from planning to compliance rené bergkamp – director, research and development, qad qad...

From Planning to Compliance

René Bergkamp – Director, Research and Development, QAD

QAD Enterprise Financials

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The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.

Safe Harbor Statement

QAD Enterprise Financials – From Planning to Compliance

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• CFO challenges- IFRS- XBRL- Global Roll-out while meeting local

requirements

• QAD Enterprise Financials

Agenda


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CFO Challenges


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• Duke's Fuqua School of Business / CFO Magazine Business Outlook March 2011 (472 US Firms)

- 34% of CFOs say that convergence to IFRS accounting is one of their biggest accounting concerns

- 83% of firms have not started to convert to IFRS or are far from ready to convert

IFRS U.S.

QAD Enterprise Financials – CFO Challenges

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February 24, 2010

SEC issues Work Plan

2011

Proposed SEC decision on IFRS

2010 2011 2012 2013 2014 2015 2016 2017 2018

*Staggered adoption possible based on earliest adoption in 2015 or 2016

January 31, 2017

Possible first IFRS 10K

FY15 - FY16

Earliest comparative information required

End of 2011

Target date for completion of FASB/IASB convergence agenda

2015 – 2018

Possible staggered adoption period*

2012 – 2014

Possible effective dates of converged standards

February 1, 2016

Possible beginning adoption date

February 1,2014 Date of transition

• 2011 important year- Completion IFRS/US GAAP convergence program- SEC plan to make a decision whether U.S. companies are

required to use IFRS rather than U.S. GAAP- Canada and Mexico requiring use of IFRS

• Earliest US implementation 2015/2016

IFRS U.S.


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• Both Standard and Enterprise Edition fully support implementation of IFRS

• Enterprise Edition is designed for Multi-GAAP and embeds IFRS compliance in the core accounting processes- Accounting layers, allocation module, ….

• Start preparation early- www.qad.com/IFRS- QAD IFRS Q-Scan !

IFRS U.S.


http://www.qad.com/IFRS

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• XBRL: What is it?- eXtensible Business Reporting Language- Language for electronic communication of

business and financial data- Common language: XBRL provides identifying

electronic readable tags for each individual item of data

Reporting in XBRL format


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• Tag- Machine readable label that

gives a standard definition for topic in a document.

• Taxonomy - A dictionary of tags for

• Specific accounting standards(US GAAP, IFRS)

• Industry segments • Company specific tags

• Instance Document- Collection of tags that is the

building block to viewing and analyzing data

XBRL – Key terms to know


<Asset>1000</Asset>

<element name=”Assets” id=”Assets” periodType=”instant” balance=”debit” abstract=”false” substitutionGroup=”item” type=”monetaryItemType”/>

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XBRL - Sample


Source: http://xbrl.squarespace.com

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• Regulatory reasons- SEC requires public companies to use XBRL

(US)- Mandatory for filing company accounts (UK)- Format within its e-Tax filing system (Japan)

• Business reasons- Facilitates paper-less financial reporting- Conforms to industry-accepted methods- Cuts time required for accounting tasks- Easily compare company information

XBRL – Why?


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XBRL – Why?


Business Operations

Internal Financial Reporting

ExternalFinancial Reporting

Investment Lending

Regulation

Economic PolicymakingProcesses

XBRL XBRL XBRL XBRL

Participants Companies

Financial Publishers &

Data Aggregators

Investors Central Banks

RegulatorsTrading Partners

Management Accountants

Auditors

Software Vendors

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• SEC requires public companies to submit financial statements in XBRL - Large filers, all remaining public companies for their first

quarter ending after June 15, 2011• Phase 1 detailed tagging of financials, block tagging of notes and

schedules

• June 30, 2012 detailed tagging of notes and schedules

• Options- Outsourcing to an EDGAR filing agency

- Perform tagging process in-house using XBRL tagging tool

- Embedding XBRL tags in consolidation tool

- Embedding XBRL tags in financial reporting process in ERP software

XBRL U.S.


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XBRL Enterprise Financials


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• Discuss practical implementation of XBRL• Learn from other companies• Help define QAD’s roadmap for XBRL• Join by contacting QAD: [email protected]

XBRL Customer Work Group


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• How to centralize and still meet local requirements?

• How to keep up to date with new legislation and new business practices across the world?

• How to run a shared services center supporting multiple countries?

Global Roll-out, Local Requirements


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• QAD Internationalization offers generic solutions for country specific requirements- Enterprise Edition solution replacing prior

localizations

• Advantages- Single code base to support the world- Supports shared services- Global benefit from specific capabilities- Keep up to date with downloadable content

Global Roll-out, Local requirements


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• Cost method for inventory valuation that calculates periodic item unit costs based on inventory and shop floor transactions.

• Supports Weighted Average, FIFO and LIFO• Required for

- Legal requirements (IFRS, Brazil, Turkey, Italy)- Business practices in certain corporations

Periodic Costing

Recently Released QAD Internationalization Functionality

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• Some countries require inventory movements to be accompanied with a legally required shipping document

Legal Documents


Brazil : Nota FiscalArgentina: RemitoChile: Guia de Despacho

Turkey: IrsaliyePoland: Dokumenty magazynoweThailand: “Stock Card”

Argentina BrazilChile

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• Suspended Tax on Customers Invoices (Mexico, France, Thailand)

• Delayed Tax on Supplier Invoices (Mexico, France)

• Withholding Tax on Accounts Payable (US, Columbia, Venezuela, Italy, Thailand)

• Tax calculation extended to non-sales inventory transactions (Brazil)

• Golden Tax On Customer Invoices (China)• Gross Income Accounting (Brazil)

Taxation


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QAD Enterprise Financials

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• New Financial solution introduced with QAD Enterprise Edition- Multi-Layer, Multi-GAAP, Multi-Currency- Additional accounting dimensions- Allocation module- Great for financial shared services- From single site to very large global

manufacturing company- State of the art technology- Extensive support for Excel

Refresher

QAD Enterprise Financials – Refresher

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QAD Enterprise Financials – Refresher

Continued Roll-Out

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• Backwards Compatibility• Customer requested enhancements• Internationalization• Group Reporting• Automation of Consolidation

Planned Developments

QAD Enterprise Financials – Planned Developments

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• Ability to implement newer versions of Enterprise Financials without having to upgrade the complete QAD application suite- For example implement QAD 2011.1 Enterprise

Financials while running QAD 2009.1 Enterprise Edition

• Available for customers QAD 2009.1 EE and upwards

Backwards Compatibility


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• Advantages- Allows companies to benefit from new

Enterprise Financials capabilities without doing a full upgrade

- Delivery mechanism for Internationalization updates that require new business logic

- Benefit from experiences and support fixes of other implementations

- Remain current and on a supported version

• Starting roll-out middle of this year

Backwards Compatibility


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• Selection of enhancement requests• Example of enhancements added in QAD

2011- Add description field to Open Item Adjustment- Usability enhancements Customer/Supplier Payment Mass

Change- Creation of end-users for existing addresses or inactive

customers in Invoice Post/Print- Implement validation for duplicates earlier in Supplier Invoice

Create activity- In Supplier Invoice Create add Supplier Name and PO cost to

the lookup on PO Number- Print aging report by sales person or payment group

Customer Requested Enhancements


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• Invoice Certification (Portugal)- Decree 363/2010: Software certification for

invoice program- QAD is certifying QAD Enterprise Financials

2011.1

• Electronic Invoice (Brazil)

• Invoice Print converted to Report Framework

• Advanced Banking System (Brazil)• Delayed Taxes Exchange Rate (Mexico)

- Government issued exchange rates

Internationalization


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• Domain and Group level financial statements

• XBRL support• Source for BI Financial data

Group Reporting Objectives


ReportCube

Common Report Chart -GL -Sub-Account -Cost Center -Project -SAF

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Group Reporting Overview


Cube Generate

SourceDomains

AccountSub-AccountCost CenterProjectSAFIntercompany

Base CurrencyGL Calendar

COA Cross Reference

Chart translation

Report Chart

EntitiesGLSub-AccountCost CenterProject

Presentation Currency

Report Calendar

Report CubeDefinition

CurrencyCalendarEntities

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Report Chart Maintenance: Cross Reference


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Report Cube Definition


ReportHierarchy

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Group Reporting - Financial Report Writer


ReportCube

Common Report Chart -GL -Sub-Account -Cost Center -Project -SAF

Presentation Currency

Report Calendar

Rows

Colu

mns

Tree

ReportAnalysis Codes

EuropeSales

Automotive

Americas

Asia

Sales Packaging

Report Analysis codes are the building blocks of the Report Hierarchy Tree

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Drill down to the source entity


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• Tree structure- Represent the hierarchy of the report- Nodes build with Report Analysis Codes- Tree structures are reusable in multiple layouts

• Build recursively from smaller trees

Report Tree


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• Ability to process multiple consolidation levels in a single run

• Automatic eliminations• Multi-database consolidations• Consolidation dashboard

Automation of Consolidation

QAD Enterprise Financials – Planned developments

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• CFO challenges- IFRS- XBRL- Global Roll-out while meeting local

requirements

• QAD Enterprise Financials- Backwards Compatibility- Customer requested enhancements- Internationalization- Group Reporting- Automation of Consolidation

Summary


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Metrics Affected


Process Benefit Value

Period/Year end reporting

• Faster closure and reporting to market

• By automating translations to other COA/GAAP fewer errors and more reliable results

• Improved compliance to corporate governance standards such as Sarbanes-Oxley

•Improved compliance at lower costs

Meeting local legal and business requirements

• Single solution for global compliance

• Keep up to date by downloading Internationalization updates

•Improved compliance at lower costs

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• Attend Architecting and Managing a Global Enterprise Solution - Thursday at 11:00 am- Speakers:

• Trevor Steel, Solutions Consultant, QAD• Cliff Markell, Director of IT, Watts Water Technologies

• Stop by the EXPO and learn what Enterprise Financials can do for your organization

Next Steps


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• René Bergkamp: [email protected]

Questions & Answers


mailto:[email protected]

from planning to compliance rené bergkamp – director, research and development, qad qad...

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