why upgrade to ee financials 1 bill wermes, solution consultant lance lacross, solution consultant...
Post on 21-Dec-2015
225 views
TRANSCRIPT
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
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
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
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
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
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
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