QAD Enterprise Financials
From Planning to Compliance
René Bergkamp – Director, Research and Development, QAD
QAD Enterprise Financials – From Planning to Compliance
Safe Harbor Statement
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.
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QAD Enterprise Financials – From Planning to Compliance
Agenda
• CFO challenges
- IFRS
- XBRL
- Global Roll-out while meeting local requirements
• QAD Enterprise Financials
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QAD Enterprise Financials – From Planning to Compliance
CFO Challenges
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QAD Enterprise Financials – CFO Challenges
IFRS U.S.
• 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
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QAD Enterprise Financials – CFO Challenges
IFRS U.S.
• 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
End of 2011
2012 – 2014
February 1, 2016
2015 – 2018
Target date for completion
of FASB/IASB
convergence agenda
Possible effective
dates of converged
standards
Possible beginning
adoption date
Possible staggered
adoption period*
• Earliest US implementation 2015/2016
2010
February 24,
2010
SEC issues
Work Plan
2011
2012
2011
Proposed SEC
decision on
IFRS
2013
2014
February
1,2014 Date of
transition
2015
2016
2017
FY15 - FY16
January 31, 2017
Earliest
comparative
information
required
Possible first IFRS
10K
2018
*Staggered adoption possible based on earliest adoption in 2015 or 2016
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QAD Enterprise Financials – CFO Challenges
IFRS U.S.
• 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 !
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QAD Enterprise Financials – CFO Challenges
Reporting in XBRL format
• 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
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QAD Enterprise Financials – CFO Challenges
XBRL – Key terms to know
• 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
<Asset>1000</Asset>
<element name=”Assets” id=”Assets”
periodType=”instant” balance=”debit”
abstract=”false” substitutionGroup=”item”
type=”monetaryItemType”/>
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QAD Enterprise Financials – CFO Challenges
XBRL - Sample
Source: http://xbrl.squarespace.com
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QAD Enterprise Financials – CFO Challenges
XBRL – Why?
• 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
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QAD Enterprise Financials – CFO Challenges
XBRL – Why?
Processes
Internal
Financial
Reporting
Business
Operations
XBRL
Participants
External
Financial
Reporting
XBRL
Companies
Trading
Partners
Management
Accountants
Investment
Lending
Regulation
XBRL
Financial
Publishers &
Data
Aggregators
Auditors
Economic
Policymaking
XBRL
Investors
Central Banks
Regulators
Software Vendors
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QAD Enterprise Financials – CFO Challenges
XBRL U.S.
• 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
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QAD Enterprise Financials – CFO Challenges
XBRL Enterprise Financials
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QAD Enterprise Financials – CFO Challenges
XBRL Customer Work Group
•
•
•
•
Discuss practical implementation of XBRL
Learn from other companies
Help define QAD’s roadmap for XBRL
Join by contacting QAD: xbrl@qad.com
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QAD Enterprise Financials – CFO Challenges
Global Roll-out, Local Requirements
• 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?
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QAD Enterprise Financials – CFO Challenges
Global Roll-out, Local requirements
• 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
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Recently Released QAD Internationalization Functionality
Periodic Costing
• 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
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Recently Released QAD Internationalization Functionality
Legal Documents
• Some countries require inventory movements to be
accompanied with a legally required shipping document
Brazil :
Argentina:
Chile:
Argentina
Nota Fiscal
Remito
Guia de Despacho
Chile
Turkey:
Poland:
Thailand:
Irsaliye
Dokumenty magazynowe
“Stock Card”
Brazil
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Recently Released QAD Internationalization Functionality
Taxation
• 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)
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QAD Enterprise Financials
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QAD Enterprise Financials – Refresher
Refresher
• 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
-
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QAD Enterprise Financials – Refresher
Continued Roll-Out
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QAD Enterprise Financials – Planned Developments
Planned Developments
•
•
•
•
•
Backwards Compatibility
Customer requested enhancements
Internationalization
Group Reporting
Automation of Consolidation
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QAD Enterprise Financials – Planned Developments
Backwards Compatibility
• 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
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QAD Enterprise Financials – Planned Developments
Backwards Compatibility
• 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
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QAD Enterprise Financials – Planned Developments
Customer Requested Enhancements
• 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
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QAD Enterprise Financials – Planned Developments
Internationalization
• 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
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QAD Enterprise Financials – Planned Developments
Group Reporting Objectives
• Domain and Group level financial statements
• XBRL support
• Source for BI Financial data
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QAD Enterprise Financials – Planned Developments
Group Reporting Overview
Source
Domains
COA Cross
Reference
Chart
translation
Account
Sub-Account
Cost Center
Project
SAF
Intercompany
Base Currency
GL Calendar
Report
Chart
Entities
GL
Sub-Account
Cost Center
Project
Cube Generate
Report Cube
Definition
Currency
Calendar
Entities
Report
Cube
Common
Report Chart
-GL
-Sub-Account
-Cost Center
-Project
-SAF
Presentation
Currency
Report
Calendar
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QAD Enterprise Financials – Planned Developments
Report Chart Maintenance: Cross Reference
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QAD Enterprise Financials – Planned Developments
Report Cube Definition
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QAD Enterprise Financials – Planned Developments
Group Reporting - Financial Report Writer
Report
Cube
Common Report
Chart
-GL
-Sub-Account
-Cost Center
-Project
-SAF
Presentation
Currency
Report
Hierarchy
Report
Analysis Codes
Europe
Rows
Sales
Automotive
Americas
Asia
Sales
Packaging
Tree
Report Calendar
Report Analysis codes are the building
blocks of the Report Hierarchy Tree
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QAD Enterprise Financials – Planned Developments
Drill down to the source entity
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QAD Enterprise Financials – Planned Developments
Report Tree
• 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
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QAD Enterprise Financials – Planned developments
Automation of Consolidation
• Ability to process multiple consolidation
levels in a single run
• Automatic eliminations
• Multi-database consolidations
• Consolidation dashboard
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QAD Enterprise Financials – From Planning to Compliance
Summary
• 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
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QAD Enterprise Financials – From Planning to Compliance
Metrics Affected
Process
Period/Year end
reporting
Benefit
• Faster closure and reporting to market
• By automating translations to other
COA/GAAP fewer errors and more
reliable results
Value
•Improved
compliance at lower
costs
• Improved compliance to corporate
governance standards such as SarbanesOxley
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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QAD Enterprise Financials – From Planning to Compliance
Next Steps
• 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
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QAD Enterprise Financials – From Planning to Compliance
Questions & Answers
• René Bergkamp: rbe@qad.com
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www.qad.com
© QAD Inc
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