Information and guidance for central government institutions 

About electronic data submission 

Central government institutions can submit accounting information and supporting documents for payment cards electronically to Orri. To begin electronic data submission, the institution must select a fintech solution that meets the requirements of the Icelandic Financial Management Authority (FMA) and notify FMA of its choice. 

Electronic data submission reduces manual data entry and the handling of paper records. Accounting information and supporting documents are recorded in the fintech solution and submitted electronically to Orri. 

FMA has worked with fintech companies to define requirements and test solutions for electronic data submission. Institutions may select solutions from companies that have completed the second phase of the project and demonstrated that their solutions meet FMA‘s requirements. Further information is available on the project page on Ísland.is. 

The accounting process in Orri is the same regardless of which fintech solution the institution selects. 

How do I begin electronic data submission? 

The institution selects a fintech solution that meets FMA‘s requirements. Solutions may vary in functionality, service, card arrangements and cost. The institution must therefore assess which solution best meets its needs and conduct its procurement in accordance with the applicable procurement rules. FMA does not recommend one solution over another. To begin electronic data submission, the institution must: 

Electronic data submission must not begin until confirmation has been received from FMA. 

What changes after implementation? 

How are card transactions and supporting documents recorded? 

Once electronic data submission begins, the institution records accounting information and supporting documents in the fintech solution. 

• Accounting information, such as cost object, account and dimensions, is recorded in the fintech solution. 

• An image or PDF of the supporting document is attached to the card transaction in the fintech solution. 

• Each card transaction is submitted electronically to Orri together with the accounting information and supporting document. 

• Institutions receiving accounting services from FMA do not need to send paper supporting documents for these card transactions to FMA. 

The accounting information must be correct and an adequate supporting document must be attached to each transaction before it is submitted to Orri. 

How are card transactions posted in Orri? 

Card transactions submitted electronically appear in Invoice Approval in Orri (AP), together with the accounting information and supporting documents from the fintech solution. At least two accounting lines are created for each card transaction: 

• One or more expense lines are posted using the information from the fintech solution. A single card transaction may be allocated to more than one cost object or account. 

• An offsetting line, generated automatically against the expense, is posted for the total amount of the card transaction using account 22755 and the card issuer’s ID number. 

Account 22755 is a new account for settling card transactions and replaces account 2216 in this process. 

What is approved in Orri? 

Card transactions follow the standard approval process in Invoice Approval in Orri. They are not invoices for payment, as the card payment has already been made. The offsetting line ensures that the total amount payable is zero. Approval confirms that the accounting information and expense posting are correct. Once approved, the accounting information is transferred to the Orri general ledger (GL). 

How is the card statement reconciled? 

The card statement is posted to account 22755 using the card issuer’s ID number. 

Each card transaction is posted on a separate line so that it can be reconciled against the offsetting entry created during electronic data submission. 

Once all transactions and the card statement have been posted, the debit and credit entries in account 22755 should balance. 

Account 22755 is used solely for card transactions and their reconciliation. 

Do paper supporting documents need to be retained? 

Supporting documents are retained electronically with the accounting entries. 

Institutions receiving accounting services from FMA do not need to send FMA paper supporting documents for card transactions submitted electronically. 

The institution remains responsible for retaining and disposing of paper records in accordance with accounting legislation, other applicable rules and its records management plan. 

The institution’s records manager should be consulted before original records are destroyed. 

Support and further information 

Questions about electronic data submission, configuration in Orri and the accounting process may be sent to FMA at bokhald@fjs.is. 

Questions about the functionality, use or service of individual fintech solutions should be directed to the relevant fintech provider. 

Further training and guidance on the new process will be published in Fjársýsluskólinn.