Automated Payment System

A PROPOSAL FOR AN IT SYSTEM TO

STREAMLINE THE REIMBURSEMENT PAYMENT
PROCESS

Table of Contents
Pain points in the current reimbursement process.....................................................1
Objectives................................................................................................................... 1
Scope.......................................................................................................................... 1
Proposed Process Flow................................................................................................ 1
Audit Trail................................................................................................................... 3
Feasibility Study......................................................................................................... 3
Technical Feasibility................................................................................................. 4
Economic Feasibility................................................................................................ 4
Schedule Feasibility................................................................................................. 4
Operational Feasibility............................................................................................. 4
Business Case............................................................................................................. 5
Cost and benefit analysis........................................................................................... 5
Requirement Analysis and Design..............................................................................6
Use Case Model.......................................................................................................... 6
Detailing the Use Case............................................................................................ 6
Class Diagram............................................................................................................ 9
Organizing Classes................................................................................................ 10

Pain points in the current reimbursement process

From the perspective of the user, the primary issues identified in the current process flow are
inordinate delays in approvals and processing of payments. The issues identified by the
approvers are lack of correct information and the unavailability of documents, such as the bills
from vendors, required to process the request for payment. Another issue is the lack of tracking
mechanism to identify the time consumed in processing the request to completion and
confirmation of payments. The lack of a tracking mechanism also hinders the ability to define the
service levels.

Objectives
The objective is to build a robust system to automate the reimbursement process and also
facilitate the smooth flow of information among the departments and stakeholders. This would
further help in making the process more efficient, transparent and also streamlined.

Scope
The project is confined to reimbursement process followed by the Finance & Accounts (F&A)
department that involves stakeholders such as
Students
Student Bodies (P&ER, B-Fest, Academic & Non-Academic Clubs)
Faculty
Offices of various programmes.
Offices of various administrative authorities such as the Director, the Board, Accounts,
Deans, etc.

Proposed Process Flow

The process begins when a user raises a request for approval. The user logs into the system,
selects the type of request and completes a pre-designed form with details of the transaction and
provides scanned copies of the required proofs such as the bills of payment. The request is then
submitted to the appropriate approver (at level 1 L1) as designated by the system for approval.
At this point a request number is generated and provided to the user and the L1 approver to track
the request. Before the request is accepted by the system, the user will be required to submit a
checklist of required documents. Once the request is made, a notification of the request will be
mailed to L1 approver.
According to information received from the CAOs office, the approval from the director is
needed for any approvals exceeding Rs. 1 lakh, and for approvals lower than Rs. 1 lakh the L1
approver is authorised to approve if all the requirements are satisfied and the request is deemed
to be reasonable. Therefore, it is proposed that the system automatically notifies the Director in
the case of requests exceeding Rs. 1 lakh. The limit of Rs. 1 lakh can be altered by the Institute
as required. After L1 approver and the Director (in case of large requests) approve the request, it
is forwarded to the L2 approver (the Accounts section). At this stage, a notification is sent to the
user (who raised the request), the L1 approver and the L2 approver via email. The L2 approver

can then view the request and the attached scanned documents, and notify the user to provide the
originals for authentication.
Once the user provides the originals, the L2 approver confirms the approval in the system. The
Accounts section then processes the cheque or online payment as desired by the user and then
confirms once the payment is processed. A notification is provided to the user, the L1 approver
and the L2 approver. The user then confirms receipt of payment.
Under exceptional circumstances, the L1 approver may allow the user to raise a request without
completing all the requirements. The request can be approved after providing the rationale for the
exception in the comments. This exception can be recognised in the audit trail along with the
comments of the approver.

Audit Trail
For purposes of auditing, the entire process flow is saved into a database with details of the
request such as the nature of the request, the scanned copy of the bills, the bill number, the
transaction number, name of the user, L1 approvers, L2 approvers, approvers comments, the
timing of approvals, and details of payment transaction. The audit trail must also contain the
order in which the process occurred. In case a request was returned to the user, the audit trail
must recognise this movement and record it.

Feasibility Study
The present organizational system, the pain points, the objectives and stakeholders involved have
already been discussed. The goal of the proposed system is to reduce the delay in reimbursement
process and make the process more efficient and achieve a full automation in the process.
Constraints The following constraints would remain even after implementing the proposed
system:

The system cannot be made total paperless as original documents have to be produced at
final stage of F&A department.
Delays would creep into the system if the student fails to present the bills in time.
Advances given to committees such as B-fest, P&ER groups cannot be automated and
present system has to be followed. This system facilities only post-reimbursement
process.
Technical glitches such as mails sent in the spam of L1 and L2 approvers might cause
delays.

Preferred Alternative The proposed new process flow addresses all the pain points in the
current system.
Measuring Success Success of the new process flow can be measured based on the following:

The proposed process flow allows L1 approver to get notifications and approve the
reimbursement through email even when they are absent from the campus premises. This
remote approval facility expedites the process and reduces the effort

The new process flow allows the concerned to know at which stage the process is stuck
and take appropriate steps accordingly thereby reducing time
The auditing process is simplified and error proof

Taking all the above advantages into consideration the two critical points in measuring
success are time and man-efforts (in approval and notifications)

Technical Feasibility

The project is not possible with the current technology at college as of now. To
implement a system, college has to purchase new hardware (scanners, blade server) and
software systems(OS, Antivirus)
Technical risks such as server failure, network issues, etc. may persist after the
implementation
The project is being implemented with existing technology such as servers, scanner, and
software available locally
Since manual process is being followed presently, the new system has to be compatible
with the existing process flow

Economic Feasibility

Since, new equipment has to be purchased for implementing the new process flow, there
are no resource constraints as the administration is willing to invest towards automating
the process.
Tangible benefits from the new system are
o Less paperwork
o Frequent follow ups from the concerned are removed
Intangible benefits from the new system are
o Eliminate or minimize errors
o Automated notification reduces processing time
o Raising new requests and approval of requests can be done remotely

Schedule Feasibility
The proposed solution can be implemented within the proposed timeline. Time involved
will be in procuring the required infrastructure and web portal development

Operational Feasibility
There is an element of distress among the concerned faculty, students and F&A
department regarding the delay and lengthy process followed currently, and this issue has
been a matter of debate during the faculty-student interaction meetings. Thus, the urgency
of it is high and the solution proposed is also acceptable with all the stakeholders. The
implemented system would also make the process more fluid and transparent and would
resolve human and internal issues.

Business Case
Inherent issues identified in the current process flow (manual work) are inordinate delays in
approvals and processing of payments. Presently the applicant has to wait for months to get the
bills reimbursed. Additionally due to the lack of a process and knowledge, the applicant often
doesnt know the status of the request. The goal of the proposed system is to automate the
reimbursement process and also facilitate the flow of information among the departments and
stakeholders. The alternatives could be building a low cost in-house IT solution that can address
the pain points. Buying a package from a third party vendor is not feasible as the scope of the
project is very small and confined to addressing a narrow solution. The benefits of the system
would be reduced manual efforts in reimbursement processing, ease of tracking, and ability of
the system to make the manual process more mobile and hassle free. This brings transparency
and helps the stakeholders in tracking the requests. The costs associated with the system will be
initial development, maintenance, and other costs like training various stakeholders. Risks will
be confronted as explained in the feasibility study. Success of the proposed process flow can be
measured based on the savings on Time and Man-efforts in the new flow.

Cost and benefit analysis

Positive NPV indicates that the project can be implemented and would give projected benefits in
making the process quicker, smoother and transparent.
Please find the embedded excel sheet containing calculations.

Requirement Analysis and Design

Use Case Model

Detailing the Use Case

Raise a Reimbursement Request
Brief Description Allows user to raise a request for reimbursement
Primary Flow
1.
2.
3.
4.
5.
6.
7.
8.

User enters the portal

System prompts for user id and password
User logs into the portal with the unique email id and password
User is successfully logged in
User chooses to raise a new request
Systems throws a new form for the user to fill in
User enters the required details and clicks on the Save button.
System validates that all the required fields are filled in. If unfilled fields are present
Alternate A1. If wrongly filled fields are present Alternate A2.

9. User clicks on Upload Documents button

10. Systems prompts for the location of the documents in the system
11. User selects the appropriate documents and uploads
12. Documents are successfully uploaded and the user is notified
13. User submits the data. Request is submitted and a unique request id is generated
14. The system displays the home page
15. Use case ends
Alternate Flows
A1 : Unfilled fields are present in the form
1.
2.
3.
4.

System displays error message beneath the unfilled fields on the same page
User fills the required details and saves
Systems validates the data and system continues with the primary flow
Use case ends

A2 : Wrongly filled data in some / all the fields

1.
2.
3.
4.

System displays error message beneath the incorrectly filled fields

User modifies the data in the field and saves
Systems validates the data and system continues with the primary flow
Use case ends

Approve a Request
Brief Description Admin approves/rejects a request based on the documents submitted
Primary Flow
1.
2.
3.
4.
5.
6.
7.
8.
9.

Admin enters the portal

Admin can see all the requests which are pending
Admin selects a particular request by clicking on it
Details about the request and the supporting documents are rendered
Admin validates the request. If the documents are not sufficient or erroneous , then
Alternate flow B1
If all the details provided are sufficient and the request is valid, admin approves the
request and the request is forwarded to the next section
If the request is invalid, then Alternate flow B2
The status of the request changes to Pending with Director / PGP office / Finance &
Accounts section / Ready for reimbursement / Cancelled
Use case ends

Alternate Flows
B1 : Admin requests additional information/documents
1. Admin requests additional information
2. System prompts admin to enter comments. Admin enters comments and saves

3. System then generates an automated email directed to the user with the message written
in the comments section
4. The status of the request is then changed to Pending with user
5. User then modifies the request by submitting additional documents needed. User enters
comments and saves
6. The request is then pending for approval again with the admin and system continues the
primary flow
7. Use case ends
B2 : Admin cancels the request
1.
2.
3.
4.

Admin cancels the request

System prompts admin to enter comments
User gets notified through an automated mail generated by the system
Use case ends

Modify a Reimbursement Request

Brief Description User modifies the request for reimbursement
Primary Flow
1.
2.
3.
4.
5.

User enters the portal

System prompts for user id and password
User logs into the portal with the unique email id and password
User is successfully logged in
User checks his request history and selects the requests his wishes to modify. If Pending
with Admin Alternate C1.
6. Systems display the request form with the uploaded documents. If User wishes to Cancel
the request Alternate C2.
7. User modifies the required details and clicks on the Save button
8. System validates that all the required fields are filled in. If Unfilled fields are present
Alternate C3. If wrongly filled fields are present Alternate C4.
9. User clicks on Upload Documents button if necessary
10. Systems prompts for the location of the documents in the system
11. User selects the appropriate documents and uploads
12. Documents are successfully uploaded and home page is displayed
13. User clicks on Submit button
14. Request is submitted
15. Use case ends
Alternate Flow
C1 : User wishes to modify his request but the request is pending with Director / PGP Office /
F&A / Student Activities Chairperson
1. System notifies the user that the request
Office/F&A/Student Activities Chairperson
2. User cannot modify the request

is

pending

with

Director/PGP

3. Use case ends

C2 : User wishes to cancel the request
1.
2.
3.
4.

User selects the request to be cancelled

User clicks on the submit button
System notifies the user that the request has been cancelled
Use case ends

C3 : Unfilled fields are present in the form

1.
2.
3.
4.

System displays error message beneath the unfilled fields on the same page
User fills the required details and saves
Systems validates the data and system continues with the primary flow
Use case ends

C4 : Wrongly filled data in some/all the fields

1.
2.
3.
4.

System displays error message beneath the incorrectly filled fields

User modifies the data in the field and saves
Systems validates the data and system continues with the primary flow
Use case ends

View Status
Brief Description User can see the status of the request raised
Primary Flow
1.
2.
3.
4.
5.

User enters the portal

User can see all the requests which are raised by him
User selects to view a particular request by clicking on it
Details about the request and the supporting documents are rendered
The status of the request appears to be Pending with Student activities chairperson /
Director / Acads office / Finance & Accounts section / Ready for reimbursement /
Cancelled
6. Use case ends

Class Diagram
The classes required for the development of the automated reimbursement system are depicted
below:
USER
User Category

REQUEST
Request ID

APPROVER
Approver ID

Email ID
Name
Remarks
Amount Eligible
Log In()
Raise()
Modify()
View()
Comment()
Students
Roll No
Prior Approval
Institute/Corporate
Name
Event Name
Event Organizer
Name
Event Organizer
Email ID
Event Date
Request Details
Team Details

Clubs
Club ID
Request Details
Purpose of
Reimbursement

Request Status
Request Date
Request Amount
Days in current stage
Generate ID()
Status()
Modify()
Cancel()
Delete()
Upload Docs()
Get Details()

Designated Approver
Approval Date
Approver Email
Remarks
Approver Level
Approver Type
Log In()
Approve()
Reject()
Modify()
Comment()

B-Fest
Coordinator ID
Request Details

PGP
Employee ID

Prior Approval
Purpose of
Reimbursement

Request Details
Purpose of
Reimbursement

P&ER
Member ID
Request Details

Faculty
Employee ID
Request Details
Purpose of
Reimbursement

Prior Approval
Purpose of
Reimbursement

The classes, the attributes that define the classes and the functions that act upon those classes are
depicted in the above diagram.

Organizing Classes
The below diagram shows the inheritance from the general class User: Students, B-fest, Acads
Office, Faculty, Clubs and Placement and External Relations committee.