History of the AFP Finance Center

The Armed Forces of the Philippines Finance Center (AFPFC) traces its beginnings to the post-war reorganization of the military’s fiscal and accounting services. Originally, the financial operations of the AFP were handled separately by the different major services the Philippine Army, Philippine Navy, and Philippine Air Force each maintaining its own finance and accounting unit.

To promote efficiency, uniformity, and accountability in the management of military pay and allowances, the need for a centralized finance organization emerged. Thus, the AFP Finance Center was formally established to serve as the primary financial management and service provider of the Armed Forces of the Philippines (AFP).

Since its inception, the AFPFC has evolved from a simple disbursing office into a comprehensive finance and accounting institution, integrating systems of payroll management, pension administration, fund disbursement, and accounting services. It supports both active military personnel and AFP retirees, ensuring that their financial entitlements are properly processed, documented, and released.

Over time, the AFPFC has adopted modern financial technologies, automation systems, and compliance frameworks aligned with the Government Accounting Manual (GAM), RA 9184 (Government Procurement Reform Act), and RA 11032 (Ease of Doing Business Act).

Today, the AFP Finance Center stands as a vital pillar of military financial administration upholding its mission to deliver timely, transparent, and accountable financial services to all members of the Armed Forces of the Philippines.

Timeline of the AFP Finance Center

Year / PeriodKey Development / Milestone1947-1950Establishment of separate finance and accounting units within the Philippine Army, Navy, and Air Force after the AFP reorganization.1951-1960Creation of the Finance Service under the AFP General Headquarters (GHQ) to standardize pay and accounting systems across the major services.1976-1979Formal organization of the AFP Finance Center under GHQ as a centralized financial service office.1980-1989Implementation of standardized pay systems and pension processing procedures; introduction of manual accounting and ledgers.1990-1999Integration of computerized financial records and payroll systems; establishment of a pension management section.2000-2009Expansion of the AFPFC’s role to include pension disbursement and overpayment recovery, serving both active and retired personnel.2010–2015Implementation of digital accounting systems aligned with COA Circulars and DBM modernization initiatives.2016–2019

• Adoption of internal IT solutions for payroll, remittance, and deduction monitoring.
• Start of system integration efforts with GHQ and AFP Pension and Gratuity Management Center.
• Development of INCOS