Why upgrade to EE Financials

1

Bill Wermes, Solution ConsultantLance LaCross, Solution Consultant

CA Users GroupFebruary, 2010

Agenda

Introductions Challenges in your business Benefits of QAD Enterprise Financials Components of QAD Enterprise Financials Demonstrate scenarios throughout Wrap Up

Goal for Enterprise Financials

“To be the leader in financial applications for global manufactured product companies.”

What does this mean?

Best-in-class finance product for the global needs of a manufactured product company in both a single and shared services environment

While there may be software products in a given country that fit a single country needs better, QAD’s direction is to be the best available globally

Tier One products such as SAP may be as functional, but are too complex due to the number of industries they serve

Business Drivers of QAD Customers and Prospects:

Companies need a way to make sense of all the data being collected

within their organization – need increased visibility.

Need to be able to answer strategic business questions.

They are now being held accountable and therefore need to control

and comply.

Companies are growing worldwide and they need a system that will

allow them to benefit from their global operations.

They want a system that is easy to use.

Business Benefits QAD EE Solution provides:

Efficiency - Complete access to financial data along with role-based

processes

Globalization - An integrated financial solution across the entire

enterprise including multi-company, multi-currency, multi-GAAP, and multi-

country organizations

Compliance - Controls for data and processes – role-based security,

segregation of duties

Leverage Technology – powerful integration tools and user-definability

Ease of Use & Standardization - An easy to use, scalable solution

Additional Benefits to upgrading:

First: Leverage Technology

New powerful functionality to import/export dataBi-directional Excel Integration

New Enterprise Edition Concepts

More, faster and better:

– Database and Shared Sets – Multiple Accounting Layers allow for multi-

GAAP reporting

– Dual Base Currency: Transaction amounts stored in multiples – Transaction, Base and Management Currency

– Multiple COA for reporting purposes

Database Sets

EntityData

EntityData

EntityData

EntityData

EntityData

QAD 2009 System

Shared-Set Data Shared-Set Data

System-Wide Data

DomainData

DomainData

DomainData

e.g. taxes, numbering, …

e.g. base currency, numbering, …

e.g. COA, suppliers, customers, …

e.g. managementcurrency, users, …

SiteData

SiteData

SiteData

SiteData

SiteData

Location Location Location Location Location

e.g. inventory, cost, planning, …

Database - Shared Set• Entity = “Balanced Set of Books”• Domain = Group of Entities w/

same Base Currency

Financial Analytics

Align performance of business units to your overall company objectives

Analysis and reporting from C-level executives to business unit managers

Multi-layer accounting with support for simulations and what-if analysis

Extensive drill-down and analysis capabilities

Dashboards for customer and supplier information

Supplementary Analysis Fields (SAF)

Ensures overall state of the business analysis as strategic options are analyzed for the CFO

Accounting Layers / Books

G/LTransactions

Accounting layers (books) provide ways of segregating transactions within a single GL account. The posting of transactions is controlled by associating daybook types with one of three system-defined accounting layers: official, management, and transient:

• If a daybook is associated with the Official layer, transactions are immediately posted to the general ledger.

• Management layers can provide different types of GAAP reports within one organization.

• Transient accounting layers enable temporary posting for review or analysis, before official posting.

Accounting Layers / Books

Three Types

– Official– Management– Transient

Unlimited Versions:

– Multi-GAAP reporting (Mgmt)– IFRS Layer (Mgmt)– Non US GAAP Layer (Transient)– “What-If” Question (Transient)– Audit Layer (Mgmt)

Ability to combine accounting layers in reporting

Accounting Layers – Why Use Them?

Mgmt. Layer

AdjustmentLayer

Local GAAPLayer

IFRSLayer

GeneralLedger

Multi-GAAPAccounting layers allow multi-GAAP reporting from a single set of books Accounting Layers allow

for multi-GAAP reporting Multiple charts of

accounts (COA) for reporting purposes

Ability to combine accounting layers in reporting

Simulate GAAP transformation transactions

Allocation module and Supplementary Analysis Fields to support IFRS 8 segment reporting

Additional help with IFRS

Accounting Layers helps support combination of local GAAP and IFRS as well as IFRS 1 (First-time Adoption) by using Adjustment Layers

This approach allows for separately recording and tracking of the differences between local GAAP and IFRS

IFRS 8 Segment Reporting – when a company has parts of the business operating in different business segments

In order to compare information with other businesses in same segment you can use: SAF Codes to split info by

segment Use Allocation module if you

need to reallocate costs and revenues into the appropriate segments

Multiple Currency

Do business in any currency

Process, pay and receive money in any currency

Set up functional currencies by business unit

Dual Base Currency– Transaction amounts always

stored in transaction currency, base currency and company management currency

Revaluation options, both for functional and management currency

Allows the global organization to conduct business in the required currency, and generate consolidated and management reporting in the mandated currency

Multiple Base Currencies

Dual Base Currency: Transaction amounts always stored in transaction currency, base currency and company management currency and (Statutory Currency 11-2009)

In CAD (transaction) In MXN

(base) In USD (management)

For example: Customer invoices

For example, a Mexican company keeps its books in MXN, reports into a US mother company and sends a CAD invoice to a customer

MXN

Define Exchange rates per type Per type Per currency pair From validity date

The Alternate COA function provides the ability to generate reports using alternate COAs, in addition to a company’s operational COA

An alternate COA consists of one or more account structures, each containing a group of non-duplicate alternate accounts.

Reporting according to multiple account structures– Legally mandatory chart – France, China, etc– Group chart, Operational chart– Multi-GAAP reporting

• IFRS, US-GAAP, other GAAP

Alternate Chart of Accounts

Alternate COA Reporting Flow Source Chart of Account: GL Account, Sub-

Account, Cost Center, ProjectAlternate COA 1

Alternate COA 2

Management Reporting

Extensive set of reports Graphical output that is easy to

customize Unlimited report variants

can be created for any specific requirement

Reports in company management currency and company chart of accounts for comparison of business operations

Report in multiple currencies across domains

Spreadsheet style browses that allow detailed selections and easily generate one-off reports

Board Reporting made simple, and decision making made black & white with flexible, graphical reporting for the CFO

Report Variants = Flexibilty

Specific selection criteria can be stored and given a name– Available next time the report is started– Unlimited number of variants – Saved for personal usage only or can be shared

with other users– Linked to a standard report

All variants of one report are based on the same data, but use different filter criteria and can use a different report layout

Report Variants – What, When, & Who

Flexible Reporting

Financial Shared Services

Sharing of chart of accounts and other key master data

Sharing of customers and supplier across business units

Workflow to move documents between business entities

Link to document management to store electronic versions of paper documents such as invoices

Cross-company AR and AP payments

More efficient use of resources

Better Mgt of cash

Have economies of scale to save back-office costs and support growth

Shared Sets Example

Domain1

USD

Domain2

CAD

Domain3

PESO

Domain4

CHF

Domain5

EURO

QAD 2009 System -

USD (Mgmt Currency)Americas

GL Account Set 1Europe

GL Account Set 2

Customer Set 1

Supplier Set 1

Customer Set 2

Exchange Rate Set 1 Exchange Rate Set 2

Domain3

REAL

Domain6

GBP

Back to live software…Shared Services example with:

• Cross Domain Visibility• Multi-Currency• Inter-Co• Workflow Messaging

SAF – Supplementary Analysis Field

Provide additional analytical reporting– To fine-tune transactions and reporting

• For example, IAS 14 (International Accounting Standards – Segment Reporting) (IFRS 8) requires that financial information be reported by line of business and geography.

• SAF’s allow the collection of this data without having to create additional General Ledger accounts

GL Analytical Coding Segments

Additional Analytical Detail

Primary GAAP Acct

Primary GAAP Acct

Sub-AccountSub-Account Cost CenterCost Center Project Project SAF’sSAF’s SAF’sSAF’s SAF’sSAF’s SAF’sSAF’s SAF’sSAF’s

EntityEntity Yr/PdYr/Pd Layer/BookLayer/Book DaybookDaybook header level

line level

can automatically retrieve SAF data from Operational transactions

SiteProduct Line

Region (Customer)Customer TypeSupplier Type

Item TypeItem Group

Up to five ‘supplementary analysis fields’ on a posting line

SAF – Supplementary Analysis Field Hierarchy

Per Each Structure = Up to 5 Concepts

Concepts Concepts Concepts Concepts Concepts

CodesCodesCodesCodesCodesCodes

Code

CodesCodesCodesCodesCodesCodesCodesCodes

Code

CodesCodesCodesCodes

Code

CodesCodesCodes

Code

CodesCodesCodesCodesCodesCodesCodesCodesCodesCodes

CodesCodes

Code

SAF Structures

SAF codes can be defaulted to make data entry easier

Demonstrate powerful example using SAF Codes

The Scenario…

You need to reduce costs…pick on travel costs

But, you do not have a good handle on any

detail for those costs!

If you could track more detail and then analyze

that information…..you could make some informed decisions !

Budgeting

Quick, flexible, collaborative budgeting process for the Finance Manager

Supports multiple versions of budgets

Budget periods can be different from accounting periods

Recording of forecasts On-line budget checking and

warnings Import budget data from

Microsoft Excel®

Live modification of budgets using Microsoft Excel®

Supports multi-level budgeting and actuals coming from multiple companies

Now To The QAD Solution

QAD Budgeting provides real value:

Integrated budgeting provides improved financial analysis and reduced IT involvement

Online collaboration with all involved improving accuracy and shortening turn around time

Automated transaction postings reducing errors, paper and manual processes

User-Defined Codes

Value

Flexible – Designed by you You decide who has security to create UDF’s You decide what roles in your organization can use the new field

Consolidations

A subsidiary entity can be a part of multiple consolidation entities

Proportional Consolidation is supported

You can build up hierarchies of consolidation entities

Automatic tracking of intercompany transactions to support elimination

Consolidate separately by accounting layer

Support simulations

Provides quick & complete consolidation process for the Finance Manager

EnterpriseFinancials

Accounts ReceivableGeneral Ledger Accounts PayableMulti Currency Banking / Cash Management Cost Management

Consolidations Financial Shared ServicesAllocations Credit Management Tax Management

Financial Analytics Multi-GAAPManagement Reporting Budgeting Governance, Risk and Compliance

GL Consolidation

Entity 9999Domain H

USD

Entity 1000Domain A

EUR

Entity 2000Domain B

CHF

Entity 3000Domain C

GBP

Entity 4000Domain D

MXP

Entity 5000Domain E

CAD

Entity 6000Domain F

USD

Entity 4002Domain H

USD

Consolidation

Consolidation

Entity 9000Domain G

EUR

Consolidation

Allocations

Distribute costs and revenues to appropriate accounts, sub-accounts, cost centers and projects

Supports recursive allocations– Reuse result of previous allocation

run as input for the next Validate results of allocation run

before final posting Supports different allocation

methods, including proportional based on usage/activity– For instance distribute electricity

costs to production cells based on kWh

Allocations provides control and consistency

EnterpriseFinancials

Accounts ReceivableGeneral Ledger Accounts PayableMulti Currency Banking / Cash Management Cost Management

Consolidations Financial Shared ServicesAllocations Credit Management Tax Management

Financial Analytics Multi-GAAPManagement Reporting Budgeting Governance, Risk and Compliance

General Ledger

Multi-Entity, Multi-Currency, Multi-Layer

Support for recurring/reversing entries

Extensive drill-down capabilities Flexible account structure with

up to 5 optional Supplementary Analysis Fields per account combination

Posting templates Multi-stage period closing Separate period for year-end

corrections Bi-directional Microsoft Excel®

integration for journal entries as well as for account setup

Ensures all financial data is quickly accessible for drill down and corporate reporting

EnterpriseFinancials

Accounts ReceivableGeneral Ledger Accounts PayableMulti Currency Banking / Cash Management Cost Management

Consolidations Financial Shared ServicesAllocations Credit Management Tax Management

Financial Analytics Multi-GAAPManagement Reporting Budgeting Governance, Risk and Compliance

Accounts Receivable

Flexible aging reports Sharing of customers and

credit limits between business units

Automatic netting of invoices and credit notes

Netting between customers and suppliers

Write-offs and open item adjustments

Dunning letters automatically generated

Customer activity dashboard

Full control on the total process between billing and collecting

EnterpriseFinancials

Accounts ReceivableGeneral Ledger Accounts PayableMulti Currency Banking / Cash Management Cost Management

Consolidations Financial Shared ServicesAllocations Credit Management Tax Management

Financial Analytics Multi-GAAPManagement Reporting Budgeting Governance, Risk and Compliance

Accounts Payable

Variances are generated based on 3-way match of PO, receipt and invoice

Flexible matching and approval process

Automate process of entering and approving supplier invoices with Scan daemon, document management and workflow routing

Evaluated Receipts Settlement (ERS) eliminates the need to enter supplier invoices

Netting between customers and suppliers

Supplier activity dashboard

Streamline the process from purchase order to supplier payments

EnterpriseFinancials

Accounts ReceivableGeneral Ledger Accounts PayableMulti Currency Banking / Cash Management Cost Management

Consolidations Financial Shared ServicesAllocations Credit Management Tax Management

Financial Analytics Multi-GAAPManagement Reporting Budgeting Governance, Risk and Compliance

QAD Internationalization

Run QAD across the globe Support common local legal business practices across the world

Support local languages Standardized solution as

opposed to unique solution for each country Single code base: easier

development of core model Support Shared Services

from a single system Keep up to date with new and

changing local requirements

EnterpriseFinancials Enhanced Controls Logistics AccountingVertex Sales

and Use Tax InterfaceFixed Assets Internationalization

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