3.M Accounting and finance

Purpose

Mirror every loan event in the General Ledger correctly the first time, file every statutory return on time, and produce financial statements that reconcile to the LMS perfectly.

In-scope features

Loan accounting

• GL postings for every loan event (disbursement, accrual, repayment, charge, classification change, provisioning, write-off, recovery).
• Per-product GL mapping — chart-of-accounts configured per product.
• Cost-centre mapping (product / channel / partner / geography for management reporting).
• Fee accounting — processing, servicing, foreclosure, etc.
• Interest income recognition — accrual basis for Standard, cash basis for NPA.
• Penal-charge accounting — separate ledger.
• Co-lender share — segregated postings for own share vs partner share.

GST

• GST invoicing per fee event — automated.
• HSN code per service / fee type.
• Input tax credit tracking on vendor invoices.
• Output GST computation, monthly summary.
• GSTR-1 / 3B filing — via direct portal or GSP.
• E-invoicing — for invoices to entities crossing the threshold.
• GST registration — across states of operation if multi-state physical presence.

TDS

• TDS deduction where applicable — vendor payouts, DSA payouts, professional fees, rent.
• TDS returns quarterly.
• TDS certificates issued.

Co-lender / investor settlement

• Settlement file generation per period per partner.
• Settlement reconciliation — own books vs partner books vs escrow.
• Settlement payout via NEFT / RTGS.

Vendor / DSA payouts

• DSA payout computation — % of sanction or % of interest collected, per agreement.
• Vendor payout — KYC / BSA / GSP / eSign / NACH vendor invoices reconciled and paid.
• TDS applied where applicable.

Reconciliation

• Daily bank reconciliation — collection account, disbursement account, escrow.
• Sub-ledger to GL reconciliation — LMS sub-ledger vs GL totals.
• Co-lender reconciliation — own books vs partner books.
• Vendor invoice reconciliation.

Financial statements

• Daily / monthly P&L drill-down to product / channel / cohort.
• Balance sheet with loan-book breakdown.
• Cash-flow statement.
• Provisioning schedules monthly.
• Audit schedules — annual close support.

Tax reports

• Income tax — annual return.
• GST — monthly + annual.
• TDS — quarterly.

Out of scope

• Day-to-day loan administration — see 3.J.
• Regulatory submissions (CIC, RBI) — see 3.N.
• Treasury / fundraising — out of platform scope (typically a separate finance function).

Key entities

• GlAccount — chart-of-accounts node.
• GlPosting — journal entry.
• Invoice (GST) — per fee event.
• TdsDeduction — per applicable transaction.
• Settlement — per partner per period.
• VendorInvoice — per vendor.
• DsaPayout — per DSA per period.
• Reconciliation — per account per day.

Key workflows

1. Daily GL posting batch — sweep LMS events into GL.
2. Daily bank recon — sponsor bank statements matched to expected.
3. Monthly close — accruals, provisioning, settlement, statements, taxes.
4. DSA payout cycle — usually monthly; computed, approved, paid.
5. Vendor invoice cycle — received, validated, approved, paid.
6. Co-lender settlement — periodic per agreement.

Integrations

• Sponsor bank — statement ingestion (SFTP / API).
• GST portal via GSP — Cygnet, Karix, Webtel, MasterIndia, Taxgenie, Vayana.
• TRACES / income tax portal for TDS / IT.
• Accounting system (optional) — if not using own GL: Zoho Books, Tally, NetSuite, Oracle, SAP.
• Payout APIs for DSA / vendor / settlement payments.

APIs

• GET /gl/accounts — chart.
• POST /gl/postings — manual journal.
• GET /gl/postings?date={d} — daily journal.
• POST /invoices/gst — generate GST invoice for a fee event.
• POST /settlements/{partner}/{period} — generate settlement.
• POST /reconciliation/bank/{account}/{date} — run recon.
• GET /financials/pnl?period=Q3-FY25 — financial statement.

Events emitted

• gl.posting.created
• invoice.generated
• tds.deducted
• settlement.completed
• reconciliation.matched / reconciliation.exception
• vendor_payment.executed
• dsa_payment.executed

Edge cases

• Late repayment crossing month-end — affects both classification (J) and provisioning (J / M).
• GST rate change during period — versioned.
• Co-lender disputes a settlement number — recon module produces evidence.
• Vendor invoice in wrong period — manual journal with explanation.
• Backdated correction to a loan — auto re-post with adjustment journal; prevent silent retroactive change.
• Multiple state operations — GST registration in each; allocation across.
• Restatement after audit — controlled change; full audit trail.

Compliance touchpoints

• IndAS / Indian GAAP — IndAS for IndAS-applicable; otherwise IGAAP. Choice affects ECL methodology.
• GST law + e-invoicing.
• TDS law.
• Companies Act — financial statements, audit, AGM filings.
• RBI IRACP — provisioning aligned.
• Co-Lending guidelines — share-level accounting.

MVP vs production

Feature	MVP	Production
Loan GL automation	✓	✓
GST invoice automation	✓	✓
TDS automation	(Phase 2)	✓
Co-lender settlement	✓ (manual recon at MVP)	✓ (auto-recon)
DSA payout	✓ (manual computation MVP)	✓ (auto)
Daily bank recon	✓	✓
Monthly financials	✓	✓
Cohort-level P&L	(Phase 3)	✓
Integration with external accounting system	Optional MVP	✓ (often required for audit)

Related: 3.J LMS, 3.N Reporting and compliance, 13.17 Accounting backlog.