question‛ from the drop-down list. It is a mandatory field, and an
option should be selected for it.
13. Type an ‚Answer‛ in this textbox for the hint question which is selected from the
drop-down list. It is a mandatory field, and it should contain minimum of 6 and
maximum of 15 characters.
14. Retype hint question answer in the ‚Confirm Answer‛ textbox. It should be exactly
same as entered in the answer textbox. It is also a mandatory field.
15. Type ‚Word Verification‛ letters in the textbox provided which are appearing above
the Word Verification textbox. It is a mandatory field, and user registration process
cannot be completed without filling this field.
16. Click the ‚Submit‛ button.
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On pressing ‚Submit‛ button, a message will appear for successful registration of PD user.
2. APPROVAL OF REGISTRATION OF PROGRAMME DIVISION (PD) BY
DDO.
This newly registered PD User requires to be approved. He will be able to log into
PFMS only after the approval of concernedDDO.
3. CHANGE OF PASSWORD ON FIRST LOG IN PFMS PORTAL
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After approval from Drawing & Disbursing Officer (DDO), this newly created PD
user can login. At first occasion PFMS portal mandates PD user to change password. A
form will appear on the screen. PD user has to perform following steps:
1 Enter your current password.
2 Enter your new password. The password should be alphanumeric & contain at least
one special character. Further, it should not be less than 6 and more than 15 characters.
3 Confirm your new password.
4 Press the button ‚Change password‛. A message ‚password changed
successfully‛ will flash on the screen. Click ‘ok’. Now, Pr.AO user can login with new
password.
4. GRANT/SCHEMES MAPPING BY PD
Grant/Scheme is required to be mapped for Plan as well as Non-Plan expenditure (if there
is any). PD user logs into PFMS with his user id and password.
USER MASTER > USER MAPPING
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The following screen will appear showing 4 tabs ‚Grant Details‛, ‚PAO/DDO Details‛,
‚Agency Details‛ and vendor details:
User will go to tab ‚Grant Details‛ and click the button ‚Edit Mapping‛.
Drop down menu for selection of Grant will appear.
User will select the desired Grant.
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All the schemes under selected Grant will be displayed.
User will select the desired Scheme(s) and press ‚Add & Save‛ button.
System will display a message ‚Schemes Mapped Successfully‛. A grid showing the
‚Mapped Grant/Schemes‛ will appear at the bottom.
Now these schemes will be available at the time of generation of Sanction.
5. MAPPING OF PAO/DDO DETAILS BY PD
PD user logs into PFMS with his user id and password.
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USER MASTER > USER MAPPING
The following screen will appear showing 4 tabs ‚Grant Details‛, ‚PAO/DDO Details‛,
‚Agency Details‛ and ‚Vendor Details‛:
User will click the tab ‚PAO/DDO Details‛. Screen will show ‚No Record Found‛
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User will click the button ‚Edit Mapping‛. List of PAOs will be available in dropdown menu
for selection.
User will select the concerned PAO.
A list of DDOs under the selected DDO will appear for mapping
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User will select the concerned DDO by checking the box given against it, and press the
button‛ ADD & SAVE‛
System will display a message ‚DDO Mapped Successfully‛. A grid showing the mapped
PAO/DDO will appear at the bottom.
The sanction created and approved by PD will be available for bill generation at mapped
DDO and further for payment at mapped PAO.
6. CREATION OF NEW VENDOR
Creation of Vendor (Beneficiary/Payee) i.e. to whom payment is to be made.
Once a Program Division gets registered on PFMS and approved by DDO, it can create
new vendors and map the already existing vendors on PFMS.
For this, PD user logs into PFMS with his user id and password.
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Following steps will be undertaken by PD user to create a new vendor:
MASTERS > VENDORS > ADD NEW
1) Click the link ‚Masters‛
2) Then Click‚Vendors‛ and then click ‚Add New‛
Following screen for ‚Create Vendor‛ will appear:
3) For creating new Vendor, after selecting type of vendor, information in following four
fields, is mandatory to be filled in :
a. Name
b. Address
c. City
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d. Mobile Number: If mobile number is not available, then user has to check
the box for ‚Not Available‛. System will display a message ‚Vendor will not get the
payment alerts on mobile‛.
(Note: Though only four fields are mandatory to save the record, user is advised to fill
the relevant information in all the fields).
4) Type of Vendor is to be selected from drop down menu:
A. Personal
B. Commercial
C. Institutional
D. Small business Finance
E. Small Scale Industry
F. NGO
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G. Government Official – ImprestAdvance (Recoupment of Imprest, for
which payment is made by cheque, the user will select option ‘G’
above).
H. Departmental Officer.
(Situation may arise where payment is required to be made by cheque such as payment to
MTNL, Electricity Board, Jal Board, Bank or to any individual etc. For such payments, the
user will select Departmental Officer as at ‘H’ above).
Fill the relevant information in above fields.
5). Bank Details are to be entered on the same screen (these details are not required
for ‚G‛ and ‚H‛ above as the payment in these two cases is made vide cheque only).
a) Bank Name: entering first four letter of name of the bank (e.g. for state Bank of
India enter ‘stat’) will list out the bank names starting with those four initial alphabets. The
user has to select relevant bank from the list.
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(Note: ‘Y’ suffix against Bank Name indicates that the bank is integrated with
PFMS. In such case, bank account of vendor is validated by bank and IFSC code will
appear automatically while creating a sanction).
b) Account Number: Enter vendor’s Bank Account Number. Depending upon the
Bank name selected, system will display Account Rule pertaining to the account number
digits of that particular bank.
If user enters the wrong Bank Account Number, system will display a message:
‚Please Enter Valid Account Number‛
So, user has to be careful while entering Account Number.
c) Then click ‚Add Bank Details‛
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One more row showing Bank Details will appear.
(Note: Multiple Account Numbers of vendors can be added).
d.) Click ‚Save‛ button.
A message will appear that Vendor/beneficiary has been added successfully. Also unique
code will be allotted to this registered vendor automatically by the system. .
(Note: PD is advised to note the unique code and also communicate same to the
concerned vendor. This will facilitate easy search for the PD user to map the vendor).
‚Vendor/beneficiary added successfully. Please note the Unique Code for registered
vender for future use - VC00008138‛.
(Note: At the time of creation of vendor, system has a validation for similar name,
mobile number and Bank Account number).
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7. MODIFICATION IN VENDOR’S DETAILS:
Information in respect of created vendors can be modified by the PD user.
For carrying out modifications in already created vendor’s data,
Go to ‚Masters‛ > ‚Vendors‛ > ‚Manage‛
A screen for ‚Manage Vendor‛ will appear:
Search by ‚Vendor Name‛ or ‚Unique Code‛
System will display the desired vendor.
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Click on hyperlink of ‚Vendor Name‛ to open ‚Vendor Details‛.
Click ‚Edit‛ button
System will make the ‚Vendor/Beneficiary Details‛ available for editing.
User will make required modifications. Here, all the fields except ‚Type of Vendor‛ are
editable. (Note: In case, cheque payment is required to be paid to same vendor who is
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already registered as e-payment vendor or vice versa, that user will be required to be
registered under both the types as the field ‚TYPE‛ of vendor is not editable.)
Press ‚Update‛ button to save the edited data. System will display a message:
‚Vendor/beneficiary updated successfully. Please note down the Unique Code for
registered vender for future use - VC00008138‛.
After creation of a new vendor, it will be available for making payment at the end PD
who created. There is no further mapping required.
8. MAPPING OF ALREADY EXISTING VENDOR ON PFMS
For mapping an already existing vendor on PFMS, the Program Division User needs to click
‚Users‛ and then ‚User Mapping‛.
A screen for ‚User Mapping‛, showing four tabs will appear:
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Here, ‚Vendor Details‛ is to be clicked to find and map a vendor already registered by PD
of some other PAO/Ministry by using any of the search criteria e.g. Vendor Type/Name
/Bank Account/Unique Code of vendor.
Click ‚Edit Mapping‛ button, which is given at the end of list of vendors’ names.
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Following screen will appear:
Search using any of the criteria given e.g. vendor’s name, unique code, Bank Account etc.
Desired vendor’s name will appear. Click on vendor’s name and press ‚Add & Save‛
button. Desired vendor’s name will start appearing in the list of mapped vendors, as can be
seen below:
As per requirement, vendors can be removed also from mapping by PD user by using the
button ‚Remove Mapping‛ at the end of the list of mapped vendors.
For example, first a vendor named ‚Mayank‛ is to be mapped by PD. For this, click
‚Vendor Details‛ button and then search using any search criteria.
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All the vendors named ‚Mayank‛ (across all ministries/Department working on PFMS) will
appear in the list.
Select the desired vendor by checking the box given against its name.
Press ‚Add& Save‛ button to map this vendor with PD.
It can be seen that the desired vendor has appeared in the list of ‚Mapped Vendors‛.
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Now in case, this vendor requires to be removed from mapping with PD, select the vendor
by checking box against its name and click the button ‚Remove Mapping‛
The selected vendor will disappear from the list of ‚Mapped Vendor Details‛
(NOTE: As per latest development, a facility has been provided for a PD to map
all/selected vendors of another PD under the same controller, in one go).
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For this, ‚PD NAME‛ field has been provided in search criteria. User will select the desired
PD from the drop down menu and press ‚SEARCH‛button.
On pressing, ‚SEARCH‛ button, list of all vendors of other PD will appear. All or selected
vendors may be mapped using the button ‚ADD & SAVE‛.
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All mapped vendors will appear under ‚MAPPED VENDORS‛
PD user download mapped vendors list by clicking the option ‚DOWNLOAD MAPPED
VENDORS‛. An Excel file will be downloaded.
Click the excel file to see the list of all mapped vendors.
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The newly created and mapped vendors (and also all other already mapped) will now be
available in the list showing vendors’ names, while filling up the vendor’s name at the time
of generation of sanction by PD user.
9. Sanction Generation by Programme Division (PD)
Program Division user log into PFMS with his user id and password.
Click on link ‚Sanctions‛ and then ‚Create New‛
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The Following screen will appear:
This screen will be used by PD user for creating a new Sanction.
He will fill in the relevant information in the following fields:
1. Controller Name is displayed for the respective PD.
2. IFD/HOD File Number: The Integrated Finance Division number will be filled by
the PD user manually.
3. IFD/HOD File Date: This field has to be filled by user manually.
4. Sanction Number: Is a mandatory field and has to be filled manually by the
user.
5. Sanction Date: - The date of Sanction should be within the financial year.
6. Scheme: The drop down menu will only display the Plan Schemes that have
been mapped to the User.
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7. (NOTE: This field is to be left blank in case of payments pertaining to Non-
Plan expenditure. For Non-plan expenditure, scheme codes are not
necessary; the user needs to select appropriate head of accounts from the
drop down list).
8. PAO: The drop down menu will display the PAO to which the User has been
mapped. The user will select the PAO for which the Sanction is being created.
9. DDO: The drop down menu will display the DDO to which the User has been
mapped. The user will select the DDO for which the Sanction is being created.
10. Sanction Type: The following types of Sanction are available for selection
a. Transfer
b. Expenditure
c. Intra Governmental Authorization
(Note1:-Select Expenditure Type as ‘TRANSFER’ for expenditure under Object
Heads 31, 33,35,36,54,55 whether Plan or Non-Plan. Scheme is required to be
mapped for Non-Plan expenditure also).
OBJECT DESCRIPTION
HEAD
31 Grants-in-aid
33 Subsidies
35 Grants for creation of capital assets
36 Grants-in-Aids Salaries
54 Investments
55 Loans and Advances
(Note2: In case of Authorization of Fund to other ministry, the type of
expenditure option ‚INTER GOVERNMENTAL AUTHORIZATION‛ has to be
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opted& the controller code of agent ministry has to be selected. After approval
of the sanction by the PD it will be available to Pr.AO. of the functional
ministry for further processing. The Pr.AO.will firstreceive the sanction and
then it will be available under the option ‚Manage IGA Sanctions‛. Pr.AO will
select the sanction; insert the authorisation number and date and then press
‚SUBMIT‛ button. Thereafter the said authorisation will be available to all PDs
of agent ministry for creating ‚Create against IGA‛ option under ‚Sanctions‛
module. The LOA functional head is also available under the transfer entry
form.
(Note3: For other payments viz. TA, OE, Medical etc., user has to select
‚EXPENDITURE‛ as type).
11. Amount: Fill in the amount (Gross Amount) for which the Sanction is being
generated.
12. Upload Scanned Sanction: Only PDF Files are allowed with size not more than
4 MB. This field has been provided for uploading the scanned copy of Sanction
which has been created manually. However, uploading of scanned copy of
sanction is not mandatory.
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13. Account Head Details
After all the above fields under ‚Sanction Header‛ have been filled up, the user will
proceed for filling up the data in ‚Account head Details‛ in following fields by making
selection from the drop down menu:
1) Grant
2) Function Head
3) Object Head
4) Category
(NOTE: In case the desired heads of accounts do not appear, the PD user may contact
his PAO to map the missing head of accounts and enter the budget in same).
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14. Now Proceed for ‚Vendor Details‛ and key in the data in the following fields:-
1) Vendor Type: User has to select Type of Vendor out of the eight types available
for selection in drop down menu:
2) Vendor: Select the name of the vendor from the drop down menu. On
selection of vendor’s name, unique code will be displayed automatically.
3) Amount: Fill in the amount as shown in Sanction.
Press ‚ADD‛ button.
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Provision is available for adding more vendors one by one by filling up vendor details and
pressing ‚Add‛ button, and selecting the next vendor details from drop down menu. In this
case, the amount needs to be filled against each selected vendor accordingly.
‚Remove’ Button: This button will remove the wrongly entered vendor from the vendor
details if the same is not required. For this, user has to check the box given against ‚Vendor
Name‛ and press ‚Remove‛ button.
Now Press ‚Create Sanction‛ button.
System will display the following message:
Sanction has been saved successfully...!!!
Do you want to proceed with payee details?
Yes No
Press ‚Yes‛ button.
On pressing ‚YES‛, system will display the ‚Payee Details‛
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Here the system will display the ‚Available Budget‛. In case vendor has provided more than
one Bank Account Number, user can select the desired one from the list in drop down
menu. ‚Instrument Type‛, whether ‚RTGS‛ (for e-payment) or ‚CHEQUE‛ is also displayed
here.
After checking the payee details, user will press ‚Next‛ button.
System will display the e-Payment Details. If the IFSC code is not automatically shown, it
means bank A/c is not validated. If payment process is urgent, user can key in the correct
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IFSC code. User has to give some meaningful remarks for kind of payment in the field
‚Payee Remarks‛. User will press ‚Confirm‛ button.
On Pressing ‚Confirm‛ button, system will display a message for successful submission of
sanction.
‚Payee Details have been submitted successfully‛.
10. MODIFICATION IN ALREADY CREATED SANCTION, IF REQUIRED
Now if the user wants to modify this recently created sanction (or any other already created
sanction), he can use the option ‚Manage‛ under the sub menu ‚Sanctions‛.
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Following screen will appear:
Using the different search criteria, user can search his sanction. He will write ‚Sanction
Number‛ and press ‚Search‛ button, desired sanction will appear:
Open the Sanction by clicking on “Sanction Number”.
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Following five options will appear:
1. Edit Sanction: - This field is used for editing data in already created Sanction.
If user wants to make modifications in already created sanction, he will press this button,
following screen will appear:
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User can make the desired modifications in this form and proceed further by pressing ‚Save
Sanction‛ button.
2. Payee Details: Before the user proceeds for confirmation of Sanction, he will press
the ‚Payee Details‛ button to confirm the details of Payee viz. Sanction details, accounting
details and the details of payee’s bank account. The following screen will appear:
User will press ‚Confirm‛ button.
On pressing ‚Confirm‛ button, System will display a message ‚Payee details have been
submitted successfully‛.
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3. Cancel Sanction: If PD user wants to cancel an already created sanction, he will
press the button ‚Cancel Sanction‛, following screen will appear:
Here user will write the Remark for cancellation of sanction and press ‚OK‛ button.
Sanction will be cancelled. In case he does not want to cancel it, he can go back (without
writing any remark) by pressing ‚Cancel‛ button.
4. Print Sanction Order: For taking out the print of Sanction Order (Not operational
right now)
5. Back: This button will redirect to the previous page.
Now the ‚Payee Details‛ have been confirmed by the user.
11. APPROVAL OF SANCTION BY PROGRAM DIVISION
For approval of already created sanction, user clicks the option ‚Approve‛ under submenu
‚Sanctions‛
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Screen for ‚Search Sanctions‛ will appear:
User will key in the desired sanction number or use any other search criteria and press
‚Search‛ button.
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Already created sanctions (but pending for approval) will appear for selection.
User will select the sanction by clicking over the hyperlink of ‚Sanction Number‛, the
sanction details will be displayed on the screen.
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Here, user will find following options for selection:
1. Edit Sanction
2. Payee Details
3. Approve/Reject
4. Cancel Sanction
5. Print Sanction Order
6. Back
1. Edit Sanction: At the time of approval of sanction, In case the PD User wants to
edit the Sanction, he will click the ‛Edit Sanction‛ button; system will make the sanction
available for editing.
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PD user can make the desired modifications in sanction and again save it by Clicking ‚Save
Sanction‛ button.
2. Payee Details: This field is used to see and confirm the details of Payee viz.
Sanction details, accounting details and the details of payee’s bank account, before the user
proceeds for confirmation of Sanction.
User will press the ‚Payee Details‛ button, following screen will appear:
PD user can see the details and confirm the sanction for approval.
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On confirmation, system will display the message ‚Payee details have been submitted
successfully...!!!
3. Approve/Reject: User after confirming the Payee details, can either ‚Approve‛ or
‚Reject‛ the sanction, as the case may be. User has to write remark for action.
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4. Cancel Sanction: This field is used to cancel the already created sanction. User
will click this button, give the remark and press ‚OK‛ button to cancel the sanction.
(Note: Cancelled sanction also requires approval for cancellation.)
5. Print Sanction Order: This option is used for taking print out of approved sanction
order.
(Note: Right now this field is not operational for printing of sanction orders pertaining to
non-plan payments).
6. Back: This button will redirect the user to previous page.
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Now user will click the button ‚Approve/Reject‛, and give a remark for approval of sanction,
which is a mandatory field. After writing the remark, user will press ‚Approve‛ button.
On pressing ‚Approve‛ button, following screen will appear showing the message
‚Sanction approved successfully‛
Now after the sanction has been approved by the PD user, it will be electronically
transmitted and will be available atDDO level user for generation of bill.
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(NOTE: Once a sanction has been approved by PD user, it will no more be
available with him for carrying out further modification. Though the same sanction will
be available under ‚Manage Sanction‛ option, but only for viewing. In case approved
sanction needs to be edited/cancelled, DDO will return the sanction to PD and same will
be available at PD level for further action i.e. editing/cancellation under the option
‚Manage sanction‛).
***
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CHAPTER-2
REGISTRATION OF DRAWING & DISBURSING OFFICER AND HIS ROLE &
RESPONSIBILITY
READY REFERENCE FOR DRAWING & DISBURSING OFFICER (DDO)
1. Registration of DDO on PFMS portal.
(a) Click on ‚Register Sanction ID generation user‛ hyperlink on the home page,
below the Log in button.
(b) Select ‚Drawing & Disbursing Officer ‚as ‚Type of Users‛ from drop-down list.
(c) Select an option from the ‚Controller‛ drop-down list.
(d) Select ‚PAO‛ from drop-down list.
(e) Select ‚DDO‛ from drop-down list.
(f) Fill other columns viz. First name, Last name, Designation, Email, Phone no.,
Mobile No.
(g) Enter Login ID (which u wants to create for your login)
(h) Enter Pass word (which u wants to create for your login)
(i) Enter ‚Hint Question‛, Answer and confirm Answer.
(j) Enter ‚Word Verification‛ letters in text box which are appearing above the Word
verification Text box.
(k) Click the ‚Submit‛ button.
(l) User saved successfully message will appear on the web page.
2. After Registration of DDO, PAO will approve the DDO.
3. After approval by PAO, log in PFMS portal as DDO by user id and password.
4. DDO will receive the sanctions created and approved by the PD/SA.
5. To receive Sanction :
a) Click on link Sanction/Receive Sanction.
b) Click on the Sanction Number you want to receive.
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c) If you want to receive more than one sanction at a time, Tick the box before
Sanction No. and then click receive sanction.
d) A message will appear‚sanction has been received by DDO‛.
e) To generate bills: Click on link Sanction/Generate bills.
f) For Bills to be generated without deduction click on check box and then on
Generate bills.
g) For bills with deduction. Click on sanction no to open the sanction and then
click on Generate bill no, to add the deduction.
h) Click on Generate Bill No.
i) Then add deduction, DDO wants to make from payment. Select the deduction
type from the drop down menu from the provided deduction heads. If the head
is not available in drop down list then select ‚Others‛.
j) On selecting ‚Others‛ Grant No., Functional head, Object head, Category have
to be entered in deduction details.
k) After entering above details click Add deduction
l) A message ‚Deduction added successfully‛ will appear.
m) Then click Generate Bill
n) A message ‚Bill No. CP000000... has been generated‛ will appear.
o) For printing bill. Click ‚To print bill, Print‛ below the above msg.
p) Now this bill will be available at Dealing hand level in PAO.
Sequence of actions by DDO:
1. DDO will create his ID on PFMS portal.
2. PAO will approve this ID.
3. After approval, DDO has to change login pass word on first time
log in.
4. DDO will receive sanction created and approved by PD.
5. Generate bills.
6. Add deduction details if any.
7. Print Bill.
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The Departments of the Central Government, Heads of Departments and
Administrators have powers (vide Rule 114 of Delegation of Financial Powers Rules, 1978)
to declare as the Head of Office any Gazetted Officer subordinate to them. The Head of
Office or any other Gazetted Officer designated as Disbursing Officer by a Department of
the Central Government, a Head of Department or an Administrator [vide Rule 2 (xii) of
GFRs] functions as the Drawing &Disbursing Officer for drawing bills and making payments
on behalf of the Central Government and is responsible for all moneys received or
disbursed in his office and the maintenance of accounts thereof. In accordance with Rule
35(2) of Central Government Account (Receipts and Payments) Rules the Head of Office
may, however, authorise any Gazetted Officer serving under him to sign a bill or order for
him, communicating the name and specimen signature of the officer to the PAO or cheque
drawing DDO/Treasury Officer with whom he is in account. This does not however, confer
on the Gazetted Officer so authorised any powers of the Head of Office nor does it relieve
the Head of Office in any way of his responsibility for the accuracy of the bill or for the
disposal of the money received in payment.
PFMS envisaged role & responsibility of DDO in accordance with Rule 2 (xii) of
General Financial Rules 2005. The DDO is responsible for generating online bills for
sanction submitted by Programme Division. He is also responsible for adding
deductions/recoveries from the bills. The physical copy of bills along with all vouchers,
necessary documents etc. shall also be presented to concerned Pay & Accounts Office.
Broadly, DDO has to approve PD User, receive sanction and generate bills. To begin
functions in PFMS, DDO has to register himself with PFMS portal as DDO User. Website
address: pfms.nic.in or www.cga.nic.in> CPSMS (home page will open)
STEPS FOR DRAWING & DISBURSING OFFICER (DDO)
1. Registration of DDO on PFMS portal
2. Approval of Registration of DDO by PAO.
3. Change of password on first log in PFMS portal
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4. Approval of Registration of PD
5. Sanction Receive
6. Bill Generation
a. Generation of Bill without Deduction
b. Generation of Bill with Deduction
7. Action on Bill Returned by PAO
1. REGISTRATION OF DDO ON PFMS PORTAL:
Click ‚REGISTER SANCTION ID GENERATION USERS‛ hyperlink on home page, below
the ‚Log In‛ button as shown in figure below. A User registration form will appear. The
‘User’ has to fill all fields marked with (*) as explained below. In case mandatory field is left
blank system will flash message against blank box. For e.g. Phone No. is required.
Type of Users: Select Drawings & Disbursing Officer from the drop-down list.
Controller: Select Controller of your Ministry from drop down list. For
example 010-CCAPOWER
PAO: Select PAO from drop down list. PAO is given along with code.
For e.g. 013455-PAO (Sectt.), Ministry of Power, New Delhi. The User has to select
concerned PAO to whom bills will be presented. Wrong selection of PAO code will send
the bill to wrong PAO.
DDO: Select DDO from drop down list. DDO is given along with code.
For e.g. 213456-Section Officer, Ministry of Energy, New Delhi. The User has to select
his own DDO code. (Note: The PAO and DDO code should be correct otherwise
online bills will appear in other PAO)
First Name: Type first name as per office record
Last Name: Type last name as per office record
Designation: Provide your designation (Section Officer/DDO/Under
Secretary)
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E-Mail: Provide your e-mail id (preferably nic. e-mail id). Login details of
the registered user will be sent to this e-mail id only. If wrong e-mail id is given system
will flashmessage ‘invalid e-mail id’ against box
Phone Number: Give your office Phone Number with STD code
Mobile Number: Give your 10 digit Mobile number. This is an optional field.
Nevertheless, the user will receive SMS only on this mobile number
Login Id: Provide your login id with minimum four characters and can be
alphanumeric. The login id is unique for each user.
Password: Give your password in the textbox. The password can be
Alphanumeric & contain at least one special character. Further, it should not be less
than 6 characters and more than 15 characters
Confirm Password: Re-type password.
Hint Question: Select hint question from the drop-down list
Answer: Give answer to above hint question. User may note down answer
for future reference to retrieve password.
Confirm Answer: Re type the above answer
Word Verification: Enter the characters appearing in box just above
Click the ‚SUBMIT‛ button.
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On successful registration, following message appears at top of the web page. :
‘User has been Saved Successfully’
This newly registered DDO User is required to be approved by concerned Pay & Accounts
Officer.
After approval from PAO, DDO can start working on PFMS portal.
2. APPROVAL OF REGISTRATION OF DDO BY PAO
The newly registered DDO will be able to work on PFMS portal only after its
approval by concerned PAO.
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3. CHANGE OF PASSWORD ON FIRST LOG IN PFMS PORTAL
After approval from Pay & Accounts Officer (PAO), this newly created DDO user
can login PFMS portal. At first occasion PFMS portal mandates PD user to change
password. A form will appear on the screen. PD user has to perform following steps:
1 Enter your current password.
2 Enter your new password. The password should be alphanumeric & contain at least
one special character. Further, it should not be less than 6 and more than 15 characters
3 Confirm your new password
4 Press the button ‚Change password‛. A message ‚password changed
successfully‛ will flash on the screen. Click ‘ok’. Now, Pr.AO user can login with new
password.
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4. APPROVAL OF PROGRAMME DIVISION USER BY DDO:
The new PD User is to be approved by DDO. The steps are as under:
 Choose ‚User‛ > ‚Manage‛
 Manage sub module can be used for performing functions of approving, editing,
enabling and disabling of Users.
 Enter details in any field viz. login id, first name, last name, status, division, and
user type and click ‘search’. The newly created user will appear in the grid below.
The DDO user can filter new user from the link provided in first row indicated in blue
color. The status of new user will be shown as ‘created’ in status column.
 Click user’s login name (indicated in red color). The screen will appear as follows:
 Click on login name (shown in blue color). Enter remarks and choose ‘Approve’. A
message ‘User has been approved successfully’ will appear at top. The DDO has
the options either to ‚approve‛ ,‘reject’ the new PD user or ‘Defer Decision’
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Once DDO approves the new PD user, thereafter he cannot delete them. The approved
users can only be ‘enabled’ or ‘disabled’. However, Users details are editable. The screen
shows editable fields:
 Editable fields: First name, last name, phone, mobile no. and designation. On
choosing ‘save’ a message’ ‚User Edited Successfully‛ flash on screen.
Approved User can login. At first occasion PFMS portal asked him to change password.
The User has to change the password.
(Note: Multiple PDs can be created under a DDO).
The DDO can edit his User details by using sub module ‘View User Details’ in
‘User Master’ module.
The editable fields are First name, last name, phone, mobile no., email and designation.
(Note: Change in user’s profile should get approved from the authority who initially
approved the registration of user)
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5. SANCTION RECEIVE
The sanction submitted by all PD users will appear at DDO under the option
‚Sanction‛ > ‚receive‛.
To generate bills DDO has to first receive the sanction. The sanction can be received
in bulk or one by one.
The DDO user can put information in search field and find out sanction against which
bill is to be generated.
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Before receiving sanction, it can be checked by clicking sanction number indicated
in blue colour in the grid. The sanction submitted by PD user will be shown as ‘approved’ in
sanction status field. To view payee details click ‚payee details‛ button. Select ‚‘receive
sanction (DDO)‛ to receive it and ‚return to PD‛ in case it is to be returned to PD.
The user can also directly receive sanction. Tick the box given against Sanction No. and
press ‚receive‛ buttonbelow. The sanctions can be received in bulk. To receive sanctions in
bulk tick box ‚All‛ and choose ‚receive‛ button at the bottom. Click ‚return to PD button‛ if
sanction is to be returned. The sanctions received will be available for generation of bills.
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6. GENERATE BILLS:
The received sanction will appear in ‚sanction‛ > ‚Generate bills‛.
There are two different ways for generating bills. One is for bill without any
deduction and another is for bill with deduction(s). The bill generated by DDO will appear at
DH level in Pay & Accounts Office. The status of bill will be shown as generated.
The sanction received by DDO will be shown as ‘DDO received’ in sanction status
field. The DDO can put information in search field and find out sanction received by him and
against which bill is to be generated.
(a) Generation of Bill without Deduction
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(b) Generation of Bill with Deduction
(a) GENERATION OF BILL WITHOUT DEDUCTION
For bills to be generated without deduction click on check box and then on
‚Generate bills‛. A message ‚bill(s) has been generated successfully‛ will appear above
grid. A bill number will be allotted by system itself in arithmetic series.
(b) GENERATION OF BILL WITH DEDUCTIONS:
For bills to be generated with deduction click on sanction number to open the sanction and
then on ‚Generate bill‛ number to add deduction. Field for adding deduction will appear.
Select favouring of vendor given at left side. Some of the standard deduction codes have
been provided in drop down list. User may choose from them; other details viz. grant
number, function head, object head and category will automatically appear in the respective
box. Enter the amount to be deducted from the bill in amount column and click ‘Add
deduction’. The details of deduction added will appear in grid below with a message
‘Deduction added successfully’. Similar steps may be repeated for more deductions. The
net effect of deductions will be shown below the grid. In case of any error in deductions, tick
the box and press ‚remove‛ button. The added deduction will be removed. If there is more
than one payee in sanction id generated by PD, the DDO can add deduction for each
payee. In such case select favouring one by one and add deduction as explained above.
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If DDO chooses ‘other’ from standard code list then he has to provide grant number,
function head, object head, category and amount in the respective column and follow the
steps explained above in order to add deduction.
After adding all deductions click on ‚Generate bills‛ button given at bottom. The bill
will be generated with bill number and a message ‚bill generated with bill number‛ will
appear at top. User can print the bill from the link ‘to print click here’ The generated bill will
appear at DH level in Pay & Accounts Office with status ‘generated bill’.
(In case, the deductions have been added but the bill is to be prepared without
deduction, user can press ‚CANCEL‛ button to remove all deductions and press the button
‚Generate Bill Number‛ to generate it without deductions.)
7. ACTION TO BE TAKEN ON BILL RETURNED BY PAO
The Bill returned by PAO, will be available under ‚Manage Sanction‛ module at DDO level.
‚SANCTION‛ > ‚MANAGE SANCTION‛
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DDO can select the sanction status ‚PAO Returned‛. All the sanctions returned by PAO to
DDO will be displayed.
DDO will click the hyperlink of desired sanction to open it. Sanction details will be
displayed on screen.
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User can see the reasons for return of bill by clicking ‚Remarks by PAO‛
DDO can see the ‚Payee Details‛
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If the correction is required to be made by PD, DDO will select the option ‚Return to PD‛.At
PD level, this returned sanction will be available under ‚Manage Sanction‛ for
modification/cancellation, as the case may be.
In case the correction is required to be made by DDO, he will first receive the sanction by
clicking the button ‚Receive Sanction (DDO)‛
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Now this sanction will again be available for generation of bill under the option
‚Generate Bill‛. DDO will generate the bill either without deduction or with deduction,
as the case may be.
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Bill number will remain the same.
If the correction is required to be made by PD, DDO will select the option ‚Return to PD‛.
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At PD level, this returned sanction will be available under ‚Manage Sanction‛ for
modification or cancellation, as the case may be.
*****
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CHAPTER-3
PROCESSING OF NIL BILL IN PFMS
A facility/functionality has been provided in PFMS for processing NIL bills (debit
and minus debit in the same head and in same bill or both debit and credit under different
head in the same bill and net amount is NIL like NPS bill). Voucher number in case of NIL
bill will be generated after passing of the bill by PAO. No further action is required in NIL
bill after its three level passing (DH, AAO and PAO) in PFMS.
In case of ‚NIL’ Bill i.e. ‚Sanction Amount‛ is ‚Zero‛, the system will allow to enter
multiple account heads with different Grants and/or different Functional Heads. In such
cases, no vendor will be available for selection while creation of sanction.
Three types of ‚NIL‛ bills can be processed in PFMS
1. ‚NIL‛ bill for adjustment of Advance.
2. ‚NIL‛ bill of New Pension Scheme.
3. ‚NIL‛ bill for one Debit Head and one/multiple Credit heads in same
sanction.
CASE I: NIL BILL FOR ADJUSTMENT OF ADVANCE
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CASE II: NIL BILL OF NEW PENSION SCHEME
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CASE III: DEBIT and ONE/MULTIPLE CREDIT HEADS IN SAME SANCTION
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After the sanction has been created successfully, it will be approved by PD.
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After approval of Sanction for “NIL” bill, it will be available at DDO level, who will first receive
it.
After the sanction has been received successfully by DDO, it will be available for Bill
generation.
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After the Bill Number has been generated by system, it will be available in PAO at DH level. DH
will first receive the sanction. Token number will be automatically generated by the system.
DH will pass the bill and it will be forwarded to AAO.
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AAO will pass the bill and it will be forwarded to PAO.
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Voucher number in case of ‚NIL‛ bill will be generated after passing
of bill by PAO. There will be no further action required in this case.
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The Report “CMP 02 – Compilation Sheet” may be viewed by the user for voucher number.
This completes the process of processing of “NIL” bill in PFMS.
***
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CHAPTER- 4
USER MANUAL ON ‘LETTER OF AUTHORIZATION’ (LOA)
FUNCTIONALITY ON PFMS
Letter of Authorization (LOA) refers to the settlement of inter departmental
transactions through book adjustment or without resorting to cash settlement. It relates
to the programmes or activities for which one Ministry/Department utilizes the services
of another Central Ministry /Department as its agent for executing the activity. The
procedure of the same is indicated in para 8.5 of Civil Accounts Manual (CAM)
On PFMS, the sanction in respect of ‚Letter of Authorization‛ is to be created and
approved by the PD (Program Division) of Functional Ministry and thereafter submitted to
Pr.AO. Pr.A.O. of Functional Ministry will enter ‚Authorization Number‛ and
‚Authorization Date‛ and submit it. After this, it will be available to all PDs of
Executing/Agent Ministry/Department and he will be able to create further sanction against
IGA (Intra Governmental Authorization).
STEPS TO BE FOLLOWED BY FUNCTIONAL MINISTRY/DEPARTMENT
1. CREATION OF SANCTION BY PD
2. APPROVAL OF SANCTION BY PD
3. RECIVEING OF SANCTION BY Pr.AO
4. MANAGE/ISSUE OF IGA SANCATION BY Pr.AO
STEPS TO BE FOLLOWED BY EXECUTING/AGENT MINISTRY/DEPARTMENT
5. CREATE SANCTION AGAINST IGA

6. APPROVAL OF IGA SANCTION BY PD
7. RECEIVING OF SANCTION BY DDO
8. GENERATION OF BILL BY DDO
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9. RECEIVING OF BILL BY DH
10. PASS/RETURN OF BILL BY DH
11. PASS/RETURN OF BILL BY AAO
12. PASS/RETURN OF BILL BY PAO
13. DIGITALLY SIGN PAY FILE
14. DIGITAL SIGN BATCH
1. CREATION OF SANCTION BY PD OF FUNCTIONAL MINISTRY

First of all, PD of Functional Ministry will generate a sanction. For this, he will login
PFMS with his user ID and Password and go to:
‚SANCTIONS‛>‚CREATE SANCTION‛
User will enter the details of sanction viz. IFD/HOD File No. & Date and Sanction
No. & Date. He will select the PAO and DDO from the drop down list. In case of LOA, he
has to select ‚INTRAGOVERNMENTAL AUTHORIZATION‛ as type of Sanction.
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On selection of type of sanction as ‚INTRAGOVERNMENTAL AUTHORIZATION‛, a
grid for selection of Controller will appear below. User will enter the gross amount in the
field ‚Sanction Amount‛. He can upload a scanned copy (pdf with size not more than 4
MB) of sanction. However, uploading of Scanned sanction is optional.
User will enter Account Head details by selecting the concerned heads from drop
down list. Then, he will enter amount of sanction and press the button ‚ADD ACCOUNT
HEADS‛.
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A grid showing the Accounting head details will appear below. In case of selection
of wrong heads, the record can be deleted using (*) given against it.
A list of Controller will be available for selection.
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PD will select the controller of Executing/Agent ministry in respect of whom‚Letter
of Authorization‛ is to be issued, and press the button ‚CREATE‛.
System will display a message:
‚Sanction has been saved successfully‛.
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The status of sanction may be viewed through the option ‚SANCTIONS‛>‚MANAGE
SANCTIONS‛.
The status of Sanction will be shown as ‚SUBMITTED‛
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2. APPROVAL OF SANCTION BY PD OF FUNCTIONAL MINISTRY

Now this sanction needs to be approved by PD. For this, he will go to:
‚SANCTIONS‛>‚APPROVE SANCTION‛
All the sanctions pending for approval will appear. If not displayed on screen, user
can trace a particular sanction by using the search criteria given above. User will click the
hyperlink of sanction to open it.
Details of sanction will be displayed to the user. Under the field ‚Authorization
Details‛, Name of the authorized controller will be displayed. However the fields for
‚Authorization Number‛ and ‚Authorization Date‛will remain blank as the same are to be
entered by Pr.AO of functional ministry.
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After confirming the correctness of submitted sanction, PD will proceed to approve
the same by pressing the button ‚APPROVE/REJECT‛.
User will enter appropriate remark and press the button ‚APPROVE‛.
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Available budget will be reduced by the amount of approved sanction. System will
display a message:
‚Sanction approved successfully‛
The status of sanction can be viewed as ‚APPROVED‛ through the option
‚SANCTIONS‛ > ‚MANAGE SANCTIONS‛
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User can view the details of sanction by clicking its hyperlink.
3. RECIVEING OF SANCTION BY Pr.AO OF FUNCTIONAL MINISTRY

The Financial Adviser /Pr. Chief Controller of Accounts/Chief Controller of
Accounts/Controller of Accounts of the functional Ministry / Department will issue
annual budget allocation letter, indicating the amount approved in the Budget for the
year for the programme or activity assigned to the agent or executing Department, after
obtaining necessary financial sanctions.
Now this approved sanction for ‚Letter of Authorization‛ will be available with
Pr.AO of functional ministry for further action. He will login PFMS with his user ID and
password and go to:
‚SANCTIONS‛>‚RECEIVE SANCTIONS‛
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All the approved sanctions, pending for receiving, will appear. If not displayed on
screen, desired sanction may be traced using search criteria given above. Before receiving
a sanction, user can view the details of sanction by clicking its hyperlink.
Details of sanction will be displayed to user. Pr.AO can either ‚Receive Sanction‛
if the sanction is correct or ‚Return to PD‛ in case sanction is not found to be correct.
After verify the sanction for its correctness, Pr.AO will proceed to receive the same
by pressing the button ‚RECEIVE SANCTION‛.
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‚Sanction received successfully‛.
4. MANAGE IGA SANCATION BY Pr.AO OF FUNCTIONAL MINISTRY

Now the received sanction will be available with Pr.AO of functional ministry under
the option:
SANCTIONS > MANAGE IGA SANCTIONS
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A screen for ‚Manage Intra Governmental Authorization sanctions‛, showing
allthe sanctions approved with sanction type ‚Intra Governmental Authorization‛ will
appear. Pr.AO user has to enter ‚Authorization Number‛ and ‚Authorization Date‛. He
may click the hyperlink of sanction to view its details before entering the same.
Details of sanction will be displayed to user. He has to enter here ‚Authorization
Number‛ and ‚Authorization Date‛, and press‚SUBMIT‛button.
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On pressing ‚SUBMIT‛ button by Pr.AO. system will show the sanction status as
‚CLOSED‛.
5. CREATE SANCTION AGAINST IGA BY PD OF EXECUTING/AGENT MINISTRY

The executing/agent Ministry or Department, on the condition of observance of
normal procedures of sanction will incur the expenditure. The Pay & Accounts Office of
the executing Ministry will book the expenditure under the relevant expenditure head
against the Demands for Grants of the functional Ministry/Department and furnish the
monthly and progressive figures of expenditure to the Pr. Accounts Office of the
functional Ministry / Department. This is to enable the latter to monitor the flow of
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expenditure on the programme /activity and prepare Appropriation Accounts related to
the Grant.
A sanction for ‚Letter of Authorization‛ as submitted by Pr.AO of functional
Ministry/Department will be available with all the PDs of Executing/Agent
Ministry/Department for creation of sanction against that IGA. For this, PD of
Executing/Agent Ministry/Department will login PFMS through his user id and password
and go to:
‚SANCTIONS‛>‚CREATE AGAINST IGA‛
A screenshowing, all the ‚Intra Governmental Authorization Sanctions‛ available
for creation of sanction, will appear. User will press the button ‚CREATE SANCTION‛
given against the desired sanction.
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On pressing the button ‚CREATE SANCTION‛, a screen for creation of sanction will
appear.
User will enter the relevant details in the fields under ‚Sanction Header‛ viz.
IFD/HOD File Number & Date and Sanction Number & Date. He will select the concerned
PAO and DDO from the drop down menu. He will select ‚Transfer‛ or ‚Expenditure‛ as
the type of expenditure, as the case may be. Here, it may be noted that Account Head
Details are filled up automatically on the basis of ‚Letter of Authorization‛ issued from
Functional Ministry/Department.
Depending upon the type of expenditure selected a grid for selection of ‚Vendor
Details‛ in case of type ‚Expenditure‛ or ‚Agency Details‛ in case of type ‚Transfer‛ will
appear. PD will select the concerned vendor, fill the amount to be paid to him and press
the button ‚ADD‛.
Expenditure in respect of amount of sanction as authorized by functional ministry
through ‚Letter of Authorization‛ may be incurred fully or partially as the case may be, but
not in excess over the amount authorized by Functional Ministry/Department.
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A grid showing the vendor(s) details will appear below. In case of wrong vendor,
record can be deleted by checking the box given in front of vendor’s name and pressing the
button ‚REMOVE‛. In case record is correct, user will proceed to create a sanction by
pressing the button ‚CREATE‛.
‚Sanction has been saved successfully‛.
‚Do you want to proceed with Payee Details?‛
User will press the button ‚YES‛ to proceed further with Payee Details of vendor.
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Bank Details of vendor will be displayed to PD. After confirming the correctness of details,
he will press the button ‚NEXT‛.
IFSC code will appear automatically if the account details of vendor have been
validated by Bank. Otherwise, user may enter the correct IFSC code. Some meaningful
Payee Remarks is also mandatory to be filled up. The payees remarks will become part of
the SMS being sent to the beneficiary after realization of payment. After this, user will press
the button ‚CONFIRM‛.
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‚Payee Details have been submitted successfully‛
The executing Ministry /Department are authorized to incur expenditure up to
the limits specified in the authorization letter.The Accounts Officer of the
executing/agent Ministry will not honour any claim that would result in excess over the
amount authorised by functional Department, in any case.
Expenditure in respect of amount of sanction as authorized by functional
ministry through ‚Letter of Authorization‛ may be incurred fully or partially, as the case
may be. However, there is a validation in system for not allowing PD of Executing/Agent
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Ministry/Department to create a sanction against an IGA (Intra Governmental
Authorization) for amount exceeding the total of IGA amount.
6. APPROVAL OF SANCTION CREATED AGAINST IGA BY PD OF

EXECUTING/AGENT MINISTRY/DEPARTMENT
A sanction created against IGA by PD of Executing/Agent Ministry/Department
requires to be approved. For this PD will go to:
‚SANCTIONS‛>‚APPROVE SANCTION‛
All the sanctions pending for approval will appear. User may trace a desired
sanction by using search criteria given above.PD will click the hyperlink of sanction to view
its details.
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The details of sanction will be displayed to the user. After confirming the
correctness of data and verifying the payee details, he will press the button
‚APPROVE/REJECT‛.
User will enter the appropriate remarks and press the button ‚APPROVE‛.
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Now this approved sanction will be electronically transmitted to DDO for bill generation.
7. RECEIVING OF SANCTION BY DDO OF EXECUTING/AGENT MINISTRY/

DEPARTMENT
DDO will login PFMS through his user ID and password and go to:
‚SANCTIONS‛>‚RECEIVE SANCTIONS‛
All the sanctions as approved by PD will be displayed. User may use search
criteria to find a particular sanction. Sanctions can be received one by one or in bulk in one
go. He can either directly receive the sanction by clicking the check box given against it
and pressing the button ‚RECEIVE SANCTION‛ or he can click the hyperlink of sanction to
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view its details before receiving. In case the sanction is not correct, he can return it to PD
by pressing the button ‚RETURN SANCTION TO PD‛.
On clicking the hyperlink of sanction, details will be displayed to DDO. After
verifying the details, he will press the button ‚RECEIVE SANCTION (DDO)‛. System will
ask for the confirmation. User will press ‚OK‛ button.
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8. Generation of Bill by DDO of Executing/Agent Ministry/Department

After a sanction has been received by DDO, it will be available for generation of bill
under the option ‚SANCTIONS‛>‚GENERATE BILLS‛.
A screen showing all the received sanctions will appear.
q) For Bills to be generated without deduction, click on check box given against the
desired sanction and then click on the button ‚Generate bills‛.
r) For bills to be generated with deduction(s), click on sanction number to open the
sanction and then click on ‚Generate Bill Number‛ to add the deduction.
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Fields for adding deduction will appear. Select favouring of vendor given at left side.
Some of the standard deduction codes have been provided in drop down list. User may
choose from them; other details viz. grant number, function head, object head and category
will automatically appear in the respective box. Enter the amount to be deducted from the
bill in amount column and click ‘Add deduction’. The details of deduction added will appear
in grid below with a message ‘Deduction added successfully’. Similar steps may be
repeated for more deductions. The net effect of deductions will be shown below the grid. In
case of any error in deductions, tick the box and press ‚REMOVE‛ button. The added
deduction will be removed. If there is more than one payee in sanction id generated by PD,
the DDO can add deduction for each payee. In such case select favouring one by one and
add deduction as explained above.
If DDO chooses ‚OTHER‛ from standard code list then he has to provide grant
number, function head, object head, category and amount in the respective column and
follow the steps explained above in order to add deduction.
(In case, the deductions have been added but the bill is to be prepared without
deduction, user can press ‚CANCEL‛ button to remove all deductions and press the button
‚Generate Bill Number‛ to generate it without deductions.)
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After adding all deductions click on ‚Generate bills‛ button given at the bottom.
110
The bill will be generated with bill number and a message ‚bill generated with bill
number‛ will appear at top. User can print the bill from the link ‘to print click here’
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The generated bill will appear at DH level in Pay & Accounts Office of
Executing/Agent Ministry/Department with status ‘generated bill’.
9. RECEIVING OF BILL BY DHOF EXECUTING/AGENT MINISTRY/DEPARTMENT

DH user logs into the PFMS portal with his user id and password. To receive a
sanction from DDO, DH user will click the option ‚SANCTIONS‛>‚RECEIVE SANCTIONS‛
Screen will appear showing the listing of all the sanctions available for receiving at
DH level. DH has the option to select one, all or selected sanctions. He may use search
criteria for tracing a particular sanction.
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The desired sanction will appear. DH user may receive it directly by clicking the
checkbox given against it and pressing the button ‚RECEIVE SANCTION‛, or click its
hyperlink to view its details first.
‚Bill(s) have been received successfully‛.
A system generated token number will also appear in a grid.
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10. PASSING/RETURN OF BILL BY DH

Now DH user will go to ‚Sanctions‛>‚Pass Bill‛
Screen appears showing the list of all the sanctions which have been received
by DH user and are available for ‚Pass/Return‛.
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If the desired sanction is available in the list, DH user can directly open it by
clicking on sanction number. If the desired sanction is not visible, then DH user can trace
the same by using search options. Screen appears showing the Sanction Details, Account
Details, Bill Details, Bill deduction details, Budget Details and Vendor Details.
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To see the Payee details, DH user may click the button ‚Vendor Details‛.
DH user has two options available; he can either ‚Forward to AAO (Pass)’ or ‚Forward to
AAO (Return)‛. If he opts for ‚Forward to AAO (Return)‛, he will have to give the remark
for same.
After verifying the payee details and correctness of other data, DH may proceed to pass the
bill. He will press the button ‚FORWARD TO AAO (PASS)‛.
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System will ask for the confirmation of action.

‚Are you sure you want to pass the sanction further?‛
DH will press ‚OK‛ button.
‚Bill has been passed to AAO successfully.‛
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The status of sanction may be viewed as ‚Passed By DH‛ through the option
‚SANCTIONS‛>‚MANAGE SANCTIONS‛
Now this Bill (Sanction) will be electronically transmitted and will be available at AAO level
user.
11. PASS/RETURN OF BILL BY AAO OF EXECUTING/AGENT

MINISTRY/DEPARTMENT
AAO user will login PFMS portal with his user id and password. He will go to:
‚SANCTIONS‛>‚PASS BILL‛
If the desired sanction is displayed on screen, AAO can directly open it by
clicking on sanction number. If the desired sanction is not visible, then AAO can trace the
same by using search option. User will click the hyperlink of sanction to open it to view its
details.
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On clicking the Sanction Number, Screen showing the Sanction Details,
Account Details, Bill Details, Bill deduction details, Budget Details and Vendor Details,
appears. Before passing the bill, AAO user can see the Payee Details by clicking the
button ‚Vendor Details‛.
AAO user has two options available; he can either ‚Forward to PAO (Pass)‛
or ‚Forward to PAO (Return)‛. If he opts for ‚Forward to PAO (Return)‛, he will have to
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give the remark for same.If AAO has to pass the bill, he will click the option ‚Forward to
PAO (Pass)‛, system will ask to confirm the action by displaying a message:
‚Are you sure you want to pass the sanction further?‛
AAO will pass ‚OK‛ button.
Screen will display the message ‚Bill has been passed to PAO successfully.‛
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The status of sanction may be viewed as ‚Passed By AAO‛ through the option
‚SANCTIONS‛>‚MANAGE SANCTIONS‛.
12. PASS/RETURN OF BILL BY PAOOF EXECUTING/AGENT

MINISTRY/DEPARTMENT
PAO user will login PFMS portal with his user id and password and go to:
‚SANCTION‛>‚PASS BILL‛
All the bills (Sanctions) which have been passed by AAO will be available at
PAO level. If the desired sanction is not visible in the list, user can search it by using
search option. PAO user will open the desired sanction by clicking over the hyperlink of
Sanction Number.
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On clicking the Sanction Number, Screen showing the Sanction Details,
Account Details, Bill Details, Bill deduction details, Budget Details and Vendor Details, will
appear. Before passing the bill, PAO user can view the payee details by clicking the
button ‚Vendor Details‛.Here, two options are available. PAO user can either pass the bill
for payment or return the bill to DDO. If the bill is to be returned, PAO user will give the
reason for return and press the button ‚Return Bill to DDO‛.IF PAO has to pass the bill for
payment, he will click the option ‚Pass Bill‛.
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System will ask for confirmation of action.
PAO user will press the button ‚OK‛.
‚Bill has been passed successfully‛.
The status of bill may be viewed as ‚PASSED BY PAO‛ through the option
‚SANCTIONS‛>‚MANAGE SANCTIONS‛.
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13. DIGITALLY SIGN PAY FILE

All the sanctions for e-payment, passed by PAO user, will appear at Signatory 1
user for digital signing. Sanctions amounting to Rupees below 10 lakhs will be digitally
signed by Signatory 1 only. However, the sanctions, amounting to Rupees 10 lakhs and
above, will require to be digitally signed by both signatory 1 and signatory 2. In order to sign
multiple e-payment files in one go, payment batch file needs to be generated. User will go
to:
‚SANCTIONS‛ > ‚DIGITALLY SIGN PAY FILE‛
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A screen for ‚DIGITAL SIGN ON BILLS‛, showing all e-payment sanctions passed
by PAO, will appear. User will select the desired sanctions by clicking the check box given
against each sanction and then press the button ‚GENERATE PAYMENT BATCH FILE‛.
A Payment batch file will be generated for the selected records.
14. DIGITAL SIGN BATCH
Now user will go to ‚SANCTIONS‛ > ‚DIGITAL SIGN BATCH‛
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A screen for ‚DIGITAL SIGN ON BILLS‛, showing all the payment batch files
pending for digital signatures, will appear. User can proceed for digitally signing the batch
or he can also delete batch for recreation, if required.
User can click the hyperlink of batch number to view the sanctions it contains.
User will insert his DSC into system and click the button ‚DIGITAL SIGN‛
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In case of sanction for payment amounting to Rupees 10 lakhs and above, digital
signatures of signatory 2 are also required after the payment has been digitally signed
successfully by signatory 1.
This completes the process flow of ‚Letter of Authorization on PFMS‛.
******
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Public Financial Management System

O/o Controller General of Accounts
Department of Expenditure, Ministry of Finance
3rd& 4th Floor, Shivaji Stadium Annexe
Connaught Place, new Delhi 110001
Email: - itd-pfms@gov.in
128

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PUBLIC FINANCIAL MANAGEMENT SYSTEM (PFMS)

MANUAL OF PAYMENT AND ACCOUNTING THROUGH

CONTROLLER GENERAL OF ACCOUNTS

The Public Financial Management System (PFMS) is a web-based application for

payment, accounting and reconciliation of Government transactions and integrates various

followed in Civil Ministries of Government of India for registration of users, payment,

accounting and reconciliation so as to make it a comprehensive one-stop guidance material.

and the mechanisms involved in its operation for payment.

3. Chapter 1 and Chapter 2 of Volume-II of ‚MANUAL OF PAYMENT &

(DDO) respectively in a comprehensive manner.

GLOSSARY OF IMPORTANT TERMS ............................................................................. 1

GLOSSARY OF IMPORTANT TERMS

I. AAO - Assistant Accounts Officer

READY REFERENCE FOR PROGRAMME DIVISION (PD)

1. Registration of Programme Division (PD) in PFMS portal.

below the Log in button.

(b) Select ‚Program Division‛ as ‚Type of Users‛ from drop-down list.

(c) Select an option from the ‚Controller‛ drop-down list.

(d) Select ‚PAO‛ from drop-down list.

(e) Select ‚DDO‛ from drop-down list.

(g) Enter Login ID (which u wants to create for your login)

(i) Enter ‚Hint Question‛, Answer and confirm Answer.

verification Text box.

(k) Click the ‚Submit‛ button.

2. After Registration of Programme Division (PD), PD will be approved by the

3. Log in as PD by using user ID and password created and approved by DDO.

a. Mapping of PAO/DDO: Select -

a. User Master and click User Mapping

b. Click on PAO/DDO details.

d. Select PAO from drop down list.

e. Tick the PAO and DDO from the shown list.

f. Click Add and save button

g. DDO mapped successfully message will appear on top of the screen.

b. Mapping of existing vendors.

a. User Master and click User Mapping

b. Click on Vendor details.

c. Existing vendors who are registered on PFMS can be searched by

filling details like, Vendor type (personal), vendor name, unique

code, Account No. State and district.

d. After entering details in criteria above, click search button.

e. A list of mapped vendors will appear on the screen.

f. Tick the vendor we want to map.

g. Click Add and save button.

h. Vendor mapped successfully message will appear on screen.

i. The details of mapped vendor will appear in mapped vendor list.

c. Create New Vendor (Beneficiary to whom the payment is to be made)

b. Select Type : Personal

Although four fields Name, Address, City Mobile No. is mandatory to

save the record, use is advised to fill all the fields.

indicates that the bank is integrated with PFMS)

e. Enter Account No.

f. Click Add bank details.

h. Modification in Vendor’s Details :

i. Go to Master data > Vendors > Manage

j. After editing in details . click UPDATE

SANCTION GENERATION BY PROGRAMME DIVISION (PD)

a) Click on link SANCTION and then CREATE NEW

b) Create Sanction window will appear on the screen.

g) Select Sanction Type : Expenditure

h) Add : ACCOUNT HEAD DETAILS : Grant , Function Head, Object Head,

j) Click Add Account Heads

vendor. Enter amount then click Add

l) Click Create Sanction

proceed with Payee details.