1. Why upgrade to EE Financials
Bill Wermes, Solution Consultant
Lance LaCross, Solution Consultant
CA Users Group
February, 2010

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

3. 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

4. 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.

5. 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

6. Additional Benefits to upgrading:
Reduce Customizations
Increase User Productivity
Take advantage of new functionality
customers have told us they see tangible improvement in supply chain efficiencies and can serve their customers better with all of the enhancements we have made in the last 7 years.
Ability to easily integrate with other QAD products & 3rd party applications using QXtend
Take advantage of: Lean, Domain functionality, Customer Self Service, Supplier Visualization, Demand Mgmt, Business Intelligence
Reduce customizations
Cost savings, plus better standardization between sites, so less training, less confusion, etc.
Future upgrade is easier due to less custom code
Reduce operational costs
Less time/resources spent on modifications support
Less maintenance due to standard interfaces using QXtend; reduces costs of maintaining custom interfaces
Less maintenance due to standard EDI trading partner modules
Respond to globalization and consolidation needs
again, when you upgrade, you standardize and reset your organization to a new level of application usage
Increase user productivity
A new user interface with less screens, less training time, faster data entry, supports users who have multiple roles,
.NET User Interface with integration of Microsoft tools is available
Easier access to data
Ensure compliance
Applies to industry compliance – life sciences, auto
Applies to SOX compliance too
Drive lean principles throughout the organization
With all of the new functionality, there’s more of a focus to revisit processes, streamline & automate processes, take on new modules, like TMS, EAM, Sales force Automation, Marketing Automation, Demand Mgmt. Drive towards the perfect lean market.
Reduce Operational Costs 6

7. First: Leverage Technology
New powerful functionality to import/export data
Bi-directional Excel Integration

8. 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

9. Database Sets QAD 2009 System e.g. management currency, users, …
Database - Shared Set
Entity = “Balanced Set of Books”
Domain = Group of Entities w/ same Base Currency
Database Sets
QAD 2009 System
e.g. management currency, users, …
System-Wide Data
e.g. COA, suppliers, customers, …
Shared-Set Data
Shared-Set Data
Domain
Data
Domain
Data
Domain
Data
e.g. base currency, numbering, …
Entity
Data
Entity
Data
Entity
Data
Entity
Data
Entity
Data
e.g. taxes, numbering, …
Site
Data
Site
Data
Site
Data
Site
Data
Site
Data
e.g. inventory, cost, planning, …
Location
Location
Location
Location
Location

10. Financial Analytics
Ensures overall state of the business analysis as strategic options are analyzed for the CFO
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)
C-Level execs needing to get reliable information quickly...

11. Accounting Layers / Books
Transactions
G/L
IFRS
Layer
Mgmt
“What If” Layer
GAAP
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.

12. 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

13. Accounting Layers – Why Use Them?
General
Ledger
Adjustment
Layer
IFRS
Layer
Mgmt.
Layer
Local GAAP
Layer

14. Multi-GAAP
Accounting 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
Flexibility
Management Layers – Official
Management
Transient

15. Additional help with 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
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
Flexibility
Management Layers – Official
Management
Transient

16. 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
Do business in any currency
Transaction Currency
Base Currency
Management Currency
Flexibility to conduct biz in your own currency

17. Multiple Base Currencies
Dual Base Currency: Transaction amounts always stored in transaction currency, base currency and company management currency and (Statutory Currency )
For example:
Customer invoices
In CAD (transaction)
In MXN (base)
In USD (management)
MXN
For example, a Mexican company keeps its books in MXN, reports into a US mother company and sends a CAD invoice to a customer 17

18. Define Exchange rates per type
Per currency pair
From validity date 18

19. Alternate Chart of Accounts
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

20. Alternate COA Reporting Flow
Source Chart of Account: GL Account, Sub-Account, Cost Center, Project
Alternate COA 1
Alternate COA 2

21. 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
Flexibility
- Report Variances

22. 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

23. Report Variants – What, When, & Who

24. Flexible Reporting

25. Financial Shared Services
Have economies of scale to save back-office costs and support growth
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
AP and AR sharing of customer and suppliers
COA
cross company

26. Shared Sets Example QAD 2009 System - USD (Mgmt Currency) Americas
GL Account Set 1
Europe
GL Account Set 2
Domain 1
USD
Domain 2
CAD
Domain 3
PESO
Domain 3
REAL
Domain 4
CHF
Domain 5
EURO
Domain 6
GBP
Customer Set 1
Customer Set 2
Supplier Set 1
Exchange Rate Set 1
Exchange Rate Set 2

27. Back to live software… Shared Services example with:
Cross Domain Visibility
Multi-Currency
Inter-Co
Workflow Messaging

28. 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

29. GL Analytical Coding Segments Additional Analytical Detail
Entity
Yr/Pd
Layer/Book
Daybook
header level
Primary GAAP Acct
Sub-Account
Cost Center
Project
SAF’s
SAF’s
SAF’s
SAF’s
SAF’s
Up to five ‘supplementary analysis fields’ on a posting line
line level
can automatically retrieve SAF data from Operational transactions
Site
Product Line
Region (Customer)
Customer Type
Supplier Type
Item Type
Item Group

30. SAF – Supplementary Analysis Field Hierarchy
Per Each Structure = Up to 5 Concepts
Concepts
Concepts
Concepts
Concepts
Concepts
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Codes
Code
Codes
Code
Codes
Codes
Codes
Codes
Codes
Code
Codes
Codes
Codes
Codes
Code
Codes
Codes
Codes
Codes
Code

31. SAF codes can be defaulted to make data entry easier
SAF Structures
SAF codes can be defaulted to make data entry easier

32. 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 !

33. Budgeting
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
Quick, flexible, collaborative budgeting process for the Finance Manager
Top Down
Bottom Up
Regional / Divisional
Import/Export to from Excel

34. Now To The QAD Solution

35. 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

36. User-Defined Codes

37. 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

38. 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
Multi-Level consolidation
Hyperion
Enterprise
Financials
Accounts Receivable
General Ledger
Accounts Payable
Multi Currency
Banking / Cash Management
Cost Management
Consolidations
Financial Shared Services
Allocations
Credit Management
Tax Management
Financial Analytics
Multi-GAAP
Management Reporting
Budgeting
Governance, Risk and Compliance

39. GL Consolidation Consolidation Consolidation Consolidation Entity 1000
Domain A
EUR
Entity 2000
Domain B
CHF
Entity 3000
Domain C
GBP
Entity 4000
Domain D
MXP
Entity 5000
Domain E
CAD
Entity 6000
Domain F
USD
Consolidation
Consolidation
Entity 9000
Domain G
EUR
Entity 4002
Domain H
USD
Consolidation
Entity 9999
Domain H
USD

40. Allocations Allocations provides control and consistency
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
Square footage
# employees in dept
#hours billed
Step allocations
Enterprise
Financials
Accounts Receivable
General Ledger
Accounts Payable
Multi Currency
Banking / Cash Management
Cost Management
Consolidations
Financial Shared Services
Allocations
Credit Management
Tax Management
Financial Analytics
Multi-GAAP
Management Reporting
Budgeting
Governance, Risk and Compliance

41. 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
Lean Concept applies
- Recurring
Reversing
Templates
Bi-directional Excel integration still maintain same validation
Enterprise
Financials
Accounts Receivable
General Ledger
Accounts Payable
Multi Currency
Banking / Cash Management
Cost Management
Consolidations
Financial Shared Services
Allocations
Credit Management
Tax Management
Financial Analytics
Multi-GAAP
Management Reporting
Budgeting
Governance, Risk and Compliance

42. 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
Netting between customers and suppliers
Enterprise
Financials
Accounts Receivable
General Ledger
Accounts Payable
Multi Currency
Banking / Cash Management
Cost Management
Consolidations
Financial Shared Services
Allocations
Credit Management
Tax Management
Financial Analytics
Multi-GAAP
Management Reporting
Budgeting
Governance, Risk and Compliance

43. Accounts Payable
Streamline the process from purchase order to supplier payments
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
Netting between customers and suppliers
Enterprise
Financials
Accounts Receivable
General Ledger
Accounts Payable
Multi Currency
Banking / Cash Management
Cost Management
Consolidations
Financial Shared Services
Allocations
Credit Management
Tax Management
Financial Analytics
Multi-GAAP
Management Reporting
Budgeting
Governance, Risk and Compliance

44. QAD Internationalization
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
Run QAD across the globe
Enterprise
Financials
Enhanced Controls
Logistics Accounting
Vertex Sales
and Use Tax Interface
Fixed Assets
Internationalization

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