QAD Enterprise Applications

Enterprise Edition

Training Guide
Advanced Financials

70-3017A
QAD 2009.1 Enterprise Edition
April 2010
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AdvancedFinancials_TG_v2009_1EE.pdf/ymg/ymg

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 Contents
About This Course . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Course Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
QAD Web Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Chapter 1 GL Coding Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

GL Coding Structures - Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
GL Analytical Coding Segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
GL Analytical Coding Segments Update . . . . . . . . . . . . . . . . . . . . . . . . . 7
Supplementary Analysis Fields (SAFs) . . . . . . . . . . . . . . . . . . . . . . . . . . 8
SAFs Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
System SAF Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
User-Defined SAFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
User-Defined SAFs Creation Process . . . . . . . . . . . . . . . . . . . . . . . . . . 13
SAF Defaulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
SAF Defaulting Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
SAF Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Hands-On Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Exercise: Supplementary Analysis Fields . . . . . . . . . . . . . . . . . . . . . . . 19

Chapter 2 Daemons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

Daemons - Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Daemons Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Types of Daemon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Daemon Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
XML Daemon Configuration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
XML Daemon Usage Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Hands On Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Exercise 1: Dump and Load XML Files . . . . . . . . . . . . . . . . . . . . . . . . 37
Exercise 2: Scan Daemon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Chapter 3 Excel Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39

Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
iv Training Guide — Advanced Financials

Excel Integration Uses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Load Data For Export to Excel for Maintenance . . . . . . . . . . . . . . . . . . . . . . . . 43
Export Data for Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Export Data to Excel for Modification . . . . . . . . . . . . . . . . . . . . . . . . . 46
Import Modified Data from Excel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Creating a Template to Export to Excel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Hands On Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Exercise 1: GL Account Excel Integration (25.3.13.5) . . . . . . . . . . . . . 52
Exercise 2: Business Relation Excel Integration . . . . . . . . . . . . . . . . . . 53
Exercise 3: Supplier Excel Integration . . . . . . . . . . . . . . . . . . . . . . . . . 53
Exercise 4: Supplier Bank Account Number Import . . . . . . . . . . . . . . . 55
Exercise 5: Supplier Open Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Exercise 6: Journal Entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Chapter 4 ERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59

ERS—Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
ERS Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
ERS Key Features . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
ERS Process Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
ERS in Purchase Order to Supplier Invoice Process . . . . . . . . . . . . . . . 65
ERS High-Level Process Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
ERS Setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
ERS Control Setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
ERS Maintenance and ERS Browse . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
ERS - Purchase Order Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
ERS Processor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Chapter 5 Logistics Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . .75

Logistics Accounting—Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Inbound versus Outbound Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Logistics Charge Accruals Process Overview . . . . . . . . . . . . . . . . . . . . 79
Logistics Charge Accruals Process Highlights . . . . . . . . . . . . . . . . . . . 80
Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Logistics Accounting Setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Setting Up GL Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Setting Up NRM Sequence Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Setting Up the Control Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Logistics Operational Accounting Control . . . . . . . . . . . . . . . . . . . . . . 88
Defining Logistics Charge Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Defining Detailed Logistics Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . 90
 Contents v

Setting Up Inbound Logistics Accounting . . . . . . . . . . . . . . . . . . . . . . . 91

Creating Cost Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Updating Logistics Charge Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Updating Item Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Defining Terms of Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Assigning Terms of Trade to Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . 96
Setting Up Outbound Logistics Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Updating Freight Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Setting Up Default Customer Freight Data . . . . . . . . . . . . . . . . . . . . . . 99
Set Up Freight Lists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Defining Item Ship Weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Setting Up Trailer Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Inbound Logistics Charges Accrual Process . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Purchase Order Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
PO Shipper Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
PO and PO Shipper Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
GL Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Outbound Logistics Charges Accrual Process . . . . . . . . . . . . . . . . . . . . . . . . . 109
Sales Order Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Logistics Accounting Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Sales Order Shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Sales Order Shippers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
GL Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Processing Logistics Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Logistics Charge Pending Invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Logistics Supplier Invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Matching Logistics Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
GL Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Logistics Accounting Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Sample Logistics Accounting Reports . . . . . . . . . . . . . . . . . . . . . . . . . 121

Chapter 6 Budgeting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123

Budgeting—Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Budgeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Budget Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Budget Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Budget Report Periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Budget Create . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Budget Create Header fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
General Budget Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Budget Periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Budget Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
vi Training Guide — Advanced Financials

Budget Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

Create a Budget Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Create Manually in the Grid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Create via Excel Hotlink . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Link COA Topics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Budget Versions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
Budget Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Modifying Budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Copying Budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Rebuilding Budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Deleting Budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Budget Daemon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
Updating Budget Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Hands On Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Exercise 1: Create a New Budget using the Excel Hotlink . . . . . . . . . 150
Budget Create . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
Exercise 2: Create and Copy a Budget . . . . . . . . . . . . . . . . . . . . . . . . 151
Budget Create . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

Chapter 7 Budget Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155

Budget Reports—Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
Budget Reports Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Budget Overview Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
Budget Detail Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Hands On Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Exercise 1: Budget Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Exercise 2: Budget vs Actuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Exercise 3: Budget Detail Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162

Chapter 8 Structured Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163

Structured Reports - Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Report Structures Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Report Structure Process Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Report Structure Base Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Budget Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Budget Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Budget Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
Creating a Report Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
Topic Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Report Structure System Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
Report Execution Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
 Contents vii

Selection Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177

Other Selection Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
Balance Sheet Report Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Income Statement Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
Regional Structured Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Output Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
Hands On Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Exercise: Structured Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
GL Account Extended View . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186

Chapter 9 Report Customization . . . . . . . . . . . . . . . . . . . . . . . . . . .187

Report Customization - Objective and Overview . . . . . . . . . . . . . . . . . . . . . . . 188
Report Variants Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
Changing Report Settings and Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
Managing Filter Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
Report Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
Saving Report Variants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Report Variant Reuse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
Component 1 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
Customizing Component 1 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Changing Component 1 Report Settings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
General Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Date Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Decimal Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Creating a New Filter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Save the Filter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
Loading an Existing Filter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Maintaining Filters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
Hands On Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
Exercise 1: Income Statement Report Variant . . . . . . . . . . . . . . . . . . . 202
Exercise 2: SAF Code Report Variant . . . . . . . . . . . . . . . . . . . . . . . . . 202
Exercise 3: Customer Account Summary Report Variant . . . . . . . . . . 203
Exercise 4: Supplier Open Item Extended Report Variant . . . . . . . . . 203
Exercise 5: GL Transactions Report Variant . . . . . . . . . . . . . . . . . . . . 204

Chapter 10 Alternate COA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .205

Alternate COA - Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Benefits and Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
Alternate COA Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
Alternate Chart of Accounts Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
Alternate COA Setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
viii Training Guide — Advanced Financials

Alternate COA Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212

Alternate COA Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Creating Alternate COA Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
COA Cross-References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Creating COA Cross-References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
Reports with Alternate COA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218

Chapter 11 Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .219

Allocations - Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
Operational Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223
Op Allocation Code Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
Financial Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
Types of Financial Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
Allocation Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
GL Allocation Create . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
Running Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
Create Allocation Batches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
Run Allocation Batch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
Allocation Batch Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
Demo Case 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
Demo Case 1: Account Involved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
Demo Case 1: Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
Demo Case 1: Target Template . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238
Demo Case 1: Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
Demo Case 1: Target Posting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
Demo Case 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
Demo Case 2: Source and Fraction . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
Demo Case 2: Target Template . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
Demo Case 2: Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
Demo Case 2: Batch Run . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
Demo Case 2: Target Posting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
Hands On Exercises (US) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
Exercise 1: Constant Value Source US . . . . . . . . . . . . . . . . . . . . . . . . 249
Exercise 2: Allocation using WBS Source US-WEST . . . . . . . . . . . . 251
Exercise 3: Proportional Allocation US . . . . . . . . . . . . . . . . . . . . . . . . 254
Hands On Exercises (EMEA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258
Exercise 1: Constant Value Source EMEA-DE . . . . . . . . . . . . . . . . . . 258
Exercise 2: Allocation using WBS Source EMEA-DE . . . . . . . . . . . . 260
Exercise 3: Proportional Allocation EMEA-DE . . . . . . . . . . . . . . . . . 263
 Contents ix

Chapter 12 COA Mask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267

COA Mask - Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270
Process Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
Domain COA Mask Settings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
COA Element without Mask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
COA Mask Shared Sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275
COA Masks and Account Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
Sub-Account Mask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
Cost Center COA Mask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
Assigning Masks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
Project COA Mask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
Assigning Masks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
COA Mask Implementation Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
Scenario 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284
Scenario 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
Scenario 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
COA Mask Validation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
Validation Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
Postings and Validation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290
Hands On Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291

Chapter 13 User-Defined Fields. . . . . . . . . . . . . . . . . . . . . . . . . . . . .293

User-Defined Fields—Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295
Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296
Create a User-Defined Field . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
Adding a User-Defined Field to the UI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299
Using User-Defined Fields in Reports or Views . . . . . . . . . . . . . . . . . . . . . . . 300
Modifying User-Defined Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301

Chapter 14 Screen Customization. . . . . . . . . . . . . . . . . . . . . . . . . . .303

Screen Customization—Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304
Overview and Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305
Setup Prerequisites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306
General Process Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
Moving Fields to Other Tabs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
Field Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310
Hands On Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313
Exercise 1: Rearrange Fields in Customer Modify . . . . . . . . . . . . . . . 313
Exercise 2: Make a Field Read-Only . . . . . . . . . . . . . . . . . . . . . . . . . . 313
x Training Guide — Advanced Financials

Exercise 3: Create a User-Defined Field . . . . . . . . . . . . . . . . . . . . . . . 314

Exercise 4: Create a Second User-Defined Field . . . . . . . . . . . . . . . . . 315

Chapter 15 Self-Billing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .317

Self Billing - Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318
Introduction to Self-Billing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
Self-Billing Work Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320
Non-Traditional Self-Bill Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320
Self-Billing Process Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322
Self-Billing Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323
Self-Billing—Prerequisite Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324
Activate Self-Billing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325
Set Up Self-Billing for a Customer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326
Designate Customer Bank Account for Use with Self-Billing . . . . . . 328
Self-Billing Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
Self-Bill Auto Create . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330
Self-Bill Auto Create - Workbench . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332
Self-Bill Auto Create - Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 333
Importing Self-Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334
Self-Bill Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335
Self-Bill Maintenance - New Self-Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336
Self-Bill Maintenance - Line Edit Frame . . . . . . . . . . . . . . . . . . . . . . . 337
Self-Bill Maintenance - Modifying an Existing Self-Bill . . . . . . . . . . . . . . . . . 339
Deleting Self-Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341
Applying Payments to Self-Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342
Payment Created by Confirming Self-Bill . . . . . . . . . . . . . . . . . . . . . . 343
Reversing Self-Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344
Report and Inquiries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345

Chapter 16 Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .349

Consolidation—Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351
Benefits of Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352
Current Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353
Key Features . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354
Key Features—Continued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355
Consolidation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356
Consolidation Hierarchies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357
Consolidation Process Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358
Consolidation Steps Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359
Setup Prerequisites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360
Consolidation (Target) Entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360
 Contents xi

Source Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361

COA Cross Reference Creation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363
Combined vs Separate GL Dimensions Types . . . . . . . . . . . . . . . . . . . . . . . . . 364
Consolidation Cycle Create . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366
Set Up Intercompany Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368
Creating a Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369
Intercompany Elimination Postings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372
Special Considerations for Staged Consolidations . . . . . . . . . . . . . . . 372
Hands On Exercises - US . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374
Exercise 1: Consolidation Setup US . . . . . . . . . . . . . . . . . . . . . . . . . . 374
Exercise 2: Consolidation Run US . . . . . . . . . . . . . . . . . . . . . . . . . . . 378
Journal Entry - View . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379
Hands On Exercises - EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382
Exercise 1: Consolidation Setup EMEA . . . . . . . . . . . . . . . . . . . . . . . 382
Exercise 2: Consolidation Run EMEA . . . . . . . . . . . . . . . . . . . . . . . . 386

Chapter 17 Advanced Banking Setup . . . . . . . . . . . . . . . . . . . . . . . .389

Advanced Banking Setup - Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390
Business Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393
Technical Setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394
Setup Prerequisites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394
EC Number Range Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395
eCommerce Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396
Transmission Group Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397
Upload Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398
Functional Setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399
Bank File Format Import . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400
Transaction Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401
Change Own Bank Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402
Transaction Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403

Chapter 18 Process Incoming Bank Files . . . . . . . . . . . . . . . . . . . .405

Process Incoming Bank Files - Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406
Prerequisites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407
Bank File Format Maintain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408
EC Subsystem Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409
Electronic Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410
Bank Files Process Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411
Loading Files: Document Import . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412
xii Training Guide — Advanced Financials

Loading Bank Payment Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412

Loading Files: Session Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413
Transactions: Process Incoming Bank Files . . . . . . . . . . . . . . . . . . . . . . . . . . . 414
Processing Incoming Bank Files (31.1.6) . . . . . . . . . . . . . . . . . . . . . . 414
Process Incoming Bank Files - Selected files details . . . . . . . . . . . . . . 417
Process Incoming Bank Files - Files Processing . . . . . . . . . . . . . . . . . 418
Transaction Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419
Results: Processing Customer Payments . . . . . . . . . . . . . . . . . . . . . . . 419
Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421
US Processing: Lockbox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422
Lockbox Checks Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423
US Bank File: New AR Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424
US Bank File: Collected AR Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425
Benefits of Lockbox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426
European Processing: SWIFT MT940 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427
Demo Scenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428
About This Course
2 Training Guide — Advanced Financials

Course Description
This class is designed to teach advanced features and functions of QAD Financials for QAD
Enterprise Applications, Enterprise Edition. Topics include: budgeting, allocations, structures
reports, consolidation, Excel integration, screen customization, and ERS.
For QAD Financials fundamentals topics, such as Accounts Receivable, Accounts Payable, and
General Ledger), refer to the Financials Fundamentals, Enterprise Edition class.
Lessons will include business considerations for implementation when applicable, a presentation
of the topic, and an exercise in most cases. At the end of the class, an evaluation will give you the
opportunity to test your newly-acquired knowledge.

Course Objectives

By the end of this class, students will:

• Have a comprehensive knowledge of the advanced QAD Financials concepts
• Understand the tools available for data load during implementation
• Understand the best practice for setup and usage of QAD Financials.

Audience

This class is intended for accountants, controllers, financial managers and accounting clerks, as
well as QAD R&D, Services and Support.

Prerequisites

An understanding of financial principles is required to get the full benefit of this class.
Students must have completed the QAD Financials Fundamentals class.

Course Credit and Scheduling

This course provides 24 credit units. It is designed to be taught in four days.

QAD Web Resources

The QAD website provides product and company overviews. From QAD’s main site, you can
access QAD’s Learning or Support sites.
http://www.qad.com/
 Chapter 1

GL Coding Structures
4 Training Guide — Advanced Financials

GL Coding Structures - Objectives

Objectives

Understand the capabilities of the GL coding

structure for financial analysis
Learn how to use the GL capabilities for your
company
– Simplified setup of complex financial analysis

QAD Proprietary 2008-MC-1.2-1-CS-020

 GL Coding Structures 5

GL Analytical Coding Segments

GL Analytical Coding Segments

Entity
Entity Yr/Pd
Yr/Pd Layer
Layer Daybook
Daybook

Primary
Primary GAAP
GAAP Acct
Account
Account Acct Sub-Account
Sub-Account Cost
Cost Center
Center Project
Project SAF’s
SAF’s SAF’s
SAF’s SAF’s
SAF’s SAF’s
SAF’s SAF’s
SAF’s

Intercompany
Intercompany key
key
Up to five supplementary analysis fields
on a posting line
Open
Open item
item key
key
Automatic data retrieval for operational
transactions
Other
Other GAAP
GAAP Account
Account
Other
Other GAAP
GAAP Account
Account Site
Product Line
Region (Customer)
Customer Type
Supplier Type
Item Type
Item Group
QAD Proprietary 2008-MC-1.2-1-CS-030

To support different types of reporting and analysis, some GL accounts can be used in combination
with sub-accounts, cost centers, and projects. These elements provide finer detail in financial
reporting. You can list balances for sub-accounts and cost centers separately or summarize them
under account codes.
Supplementary Analysis Fields (SAFs) provide reporting data on specific areas within GL
accounts, cost centers, or projects. They are typically used to track the volume of sales or
purchases of a product in a region in a given period.
Transactions are recorded in daybooks, which can enable temporary postings through links to
accounting layers. The Chart of Account (COA) mask lets you combine accounts, sub-accounts,
cost centers, and projects in a predefined posting framework.
6 Training Guide — Advanced Financials

The following table lists the valid combinations of GL accounts and analysis elements:
Account Type Sub-Acct. Cost Center Project SAF
Bank Account Yes No No No
Cash Account Yes Yes Yes Yes
Closing Account Yes No No No
Cross-Company Account No No No No
Customer Control Account Yes Yes Yes No
Standard Accounts

Customer Payment Account Yes Yes Yes Yes

Fixed Assets Account Yes Yes Yes Yes
Inventory Control Account Yes Yes Yes Yes
Open Items Account Yes Yes Yes Yes
Standard Account Yes Yes Yes Yes
Supplier Control Account Yes Yes Yes No
Supplier Payment Account Yes Yes Yes Yes
Tax Account Yes No No No
WIP Control Yes Yes Yes Yes

PO Receipts Yes Yes Yes Yes

Realized Exchange Gain Yes No No No
System Accounts

Realized Exchange Loss Yes No No No

Result of Current Year Yes No No No
Result of Previous Year Yes No No No
Rounding Differences Yes No No No
Unmatched Invoices Yes No No No
Unrealized Exchange Gain Yes No No No
Unrealized Exchange Loss Yes No No No
 GL Coding Structures 7

GL Analytical Coding Segments Update

GL Analytical Coding Segments Update

Sub-Account
– Enabled at creation
– Enabled later

SAF
– Enabled at creation
– Enabled later

QAD Proprietary 2008-MC-1.2-1-CS-040

When creating GL accounts, you set the analytical parameters for the account on the Analysis tab
in GL Account Create. When you define analysis for an account, you can specify the individual
sources or targets for transaction amounts, such as cost centers or SAFs.
Important After you have saved account data and used the account in postings, you can add
analysis, but you cannot remove it.
If you have set an analysis type of None, you can change this to another value after transactions
have been posted to the GL account. However, you cannot change the value in the Analysis Type
field from another value to None once transactions have been posted against the GL account.
8 Training Guide — Advanced Financials

Supplementary Analysis Fields (SAFs)

Automatically Populated SAFs

Site, product line, item type

and work-order number that
linked to this variance
transaction

QAD Proprietary 2008-MC-1.2-1-CS-050

Supplementary Analysis Fields are populated automatically, and can be viewed in detail by
drilling down the transaction in Journal Entry View (25.13.1.3).
 GL Coding Structures 9

SAFs Highlights

SAFs Highlights
 Optional analysis for creating detailed views of data.

 Eliminate need to create separate COA elements for

individual reporting.

 Use with standard accounts

– Exception: bank, closing, and tax accounts.

 Not applicable to system accounts

– Exception: PO receipts

 Two types:
– System SAFs
– User-Defined SAFs
QAD Proprietary 2008-MC-1.2-1-CS-060

SAF analysis is optional. It lets you create detailed views of data. Using SAFs, you can analyze a
single account in many different ways by filtering based on the SAF codes included in the postings
to the account. A carefully planned set of SAF structures avoids the need to set up separate COA
elements for individual reporting.
SAF analysis can be applied to all GL accounts, except bank, closing, and tax accounts. SAF
analysis is not supported for System accounts except for Purchase Order Receipts. You can apply
SAF analysis to both revenue and expenses, and, normally, a separate SAF structure is set up for
each of these types of transaction. In addition to system SAF concepts, user-defined SAF analysis
can augment operational reporting or can be used with financial transactions only. See “User-
Defined SAFs” on page 12.
10 Training Guide — Advanced Financials

System SAF Concepts

System SAFs
 Require additional setup in SAF Code Create
(25.3.7.2.1).

 Automatically retrieve data for manufacturing, sales and

purchase orders, and inventory transactions.
 Predefined system SAF concepts:
– Product Line
– Site
– Item Type
– Item Group
– Region
– Customer Type
– Supplier Type
QAD Proprietary 2008-MC-1.2-1-CS-070

Seven SAF concepts are predefined and provided with the system. They are designed to interact
with operational transactions and capture key analysis details useful for reporting the GL effects of
operations, such as sales by region, sales to OEM customers, or work orders by item type.
The following system concepts are provided:
Product Line. This concept captures values created in Product Line Maintenance (1.2.1) and
associated with items involved in operational transactions.
Site. This concept captures values created in Site Maintenance (1.1.13) and associated with
items involved in operational transactions.
Item Type. This concept captures generalized code values created in Generalized Codes
Maintenance (36.2.13) and associated with items in Item Master Maintenance (1.4.1) when
those items are used in operational transactions.
Item Group. This concept captures generalized code values created in Generalized Codes
Maintenance (36.2.13) and associated with items in Item Master Maintenance (1.4.1) when
those items are used in operational transactions.
Region. This concept captures generalized code values created in Generalized Codes
Maintenance (36.2.13) and associated with customers in Customer Data Maintenance (2.1.1)
when those customers are referenced on operational transactions.
 GL Coding Structures 11

Customer Type. This concept captures codes created in Customer Type Create (27.20.4.1) and
associated with customers in Customer Create (27.20.1.1) when those customers are
referenced on operational transactions.
Supplier Type. This concept captures codes created in Supplier Type Create (28.20.4.1) and
associated with suppliers in Supplier Create (28.20.1.1) when those suppliers are referenced
on operational transactions.
While the system concepts are specifically designed for capturing details of operational
transactions, you can use a combination of system and user-defined concepts in the same structure.
System concepts cannot be deleted, but can be disabled by clearing the Active field. Data is
captured for a concept only when it is active. Since system concepts have a predefined meaning,
you cannot modify other fields of the concept or create new system concepts.
Not all concepts apply to every transaction. For example, when you post a sales order, the Supplier
Type field does not apply, since a customer—not a supplier—is associated with the sales order
shipment. See User Guide: QAD Financials A for a list of the system concepts and the types of
operational transactions they apply to.
You can include a maximum of five system SAF concepts in each SAF structure, and you can use
the same SAF system concept in different SAF structures.

Retrieving SAF Codes for System Concepts

If new system SAF codes are used in operational transactions, you must manually update the
system SAF codes in SAF Code Create (25.3.7.2.1) before you can use the codes in a Financials
posting.
12 Training Guide — Advanced Financials

User-Defined SAFs

User-Defined SAFs
 Require additional setup.

 Created based on business need.

 Do not automatically retrieve code values from

transactions.

 Normally, applied to Financial transactions, and Fixed

Assets.

QAD Proprietary 2008-MC-1.2-1-CS-080

Create user-defined SAF concepts (25.3.7.1) based on your business requirements, and unlike
system SAF concepts, they do not automatically retrieve code vales from transactions. Instead,
you manually create both the concept and the SAF codes it uses and then select the code or define
defaults.
User-defined SAF concepts are normally applied to financial transactions only, although you can
also use them with fixed assets. Like system concepts, you can include a maximum of five user-
defined SAF concepts in each SAF structure, and you can use the same user-defined SAF concept
in different SAF structures.
You can create user-defined SAF analysis to track specific costs arising from any type of financial
transaction.
 GL Coding Structures 13

User-Defined SAFs Creation Process

Creating User-Defined SAFs

QAD Proprietary 2008-MC-1.2-1-CS-090

The process map displays the steps involved in creating user-defined SAFs. For details on the SAF
creation steps, refer to the Financials Fundamentals Training Guide.
14 Training Guide — Advanced Financials

SAF Defaulting

SAF Defaulting
To ensure that each operational transaction has
SAF details
– Used when no SAF code can be retrieved
SAF structure defaults mandatory
– Other levels optional
Defaulting sequence by transaction type

QAD Proprietary 2008-MC-1.2-1-CS-

The system validates the SAF structure to ensure that each SAF concept, both system and user-
defined, has a default SAF code.
System SAF concepts retrieve codes from operational transaction records. Operational
transactions are posted automatically, and you cannot manually correct SAF data before posting.
Therefore, to ensure that posting is successful, you must define default values. The defaults are
used when a code for an active SAF concept cannot be retrieved for a transaction. This substitute
SAF code ensures that the transaction is processed.
Default SAF codes can be defined on multiple levels. The defaulting mechanism selects the most
likely default SAF code for the concept, based on an order of precedence determined by the type of
transaction in which the SAF is being used. Only the default at the structure level is required;
others are optional.
Default codes for SAF concepts are defined for multiple components:
• Customers, on the Defaults tab
• Suppliers, on the Defaults tab
• Business relations, on the Defaults tab
• Projects, on the Defaults tab
• Cost centers, on the main screen
• GL accounts, on the Defaults tab
 GL Coding Structures 15

The table lists the SAF defaulting sequence when a value is not found in the transaction or when
SAF data is specified manually in programs, such as Journal Entry Create.
The system always finds the correct structure to use based on the type of analysis and the value of
the Retrieve SAF Structure from GL field. The system then finds default values for codes by
searching the components in the table in the listed order. If no values are defined for a component,
the system then checks the next component. Since default values must be defined for the SAF
structure, a value is always found.
Transaction Type Defaulting Sequence
Non-Invoice Operational and Journal Entries Cost center or project
GL account
SAF structure
Customer Invoices and Credit Notes Customer
Business relation
Cost center or project
GL account
SAF structure
Supplier Invoices and Credit Notes Supplier
Business relation
Cost center or project
GL account
SAF structure
16 Training Guide — Advanced Financials

SAF Defaulting Example

Default SAF Codes Example

SAF Structure SALES

SAF Concepts Region Site Item Type Product Line

SAF Codes Canada 200 FIN 2000

USA 500 RAW 4000
Mexico 700 COMP 6000
All Any NONE NONE

QAD Proprietary 2008-MC-1.2-1-CS-110

Customer Sports Inc. in Canada periodically buys quantities of item 030001 from site 500 with
item type COMP. This item belongs to product line 6000. The sales order transactions for these
line items are posted to the sales account GL10001. Occasionally, the customer also buys item
030002 from that same product line; it has a blank item type.
SAF system concepts for site, region, item type, and product line are active. You must assign every
SAF concept a default SAF code when you set up the SAF structure; when the system uses the
default value, it means that the code was blank in the originating transaction. You might want to
assign default codes like the following to indicate that the code was not relevant in the transaction:
• Default code Any for the Site concept
• Default code All for the Region concept
• Default code None for the Item Type concept
• Default code None for the Product Line concept

You combine these four concepts in an SAF structure called Sales and assign the SAF structure to
account GL10001.
You now create sales order SO2001 for customer Sports Inc. with two lines: one for item 030001
and one for 030002. When you post an invoice that updates account GL1001, the codes for all the
active concepts are stored with the transaction history so they are available for analysis. In this
example, the SAF codes would have the following values.
For line item 030001:
 GL Coding Structures 17

SAF Reporting

SAF Reporting

QAD Proprietary 2008-MC-1.2-1-CS-120

1 Site is 500 from the sales order line.

2 Region is Canada from the sales order customer.
3 Item Type is COMP from the sales order line item.
4 Product line is 6000 from the sales order line.
For line item 030002:
1 Site is 500 from the sales order line.
2 Region is Canada from the sales order customer.
3 Item Type is None from the default value.
4 Product line is 6000 from the sales order line.
The retrieval process for system concepts is automatic, and requires no user input. However, you
must supply the default values for active concepts that do not have a value.

SAF Reports and Views

Two specific SAF reports and one view are available:

18 Training Guide — Advanced Financials

• SAF Transaction Summary (25.15.3.5) lists all transactions in which SAFs are used in
combination with GL accounts and sub-accounts.
• SAF Transaction Detail (25.15.3.6) provides a detailed breakdown of GL postings, based on
SAF codes.
• Transactions by SAF View (25.15.4.24) provides a detailed breakdown of GL postings based
on SAF codes.
Also, in most GL, Cost Center and Project reports you can use SAF as filter criteria, just as any
other GL coding element, which provides additional analysis capabilities.
 GL Coding Structures 19

Hands-On Exercise

Exercise: Supplementary Analysis Fields

Create a new SAF structure and add it to GL accounts. Log in to entity EMEA-DE or US-WEST.
Steps:
1 In SAF Concept Create (25.3.7.1.1), create a new concept:
Field Data
SAF Concept Code: Logcharge
SAF Concept Description: Logistics Charge

Other fields default.

2 In SAF Code Create (25.3.7.2.1), create the following codes:
Field SAF Code 1 SAF Code 2 SAF Code 3
SAF Code: Freight Handling Other
SAF Description: Freight Handling Other
SAF Concept: Logcharge Logcharge Logcharge

Note: budget groups are not mandatory.

3 In SAF Code View (25.3.7.2.3), select the SAF concept code Logcharge to review the linked
SAF codes you created.
4 In SAF Structure Create (25.3.7.4.1), create the SAF structure Transport.
Field Data
Structure Code: Transport
Description: Transport

a Right-click in the grid and select Insert a New Row.

Line SAF Concept Default Values
1 Site No
2 Product Line Def
3 Logcharge Freight

b Click Save.
5 Check all GL accounts for which cost centers are enabled. If no SAF structure is linked, then
link Transport:
a Open GL Account Modify (25.3.13.2).
b In the Search pane, click on Stored Searches - Manage Filter Fields.
c Select the Cost Center Account line and click OK.
d In the Search pane, select Cost Center Account, set the operator to Not Equal, and select
No. Click Search.
The browse displays the list of GL accounts that are cost center enabled.
20 Training Guide — Advanced Financials

e Select them one by one with a double-click.

f In the Analysis tab, if the SAF Structure Code field is empty, specify the Transport SAF
structure.
6 In Cost Center Modify (25.3.20.2), add SAF defaults to cost center Log:
• Cost Center: Log
• Retrieve SAF structure from GL account: Select this field

7 Create SAF defaults for this cost center.

a In the SAF Defaults grid, right-click and select Insert a New Row for each of the three
lines:
Field Data
SAF Concept Code: Logcharge, Site, Product Line
SAF Code: Freight, US-W-S, SAM
 Chapter 2

Daemons
22 Training Guide — Advanced Financials

Daemons - Objectives

Objectives
Discover the role of daemons in QAD Enterprise
Applications.
Learn to manage daemons.
Learn to use daemons as tools.

QAD Proprietary 2008-MC-1.3-1-DA-020

In this chapter, you will learn what daemons are and how to manage them and use them as tools.
However, this is not meant to be an in-depth training about daemons. The system administration
training provides a thorough training on daemons. Instead, this chapter is intended to provide an
overview, and to create awareness.
 Daemons 23

Overview

Overview
Daemons in QAD Enterprise Applications.
Use in Financial Programs: XML Files.
Exercise: XML and Scan Daemons.

QAD Proprietary 2008-MC-1.3-1-DA-030

In this chapter, you will learn about the function of daemons in QAD Enterprise Applications, and
how to manage them. You will also learn how to use daemons as tools in the Financials modules.
For more information about daemons, see the User Guide: QAD System Administration.
24 Training Guide — Advanced Financials

Daemons Highlights

Daemons in QAD Enterprise Applications

 History
– Historical data for GL and SAFs.
 Balance
– Customer and supplier balance movements and history data.
 Budget
– Actuals vs budget data.
 Cross-Company
– Cross-company postings.
 Replication
– Completing data for new domains.
 Time-Out
– Terminating inactive user sessions.
QAD Proprietary 2008-MC-1.3-1-DA-040

Daemons are server-based processes that let you run background tasks; the user has no direct
input.
Important Some daemon processes must be running to ensure the integrity of your application.
You must ensure that these processes are configured to start when the database is started.
In general, tasks submitted to the daemon for processing are stored in a queue in a dedicated
database table. The daemon regularly checks the queue for tasks, and then processes them. The
behavior of each daemon and its request queue are controlled and monitored using specific
maintenance programs.
The system has the following daemons:
• Balance daemon
• Budget daemon
• Cross-Company daemon
• Event Daemon
• History daemon
• Replication daemon
• Report daemon
• Scan daemon
 Daemons 25

• Time Out daemon

• XML daemon
26 Training Guide — Advanced Financials

Types of Daemon

Daemons in QAD Enterprise Applications -

Continued
 XML
– Data dump and upload.
 Scan
– Monitors a directory for documents to attach to new Financials
records.
 Event
– Publishes Financials business events.
 Report
– Processes batch reporting requests.

QAD Proprietary 2008-MC-1.3-1-DA-045

Balance Daemon

The Balance daemon operates in a similar manner to the History daemon. It builds the supplier and
customer balance and movement data and history files.
The Balance daemon updates the supplier and customer history tables each time a movement is
created on an invoice.
Note If queue records are waiting to be processed by the Balance daemon, the supplier and
customer balances may be inaccurate.

Budget Daemon

The Budget daemon allocates postings to the appropriate budget topics. All postings are processed,
including those in the transient and secondary layers. The daemon analyzes all budget definition
tables, and updates the actuals for the relevant budget topics. The Budget daemon must always be
running when using Allocations because of its essential role in this functionality.
 Daemons 27

Cross-Company Daemon

The Cross-Company daemon processes automatic cross-company postings that cannot be

performed manually in the UI. The Cross-Company daemon handles transactions related to
invoices and banking entries, in addition to intercompany transactions in purchase and sales
orders.
The Cross-Company daemon processes transactions in the primary layer only, and completes the
linking fields in both the source and target posting line.

Event Daemon

The Event daemon publishes Financials business events, such as record creation events, as XML
messages. Event publishing lets you export data updates to other Financials instances, without the
need to extract the data from the database.

History Daemon

The History daemon populates the database with condensed GL transaction data, and updates GL
and SAF balances for each period. Detailed transaction data is accumulated in tables to increase
performance in, for example, drill downs and reporting. All GL postings, including those in the
transient and secondary layers, are processed.
The History daemon generates historical data grouped by a number of criteria, such as the GL
period, the account, sub-account, project, cost center, period mark, daybook, and the entity used in
the transactions.

Replication Daemon

The Replication daemon makes domain shared set data available to the operational functions, and
replicates the data to the appropriate operational domain.
During implementation of the system and setup of the domains, you can continue to modify the
data associated with a domain for as long as you require, and then confirm the setup when you are
satisfied that it meets your business requirements. Until the setup of a domain is confirmed, the
domain data is not available to your operational functions.
The availability of domain data to the operational functions is controlled by the Setup Complete
field in the Domain function. When you select the Setup Complete field, the Replication daemon
creates request queue records for each shared set. After the data has been reproduced, you cannot
change the shared sets and base currency of the domain. In addition, you cannot link any of the
entities linked to the domain to a different domain; the relationship is now permanent.
The data made available to the operational functions includes daybooks, GL accounts, sub-
accounts, and cost centers, suppliers, customers, and exchange rates.

Report Daemon

Financial reports can be printed to screen or to a printer directly, or can be batch printed from a
report queue. You can schedule batch reports, output them to files, or e-mail them to addresses or
roles. The Report daemon processes these batch reporting requests.
28 Training Guide — Advanced Financials

Scan Daemon

The Scan daemon lets you configure the system to monitor a directory for documents to be
attached to new records in the QAD application database. Currently, the Scan daemon is only used
for documents related to supplier invoice creation. You configure the daemon by specifying the
tasks it should perform when it finds a document.
Note In order to use the Scan daemon, you must enable workflow because the scanned
documents are associated with draft objects and sent to user inboxes for completion. See User
Guide: QAD Financials A for details on how to configure workflows.
Supplier invoice is the most common type of document to scan, but you can also use this feature to
scan documents related to any components that support the save-as-draft feature. For example, you
could scan new customer profiles and send them to the inbox of those responsible for creating
customer records.
The Configure activity for the Scan daemon includes an additional grid where you specify the scan
directory associated with each entity. See User Guide: QAD System Administration for more
information.

Time Out Daemon

You can configure a user time-out setting defined in Security Control (36.3.24). This feature lets
system administrators automatically terminate inactive user sessions, thereby reducing system
load and improving performance for active users. Time out is defined as a number of minutes a
logged in user can be inactive.

XML Daemon

The XML daemon processes external data in XML format.

 Daemons 29

Daemon Functions

Manage XML Daemon

XML Daemon Configure (36.14.16.6.1)
XML Daemon Monitor (36.14.16.6.3)
XML Daemon Start (36.14.16.6.4)
XML Daemon Stop (36.14.16.6.5)
XML Daemon Unconditional Stop (36.14.16.6.6)

QAD Proprietary 2008-MC-1.3-1-DA-050

Use the following activities to maintain and control daemons:

• Configure
• Clear Queue
• Monitor
• Start
• Stop
• Unconditional Stop

These activities are the same for all of the daemons, except the XML daemon and the Report
daemon. See User Guide: QAD System Administration for detailed information.
Both the Configure and Monitor activities check the status of the daemon, and update the daemon
status before displaying. For example, if the daemon status is set to Running, but no daemon
process is detected on the QAD Financials appServer, the status is reset to Inactive before the
Configure or Monitor screens display.
Note You configure, clear queues, and monitor the Report daemon in the same way as other
daemons. However, the Report daemon is stopped and started from within the .Net Report Service.
30 Training Guide — Advanced Financials

Configure

The Configure activity lets you configure maintenance information for a daemon, such as the login
ID and password, in addition to the log file and start directory. For security reasons, you should use
a dedicated daemon user name. The user name must have access to all domains and entities have
role permissions to all component activities in the database.
Note The activities controlled by the daemon must be included in the list of activities for the role
assigned to the daemon user name.
The Configure activity also lets you define the time interval before the daemon checks its queue
for new requests, indicate whether to record processed items for audit purposes, and set the
number of records that the daemon should process in each run.

Start

The Start activity starts the daemon. The system displays a message that indicates that the daemon
has started successfully.

Stop

The Stop activity stops the daemon.

The daemon stops after it completes its current task. Depending on the type of daemon and the
amount of time it takes to complete an operation, some time can pass before the daemon detects
the stop request and shuts down.
The system displays a message that indicates that the daemon has stopped successfully.

Unconditional Stop

If you cannot stop the daemon using the Stop activity, the Unconditional Stop activity stops the
daemon. This task should only be performed by the system administrator.
Note The Start, Stop and Unconditional Stop activities are not available for the Report daemon,
which is managed by the .Net Report Service.

Monitor

The Monitor screen lets you view the start and stop dates for the daemons and the requests that are
processed, waiting, in progress, or incorrectly processed.
The screen is composed of a header area and two grids.
The header area contains fields that display the daemon name, the start and end times, and the
daemon status. The header also contains four fields that let you choose the type of requests to
include in the view.
The center grid of the Monitor displays:
• The start and end time of the request currently processing.
• A description of the request.
 Daemons 31

• The status of the request. The valid values are PROCESSED-OK, PROCESSED-ERR,
WAITING, and IN-PROCESS.
Additionally, if you set a specific start date and time for the request, the center grid also displays
this data. It is only possible to set a specific request date and time for the XML daemon.
The lower grid displays the error information for each request line, if any.
The view does not store correctly processed records after the next refresh unless the Keep
Processed Items field is selected in the Maintain screen.
32 Training Guide — Advanced Financials

XML Daemon Configuration

XML Daemon Configuration

QAD Proprietary 20 08-MC-1.3-1-DA-060

Configuring Daemons

The Scan Daemon Configure activity contains an additional grid for specifying the business
component to be associated with a scanned document, the directory the daemon should monitor for
documents, and the entity the scanned documents should be associated with.
The XML daemon processes external data in the form of XML files, for example, invoices are
received in electronic form from a supplier. You store the files in a specific directory on the server,
and the daemon reads and processes them.
The XML daemon differs from the other daemons in that it creates its own requests.
The XML daemon can process XML files only. You must convert other text formats to XML,
according to the QAD-defined XSDs, before importing them.
You can use the Dump XML option to generate well-formed schema as the starting point for
entering your own data. Use the Dump XML option to create the XML schema for a component,
and you access it by selecting Properties in the component menu. The Properties dialog includes a
Dump XML button that lets you generate schemas to a designated directory. You must already
have data in the system for the object for which you want the dump an XML sample file.
You can also create an XML file for one or multiple objects by right-clicking in the View or
Modify browser, and selecting Dump XML.
 Daemons 33

XML Daemon Configuration

The XML Daemon Configure screen lets you configure the XML daemon, and differs from the
Maintain screen of the other daemons.
The settings in XML Daemon Configure instruct the daemon to convert an XML file into a
daemon request and how to process it. Only the settings that are unique to the XML daemon are
described here; the others are the same as the general settings discussed above.

Field Descriptions

Input Directory for XML Files. Specify the directory that the daemon scans for XML files.

Action to be Performed. Optionally, choose the action that the XML daemon must perform on
the data in the XML file. If not specified, the action is read from the XML file.
Overrule XML Action. Select this field to overrule the action specified in the XML file with the
action defined in the Action to be Performed field.
Overrule Originator Action. Select the field to overrule the action based on the originator and
according to the rules defined in the grid.
The Originator field is part of the header section of the XML file and indicates the origin of the
file; for example, a source application or external party.
Originator. Specify the originator for which to perform the overrule action.

Activity. Choose the activity to perform. The options are:

• Save
• Save/Create Draft
• Create Draft
• Validate
34 Training Guide — Advanced Financials

XML Daemon Usage Example

Use of XML Files in Financials

 File layout.
1. Object modify menu (for example, Country Modify).
2. Select Properties from object drop-down list
3. Enter dump location and file name.
4. Click Dump XML.

QAD Proprietary 2008-MC-1.3-1-DA-070

In the following example, you want to update all countries in your system with additional data.
Instead of doing this manually, you can update in batch using an XML file and the XML daemon.
1 In Country Modify (36.1.3.1.2), select Properties from the Country drop-down menu.
2 Enter a file name and a dump location, and click Dump XML.
To select specific records only, open the Country Browse for Modify window, select the required
records and right-click to select Dump XML.
You must then enter a file name and dump location.
 Daemons 35

Use of XML Files in Financials

– In object Modify menu browse: right-click -> Dump
XML
– Multiple selection

QAD Proprietary 2008-MC-1.3-1-DA-080

36 Training Guide — Advanced Financials

Use of XML Files in Financials

QAD Proprietary 2008-MC-1.3-1-DA-090

Once you have created the XML dump file, open it with the program of your choice to update the
data and re-import the file into the system.
 Daemons 37

Hands On Exercises

Exercise 1: Dump and Load XML Files

In entity US-WEST, use the XML daemon to modify the following exchange rates (type =
accounting) for USD against EUR:
• 1 USD = 0.67 EUR as of March 1, 2009
• 1 USD = 0.625 EUR as of April 1, 2009

In entity EMEA-DE, use the XML daemon to upload the following exchange rates (type =
accounting) for EUR against USD in entity EMEA-DE:
• 1 EUR = 1.5 USD as of March 1, 2009
• 1 EUR = 1.6 USD as of April 1, 2009

Steps
1 Open XML Daemon Monitor (36.14.16.6.3), and verify that the daemon is running.
Otherwise, use XML Daemon Unconditional Stop (36.14.16.6.6) to stop it, and XML Daemon
Start (36.14.16.6.4) to start it.
2 Open Exchange Rate Modify (26.4.2).
a Select exchange rate USD-EUR (US-WEST entity) or EUR-USD (EMEA-DE entity).
b Right-click and select Dump XML.
c In the pop-up window Dump location, enter file name USDEURFX1.xml (US-WEST) or
EURUSDFX1.xml (EMEA-DE).

3 Open your home directory: Z:\qadapps\qea\fin\ to find the file that you just
downloaded.
4 Right-click on the file name and select Open.
5 In the list of applications, select Textpad.
6 Click OK.
7 Modify the file in the Textpad application:
In entity US-WEST:
a Find the ExchangeRateValidDateFrom field and change the date to 2009.03.01
b Find the ExchangeRate field and change the value to 0.67
c Find the ExchangeRateValidDateFrom field and change the date to 2009.04.01
d Find the ExchangeRate field and change the value to 0.625.
38 Training Guide — Advanced Financials

In entity EMEA-DE:
a Find the ExchangeRateValidDateFrom field and change the date to 2009.03.01
b Find the ExchangeRate field and change the value to 1.5
c Find the ExchangeRateValidDateFrom field and change the date to 2009.04.01
d Find the ExchangeRate field and change the value to 1.6
8 Save and close.
9 Open Windows Explorer and move the file to the xml_daemon directory (shortcut on your
desktop). The file will be picked up and processed by the XML daemon.
10 Go back to the QAD Application, and Exchange Rate Modify (26.4.2).

11 Verify that the new rates that you just imported are in the system.

12 Go to XML Daemon Monitor (36.14.16.6.3).

Note in the grid at the bottom of XML Daemon Monitor that the file has been imported. The
Daemon Request Status should state PROCESSED-OK.

Exercise 2: Scan Daemon

Tip Use Workflow Delete (36.24.7) to remove objects from your application inbox.
1 Copy the scanned supplier invoice 100%Pure.pdf from the daemon directory on your
training lab desktop (Financials Activities\Daemons) to the scan_daemon folder on
the desktop, in the subdirectory of the entity you are logged in to (example: EMEA-DE-
Supplier_Invoices).
2 Return to the QAD application.
3 Open your Inbox, located in the upper right corner of the UI.
4 Double-click on the new message.
5 Click on the link in the message to start the Supplier Invoice Create process.
6 In the Supplier Invoice Create (28.1.1.1) window that was opened by the system, check the
scanned document (use the drop-down button to display it).
7 Use the data on this document to enter the information on the supplier invoice (such as
supplier name, reference, amount, and currency). Use daybook SINV.
8 Save the details.
9 In Supplier Invoice View (28.1.1.3), check the attached scanned document.
 Chapter 3

Excel Integration
40 Training Guide — Advanced Financials

Objectives

Objectives
Learn how to use Excel integration for:
– Loading and updating static data
– Loading transaction data

QAD Proprietary 2008-MC-1.4-1-XLS-020

 Excel Integration 41

Overview

Overview
Fixed data:
• Chart of accounts (25.3.13.5)
• Business Relations (36.1.4.3.5)
• …
Transactional data:
• Journal entries (25.13.1.6)
• …

QAD Proprietary 2008-MC-1.4-1-XLS-030

In this section, you will learn how to use powerful Excel integration capabilities in QAD
Enterprise Applications.
Excel integration can be used to upload and update master data, such as the chart of account data,
business relations, and SAF structures. You can also upload transactional data, such as journal
entries.
Type “Excel integration” in the menu search bar to review the menu list.
42 Training Guide — Advanced Financials

Excel Integration Uses

Excel Integration Uses

Load
– Loads existing data to the Excel Integration grid

Export to Excel for maintenance

– Creates Excel file (template)

System View System Codes (36.24.3.3)

– Displays database field name

QAD Proprietary 2008-MC-1.4-1-XLS-040

Use the Excel integration feature to export data into Excel spreadsheets for analysis or reporting.
You can also create new data within Excel and import it to the system database, where it is
validated before being saved. Export to Excel for reporting is available in all browses and grids.
Advanced Excel integration is supported in only a subset of components.
When you export to Excel, all settings configured for the specific type of record are placed in the
spreadsheet, including custom business fields. Each setting and field is converted to a column
heading, and the columns contain the value assigned to the field for that business component.
With advanced Excel integration, you can:
• Export all records for remote maintenance. You then modify the data and re-import the saved
results into the system database.
• Create a blank template that consists of column headings for all fields in a business
component, and export this template for remote maintenance. You can then create the data in
the spreadsheet or load data from another application into the template for importing to the
system database.
Advanced integration with Excel is available as a right-click option on the results grid of business
components that support it. To view the complete list, see User Guide: QAD Financials A.
 Excel Integration 43

Load Data For Export to Excel for Maintenance

Chart of Accounts
GL Account Excel Integration (25.3.13.5)
Right-click in grid:
– Load Accounts
– Export to Excel for maintenance
– Import from Excel

QAD Proprietary 2008-MC-1.4-1-XLS-050

In the following sections, we will review the areas where Excel integration can be used, and learn
how to load data for export to Excel for maintenance.
The Load option lets you retrieve all records for a supported business component (such as GL
accounts and business relations) from the database, and export them to Excel for maintenance.
This activity includes multiple steps:
• You choose the Excel Integration activity and load data into the grid using the Load option.
• You then export the data to a spreadsheet, open the data in Excel, and modify it.
• After saving your changes, you return to the QAD application and import the modified data.
44 Training Guide — Advanced Financials

Export Data for Maintenance

Business Relations
Business Relation Excel Integration (36.1.4.3.5)
Right-click in grid:
– Load business relations
– Export to Excel for maintenance
– Import from Excel

QAD Proprietary 2008-MC-1.4-1-XLS-060

To export data for maintenance:

1 Choose the Excel Integration activity for one of the supported record types, such as customer.
The system displays a blank grid containing the data fields for this business component as
column headings.
2 Right-click on the blank grid and choose Load Customers.
The system retrieves all customer records from the database, and loads them into the grid. The
order of columns in the grid is determined by the sequence of the fields in the original data model.
This is the order in which the fields appear in the spreadsheet.
You can also make modifications directly on screen before exporting to Excel, once the business
component data is loaded. Your modifications are validated when you click Save.
 Excel Integration 45

Important You should not customize the display by hiding columns before export. When you
hide a column, the corresponding field is not exported to the spreadsheet. If the field is mandatory
for this business component, the system will attempt to validate it before saving it to the database,
and will generate validation errors.
46 Training Guide — Advanced Financials

Export Data to Excel for Modification

Customer Data
Customer Excel Integration (27.20.1.5)
Right-click in grid:
– Load Customers
– Export to Excel for maintenance
– Import from Excel

QAD Proprietary 2008-MC-1.4-1-XLS-070

To export the data:

1 Right-click in the grid and choose Export to Excel for Maintenance.
2 At the prompt, enter the name of the spreadsheet in which to save the data.
3 Open the spreadsheet in Excel and make your changes.
Note You do not have to exit the QAD application before working in Excel. For minor
maintenance, it is more convenient to run the applications simultaneously, and to switch back to
your QAD application to import the saved data.
The spreadsheet has the following features:
• The first row of every spreadsheet contains logical identifiers for the business component
fields. You can edit these identifiers for maintenance purposes within Excel. When you import
your saved data into the system, your edits are discarded.
• The second row contains technical identifiers for the business component fields. These
identifiers correspond directly to the database tables, and must not be edited. Any change you
make to a logical identifier will generate an error during validation.
• The other rows contain your business component data.
 Excel Integration 47

• The spreadsheet contains business component ID columns, which identify the business
component instances in the databases. You cannot edit these IDs, and you should leave these
columns blank for any new rows you create. Each spreadsheet can contain a number of ID
columns. For example, when you export business relation data to a spreadsheet, there are ID
columns for business relation, address, default SAF, contact, and tax number.
• All rows are imported into the system, which lets you hide unnecessary rows while working
with large spreadsheets. You should avoid hiding columns, however, as hidden columns are
not imported. You can create extra columns for maintenance purposes, which are also not
imported.
• Avoid using the Sort option in Excel.
Most business components contain sub-level information. For example, the business relation
can contain separate address rows for head office, delivery, invoice, reminder and remittance,
and can also contain contact details.
When you export to Excel, the main business component data and its sublevel data are
grouped together in a hierarchy, with each main business component row followed by sublevel
rows. If you sort the data in Excel, the sublevel rows are rearranged throughout the
spreadsheet, and the hierarchical relationship is lost. This creates a conflict and prevents you
from importing the saved data.
• Ensure that your column widths are set to Autofit before saving. If the column width is too
narrow and the data is not readable, the data will not import correctly.
48 Training Guide — Advanced Financials

Customer Bank Numbers

Customer Bank Number Import (27.20.1.9)
Right mouse click in grid:
– Export to Excel for maintenance (= template)
– Import from Excel

QAD Proprietary 2008-MC-1.4-1-XLS-080

• The spreadsheet you create has the Shared attribute, which lets other network users modify the
data.
• Be aware of mandatory fields while you are modifying data. For example, you must specify a
bank number, currency, and banking profile when you create a GL bank account. If you do not
enter valid information for these fields while creating a new GL bank account in the
spreadsheet, an error occurs after import when you try to save the data.
 Excel Integration 49

Import Modified Data from Excel

Suppliers
Supplier Excel Integration (28.20.1.5)
Supplier Bank Number Import (28.20.1.7)

=> Similar to Customer

QAD Proprietary 2008-MC-1.4-1-XLS-090

When you have completed the modifications:

1 Save the changes to your Excel spreadsheet.
2 Switch back to your QAD application.
3 Right-click in the business component data grid and choose Import from Excel.
4 When prompted, select your spreadsheet and click OK.
5 Click Save to validate the data and save to the database.
6 If the system returns validation errors, you can resolve them on screen at this stage, and save
again to validate.
50 Training Guide — Advanced Financials

Creating a Template to Export to Excel

Open Items (Opening Balance Create)

Customer (27.1.10) / Supplier (28.1.15)
Transfer account
Calculate BC/MC
Invoice type:
– Adjustment, Credit note, Credit note correction,
Invoice, Invoice Correction
Customers: Ship-to/Ship-From
Suppliers: Invoice Status Code
– Allocation status: any or allocated

QAD Proprietary 2008-MC-1.4-1-XLS-100

This option creates a blank spreadsheet for maintenance that contains the relevant fields as column
headings. This is similar to the previous activity, but you do not load existing system data. You use
the template to add your own data and import it, which creates new records in the system.
1 Choose the Excel Integration activity for a supported business component such as customer.
The system displays the blank grid consisting of the data fields as column headings.
2 Right-click on the blank grid and choose Export to Excel for Maintenance.
3 Open your spreadsheet in Excel and make your modifications. Save your spreadsheet and
import the data into the application, as described in Import Modified Data from Excel.
You must leave the first column with the <component name>_ID field blank. The system
supplies the IDs when you import the data
4 Save your spreadsheet and import the data into the application, as described in “Import
Modified Data from Excel” on page 49.
 Excel Integration 51

Journal Entries
Journal Entry Excel Integration (25.13.1.6)
Right mouse click in grid:
– Export to Excel for maintenance
– Import from Excel

QAD Proprietary 2008-MC-1.4-1-XLS-110

52 Training Guide — Advanced Financials

Hands On Exercises
Log in to EMEA-DE or US-WEST.

Exercise 1: GL Account Excel Integration (25.3.13.5)

1 In GL Account Excel Integration (25.3.13.5), right-click in the grid and select Export to Excel
for Maintenance.
2 Enter a file name and a location for your file.
3 Go to the dump location and open the Excel file.
The worksheet displays field labels on the first row, and field names on the second row. Do not
modify these two rows.
4 Make some modifications to the rows below. Add some accounts, modify others.
If logged into US-WEST, add the following account:
Field Value
Account 2059
Description Supplier Open Bal Transfer
Type Standard Account
Category Liability
Analysis None
Debit/Credit Debit
Balance Account
Manual Posting
Consolidation Method Current Exchange Rate

If logged into EMEA-DE, add the following account:

Field Value
Account 15900
Description Supplier Open Bal Transfer
Type Standard Account
Category Liability
Analysis None
Debit/Credit Debit
Balance Account
Manual Posting
Consolidation Method Current Exchange Rate

5 Save when you are done. Return to the QAD application.

6 In the GL Account Excel Integration grid, right-click and select Import from Excel.
7 Select your location and file name.
8 Verify that the data is as you entered in Excel.
If a description is too long, an error message will display (“Value is too long”).
 Excel Integration 53

You can correct this in the grid.

Exercise 2: Business Relation Excel Integration

This process is similar to that for GL accounts. You will export the business relation data to Excel,
and use the file as a template for data load.
1 Open Business Relation Excel Integration (26.1.4.3.5).
Some data displays in the grid.
2 Select a business relation. Right-click on the grid and select Export to Excel for Maintenance.
The first row on the Excel file shows field labels, the second row database field names. Do not
modify these rows. Do not change the order of the columns.
3 Create the new business relation: Gallug.
Field Value
Business Relation Code Gallug
Business Relation Name Global Aluminium Germany
Business Relation Search Name Gallug
Head-Office Address
Address Ostseestrasse 100
Zip Code 55001
City Bremen
Country DE
Language US
Contact
Name Muller
Initial J
Gender Male
Function Sales Manager
Telephone +49-2-75800123

4 Return to the QAD application.

5 In the Business Relation Excel Integration grid, right-click and select Import from Excel.

Exercise 3: Supplier Excel Integration

1 Go to Supplier Excel Integration (28.20.1.5).
2 Perform the same steps as for Exercises 1 and 2: export for maintenance and import.
3 Create supplier S01000 in entity EMEA-DE.
Field Value
Supplier Code S01000
Business Relation Gallug
Default Currency EUR
Credit Terms 2M
54 Training Guide — Advanced Financials

Field Value
Invoice Status Code 999
Control Accounts (all 3) APcontrol3rdparty
Sub-Account Profile Mech
Purchase Account Profile Purchase
Supplier Type OTH
Taxable Yes
Tax Zone DE
Tax Class H

Create supplier S01000 in entity US-WEST:

Field Value
Supplier Code S01000
Business Relation Gallug
Default Currency USD
Credit Terms 2M
Invoice Status Code 999
Control Accounts (all 3) APcontrol3rdparty
Sub-Account Profile Mech
Purchase Account Profile Purchase
Supplier Type OTH
Taxable Yes
Tax Zone DE
Tax Class H
 Excel Integration 55

Exercise 4: Supplier Bank Account Number Import

1 Go to Supplier Bank Number Import (28.20.1.7).
2 Perform the same steps as for the exercises 1, 2, and 3.
3 Create the following supplier bank account:
US-WEST:
Field Value
Bank Format IBAN
Bank Account DE73370502990152004792
SWIFT Code COKSDE33
Default Bank True
Own Bank Account 12345678
Payment Format US-Check
Parent Type CREDITOR
Parent Object Code S01000
Entity Code US-WEST

EMEA-DE:
Field Value
Bank Format IBAN
Bank Account DE73370502990152004792
SWIFT Code COKSDE33
Default Bank True
Own Bank Account DE03300209000001112223
Payment Format DEU.018
Attribute Name Payment Type
Payment Type 51000
Parent Type CREDITOR
Parent Object Code S01000
Entity Code EMEA-DE
56 Training Guide — Advanced Financials

Exercise 5: Supplier Open Items

1 Open Supplier Opening Balance Create (28.1.15).
2 In entity US-WEST, enter the following data:
Field Value Value Value
Action: Save Save Save
Bank Account DE73370502990152004792 DE73370502990152004792 DE73370502990152004792
Number:
Supplier Code: S01000 S01000 S01000
Sub-Account Code: Mech Mech Mech
TC Invoice Amount: 2,000 500 250
Invoice Date: 31-Dec.-08 31-Dec.-08 31-Dec.-08
Invoice Description: Inv Po1001 Corr on inv Prepayment
Invoice Due Date: 31-Jan-09 31-Jan-09 31-Jan-09
Invoice Reference: INV2008001 CN2008002 BE0003
Invoice Tax Point 31-Dec-08 31-Dec-08 31-Dec-08
Date:
Invoice Type: Invoice Creditnote Adjustment
Invoice Voucher: 99900001 8880002 7770003
Daybook Code: SIHO SCNHO SUBADJ
Credit Term: 1M 1M 1M
Posting Date: 31-Dec-08 31-Dec-08 31-Dec-08
Posting Text: InvPo1001 Corr on inv Prepaym
Invoice Status Code: 0000 0000 0000
Curr: USD USD USD
Transfer: 2059 2059 2059

In entity EMEA-DE, enter the following data:

Field Value Value Value
Action: Save Save Save
Bank Account DE73370502990152004792 DE73370502990152004792 DE73370502990152004792
Number:
Supplier Code: S01000 S01000 S01000
Sub-Account Code: Mech Mech Mech
TC Invoice Amount: 2,000 500 250
Invoice Date: 31-Dec-08 31-Dec-08 31-Dec-08
Invoice Description: Inv Po1001 Corr on inv Prepaym
Invoice Due Date: 31-Jan-09 31-Jan-09 31-Jan-09
Invoice Reference: INV2008001 CN2008002 BE0003
Invoice Tax Point 31-Dec-08 31-Dec-08 31-Dec-08
Date:
Invoice Type: Invoice Creditnote Adjustment
Invoice Voucher: 99900001 8880002 7770003
 Excel Integration 57

Field Value Value Value

Daybook Code: SIHO SCNHO SUBADJ
Credit Term: 1M 1M 1M
Posting Date: 31-Dec-08 31-Dec-08 31-Dec-08
Posting Text: InvPo1001 Corr on inv Prepaym
Invoice Status Code: 0000 0000 0000
Curr: USD USD USD
Transfer: 15900 15900 15900
58 Training Guide — Advanced Financials

Exercise 6: Journal Entries

1 Open Journal Entry Excel Integration (25.13.1.6).
2 Upload and post the following transactions in the period of the current system date (the
posting date is the system date):
Field Value
Daybook TRAJE
Sub-Account Gserv....
Cost Center Adm

In the US-WEST entity, the following are the transaction posting lines:
Account Debit Credit
7000 (Travel) 10,000
7010 (ICT) 900
7200 (Repair & Maint) 1,100
2470 (Accrual) 12,000

In the EMEA-DE entity, the following are the transaction posting lines:
Account Debit Credit
40000(Travel) 10,000
40100 (ICT) 900
42000 (Repair & Maint) 1,100
19100 (Accrual) 12,000

3 Import the transactions into the system, saving the transaction as a template.
Field Value
Daybook Template
Template Code M-EXP-ACCR-1

You should now understand how easy to use QAD Financials Excel integration is, and how useful
it is for data load during implementation and data modifications in batch.
Chapter 4

ERS
60 Training Guide — Advanced Financials

ERS—Objective

Objective
Understand the ERS functionality in QAD
Enterprise Applications.
Learn how to set up and use ERS.

QAD Proprietary 2008-MC-1.5-1-ERS-020

 ERS 61

Overview

Overview
ERS benefits.
ERS key features.
ERS process flow.
– ERS setup
– ERS processing

QAD Proprietary 2008-MC-1.5-1-ERS-030

In this section, you will learn about the Evaluated Receipts Settlement (ERS) functionality, its
benefits, and key features. Then, we will learn how to set up and process ERS.
62 Training Guide — Advanced Financials

ERS Benefits

ERS Benefits
Streamline business processes
– Reduced costs
– Reduced errors
– Eliminate non-value added activities
Improve supplier relationships
– More timely payments
– Maximized discounts
– Lower prices from suppliers
Vital for automotive industry; beneficial to other
verticals.

QAD Proprietary 2008-MC-1.5-1-ERS-040

The ERS function lets you generate supplier invoices and corresponding receiver matching records
based on completed purchase order receipts.
ERS offers several benefits to customers and suppliers, such as reduced clerical workload, lower
costs, and reduced error rate. Several factors make an ERS system work efficiently:
• Trading partners must agree on price.
• Customers must issue purchase authorization.
• Suppliers must provide accurate shipping information.
• Customers must enter accurate receipts.

ERS improves your company’s relationship to suppliers by ensuring more timely payments,
accurate and maximized discounts, and lower prices.
While the ERS function can be beneficial to many verticals, it is a must for the automotive
industry.
 ERS 63

ERS Key Features

ERS Key Features

Optional functionality.
Generates:
– Supplier invoices/credit notes
– Receiver matching records
Based on completed PO receipts.
Supplier invoices can be:
– Initial
– Confirmed
Receipts can be from multiple entities and sites
within a domain.
QAD Proprietary 2008-MC-1.5-1-ERS-050

The (optional) ERS function lets you generate supplier invoices or credit notes and corresponding
receiver matching records based on completed purchase order receipts. The system automatically
records liabilities to the supplier based on quantities received at the unit price negotiated with the
supplier in a purchase agreement.
You can use the ERS Processor program to generate supplier invoices and receiver matching for
purchase orders, scheduled orders, blanket orders, pending invoices generated due to supplier
consignment inventory consumption, or for receivers that become available for invoicing at time
of use or when ownership changes (for example, inventory transfer, WO component issues, or
shipments).
You can choose to create supplier invoices with status initial, requiring confirmation, or
automatically confirmed.
ERS can process receipts across multiple entities and sites within a domain, where the entity that
recorded the purchase order and incurred the AP liability is different than the receiving entity. In
this case, ERS automatically creates cross-company postings.
64 Training Guide — Advanced Financials

ERS Process Map

ERS Process

QAD Proprietary 2008-MC-1.5-1-ERS-55

The slide shows the ERS process map from setup to supplier invoice and receiver matching.
 ERS 65

ERS in Purchase Order to Supplier Invoice Process

ERS Process from Purchase Order to Supplier Invoice

Create Purchase Order

Pending
Invoice
No Consignment Yes PO Receipt
PO Receipt
Inventory
Receipt Receipt

Inventory
Receiver usage
Pending
Invoice
Supplier
Invoice

No Yes
Supplier Invoice
Supplier
ERS ERS Processing
Supplier Receiver
Invoice Invoice
Matching

Receiver Matching
Receiver
Matching
QAD Proprietary 2008-MC-1.5-1-ERS-060

For comparison purposes, the slide shows the purchase order to supplier invoice and receiver
matching flow with and without ERS.
66 Training Guide — Advanced Financials

ERS High-Level Process Overview

ERS High Level Process Overview

Prerequisites
– ERS Control
– ERS Browse
– Purchase Order Maintenance, create PO
– Purchase Order Receipt, receive PO
ERS process
– Invoice/credit note created based on PO receipt lines
Reports and audits
– Audit trail
– Supplier Invoice View, check supplier invoice
– Receiver Matching View, check receiver matching
QAD Proprietary 2008-MC-1.5-1-ERS-070

Set up ERS by setting control programs and adding required records. If you already have open
purchase orders, you must also convert them to enable ERS processing (see below).
You must also set default ERS process options for purchase orders.
The ERS Processor creates an invoice or a credit note based on the purchase order receipt lines.
The system provides several ways to verify and report the ERS processing:
• Use an audit trail.
• Use Supplier Invoice View (28.1.1.3) to check the supplier invoice.
• Use Receiver Matching View (28.2.3) to verify the receiver matching.
 ERS 67

ERS Setup

ERS Setup
ERS Control
– Activate ERS

ERS Maintenance, ERS Browse

– Define conditions for processing

ERS Purchase Order Conversion

– Enable ERS processing for existing POs

QAD Proprietary 2008-MC-1.5-1-ERS-080

Use the fields in ERS Control (28.10.24) to activate and deactivate ERS processing, and to set
options that affect ERS processing.
Use ERS Maintenance to set the default ERS processing options for a PO line, which determine:
• Whether to process the line using ERS
• When applicable, whether ERS should generate confirmed or initial invoices for the line

ERS Browse lets you review the ERS options set as default.

ERS Conversion

If you decide to implement ERS in a new database, this step is not required. If you have existing
open purchase orders and you want ERS processing to apply to them, you must run a utility
program to set the processing option.
Choose ERS Purchase Order Conversion (36.25.62) from the Miscellaneous Utilities menu. The
system prompts you to enable or disable ERS.
• Enter E to set ERS option 0—ERS enabled for all purchase orders.
• Enter D to set ERS option 1—ERS disabled for all purchase orders.

For the full setup details, refer to the User Guide: QAD Financials A.
68 Training Guide — Advanced Financials

ERS Control Setup

ERS Control
Activate

Select ERS option

QAD Proprietary 2008-MC-1.5-1-ERS-090

In ERS Control (28.10.24), the following fields need to be set:

ERS Processing. Select the field to activate ERS. When activated, a pop-up window with ERS
processing options opens when you create a purchase order.
ERS Option. Specify the default value for the ERS Option field that displays in the pop-up
window mentioned above. Valid values for the header ERS Option are:
• Blank: The system determines the default ERS option for the line using settings in ERS
Maintenance.
• 0: The system determines the ERS option when you run the ERS Processor, and uses the
most current value from ERS Maintenance.
• 1: ERS processing is disabled.
The defaulting for the ERS Option works as follows:
Control File PO Header PO Line ERS Processor
Blank Defaults to blank Defaults to value from ERS Uses PO Line value if that
Maintenance (1, 2, or 3) is not zero.
0 Defaults to 0 Defaults to 0 Uses value in ERS
Maintenance
1 Defaults to 1 Defaults to 1 ERS is not used

The ERS maintenance options are:

• 1: no ERS
 ERS 69

• 2: Initial Supplier Invoice

• 3: Confirmed Supplier Invoice
The PO header uses the value from the control file as the default. On the PO header, you can
modify this value. The values allowed on the PO header are blank, 0, 1, 2, or 3.
• If the value on PO header is not blank, that value is passed as the default to the PO lines. If
the value on the PO header is blank, the default value for the PO lines is retrieved from
ERS Maintenance.
• You can also modify the ERS Option value on the PO line. The possible values on the PO
header are 0, 1, 2 or 3.
• In the ERS Processor, if the value of the ERS Option for the PO line is 2 or 3, that value is
used.
• In the ERS Processor, if the value of the ERS Option for the PO line is 0, the value is
retrieved from ERS Maintenance.
• In the ERS Processor, if the value of the ERS Option for the PO line is 1, the PO receipt
line is not processed.
ERS Invoice Date Option. Specify how ERS calculates the supplier invoice date:
• 0 (zero): Use the receipt date of the receiver as the supplier invoice date.
• 1: Use the shipment date of the receiver as the supplier invoice date.
70 Training Guide — Advanced Financials

ERS Maintenance and ERS Browse

ERS Maintenance and ERS Browse

QAD Proprietary 2008-MC-1.5-1-ERS-100

The ERS Processor searches ERS Maintenance (28.1.1) for default settings for the supplier, site,
and item combination associated with a PO line to determine how it should process the line. You
can define default settings in ERS Maintenance for a particular supplier, site, item number, or any
combination of these, such as:
• Supplier, site, and item
• Supplier and site
• Supplier and item
• Supplier
• Site

When determining the ERS option for a PO line, the system looks for a corresponding ERS
Maintenance record or combination of ERS Maintenance records, in the following order:
• Supplier/site/item record
• Supplier/site record
• Supplier/item record and a separate site record
• Supplier record and a separate site record

If no records or record combinations are found, the system sets the ERS option to 1, disallowing
ERS processing for that line.
 ERS 71

ERS Option. Specify whether the ERS Processor should create supplier invoices and receiver
matching for purchase order lines with the supplier, site, and item combination, and if created,
whether to create initial or confirmed invoices. The options are:
• 1: Disallow ERS processing for the combination specified.
• 2: Create an initial invoice and receiver matching record for pending invoices with the
specified combination of supplier, site, and item. This option adds a degree of security
because the invoice created must be approved using a separate process.
• 3: Create a confirmed supplier invoice and receiver matching record for receipts with the
specified combination of supplier, site, and item.
ERS Price List Option. Specify the effective date the ERS Processor should use when
retrieving the relevant price list. The options are:
• 1: Use the receipt date.
• 2: Use the ship date.
• 3: Use the order date.
The ERS Processor uses the ERS Price List Option field if a price list is specified for the order,
and if the Fixed Price field on the order line is set to No.
72 Training Guide — Advanced Financials

ERS - Purchase Order Maintenance

ERS – Purchase Order Maintenance

ERS settings
display and can
be modified

QAD Proprietary 2008-MC-1.5-1-ERS-110

When ERS is set up and activated, it affects how you create a purchase order, issue a blanket or
scheduled order, and how you receive purchased items.
Three fields in Purchase Order Maintenance (5.7) affect ERS processing:
Fixed Price. This field is part of the standard header in Purchase Order Maintenance (5.7), but
it functions differently when you are using ERS. The header sets the default for line items. The
value for this field defaults from Supplier Data Maintenance (2.3.1).
• If the item price is fixed, the ERS Processor takes the price from the purchase order.
• If the item price is not fixed, the ERS Processor refers to the relevant price list.
• If there is no price list, the ERS Processor looks for a supplier-item quoted price defined in
Supplier Item Maintenance.
• If there is no supplier quoted price, the ERS Processor looks for the GL material cost in
the item master.
The ERS Option field and the ERS Price List Option fields in the pop-up window default from the
ERS Option field of ERS Control. The header value determines how the default ERS Option is set
on each line item on the order, but can be updated.
 ERS 73

ERS Processor

ERS Processor
When necessary, check
ERS Demonstration ERS processor and audit
– ERS Processor reports

QAD Proprietary 2008-MC-1.5 -1-ERS-120

Run the ERS Processor (28.10.13) to generate supplier invoices and their corresponding receiver
matching for PO receipts. You can only run one instance of the ERS Processor at a time.
The ERS Processor (28.10.13) lets you specify ranges of suppliers, sites, and receivers to retrieve
receipts for which you want to create supplier invoices and receiver matching. The processor then
retrieves a group of receipts that meet your selection criteria. You can then specify which receipts
to process by selecting the check box for that record.
The ERS Processor opens the selected group of receipts, creates the relevant supplier invoice
records and receiver matching, and makes the appropriate journal entries, just as if the invoices
were entered manually.

ERS Audit Report

The ERS audit report, which is produced when you select the Print Audit Report option in the ERS
Processor, provides an overview of processed receipts and lists validation errors, if the ERS
Processor ran with errors.
The ERS audit report generates errors in the following situations:
• No price is available for an item.
• Purchase orders have already been invoiced.
• Credit terms are invalid.
74 Training Guide — Advanced Financials

• No packing slip number is entered on the receipt screen, and the ERS Packing Slip Error field
of ERS Control (28.10.24) is set to Yes.
 Chapter 5

Logistics Accounting
76 Training Guide — Advanced Financials

Logistics Accounting—Overview

Overview
 Introduction to Logistics Accounting
– Definitions
– Process overview
– Benefits
 Setup
– General setup
– Setup for inbound logistics accounting
– Setup for outbound logistics accounting
 Logistics charges accrual process
– Inbound
– Outbound
 Logistics charges processing
 Reporting

QAD Proprietary 2009-AF-LA-030

This chapter begins with an introduction to Logistics Accounting, including definitions and an
overview of the process. The introductory section also discusses the business benefits of Logistics
Accounting.
The setup section outlines the steps involved in setting up inbound and outbound Logistics
Accounting, before reviewing how logistics charges are accrued and processed in the system, and
which reporting capabilities are available.
 Logistics Accounting 77

Definitions

Definitions
Logistics Accounting
To define and track logistics charges for any
inbound and outbound transportation costs
payable to third-party suppliers.

Logistics charges
Individual costs payable to third-party suppliers
for the transportation of goods.

QAD Proprietary 2009-AF-LA-040

Logistics costs are those incurred when a product is moved from one location to another. These
costs can include, not only the freight charges paid to carriers, but also insurance, duty, customs
clearance, handling charges, and so on. Depending on the freight terms, these costs can be paid by
the supplier and recharged to the customer within the item price or as a trailer charge. The costs
can also be paid by the customer directly to the carrier, insurer, or customs.
The individual costs payable to third-party suppliers for the transportation of goods are referred to
as logistics charges. Logistics Accounting lets you define logistics charges for any inbound and
outbound transportation costs payable to third-party suppliers.
78 Training Guide — Advanced Financials

Inbound versus Outbound Logistics

Inbound vs. Outbound Logistics

purchase order receipts sales orders shipments

nd
d

ou
un

tb
bo

ou
in

Supplier Company Customer

QAD Proprietary 2009-AF-LA-050

Inbound logistics charges are the transportation costs associated with purchasing items from
external suppliers. The system then automatically creates a pending invoice for the charges during
purchase receipts. During purchase receipts, the system determines which logistics charges to
accrue, based on the terms of trade assigned to the order supplier.
The system then creates pending invoice records and receivers for each purchase order line.
Outbound logistics charges relate to the transportation costs incurred when you ship items to
customers or to other company locations. Outbound logistics charges include the cost of freight
only. Normally, outbound logistics charges result from the sales order and distribution order
processes, and accrue when the items are shipped. In order to accrue outbound logistics charges,
you must first define freight charge data and freight terms, and then associate the freight terms
with the customer.
 Logistics Accounting 79

Logistics Charge Accruals Process Overview

Logistics Charge Accruals Process

QAD Proprietary 2009-AF-LA-060

GL accruals for inbound logistics charges are triggered by purchase order receipts. GL accruals for
outbound logistics charges are triggered by shipments.
For each receipt or shipment, a pending invoice is created for each logistics charge accrual.
Inbound logistics charges are built into the GL cost for items.
The above process flow summarizes the steps involved in accruing logistics charges
80 Training Guide — Advanced Financials

Logistics Charge Accruals Process Highlights

Logistics Charge Accruals Process Highlights

Pending invoices = logistics charge accruals
Automatic pending invoice creation
– during PO receipts, SO and DO shipments

Match during receiver matching

Internal vs. external references
Additional fields and frames

QAD Proprietary 2009-AF-LA-070

Pending invoices for logistics charges are created automatically during purchase order receipts,
and sales or distribution order shipments. Logistics charge accruals are also referred to as pending
invoices. During receiver matching, you can match the amounts from pending invoices to actual
invoice amounts. The more information provided on the pending invoice, such as the supplier of
the logistics charge, the easier it is to match it to an invoice.
When purchased items are shipped from an item supplier, you may not know the name of the
logistics supplier until the goods arrive. Logistics charges can accrue without specifying a logistics
supplier. After an invoice arrives, you can define the logistics supplier on the pending invoice
using Logistics Charge Pending Invoice Maintenance (2.15.7). During receiver matching, it is
easier to match invoice amounts to pending invoices when logistics suppliers are assigned.
Each pending invoice includes an internal reference and, optionally, an external reference. An
internal reference is a code that identifies a shipment or receipt created by the system, such as a
receiver number or shipper ID. An external reference is an identifier supplied by a third-party
logistics supplier, such as a bill of lading number, carrier tracking number, or packing slip number.
During receiver matching, use internal and external references to help match invoices from
logistics suppliers to pending invoices.
When Logistics Accounting is enabled, additional fields and frames display in several screens.
These fields are described in User Guide: QAD Master Data, which contains detailed information
on Logistics Accounting.
 Logistics Accounting 81

Benefits

Benefits
 Improved efficiency
– Complete tracking, monitoring, accruing and invoicing of all
costs associated with freight and duty
 Improved margin visibility
– Include all transportation-related expenses in standard cost of
product
 Improved planning and budgeting
– Provide planned vs. actual performance analysis of logistics
providers
 Improved control
– Match accrued logistics charges against supplier invoices
 Two types of logistic charges
– Inbound, outbound
QAD Proprietary 2009-AF-LA-080

As manufacturing companies increasingly look for cheaper materials and components from remote
sources, logistics costs have become a more significant aspect of cost management. The
availability of accurate product and customer profitability information, including the total cost of
purchasing or selling items, enables companies to maker better pricing and financial analysis
decisions.
Logistics Accounting lets you define logistics charges for any inbound and outbound
transportation costs payable to third-party suppliers.
Inbound logistics charges are the transportation costs associated with purchasing items from
external suppliers. Outbound logistics charges are the transportation costs associated with the
shipment of items from a company location to customers or other company locations.
For some companies, a significant proportion of purchases are imports. Logistics costs have a
large financial impact since they can represent a high percentage of the total delivered cost and
must be included in price comparisons with local sources. In Logistics Accounting, inbound
logistics charges are considered part of the overall cost specific to each item and included in the
item cost.
For other companies, the shipment of goods by third-party carriers is a frequently occurring
expense. Tracking the amounts owed to carriers as a separate liability in the general ledger (GL)
provides better control over invoices from suppliers. Identifying variances in expected freight
82 Training Guide — Advanced Financials

charges and actual invoice amounts reduces the risk of duplicate or over payment of logistics
charges. Tracking these charges improves visibility of total outbound freight costs, helping to
reduce these costs by reviewing order quantities or seeking alternative carriers.
When items are purchased or shipped, you can accrue logistics charges as part of the process. GL
accruals for inbound logistics charges are triggered by purchase receipts. GL accruals for outbound
logistics charges are triggered by shipments. For each receipt or shipment, a pending invoice is
created for each logistics charge accrual. Inbound logistics charges are built into the GL cost for
items.
 Logistics Accounting 83

Logistics Accounting Setup

General Setup

QAD Proprietary 2009-AF-LA-090

To implement Logistics Accounting, you first need to define general data, such specific GL
accounts, Number Range Management (NRM) sequence numbers, control programs settings,
logistics charge codes, and, optionally, logistics accounts by product line and site. Next, you set up
inbound and outbound specific data, like freight charges and cost elements.
This section details the general setup steps for Logistics Accounting.
Note This course does not provide detailed information on how taxes for logistics charges are set
up and calculated. For more details, see User Guide: QAD Master Data.
84 Training Guide — Advanced Financials

Setting Up GL Accounts

Setting Up GL Accounts

QAD Proprietary 2009-AF-LA-100

You must define the default GL accounts, sub-accounts, and cost centers that are accessed when
logistics charges are accrued and invoiced. You can use separate sets of accounts to track inbound
and outbound logistics charges.
For outbound logistics charges, you can use separate sets of accounts to track the costs associated
with shipments to customers and shipments to other company locations. See User Guide: QAD
Financials A for information on setting up accounts.
The slide lists the accounts used by Logistics Accounting. The Type column indicates how the
account is used. The Use column indicates the transactions that use the account.
 Logistics Accounting 85

Setting Up NRM Sequence Numbers

Setting Up NRM Sequence Numbers

Number Range Maintenance (36.2.21.1)
For sales order shipments and distribution order
shipments

QAD Proprietary 2009-AF-LA-110

All pending invoices must have an internal reference number. Before you can accrue outbound
logistics charges, you must set up separate Number Range Management (NRM) sequence codes
used as identifiers for discrete sales order and distribution order shipments. See User Guide: QAD
System Administration for details on Number Range Management.
The system uses the sequence codes to determine what format to use when assigning sequential
internal reference numbers to discrete shipments.
This step is not required for other types of shipments. For sales order shippers, the shipper number
is used as the internal reference. Shipper sequence codes are defined in Container/Shipper Control
(7.9.24). When distribution orders use shipper documents, the shipper number is also used.
Inbound logistics charge accruals use receiver or PO shipper numbers as internal references.
Use Number Range Maintenance (36.2.21.1) to create sequence parameters for sales order
shipments and distribution order shipments. See User Guide: QAD System Administration for
more information on number ranges.
Target Dataset
Enter the dataset identifier associated with this sequence:
Enter la_so_ship_id for sales order shipments.
Enter la_do_ship_id for distribution order shipments.
Internal
86 Training Guide — Advanced Financials

Enter Yes to have NRM generate sequence numbers automatically. Enter No to let users supply
numbers that are validated against the NRM sequence.
 Logistics Accounting 87

Setting Up the Control Programs

Setting Up the Control Programs

Logistics Accounting Control
– Activation
– Assign NRM sequence codes

QAD Proprietary 2009-AF-LA-120

Use Logistics Accounting Control (2.15.24) to assign NRM sequence codes to sales order and
distribution order shipments.
Sales Order Shipment Sequence ID. Enter the NRM sequence code used for sales order
shipments. The sequence code must have the target dataset la_so_ship_id.
Distribution Order Shipment Sequence ID. Enter the NRM sequence code used for distribution
order shipments. The sequence code must have the target dataset la_do_ship_id.
88 Training Guide — Advanced Financials

Logistics Operational Accounting Control

Setting Up the Control Programs

Logistics Operational Accounting Control
– Pending invoices and third-party logistics supplier
• Receiver matching
– GL accrual, expense and variance
• Default

QAD Proprietary 2009-AF-LA-130

Use Logistics Operational Accounting Control (36.9.1) to:

• Specify whether pending invoices must contain a third-party logistics supplier before they can
be selected for receiver matching.
• Specify default GL accrual, expense, and variance accounts for tracking inbound and
outbound logistics charges. You can define a separate set of default outbound accounts for
sales order and distribution order shipments.
If you only want to track inbound logistics charges, you can leave the Outbound fields blank. If
you only want to track outbound logistics charges, you must first define inbound accounts when
Verify GL Accounts is Yes in Domain/Account Control.
Match Blank Suppliers. When No, only pending invoices with a defined logistics supplier
display when logistics charges are selected for matching in the Logistics Charge tab of
Receiver Matching Create (28.2.1). The default is No.
When set to Yes, you can indicate during receiver matching whether to display pending
invoices with blank suppliers by selecting the Include Blank Suppliers field in the Logistics
Charge tab of Receiver Matching Create (28.2.1).
 Logistics Accounting 89

Defining Logistics Charge Codes

Defining Logistics Charge Codes

Logistics Charge Code Maintenance

QAD Proprietary 2009-AF-LA-140

Use Logistics Charge Code Maintenance (2.15.1) to define codes for each logistics charge
incurred and payable to a third-party supplier when purchasing or shipping items. You can also
define the accrual, expense, and variance accounts used to track each logistics charge. These
accounts default from Logistics Operational Accounting Control, but you can change them.
A logistics charge code can be used for inbound charges, outbound charges, or both. There is
nothing to indicate whether a logistics charge code is used for outbound or inbound purposes.
When an inbound and outbound charge is managed differently, define two separate codes.
90 Training Guide — Advanced Financials

Defining Detailed Logistics Accounts

Defining Detailed Logistics Accounts

Inbound Account Maintenance (2.15.13)
Outbound Accrual Account Maint (2.15.16)
Outbound Expense Account Maint (2.15.19)

QAD Proprietary 2009-AF-LA-150

Although inbound and outbound logistics accounts are defined for each logistics charge in
Logistics Charge Code Maintenance (2.15.1), you may want to define logistics accounts at a more
detailed level.
You can separately track logistics charges by product line at multiple sites within the same entity.
For example, you may want to track logistics charges for different product lines at different sites
using separate accounts.
Use the following programs to specify GL accrual, expense, and variance accounts used for
inbound and outbound logistics charges by product line, site, and supplier or customer type:
• Inbound Account Maintenance (2.15.13)
• Outbound Accrual Account Maint (2.15.16)
• Outbound Expense Account Maint (2.15.19)

All accounts default from the specified logistics charge code, but you can change them.
 Logistics Accounting 91

Setting Up Inbound Logistics Accounting

Setting Up Inbound Logistics Accounting

Define Update Update

Updateitem
itemcost
Define Updatelogistics
logistics cost
cost
costelements.
elements. charge. with logistics
with logistics
charge.
charges.
charges.

Define
Defineterms
termsof
of Assign
Assignterms
termsofof
trade.
trade. trade
trade toitem
to item
supplier.
supplier.

QAD Proprietary 2009-AF-LA-160

After the general data, set up additional data specific to inbound logistics:
• Define cost elements for each logistics charge in Cost Element Maintenance (30.17.1).
• Link logistics charges to the appropriate cost element in Logistics Charge Code Maintenance
(2.15.1). One cost element can only link to one logistics charge.
• Update item cost with logistics charges in Item Master Maintenance (1.4.1), Item Cost
Maintenance (1.4.9), Item-Site Cost Maintenance (1.4.18), or Item-Element Cost Maintenance
(30.17.5).
• Define Terms of Trade in Terms of Trade Maintenance (2.15.4).
• Link Terms of Trade to the item supplier in Supplier Data Maintenance (2.3.1).

We will now review these steps in more detail.

92 Training Guide — Advanced Financials

Creating Cost Elements

Creating Cost Elements

Cost Element Maintenance

QAD Proprietary 2009-AF-LA-170

Use Cost Element Maintenance (30.17.1) to set up separate cost elements for logistics charges in
the GL cost sets assigned to sites that receive purchased items. The cost elements must be in the
Material or Overhead cost category. See User Guide: QAD Costing for more information on cost
elements and product costing.
Create a cost element for each logistics charge you want to accrue. For example, you could create
separate cost elements for domestic freight and overseas freight, or create only one cost element
for freight.
 Logistics Accounting 93

Updating Logistics Charge Code

Updating Logistics Charge Code

Logistics Charge Code Maintenance

QAD Proprietary 2009-AF-LA-180

When you have set up logistics cost elements, associate each of them with individual logistics
charge codes in Logistics Charge Code Maintenance (2.15.1).
You can also assign default tax settings and logistics suppliers to the logistics charges to facilitate
data entry.
94 Training Guide — Advanced Financials

Updating Item Costs

Updating Item Costs

Four menu options
– Item-Element Cost Maintenance
– Item Cost Maintenance
– Item-Site Cost Maintenance
– Item Master Maintenance

QAD Proprietary 2009-AF-LA-190

Use Item-Element Cost Maintenance (30.17.5), Item Cost Maintenance (1.4.9), Item-Site Cost
Maintenance (1.4.18), or Item Master Maintenance (1.4.1) to add logistics cost elements
associated with logistics charges to purchased items in the GL cost set and enter this-level logistics
costs for those items. You must enter GL cost values in order to accrue logistics charges during
purchase receipts.
Add the same cost elements to the current cost set when the last cost method is used for current
costs. The value of the current cost will be updated when logistics charges are matched if Current
Cost from AP is Yes in Inventory Control.
 Logistics Accounting 95

Defining Terms of Trade

Defining Terms of Trade

Terms of Trade Maintenance

QAD Proprietary 2009-AF-LA-200

Terms of trade specify both the logistics charges associated with purchasing items from external
suppliers and the party responsible for paying each. These trade terms are specific to the purchase
of items and define the obligations of the customer and seller for the delivery of goods. Terms of
trade are also referred to as Inco Terms. Inco Terms are defined by the International Chamber of
Commerce and used in international contracts.
During purchase receipts, the system determines which logistics charges to accrue based on the
terms of trade assigned to the purchase order. When the receiving site is responsible for a logistics
charge payment, the logistics charge is accrued since the charge is payable to a third-party logistics
supplier, not the item supplier. Logistics charges are not accrued when they are the responsibility
of the item supplier.
Use Terms of Trade Maintenance (2.15.4) to define new terms of trades.
When you (the customer) are responsible for transporting the goods, the system automatically
populates the Transport Days field when a new order is created in Purchase Order Maintenance
(5.7), Blanket Order Maintenance (5.3.1), and Supplier Scheduled Order Maintenance (5.5.1.13)
with the Transit Days value in Delivery Transit Time Maintenance (2.16.1).
Each terms-of-trade record can include all of the logistics charges associated with a purchase, with
the responsible party assigned to each logistics charge.
96 Training Guide — Advanced Financials

Assigning Terms of Trade to Suppliers

Assigning Terms of Trade to Suppliers

Supplier Data Maintenance

QAD Proprietary 2009-AF-LA-210

Assign default terms of trade to applicable item suppliers in Supplier Data Maintenance (2.3.1).
The default terms of trade are used when the supplier is entered on the order header of a purchase
order, blanket order, or supplier scheduled order.
 Logistics Accounting 97

Setting Up Outbound Logistics Accounting

Setting Up Outbound Logistics Accounting

Update Set
Setup
updefault
default
Updatefreight
freight customer
terms.
terms. customerfreight
freight
data.
data.

Define
Defineitem
itemship
ship Define
Definetrailer
trailer
weights.
weights. codes.
codes.

optional
optional
QAD Proprietary 2009-AF-LA-220

After you have defined outbound accrual, expense, and variance accounts, and assigned them to
logistics charges, you can begin the setup for outbound logistics charges.
The required setup involves updating freight terms, customer defaults, and item details. If you use
freight terms that involve trailer codes, you also need to create these and configure order defaults.
98 Training Guide — Advanced Financials

Updating Freight Terms

Updating Freight Terms

Freight Term Maintenance

QAD Proprietary 2009-AF-LA-230

Freight terms are set up in Freight List Maintenance (2.20.1), Freight Zone Maintenance (2.20.4),
Freight Charges Maintenance (2.20.10), and Freight Terms Maintenance (2.20.13).
When updating freight terms for Logistics Accounting in Freight Terms Maintenance (2.20.13),
assign a logistics charge to each freight terms with an accrual level. The system uses the type code
to determine whether freight charges are accrued and, if so, at what level.
• Type 1 (Add) and 2 (Allow): Logistics charges are accrued for the entire shipment.
• Type 3 (Prepaid) and 5 (Include): Logistics charges are accrued for each line item.
• Type 4 (Collect) and 6 (Will Call), logistics charges do not accrue. A logistics charge cannot
be assigned to either of these freight terms.
When logistics charges are accrued by shipment or by order line, you must assign the logistics
charge code used to track the logistics charges incurred and payable to a third-party carrier.
For more details on how to set up freight terms, see User Guide: Master Data.
 Logistics Accounting 99

Setting Up Default Customer Freight Data

Setting Up Default Customer Freight Data

QAD Proprietary 2009-AF-LA-240

To facilitate data entry and minimize errors, it is recommended that you set up default freight data
for each customer. The data you set up in Customer Data Maintenance (2.1.1) will default on
orders, but can be updated.
100 Training Guide — Advanced Financials

Set Up Freight Lists

Set Up Freight Lists

QAD Proprietary 2009-AF-LA-245

Use Freight List Maintenance (2.20.1) to define charges that apply to sales quotes, orders, and
RMAs. Typically, you need at least one freight list for each shipping company you use. More than
one freight list may be needed if the shipping company supports different types of transportation.
For example, a shipping company may ship by train, by truck, by refrigerated truck, and by regular
semi-trailer.
Set up freight lists for different currencies if your shipper delivers to other countries. You can also
define lists per site if the same shipper transports from more than one warehouse or manufacturing
site.
Type. Specify whether freight charges are based on the weight of each unit or on the total
weight of the items that use this freight list. Valid entries are:
• Unit: Freight charges are calculated for individual units based on each unit’s shipping
weight.
• Bulk: Freight charges are calculated based on the total weight of applicable items. Weight
is calculated for each order line as the unit weight multiplied by the line item quantity.
Trailer Code. This value links a freight list with the appropriate GL account to use when
charging amounts on the sales quote, sales order, or pending invoice trailer.
 Logistics Accounting 101

Note If the trailer codes you associate with freight lists are not the same as the default trailer
codes in Sales Order Accounting Control (36.9.6), you must set Use SO Freight List Trailer Code
to Yes in Sales Order Accounting Control. Otherwise, errors display and freight is not calculated in
order maintenance programs.
Freight Mode. An optional code that can be used to describe the transportation method. Define
values in Generalized Codes Maintenance (36.2.13) for field fr_mode.
102 Training Guide — Advanced Financials

Defining Item Ship Weight

Defining Item Ship Weight

QAD Proprietary 2009-AF-LA-250

Where necessary, update the item records of items you are shipping and receiving to specify the
ship weight. Use Item Master Maintenance (1.4.1).
 Logistics Accounting 103

Setting Up Trailer Codes

Setting Up Trailer Codes

Select to use freight list

trailer default instead

QAD Proprietary 2009-AF-LA-260

If you use freight terms that involve trailer codes, those need to be set up in Trailer Code
Maintenance (2.19.13).
Once established, the three most frequently used taxable and nontaxable trailer codes can be
specified as defaults in Sales Order Accounting Control (36.9.6). These defaults display on the
trailer of every order, but can be changed manually.
You can also associate a trailer code with freight lists. If you want this trailer code to be used rather
than the ones defined in Sales Order Accounting Control, you must set Use SO Freight List Trailer
Code to Yes in Sales Order Accounting Control (36.9.6).
For more details on setting up trailer codes, see the User Guide: QAD Master Data.
104 Training Guide — Advanced Financials

Inbound Logistics Charges Accrual Process

Inbound Logistics Charges Accrual

Purchase
Purchaseorder
order PO
POreceipt
receiptor
or Logistics
Logisticscharge
charge
or PO shipper
or PO shipper PO
POshipper
shipper pending
pendinginvoice
invoice
receipt
receipt

QAD Proprietary 2009-AF-LA-270

The inbound logistics charges accrual process starts with a purchase order or a shipper containing
the required information for the system to accrue the charges appropriately.
The accrual happens during the PO or PO shipper receipt, and results in a logistics charge pending
invoice.
We will now review these steps in more detail.
 Logistics Accounting 105

Purchase Order Maintenance

Inbound Logistics Charges Accrual

Purchase Order Maintenance

QAD Proprietary 2009-AF-LA-280

When you create an order in Purchase Order Maintenance (5.7), Blanket Order Maintenance
(5.3.1), or Scheduled Order Maintenance (5.5.1.13), you can specify the terms of trade. After you
enter the terms-of-trade code, you can, optionally, display the terms-of-trade detail lines and assign
a logistics supplier to each charge that is your responsibility as a customer. Logistics charges that
are the responsibility of the item supplier do not display.
106 Training Guide — Advanced Financials

PO Shipper Maintenance

Inbound Logistics Charges Accrual

PO Shipper Maintenance

QAD Proprietary 2009-AF-LA-290

In PO Shipper Maintenance (5.13.14) or PO Fiscal Receiving (5.13.16), the system prompts for
additional Logistics Accounting information.
Enter the shipment reference number from the carrier, such as a bill of lading number, carrier
tracking number, or packing slip number. The shipment reference is used during receiver matching
to help match pending invoices to invoices from logistics suppliers.
When terms of trade are assigned to purchase orders attached to the shipper, the terms-of-trade
code assigned to the first PO line is applied to the entire shipper or container.
After you finish entering line items, the terms-of-trade details display. You can specify a supplier
for each logistics charge that is your responsibility.
 Logistics Accounting 107

PO and PO Shipper Receipts

Inbound Logistics Charges Accrual

PO / PO shipper receipts

Pending invoice
Pending invoice external reference
internal reference

QAD Proprietary 2009-AF-LA-300

During purchase receipt processing in Purchase Order Receipts (5.13.1) or PO Shipper Receipt
(5.13.20), a pending invoice record is created for each logistics charge associated with a purchase
receipt that is your responsibility.
Receiving PO line items creates pending invoices for logistics charges and the corresponding GL
transactions, and calculates tax.
When a pending invoice is created in Purchase Order Receipts (5.13.1), the receiver number is
used as the internal reference and the packing slip number is used as the external reference.
Pending invoices created in PO Shipper Receipt (5.13.20) use the shipper number as the internal
reference and the carrier shipment reference from the PO shipper as the external reference.
108 Training Guide — Advanced Financials

GL Effect

Inbound Logistics Charges Accrual

GL effect

Inventory Acct Inbound Accrual Acct

DR CR DR CR

1,000 1,000

QAD Proprietary 2009-AF-LA-310

In addition to the GL transactions created during PO receipt for item material cost, the following
GL transactions are created for each PO line received with an associated logistics charge:
• Debit inventory for the PO line logistics charge accrual value.
• Credit the inbound accrual account for the logistics charge, product line, site, and supplier type
for the same amount.
 Logistics Accounting 109

Outbound Logistics Charges Accrual Process

Outbound Logistics Charges Accrual

Sales
SalesOrder
Order Logistics
Logisticscharge
charge
Sales
SalesOrder
Order Shipment
Shipment pending
pendinginvoice
invoice

QAD Proprietary 2009-AF-LA-320

The outbound logistics charges accrual process starts with a sales order (SO) containing the
required information for the system to accrue the charges appropriately.
The accrual happens during the SO shipment, and results in a logistics charge pending invoice.
We will now review these steps in more detail.
110 Training Guide — Advanced Financials

Sales Order Maintenance

Outbound Logistics Charges Accrual

Sales Order Maintenance

QAD Proprietary 2009-AF-LA-330

During sales order maintenance, the logistics charge code associated with the freight term and the
default supplier, if any, are displayed. The logistics supplier can be changed.
The same Logistics Accounting frames and fields are used in the following programs and their
related shipping programs:
• Sales Order Maintenance (7.1.1)
• Sales Quote Maintenance (7.12.1)
• Pending Invoice Maintenance (7.13.1)
• RMA Maintenance (11.7.1.1)
• Distribution Order Workbench (12.17.13)
• Distribution Order Maintenance (12.17.14)
• Distribution Order Processing (12.17.21)

See User Guide: QAD Sales for more information on sales orders.
 Logistics Accounting 111

Logistics Accounting Details

Outbound Logistics Charges Accrual

Sales Order Maintenance

Logistics Accounting details

Pending invoice
external reference
QAD Proprietary 2009-AF-LA-340

After you have finished entering order line items, the Logistics Accounting detail frame displays
when:
• A freight terms code is specified on the order header.
• The freight terms code indicates an accrual level of shipment or line.
• A freight list is specified on at least one order line.

In the trailer, the BOL field value is used as external reference on the pending invoice that is
created during shipment.
112 Training Guide — Advanced Financials

Sales Order Shipments

Outbound Logistics Charges Accrual

Sales Order Shipments

Internal reference
QAD Proprietary 2009-AF-LA-350

Processing a discrete shipment in any of the following programs creates a pending invoice when
the freight terms assigned to the order or line indicate an accrual level of shipment and a freight list
is specified on at least one order line:
• Sales Order Shipments (7.9.15)
• Pending Invoice Maintenance (7.13.1)
• Distribution Order Processing (12.17.21) or Shipments (12.17.22)
• RMA Maintenance (11.7.1.1), Shipments (11.7.1.16), or Receipts (11.7.1.13)

When a pending invoice is created in discrete shipment programs, the shipment ID number is used
as the internal reference and the bill of lading (BOL) number is used as the external reference.
Shipment ID. If the NRM sequence code specified in Logistics Accounting Control is an
internal sequence, leave this field blank to have the system assign a number. Otherwise, enter a
sequence number. The system validates it against the Sales Order Shipment Sequence ID
specified in Logistics Accounting Control.
Processing shipments creates pending invoices for logistics charges and the corresponding GL
transactions, and calculates tax on logistics charges.
 Logistics Accounting 113

Sales Order Shippers

Outbound Logistics Charges Accrual

SO shippers

Internal reference

External reference

QAD Proprietary 2009-AF-LA-360

During the confirmation process in Pre-Shipper/Shipper Confirm (7.9.5) or Pre-Shipper/Shipper

Auto Confirm (7.9.7), a pending invoice is created and freight charges accrued based on the freight
terms assigned to the first sales order attached to the shipper.
Each sales order attached to the shipper must have the same freight terms code; otherwise, an error
displays.
Pending invoices created during confirmation use the shipper number as the internal reference and
the carrier shipment reference from the shipper as the external reference.
114 Training Guide — Advanced Financials

GL Effect

Outbound Logistics Charges Accrual

GL effect
Sales Order
SO Expense Acct Accrual Acct
DR CR DR CR

1,000 1,000

QAD Proprietary 2009-AF-LA-370

During shipment, the system creates a GL transaction for the entire shipment or for each line,
depending on the freight terms.
A sales order shipment creates the following GL transactions:
• Debit the Sales Order Expense account for the logistics charge, product line, site, customer
type, and channel.
• Credit Sales Order Accrual for the logistics charge, product line, site, and supplier type.
 Logistics Accounting 115

Processing Logistics Charges

Processing Logistics Charges

Pending
Pending Logistics
Logistics Receiver
Receiver
Invoice
Invoice supplier
supplierinvoice
invoice matching
matching
Maintenance
Maintenance

optional
optional

QAD Proprietary 2009-AF-LA-380

This section describes how logistics charges are processed once accrued.
116 Training Guide — Advanced Financials

Logistics Charge Pending Invoice

Processing Logistics Charges

Logistics Charge Pending Invoice

QAD Proprietary 2009-AF-LA-390

For each PO line received into inventory, the system checks each cost element for that line item in
the Material or Overhead category in the GL cost set. If the cost element is linked to a logistics
charge code belonging to the PO terms of trade and the charge is your responsibility, a pending
invoice is automatically created for that logistics charge.
Logistics Charge Pending Invoice Maintenance (2.15.7) can only be used to review a pending
invoice and edit the logistics supplier. It is automatically updated with the supplier invoice number
and variance details during matching.
Although you can match invoice amounts from logistics suppliers to pending invoices with blank
suppliers in Receiver Matching Create (based on the control setting), it is easier to match pending
invoices when logistics suppliers are assigned.
When you receive more than one invoice for the same logistics charge, you can enter the supplier
from the first invoice and match the amount, then change the supplier on the pending invoice
before matching the second invoice.
Example A single pending invoice is created for freight and you receive two invoices, one from a
shipping agent for transporting the goods to a local port and another from a local carrier for
transporting the goods from the dock to your company warehouse.
 Logistics Accounting 117

Logistics Supplier Invoice

Processing Logistics Charges

Logistics supplier invoice

PO number
is blank

Invoice status
code enabled for
receiver
matching

QAD Proprietary 2009-AF-LA-400

When an invoice is received from a logistics supplier, the total amount of the invoice is recorded in
Supplier Invoice Create (28.1.1.1). To capture the logistics costs for individual line items, a
portion of the total invoice amount is allocated to each line item on the associated order.
The system apportions inbound and outbound logistics charges to line items on an order when the
pending invoice is created, based on the apportion method associated with the logistics charge
code. The total invoice amount is allocated to individual line items as a ratio of the accrued
logistics charges.
On logistics supplier invoices, the PO number is left blank. The invoice status code is enabled for
receiver matching just as for normal orders.
118 Training Guide — Advanced Financials

Matching Logistics Charges

Processing Logistics Charges

Receiver Matching
– Logistics tab

Separate frame
for Logistics
Accounting
pending invoices

QAD Proprietary 2009-AF-LA-410

When invoices arrive from logistics suppliers, use the Logistics Charge tab of Receiver Matching
Create (28.2.1) to match the accruals on pending logistics charge invoices to the logistics supplier
invoice for payment.
See User Guide: QAD Financials A for details on receiver matching.

Variances

When you indicate that matching is complete against a logistics charge by setting Close Line to
Yes, the system calculates the variance, if any, as the difference between the invoice amount and
the accrued amount less the invoiced amount. Any difference is posted to the variance account for
the logistics charge. Variances are calculated, but not recorded, when Close Line is No.
 Logistics Accounting 119

GL Effect

Processing Logistics Charges

 GL effect (inbound)

Inbound Accrual Acct Accounts Payable

DR CR DR CR

1,000 1,000

 GL effect (outbound)

SO Accrual Acct Accounts Payable

DR CR DR CR

1,000 1,000

QAD Proprietary 2009-AF-LA-420

An invoice to a logistics supplier for logistics charges accrued during a purchase receipt (inbound)
creates the following GL transactions:
• Debit the inbound accrual account for the logistics charge, product line, site, and supplier type.
• Credit Accounts Payable for the logistics supplier.

An invoice to a logistics supplier for shipments to customers creates the following GL

transactions:
• Debit the Sales Order Accrual account for the logistics charge, product line, site, and supplier
type.
• Credit Accounts Payable for the logistics supplier.
120 Training Guide — Advanced Financials

Logistics Accounting Reporting

Logistics Accounting Reporting

Matching Logistic Charge

Variance Report

Logistics Charge Variance Report

Open Logistics Charge Report

QAD Proprietary 2009-AF-LA-430

The following three reports are useful for analyzing logistics accounting:
• Matching Logistic Charge Variance Report (28.2.8), which is similar to Matching Variance
Report, but is specific to logistics charges.
• Logistics Charge Variance Report (28.17.17), which is another view on logistics charges using
operational data
• Open Logistics Charge Report (28.17.18), which is similar to Unmatched PO Receipts, but for
logistics charges.
 Logistics Accounting 121

Sample Logistics Accounting Reports

Logistics Accounting Reporting

QAD Proprietary 2009-AF-LA-440

The above slide displays two sample reports.

For a complete list of available Logistics Accounting reports, see User Guide: QAD Master Data.
122 Training Guide — Advanced Financials
 Chapter 6

Budgeting
124 Training Guide — Advanced Financials

Budgeting—Objectives

Objectives
Learn how budgeting works in QAD Enterprise
Applications.
Learn how to create and update budgets.
Learn how to use the Excel integration for
budgets.

QAD Proprietary 2008-MC-2.1-1-BU-020

A budget is a set of amounts that is expected to be spent or earned during a given time period.
Most organizations compile budgets annually to plan for expenses and revenues.
In this chapter, you will learn how to use the budgeting functionality in QAD Enterprise
Applications.
You will learn how to set up and update budgets, both manually and using Excel integration.
 Budgeting 125

Overview

Overview
Demo
– Budget creation, budget periods, budget levels, Excel
integration, hotlink, budget update
Budget Setup
Exercise

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Your instructor will demo the main budgeting functionality including Excel integration.
Then, you will learn about the setup process, which elements it includes and which steps are
required, manually and using the Excel integration.
Once your budget is set up, you will learn how to update it using the Excel hotlink.
Finally, you will practice what you have learned by completing an exercise.
126 Training Guide — Advanced Financials

Budgeting

Budgeting
 Use Budget Create (25.5.2.1) to define budgets.
 Define budgets for a single entity, or for a group of
entities with the same shared sets.
 Budgets are composed of a structure of budget topics.
 Topics are linked to:
– Accounts
– Sub-accounts
– Cost centers
– Projects
– SAFs
– Sub-totals

QAD Proprietary 20 08-MC-2.1-1-BU-040

Use the Budget Create (25.5.2.1) activity to define budgets for a single entity or for a group of
entities that use the same shared sets. The entities can be in the same or different domains.
Budgets are composed of a structure of budget topics, each identified by a topic code and linked to
a single or group of accounts, sub-accounts, cost centers, projects, or SAFs. You also define the
hierarchy of topics for which budget and actuals data will be accumulated, and the position of
subtotals and COA components in the hierarchy.
 Budgeting 127

Budget Process

Budget Process

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The slide shows the steps involved in the budget business process.
128 Training Guide — Advanced Financials

Budget Groups

Budget Groups
 Facilitate budget setup.

 Define a budget group of accounts, sub-accounts, cost

centers, projects, or SAFs.

 Link the budget group to a budget topic, rather than

linking each COA component individually.

QAD Proprietary 20 08-MC-2.1-1-BU-060

A budget group is any combination of accounts, sub-accounts, cost centers, projects, and SAF
codes used to update actuals for a budget topic.
Use Budget Group activities (25.5.2) to create, view, modify, and delete budget groups.
You link a COA component to a budget group by assigning a group name when you create or
modify the component definition in, for example, GL Account Create (25.3.13.1) or Cost Center
Create (25.3.20.1).
 Budgeting 129

Budget Report Periods

Budget Report Periods

 Define report periods that are specific to budget reports.

 Budgets can have multiple versions.

 Associate each version record with a valid reporting

period.

 Reporting periods are independent of GL periods and

tax periods.

QAD Proprietary 20 08-MC-2.1-1-BU-070

Budgets also include report periods that are linked to budget versions, and are used by the budget
reports. Report periods let you mark a specific time span for which you want to produce budget
reports. Reporting periods are independent of GL periods and tax periods, and can span multiple
GL periods across multiple entities.
Use Budget Report Period Create (25.4.5.1) to define report periods. Budgets can have multiple
versions, and you must associate each version record with a valid reporting period.
130 Training Guide — Advanced Financials

Budget Create

Budget Create (25.5.1.1)

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Use Budget Create (25.5.1.1) to create budget periods, levels, and structures.
 Budgeting 131

Budget Create Header fields

Budget Create Header Fields

Budget
Status

Select if the budget structure will Select the field if the

define a report hierarchy for the budget structure will
Balance Sheet and Income be used for
Statement structured reports. allocations.

QAD Proprietary 20 08-MC-2.1-1-BU-090

In the following are the main fields in the header of Budget Create (25.5.1.1):
Budget Code. Specify a code (maximum 20 characters) to identify the budget.

Status. This field displays the budget status. Budgets can have one of the following statuses:
Initial: The preliminary status of a budget. The status field is read-only and set to Initial until
you define budget periods and levels.
Valid: Indicates that the budget can be modified and is ready for use. The status changes
automatically from Initial to Valid when you define the budget periods and budget levels. You
cannot change a budget status from Valid to Initial.
Operational: Indicates that the budget setup is complete, and that actuals will be retrieved by
the Budget daemon.
You must manually change the budget status to Operational to allow the actuals to be updated.
You can change a budget status from Valid to Operational, and from Operational to Closed.
Note The system generates Budget daemon requests for operational budgets only.
Closed: Indicates that the budget life span is complete. You can reopen the budget by changing
its status to Operational.
Used for Allocation. Select the field if the budget structure will be used for allocations.
GL accounts, sub-accounts, projects, cost centers, and SAFs can be used in allocation
structures.
132 Training Guide — Advanced Financials

Use as Report. Select the field if the budget structure will be used to define a report hierarchy
for the Balance Sheet and Income Statement structured reports.
When you select Use as Report, the system validates and categorizes the report structure data
differently than general budget data.
 Budgeting 133

General Budget Data

General Budget Data

Budget
Currency

Select the field to enable Specify the entities

Specify how the system that will update
will respond if the the online budget check
actuals for the
budget amounts are budget.
overrun.

QAD Proprietary 2008-MC-2.1-1-BU-100

Use the General tab to specify the scope of the budget activities and the entities that will provide
the budget actuals. The following are the main fields in the General tab:
Currency Code. Specify a budget currency. The field defaults to the base currency for the
domain, but you can modify this value.
Note You cannot modify the currency if the budget has a status of Operational.

Report Period Check. Choose whether the system validates if a reporting period is open when
a transaction is posted for that period on this topic.
Use Quantity Info. Select this field to include quantities in your budget, such as machine hours,
kilowatt hours, or other quantifiable values. These quantities are specified at GL account level
only using GL Account Unit of Measure.
Overrun (YTD), Total Overrun, GL Period Overrun. Choose how the system responds if the
budget amounts from the start of the budget period to date, for the entire budget, or for a
particular budget period are overrun. In each field, the options are No Action, Warning, or
Error.
No Action: The system allows the user to enter transactions that cause overruns.
Warning: The system warns the user that the budget is overrun, but allows the user to save the
transaction.
Error: The system prevents the user from saving a transaction that overruns the budget figure.
134 Training Guide — Advanced Financials

Check Actuals On-Line. Select the field to enable online budget check.
Each time a linked budget account is specified in banking entry, journal entry, customer and
supplier invoices, open item adjustment, or petty cash activities, the system will check if the
new transaction causes the budget amounts to be overrun.
In addition, if you choose Warning or Error in the Overrun (YTD), Total Overrun, or GL
Period Overrun fields, the system will display a warning or error if a transaction causes a
budget overrun for the corresponding time frame.
Note This field has an effect only when Online Budget Check is selected in the system
settings in System Maintain (36.24.3.1), and when the budget is operational.
Send E-mail on Errors, Send E-mail on Warnings. Select the relevant field to send an e-mail to
the budget administrator if an overrun error or warning occurs. The system sends the e-mail to
the address defined in User Maintenance (36.3.1) for the user specified in the Budget
Administrator field.
Entity Code. Specify the entities that will update actuals for the budget.
 Budgeting 135

Budget Periods

Budget Periods
 Intervals of time into which the budget life span is
divided for budget reporting purposes.
 Separate from tax or GL periods

QAD Proprietary 2008-MC-2.1-1-BU-110

Use the Budget Period tab to create the budget periods for which the budget is valid.
Budget periods can be based on GL periods or can be different.
Note The system creates a budget column and a forecast column in the grid in the Structures tab
for each budget period you define. If the budget uses quantities, the Structures tab also contains a
column for budget quantities and forecast quantities for each budget period.
Budgets can contain a maximum of 54 periods and can run over multiple years. You can also
create a single budget period to span an entire year.
You cannot define budget levels or structures until you define the budget periods.
You can define budget periods:
• Manually. Enter all budget period codes and start and end dates manually in the budget periods
grid.
• Based on an existing GL calendar year. The budget periods are equivalent to the GL periods of
the year you specify. Click the Create Budget Periods button to create the periods.
• From rules. Enter the start date, the number of periods, and define whether the periods are
defined by week, month, or quarter. The system then creates the budget period table when you
click Create Budget Periods.
136 Training Guide — Advanced Financials

Periods Grid

This grid contains a row for each budget period you define. When creating budget periods
manually, right-click to insert a row.
Periods by Year Field. Specify a GL calendar year on which to base the budget periods. The
system creates budget periods that are equivalent to the GL periods of the year you specify.
Use this option independently of the Periods by Dates fields.
Periods by Dates Fields. The system uses the data in these fields to automatically generate
budget periods
 Budgeting 137

Budget Levels

Budget Levels Select which level is used in a

proportional allocation (only valid when
budget is marked as “use in Allocations”)

Maximum of Choose the COA hierarchy on A subtotal is a calculated

15 levels. which to base the budget field that shows the sum of
structure: all underlying levels, both
- Subtotal for budget and actual data.
- General Ledger
- Sub-Account
- Cost Center
- Project
- SAF
QAD Proprietary 2008-MC-2.1-1-BU-120

Use the Levels tab to define the hierarchy and level of detail to include in the budget structure. A
budget can contain a maximum of eight levels.
At each level, you can specify whether to include GL accounts, sub-accounts, cost centers,
projects, SAFs, or subtotals, and create a sequenced list. A subtotal is a calculated field that shows
the sum of all underlying levels, both for budget and actual data. If the budget includes SAFs, they
must be at the lowest level within the hierarchy.
138 Training Guide — Advanced Financials

Budget Structures

Budget Structures

Create the budget topics The columns in the grid

according to the structure default from the settings on
defined on the WBS the General and Periods
Levels tab. tab.

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Use the Structures tab to create the budget topics according to the structure defined on the WBS
Levels tab, and enter data for each topic. WBS is an abbreviation of Work Breakdown Structure.
The columns in the grid default from the settings on the General and Budget Period tab. The grid
contains a column for the topic code, a budget column, and a forecast column for each budget
period. In addition, if you select the Use Quantity Info field in the General tab, the grid includes a
Budget Quantity and Forecast Quantity column for each budget period.
When you select a topic for an operational budget, the system displays the linked account or COA
component and the total actuals for the topic at the bottom of the Structures tab.
 Budgeting 139

Create a Budget Structure

Create a Budget Structure

Manually in the grid

Excel Hotlink
– Create Excel template
– Create from Excel

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The Budgeting functionality in QAD Enterprise Applications lets you create budget structures
manually in the application or import an Excel file using the Hotlink.
The Excel Hotlink option lets you maintain budget data in Microsoft Excel and then synchronize it
with the system. The integration with Excel provided in budgeting is more advanced than that
available in other functions.
140 Training Guide — Advanced Financials

Create Manually in the Grid

Create Manually in the Grid : Right-Mouse Click -> Insert a New Row

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To manually create a structure, right-click in the grid in Budget Create (25.5.1.1) to insert a new
row.
 Budgeting 141

Create via Excel Hotlink

Create via Excel Hotlink : Create Excel Template or Create from Excel

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To create a budget structure based on an Excel worksheet, click on Excel Hotlink.

The Excel Hotlink menu is only available when the Structures tab is active; it does not apply to the
data in other tabs.
The Create Excel Template and Create From Excel options are similar to the standard Excel
integration. You use these when first setting up the budget.
Create the basic structure you want and then create an Excel template without defining the data.
When you have completed the definition, you can upload the data using the Create from Excel
option.
Linked spreadsheets can only contain the budget structure and budget data. You cannot create new
COA links in Excel to import into and update a budget structure.
The menu has the following options:
Create Hotlink. Choose Create Hotlink to create a spreadsheet containing the budget topic
structure and any budget values already entered. The first spreadsheet columns correspond to
the topic names and are read-only. When you update a value in the spreadsheet, the
corresponding value in the relevant column in the Structures tab is updated also.
You must run both Excel and your QAD application simultaneously to maintain the hotlink.
You can save data in either the spreadsheet or the budget grid at any stage.
142 Training Guide — Advanced Financials

The system stores the spreadsheet file location for each budget. If you plan to share budget
maintenance with other users, make sure the file is saved on a shared network drive so it is
accessible to them.
Restore Hotlink. Use the Restore Hotlink command to open the spreadsheet associated with a
budget.
Synchronize. Use the Synchronize option to replace the budget data in the Structures tab with
data in the Excel sheet.
Create from Excel. Use this option to import data defined in a template to initialize the budget
structure.
 Budgeting 143

Link COA Topics

Linking Topics
Right-click on a topic, select
Topic Properties.

Specify a budget group to

link all COA for the group
to the topic.

Specify the COA

components to link to
the budget topic.

Specify an SAF structure and

concept code for the first SAF
level in the structure.

Note: The SAF fields are

enabled only when the topic
references a SAF level.
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After you define the budget structure, specify the COA components that are the source of the
actuals data.
You can link a COA component to a budget topic in a number of ways:
• Budget group. All COA components that belong to this group are linked to the topic.
• Link by level. Specify a single item, a comma-separated list, or a range.
• SAF level, where applicable. For topics at SAF level, specify the SAF structure.
144 Training Guide — Advanced Financials

Budget Versions

Budget Versions

Budgets can have multiple versions.

You must associate each version record with a valid
reporting period.
Only one budget version can be active at any time.

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You can create several versions of the same budget using the Budget Modify All Versions
(25.5.1.6) activity. Only one budget version is active at any time, and only this budget version is
used for the Online Budget Check when this option is enabled in the General tab.
To create a new budget version, insert a row in the Versions grid.
 Budgeting 145

Budget Activities

Budget Activities
Copy
– You can use an existing budget as the basis for a
new budget.
– The rules used during copying are:
• The structure is copied.
• You must define the periods of the new budget.
• You can optionally copy the budget data also.

Rebuild
– The Budget daemon updates the topic actual.
– Each posting on a budget item generates a work
record for the daemon.

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Modifying Budgets
A number of restrictions apply when modifying budgets.
When creating budgets in Budget Create (25.5.1.1), you cannot modify the data in the Periods and
Levels tabs once you have created the budget topics in the Structures tab.
Two activities let you modify saved budgets:
• Budget Modify (25.5.1.2) lets you change the budget data in the Structures tab for the current
active budget version. The data in the General, Budget Period, Levels, and Versions tabs
cannot be modified.
• Budget Modify All Versions (25.5.1.6) lets you modify budget data in all tabs, except the
Levels tab, and save your changes as a new budget version.
You can prevent changes to the general budget data by only assigning access to Budget Modify
(25.5.1.2) and limiting access to Budget Modify All Versions (25.5.1.6) to the budget
administrator.

Copying Budgets
Budget Copy (25.5.1.5) lets you use an existing budget as the basis for a new budget.
146 Training Guide — Advanced Financials

When you copy a budget, you copy the budget structure and can, optionally, copy the budget data.
However, you must define budget periods for the new budget.
 Budgeting 147

Budget Activities – Continued

Rebuild – Continued
– Clears all previous daemon calculations for a specific
budget and re-generates all work records.
– All budget actuals are recalculated (rebuilt).

Delete
– All budgets can be deleted.

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Rebuilding Budgets
The Budget daemon monitors topic values and ensures that the topic used in a budget has current
values. Each posting on the budget item simultaneously generates a work record for the daemon.
The Budget Rebuild (25.5.1.2) activity clears all previous actuals calculations for a specific budget
and regenerates all daemon records. Rebuilding recalculates all the actuals.

Deleting Budgets
Any budget can be deleted without restriction.
148 Training Guide — Advanced Financials

Budget Daemon

Budget Daemon
 Allocates postings to the appropriate budget topics.

 All postings are processed, including those in the

transient and secondary layers.

 Inspects all budget definition tables, and updates the

actuals for the relevant budget topics.

 The Budget daemon is also used for allocations.

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Daemons are server-based processes that let you run background tasks.
The Budget daemon allocates postings to the appropriate budget topics. All postings are processed,
including those in the transient and secondary layers.
The Budget daemon inspects all budget definition tables, and updates the actuals for the relevant
budget topics.
The Budget daemon should be active when allocations are executed because the allocation
functionality uses the same tables. The Budget daemon ensures that the most current values are
available for an allocation run. Allocations are discussed in more details in another section.
 Budgeting 149

Updating Budget Data

Updating Budget Data

 Manually in the grid

 Excel Hotlink
– Create Hotlink / Restore Hotlink / Synchronize

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Once budgets are set up, they can be maintained and updated:
• Manually in the grid
• Using the Microsoft Excel Hotlink.
Use the Create Hotlink, Restore Hotlink and Synchronize options to update your budget (see
“Create a Budget Structure” on page 139).
150 Training Guide — Advanced Financials

Hands On Exercise

Exercise 1: Create a New Budget using the Excel Hotlink

Log in to US-WEST or EMEA-DE.
1 Go to Budget Report Period Create (25.4.5.1). Create new periods for 2009, copying from
2008.
Field Data
New Year: 2009
Copy from GL Calendar Year: 2008

2 Click OK.
Note This step is not necessary in your day-to-day business. Only at the beginning of the year,
before entering new budget data, will you need to create new budget periods.
3 Go to Budget Create (25.5.1.1).
Field Data
Budget Code: IS2009
Description: IS2009

4 On the Budget Period tab, create four periods for 2009.

Select Custom Date. Use the Periods by Dates sub-screen to create the periods:
Field Data
Starting Date: 01/01/2009
Occurrences: 4
Budget Period Type: Quarter

5 On the Levels tab, enter three lines by right-clicking on the grid and selecting Insert a New
Row.
Field Data
WBS Level: 1,2,3
COA Element: (Sub)Total, (Sub)Total, General Ledger

The Input Level (Budget) field displays 3.

6 On the Versions tab, enter the following values:
Field Data
From Report Period: 01
From Reporting Year: 2009

7 Go to the Structures tab, click the Excel Hotlink button, and select Create from Excel.
8 In the popup window, go to Desktop and open the Budgeting folder in the Financials
Activities directory. Select the file HO budget create.xls and click Open to review.
After the upload from Excel, the Structures tab should look as follows.
 Budgeting 151

Budget Create

Budget Create

Budget Create (25.5.1.1)

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The budget amounts are loaded.

9 Save your newly-created budget. If you receive an error message about missing COA links, try
the following workaround:
a Change the budget status back to Initial.
An error pop-up displays and the budget status automatically changes back to Valid.
b Click the Save button and the budget is saved without COA links.

Exercise 2: Create and Copy a Budget

1 In Budget Create (25.5.1.1), create the following budget:
Field Data
Budget Code: CC-ADM
Description: CC-ADM

2 In the Budget Period tab, create periods for 2009. Click Select Year, specify 2009 as the year,
and then click Create Budget Periods.
3 In the Levels tab, right click and select Insert a New Row twice to create two levels.
152 Training Guide — Advanced Financials

Field Data
WBS Level: 1, 2
COA Element: Cost Center, General Ledger

4 In the Structures tab, right click and select Insert a New Row. Rename the topic to ADM on
this row.
5 Right-click on the row and select Topic Properties. In the Topic Properties window, select the
COA Link tab.
Field Data
Budget Group: <leave blank>
Link by Level: ADM (enter or select from lookup)

6 Click OK.
7 In the Structures tab, right-click in the ADM topic row again and select Create Multiple
Children.
8 In the pop-up window, enter the following data:
If you are logged in to entity US-WEST:
Field Data
Starting Code: 7000
Ending Code: 7800
Breaking Position: <leave blank>

If you are logged in to entity EMEA-DE:

Field Data
Starting Code: 40000
Ending Code: 49999
Breaking Position: <leave blank>
 Budgeting 153

Budget Create

Budget Create

Budget Create (25.5.1.1)

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9 Click OK.
The screen should look as shown in the image above (US-WEST).
10 On the Versions tab, enter the following values:
Field Data
From Report Period: 01
Reporting Year: 2009

11 Change the budget status to Operational.

12 Click Save and Create.

13 In Budget Copy (25.5.1.5), enter the following data:

Field Data
Source Budget Code: CC-ADM
Budget Code: CC-MAR
Budget Description: CC-MAR
Copy Budget Figures: Selected

14 Click Save.

15 Go to Budget Modify All Versions (25.5.1.6) and select the newly-created budget code (CC-
MAR).
154 Training Guide — Advanced Financials

16 Go to the Structures tab and rename the topic from ADM to MAR.

17 Right-click on the row, select Topic Properties, and then go to the COA Link tab. Replace
ADM by MAR.
18 Click OK in the Topic Properties window.

19 Save the budget.

Your new budget is ready.
 Chapter 7

Budget Reports
156 Training Guide — Advanced Financials

Budget Reports—Objectives

Objectives
Understand which budget reports are available
Learn to run reports for a specific business case

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 Budget Reports 157

Budget Reports Definitions

Budget Reports: Definitions

Standard reports
Report on:
– Budgets
– Forecasts
– Actuals
General budget reports:
– Budget Overview Report (25.5.3.2)
– Budget Detail Report (25.5.3.1)

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Standard budget reports are available in QAD Financials, with broad capacities.
Two reports let you report on budgets, forecasts, and actuals: the Budget Detail report and the
Budget Overview report. You can run the reports for a single entity or across multiple entities. The
reports also let you report on non-operational budgets.
158 Training Guide — Advanced Financials

Budget Overview Report

Budget Overview Report

 Up to 8 columns of data
 Specify for each column
– Data type:
• Budget / Forecast / Actuals
• Monetary value / Quantity
• Absolute differences: Budget – Actuals, Forecast – Actuals
• % differences : (budget – actuals) / Budget * 100
– Time frame:
• From / To
• Life to date / Life to end
 Budget version:
• See “To” period
• Use Active budget
• Use Original Budget

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The Budget Overview (25.5.3.1) report lists summarized data by budget level. The data that
resulted in the actuals are listed at the end of the report.
You can configure this report to display up to eight columns of data and specify what kind of data
you want to include in each column. You do this by selecting the measure you want to use to
generate the report data from the following list:
• Budget Qty
• Forecast
• Forecast Qty
• Actuals
• Actual Qty
• Budget – Actuals
• Forecast – Actuals
• (Budget – Actuals)/Budget * 100
• (Forecast – Actuals)/Forecast * 100

Other options include the following:

Time Frame Type for Actuals. Indicate how you want the system to select data to report for
each of the eight columns:
 Budget Reports 159

From – To Period: Analyze data between the range of reporting period specified in Reporting
Periods 1–8.
Life To Date: Analyze all data from the start of the budget to today.
Life To End: Analyze all data from the start of the budget to the end of the budget.
Version Measure. Indicate which version of the budget the measures should analyze:
See To Period: Find the version of the budget associated with the To Reporting Period
specified for the column. This choice is valid only when Time Frame type is From – To Period.
Use Active Budget: Select actuals from the active budget. This is the typical way of analyzing
data.
Use Original Budget: Select actuals from the initial version of the budget.
160 Training Guide — Advanced Financials

Budget Detail Report

Budget Detail Report

Detailed actuals by budget topic
Subtotals / Grand total
Open budget / forecast amounts
– Budget – Actuals or Forecast - Actuals

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The Budget Detail (25.5.3.1) report lists detailed actuals by budget topic, with subtotals and a
grand total. The report also displays open budget or forecast amounts.
This report has similar options to Budget Overview, but lets you choose one open budget
calculation method from the following:
• Budget – Actuals
• Forecast – Actuals

The options for commitments are not currently supported.

The report includes the following other budget-specific selection criteria:
• Budget Code
• Budget Responsible
• Budget WBS Topic
• Operational Budgets Only (Yes/No)
• Reporting Period
• Reporting Year
 Budget Reports 161

Hands On Exercise

Exercise 1: Budget Overview

Log in to entity US-WEST or EMEA-DE.
1 Run the Budget Overview (25.5.3.2) report for budget IS2009.
Field Data
Budget Code: IS2009
Measure 1-5: Budget

Time frame:
Field Data
Reporting Period 1: 1
Reporting Period 2: 2
Reporting Period 3: 3
Reporting Period 4: 4
Reporting Period 5: All
Reporting Year 1-5: 2009
Operational Budgets Only No
(If this filter field does not
appear, make it visible in Tools |
Filter Fields)

Exercise 2: Budget vs Actuals

Important Ensure that the Budget and History daemons are running and the status of the CC-
Adm budget is operational.
1 Upload actuals data for the first three months of 2009 using the Journal Entry Excel
Integration (25.13.1.6).
2 First open the Excel files named HO budget reports 2Jan.xls, HO budget reports 2Feb.xls
and HO budget reports 2Mar.xls in the Budget Reports directory in the Financial Activities
folder on your desktop. (Choose the xxx-USD worksheets if working in the US-WEST entity).
3 Update the year to 2009 on each transaction. For the February Excel file, change the posting
date to February 28—there is no February 29 in 2009.
4 In the grid, right-click and select Import from Excel. Use the Excel worksheets mentioned
above. Import each worksheet in a separate session.
5 Run Budget Overview (25.5.3.2) report for budget CC-Adm.
6 Click Tools | Manage Filter Fields and add filter fields for a total of eight columns. (Report
Period, Reporting Year, Time Frame type, Measure, Version Measure)
Field Data
Budget Code: CC-ADM
Measure 1-4: Budget, Actuals, Budget-Actuals, (Budget-Actuals) / Budget * 100
162 Training Guide — Advanced Financials

Field Data
Measure 5-8: Budget, Actuals, Budget-Actuals, (Budget-Actuals) / Budget * 100
Reporting Period 1-4: 3 to 3 (March Only)
Reporting Year 1-4: 2009
Reporting Period 5-8: 1 to 12
Time Frame: From-To Period (All)

Results: See report print: 2.2_2b_HO 2.xls in directory Financial Activities | Budget Reports
on your Desktop.

Exercise 3: Budget Detail Report

Log in to US-WEST or EMEA-DE.
1 Run the Budget Detail (25.5.3.1) report using the following criteria:
Field Data
Budget Code: CC-ADM
Reporting Period 1: 1 to 2
Reporting Year: 2009

Results: See report print: 2.2_2c_HO 3.xls

 Chapter 8

Structured Reports
164 Training Guide — Advanced Financials

Structured Reports - Objectives

Objectives
Learn what structured reports are and how they
can benefit you
Learn and practice how to setup and use
structured reports

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 Structured Reports 165

Overview

Overview
What are structured reports?
Setting up a structured report
– Base data
– Report structure
Running structured reports

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In this section, you will first learn what structured reports are. Then, you will learn how to set up a
report structure and run it.
The system provides a variety of reports that let you analyze general ledger transactions, supplier
and customer details and activity, banking and cash transactions, and other specialized areas. The
system includes GL transaction reports, customer and supplier reports, bank and cash reports, and
financial reports.
The general ledger provides a wide-range of analytical reports. The budgeting and GL activity
reports let you view and manage account balances in the general ledger. The GL transaction
reports let you monitor transactions in the general ledger.
The Balance Sheet, Regional Balance Sheet, Income Statement, and Regional Income Statement
must be set up as structured reports.
166 Training Guide — Advanced Financials

Report Structures Highlights

Report Structures
 Define hierarchy of levels to accumulate data for the
Balance Sheet and Income Statement reports.
 Report structure consists of a placeholder entity budget
– Contains a budget structure.
– Does not have to contain budget data.

 Create levels and topics, link COA elements, and

optionally add subtotals.
 Structure must contain a minimum of one GL account
topic level.
 You can also create structured reports based on an
alternate COA (Regional Balance Sheet and Regional
Income Statement).
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Report structures let you define a hierarchy of levels for which data will be accumulated for the
Balance Sheet and Income Statement reports. You can define a tree-like report structure that ends
at the lowest level on the chart of accounts, and where the higher levels are subtotals.
A report structure consists of a placeholder entity budget, where the budget structure is defined,
but contains no budget data.
You define a report structure by creating levels and topics, by linking COA elements and,
optionally, adding subtotals to the hierarchy of topics. In addition to GL accounts, you can define
sub-topics for sub-accounts, cost centers, and projects.
When you define a structure, it must contain a minimum of one GL account topic level.
You also have the option to run the Regional Balance Sheet and Income Statement structured
reports based on an alternate COA structure.
 Structured Reports 167

Report Structure Process Map

Report Structure Process Map

• Use Budget Create (25.5.1.1) to
create a budget structure to use as
a report structure.
• Select the Use as Report field.

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You use the Budget Create (25.5.1.1) activity to create a budget structure for use as a report
structure.
Only minimal budget data is needed in the header, including the budget code and description, and
you then select the Use as Report field.
When you select Use as Report, the system validates and categorizes the report structure data
differently than for general budget data. Selecting the Use as Report field makes the report
structure available in the selection criteria of the Financial Statement ProForma, Balance Sheet,
and Income Statement reports.
168 Training Guide — Advanced Financials

Report Structure Base Data

Report Structure Base Data: Budget Groups

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Budget Groups
It is a best practice that reports that run on a report structure have their content selected and
grouped according to that structure, and not based on the list of GL accounts. Since report
structures are created in the budget module, they require the same type of base data, like budget
groups.
A budget group is a grouping of accounts, sub-accounts, cost centers, projects, or SAFs used to
update actuals for a budget topic.
Use Budget Group activities (25.5.2) to create, view, modify, and delete budget groups.
You link a COA component to a budget group by assigning a group name when you create or
modify the component definition in, for example, Account Create or Cost Center Create.
 Structured Reports 169

Budget Period

Report Structure Base Data: Budget Period

Minimum of one period for the report structure
Can create a single period for the entire year.

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In Budget Create (25.5.1.1), use the Periods tab to define a minimum of one period for the report
structure; you can create a single period for the entire year.
170 Training Guide — Advanced Financials

Budget Levels

Report Structure Base Data: Budget Levels

 Define the number of levels to include.
 No subtotal levels within the COA elements.
 Maximum of 15 levels.
 Strict sequence
– (Sub-total), GL Acct, (Sub-Acct), (Cost Center/Project), (SAF)
 Level type can be
– (Sub)Total
– All COA elements

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Use the Level tab to define the number of levels to include in the report structure hierarchy. Report
structures are defined top-down, so include subtotals at the highest levels in the hierarchy.
The GL account level is mandatory and must be the first COA element you include in the report
structure hierarchy, after the subtotal levels. The other COA elements are not mandatory.
A report structure can contain a maximum of 15 levels. You use the Topic Level field in the report
Selection Criteria to indicate the level of detail that you want the structured report to contain. For
example, if you have eight levels in a report structure, the input level is 8.
 Structured Reports 171

Creating a Report Structure

Creating a Report Structure

 Create a structure of topics, like in a regular budget.

 Unlimited number of topics by level

 Link a COA element to each level topic (Auto Link)

 Excel integration
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Use the Structures tab to link a COA element to each level topic, like for budgets. The number of
topics by level is not limited.
If the structure includes lower COA levels, you must link the elements in a one-to-one
combination with one GL account, one sub-account, and one cost center or project in the hierarchy
of a topic. You cannot use ranges or lists when linking sub-accounts, cost centers, or projects.
If you create topics that use the same naming convention as the accounts or analysis you want to
link to, select Auto Link to automatically create a link to the relevant COA component. You can do
this for the entire structure or for the current row in the grid.
As with budgets, you can use the Excel integration to facilitate the structure creation (see Chapter
6, “Budgeting,” on page 123 for more details).
172 Training Guide — Advanced Financials

Topic Properties

Report Structure Topic Properties

Topic Properties
Hide subtotal
Link COA elements
topics on the
to budget and report
Balance Sheet
structures (Auto Link)
and Income
Statement
reports. Indicate whether the
current topic level
Indicate how can be rolled up to a
debit and credit higher level.
amounts are
represented for
a report
structure topic.

Print a header and footer line Indicate the GL category of

for the linked accounts. accounts linked to the
current level in the budget
or report structure.

Note: New accounts, sub-accounts, etc… added to a budget

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The Topic Properties screen used to link COA elements to budget and report structures contains
five fields that are specific to report structures.
Select the Hide on Reporting field to hide topics on the balance sheet and income statement
reports.
The display sign of an amount on a topic is derived as follows, based on the value of the Invert
base sign field.

Topic Balance Invert Base Sign? Operator Displayed

Debit No +
Debit Yes -
Credit No -
Credit Yes +

Invert Base Sign is only used for calculations, and not for reporting revenue as a “positive”
amount.
Select the Roll Up Amount field to indicate whether the current topic level can be rolled up to a
higher level. This field is particularly useful when using report structures to create regional
balance sheets and income statements because in some regional accounting systems, such as the
Chinese Accounting System, accounts cannot be rolled up above budget level.
 Structured Reports 173

Select the Print Sum Line field to print a header and footer line for the linked accounts. In some
regional balance sheets and income statements, account subjects can require a header line and a
footer line; for example, “Current Asset” or “Current Asset Sum.” If you select the field, the
system inserts a sum line and the original line is appended with a colon.
In the Category field, you can select an option to indicate the GL category of accounts linked to the
current level in the budget or report structure. When creating a report structure for a regional
balance sheet or income statement, you can only link accounts of the same category. If you link
accounts from more than one GL category to a structure level, you receive an error.
174 Training Guide — Advanced Financials

Report Structure Topic Properties - Continued

Specify an alternate
COA group on which
to base the report
output.
Required when
creating a regional
report based on an
alternate COA
structure, such as
the Chinese Balance
Sheet.

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In the Alternate COA Group field, specify an alternate COA group on which to base the report
output. This step is sometimes required when creating a regional report based on an alternate COA
structure, such as the Chinese Balance Sheet. When creating a regional balance sheet or income
statement, you can still link some topic to non-alternate COA elements—it depends on how your
alternate COA is configured.
An alternate COA group code functions in a similar way to a budget group code, and links level 1
alternate COA accounts. When a level 1 alternate COA account is assigned to a group code, all
lower level alternate COA accounts in that structure are then automatically mapped to the group
code.
 Structured Reports 175

Report Structure System Accounts

Report Structure System Accounts

 During Year-End Closing, the system posts the P&L
balance to the balance sheet.
– The P&L balance then becomes zero.

 You can include the P&L balance for the current year
and all unclosed previous years in a report structure.
 Use two system accounts:
– Result of Previous Year
– Result of Current Year

 The results are shown on a separate line in the reports:

– Profit/Loss of All Open Accounting Years

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During the Year-End Closing procedure, the system posts the total balance of the P&L accounts to
the balance sheet, and the balance of the P&L accounts is zero for the new GL calendar year.
However, if you run a balance sheet early in the current calendar year, the previous GL calendar
year may still be open, and the P&L balance will not have been transferred. In addition, you may
want to include the P&L balance to date for the current year.
Two system-type accounts let you include the balance of all P&L accounts for the current year and
all unclosed previous years in a report structure.
When you run a Balance Sheet or Income Statement that includes a Result of Current Year
account, the system transfers the balance of all profit and loss accounts to that system account, and
displays the resulting balance on the report.
Similarly, when you run a report with a structure that includes a Result of Previous Years account,
the system transfers the balance of the profit and loss accounts for all previous, unclosed years to
that system account. The resulting balance is displayed on the report.
176 Training Guide — Advanced Financials

Report Execution Program

Execution Program
 Retrieves the data based on the report structure and the
program selection criteria
 Two versions:
– Balance Sheet report, which focuses on balances
– Income Statement report, which focuses on movements

 Attributes
– Selection criteria
– Content
– Output options

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The execution program for structured financial reports retrieves data based on the selected
structure, and the other selection criteria.
The balance sheet report focuses on balances, while the income statement report focuses on
movements.
In addition to the selection criteria, we will review the content specific to each of these reports, and
which outputs are available.
 Structured Reports 177

Selection Criteria

Selection Criteria
 A report structure can be used for both the Income
statement and Balance Sheet
 Multi-entity
– Select entities from any domain with the same COA shared set
 Time frame
– Balance Sheet report
• To Date: entered by the user
• From date: the start of the GL calendar year specified
– Income Statement report
• From Date and To Date: entered by the user
 Data:
– Actuals (posting)
– Budget
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Structure: Balance Sheet Report (25.15.5.4), Income Statement Report (25.15.5.5), and any other
structured report can use any available structure.
Entity: Structured reports calculate balances for each entity in the selection. GL calendar years are
closed per entity, so the last closed GL calendar year can be different for each entity. Selected
entities need to share the same chart of accounts.
Date Selection: For the balance sheet, you set the To Date parameter for data columns to define the
time period. The start of the period is the start of the accounting year. For the income statement,
you set both dates.
Data: You can run the report for either actuals or budget data.
178 Training Guide — Advanced Financials

Other Selection Criteria

Selection Criteria
Other
– Sub-Account, Cost Center, Project
• List selection
• Report on selected analytical details
– Layer
• List selection
• Report on any combination of primary (official),
secondary (management), and transient layers

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The system derives data for the report from a user-defined report structure, in which you created
levels and topics, and linked COA elements to the topic hierarchy. In addition to GL accounts, you
can define sub-topics for sub-accounts, cost centers, and projects.
In the selection screen, you can select the level of analytical detail for a specific run.
You can also select to run the report for a specific layer only, or a combination of layers (for
example, primary and transient).
 Structured Reports 179

Balance Sheet Report Content

Balance Sheet Report Content

Two measures:
– Actual and Budget data for the selected time frames

Measures variances
– Absolute variances and percentage variances

The budget data is pro-rated when the selected

time frame does not match the granularity of
the period definition.

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You can use the following criteria for each column:

• Actual. The actual balance at the end of the time period.
• Budget. The budgeted balance at the end of the time period. Budget data is retrieved from the
report structure for the given period.
• Variance. The variance calculated between the two previous data columns. A common balance
sheet would include columns for actuals and budget for the given period, followed by a
comparison between these balances.
• % Variance. The variance between the two previous data columns as a percentage.

If the time period you specify in the selection criteria does not match the GL calendar periods (or a
multiple), the report data is prorated on day basis.
In addition to the Balance Sheet Report (25.15.5.4), the Multi-Column Balance Sheet Report
(25.15.5.6) lets you include up to a maximum of 15 data and calculation columns in the report.
This lets you view monthly or quarterly comparisons for actuals and budgets, and calculate
variances and percentage variances for each period.
180 Training Guide — Advanced Financials

Income Statement Report

Income Statement Report Content

Two measures:
– Actual and budget data for the selected time frames
Displays a percentage of the total income
– Total income is calculated as the sum of all amounts
on GL accounts of category Income
Measures variance in absolute value
The budget data is pro-rated when the selected
time frame does not match the granularity of
the period definition

QAD Proprietary 2008-MC-2.3-1-SR-160

Use the Actual, Budget, Variance, and% Variance options for the income statement report. The
percentage of each line is calculated as a percentage of total income. The total income is the sum
of all GL accounts that are linked to the income category.
If the time period you specify in the selection criteria does not match the GL calendar periods (or a
multiple), the report data is prorated on day basis.
In addition to the Income Statement Report (25.15.5.5), the Multi-Column Income Statement
Report (25.15.5.7) also provides up to 15 columns of reporting, in which you define the From and
To Dates and the content criteria for the Income Statement. The Multi-Column report provides
greater flexibility when generating summaries and forecasts for monthly or quarterly periods and
is easily exported to spreadsheet format for analysis.
 Structured Reports 181

Regional Structured Reports

Regional Structured Reports

 Regional Balance Sheet and Regional Income Statement

 Use to run structured balance sheet and income

statement reports with the output organized based on a
multi-level alternate COA structure.
 Specify the report structure using Budget Create.

 In the Topic Properties, specify the alternate COA group

on which to base the report.
 When you run the reports, specify the COA cross-
reference for the alternate COA structure on which to
base the report output.

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Use the Regional Balance Sheet report (25.15.5.8) to run structured reports with the output
organized based on a multi-level alternate COA structure; for example, a Chinese Balance Sheet.
As with the non-regional balance sheet and income statement reports, you specify the report
structure using Budget Create. You then specify the alternate COA group on which to base the
report using the Alternate COA Group field in the COA Link tab of the Topic Properties window.
When you run the report, you specify the COA cross-reference for the alternate COA structure on
which to base the report output. The system uses the cross-reference to retrieve the corresponding
mappings and, consequently, the relevant alternate accounts.
Use the Regional Income Statement report (25.15.5.9) to run structured reports with the output
organized based on a multi-level alternate COA structure; for example, a Chinese Income
Statement. The structure and alternate COAs are retrieved as described for the Regional Balance
Sheet report.
182 Training Guide — Advanced Financials

Output Options

Output Options
Reporting Currency
– Domain base currency, if the selected domains have
the same base currency
– Statutory currency, if the selected domains have
different base currencies
– Any other currency
• Amounts are recalculated using today's accounting
exchange rate.

Detail level
– Specifies the topic level up to which (and including)
the data needs to be reported.

QAD Proprietary 2008-MC-2.3-1-SR-170

You may select any report output currency. By default, the system uses the domain currency if all
domains within the selection have the same currency, otherwise, the management currency is used.
With any other currency, the system calculates the amounts with the exchange rate valid on the
report date.
You may specify a level of detail different of the one specified in the report structure. If you run
the reports with a Topic Level of 3 and the structure has five levels, then the report shows output
for three levels; topics at levels 4 and 5 will be hidden.
 Structured Reports 183

Output Options
Hide account numbers
– COA details not shown

Round
– Nearest thousand
– Unit

On topic level

– Hide on report: hide this topic
– Invert base sign
– Roll Up Amount: roll up to higher level
– Print Sum Line: print header and footer line

QAD Proprietary 2008-MC-2.3-1-SR-180

You can display the account numbers or hide them and specify a rounding to the nearest thousand
or to the unit.
At the topic level, you can choose to hide selected topics, or to invert the base sign.
184 Training Guide — Advanced Financials

Output Options
Analytical details:
– Only applicable when the analytical dimension is
explicitly defined in the report structure.

Summarize Sub- Summarize Cost Report Detail

Accounts? Centers/Projects?
Y Y One amount per GL account.

N Y An amount for each GL account and sub-

account combination.

Y N An amount for each GL account and cost

center/project combination.

N N An amount for each GL account, sub-

account, and cost center/project
combination.

QAD Proprietary 2008-MC-2.3-1-SR-190

The level of analytical detail is defined during the structure creation.

During report execution, you can additionally choose to summarize each element or either. See
above table for a detail of the results by combination of selection.
 Structured Reports 185

Hands On Exercise

Exercise: Structured Reports

1 Log in to entity EMEA-DE.
2 In Budget Create (25.5.1.1), create the following budget report structure:
Field Data
Budget Code: IncStat
Description: Income Statement
Use as Report: Yes

3 On the Budget Period tab, check Select Custom Date. In Periods by Dates, enter:
Field Data
Starting Date: 01/01/09
Occurrences: 4
Budget Period Type: Quarter

4 Click Create Budget Periods.

5 On the Levels tab, create three rows by right clicking and selecting Insert a New Row.
Field Data
WBS Level: 1, 2, 3
COA Element: (Sub)Total, (Sub)Total, General Ledger

6 On the Versions tab, modify Initial Version row:

Field Data
From Reporting Year: 2009
From Report Period: 1

7 On the Structures tab, click on the Excel Hotlink button and select Create from Excel.
8 Upload the Excel worksheet HO Struct report 1.xls in the Financial
Activities\Structured Reports directory on your Desktop.
A row is created in the Structures tab grid with a Topic called Period Result.
9 Right-click on the row and select Auto Link | Complete Budget to link to budget groups
(verify that Check for Unposted Transactions = No).
10 Go to GL Account Extended View (25.15.2.2) to verify that all Profit and Loss GL accounts
are linked to a budget group.
11 Click on Stored Searches | Manage Filter Fields to add the filter field Balance Account with
Initial Value = No.
This gives you a list of Profit and Loss GL accounts.
12 Right click on the column header and select Show Group by Box.

13 Scroll to the right to the Budget Group column.

186 Training Guide — Advanced Financials

14 Drag and drop the column header to the Group By box.

GL Account Extended View

GL Account Extended View

GL Account Extended View (25.15.2.2)

QAD Proprietary 20 08-EX-2.3_ 2-010

15 Expand the Budget Group that does not show any budget group name:

16 Go to GL Account Modify (25.3.13.2) to update the GL accounts in this group.

17 Assign the budget group Other Expenses.

18 Run the Income Statement report (25.15.5.5).

Entity: EMEA-DE
Field Data
Report Structure: IncStat
Measure 1 and 2: Actuals
Measure 1 From Date: 01/01/08
Measure 1 To Date: 12/31/2009
Measure 2 From Date: 01/01/2009
Measure 2 To Date: 12/31/2009

19 Use Tools | Manage Filter Fields to add or remove filter criteria as needed.

20 Run the report once with GL account details (set the filter field Suppress Accounts to No) and
once without (set the filter field Suppress Accounts to Yes).
 Chapter 9

Report Customization
188 Training Guide — Advanced Financials

Report Customization - Objective and Overview

Objective
Practice creating report variants suited to your
specific business case, in various areas of the
financial application
Learn how to customize the new Component 1
reports

QAD Proprietary 2008-MC-2.4-1-RV-020

Reports can be customized to optimally support your company processes and best practices. You
can:
• Add or remove report filter criteria, assign default values, and save custom report variants for
a specific user or role, or to apply system-wide.
• Use the designer tool to modify the report layout, add and remove data fields, add calculation
logic, or change sort order and grouping.
• Customize system-supplied report templates that contain formatting information such as fonts,
logo, and paper orientation (landscape, portrait).
Note You need a Crystal Reports Designer licence in order to perform points 2 and 3.

Default settings are provided for each report. These can be adapted based on your company
standard to better support your best practices. The last used settings for a report can be
automatically saved based on user-configurable settings. Filter settings and layout can be given a
name and stored as a report variant for private use or to be shared among users or groups of users
(roles).
By default, the system saves each user’s last-used report variant. When you reopen a report you
have already run, and click Execute to start the report, the report runs using the settings you last
used.
 Report Customization 189

In addition, you can define specific report settings and save them using a variant name. When you
run the report, select that variant, and the report settings will be copied into the selection criteria,
saving time.
The majority of Financials reports are implemented using Crystal reports. However, as of QAD
2009.1 EE, any new reports introduced with each subsequent release will be implemented using
the Component 1 reporting framework. This section describes how you can customize Component
1 reports.
190 Training Guide — Advanced Financials

Report Variants Highlights

Report Variants
Store specific selection criteria
– Available next time the report is started
– Unlimited number of variants
– Save for personal use or shared use
– Linked to a standard report
– Do not appear as separate entries on the menu

All variants of one report are based on the

same data, but use different filter criteria
and can use a different report layout

QAD Proprietary 2008-MC-2.4-1-RV-030

Report variants let you store the settings for a report under a user-defined name. By storing
settings in a variant, you avoid defining report settings each time the report is run.
You can store an unlimited number of variants for your personal use or share them with other users
in a specific role.
Report variants do not appear as separate entries on the menu. They are linked to and accessible
from a standard report menu.

Changing Report Settings and Defaults

Managing Filter Fields

The Manage Filter Fields option in the Tools menu lets you indicate which filter fields to use for
the current report variant, and how the fields will appear in the Selection Criteria tab for the report.
You can use Manage Filter Fields to:
• Change the order in which the filter fields appear in the Selection Criteria tab.
• Specify whether a filter field should appear on the Selection Criteria tab (Use column).
• Define an initial value or range of values for the filter field.

For a detailed explanation of fields, refer to User Guide: QAD Financials A.

 Report Customization 191

Report Options
The Report Options option in the Tools menu lets you specify reporting runtime parameters. These
settings are stored at report variant level, and affect how the report is printed.
For a detailed explanation of fields, refer to User Guide: QAD Financials A.
192 Training Guide — Advanced Financials

Saving Report Variants

Save new variant

Report Variants
Review available variants in
Report Settings menu

Share with other

users option

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Use the Variants menu to save report variants, and the Variants drop-down list to select saved
variants.
You can use an existing report variant, modify the report settings and save them to the existing
report variant, or select another report variant to update.
Use Report Variant Delete (36.4.21.25.3) to delete unwanted variants from the system.
Select an option from the Level drop-down list to specify whether you want to keep a variant for
your personal use, or share it with other users. For use by you only, select User; to share with other
users of the same role, select Role; or to share with all users, select System.
 Report Customization 193

Report Variant Reuse

Report Variants Reuse

Select variant
from drop-
down list

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Once saved, reuse a report variant by selecting it from the drop-down list under Report Variants.
194 Training Guide — Advanced Financials

Component 1 Reports

Component 1 Framework
 From QAD 2009.1, QAD is moving to use the new
Component 1 reporting framework

 All new reports for QAD 2009.1 EE were created with

Component 1:
– Italian Tax Register reports
– Regional Balance Sheet Report
– Regional Income Statement Report
– Reporting Daybook Exception Report
– Daybook Set Report

 All new reports for subsequent releases will use

Component 1
QAD Proprietary 2008-MC-2.4-1-RV-051
 Report Customization 195

Customizing Component 1 Reports

Customizing Component 1 Reports

Modify
Report
Settings

Add
criteria

Remove
criteria

Create New Filters

QAD Proprietary 2008-MC-2.4-1-RV-052

By default, a Component 1 report displays all records available in the source data. However, you
may want to retrieve just a certain range of records in the report; for example, sales records
between last September and this March. You do this by setting filter conditions to filter data in the
report.
The search operators include the following:
• equals
• not equals
• contains
• range
• starts at (the default)
• greater than
• less than
• is null
• is not null

If you choose the Range operator, enter a beginning value of the range in the first search box.
Optionally, enter an ending value of the range in the second search box.
196 Training Guide — Advanced Financials

To refine your search further, click the plus (+) icon to add another search row. You can add as
many rows as needed, each with different search values and operators. When you specify several
criteria, note that multiple criteria for the same field are treated as a logical AND condition.
To remove a search criteria row, click on the delete (X) icon.
Optionally, save the new filter conditions as a filter for future reuse.
On the toolbar, select an output format from the list next to the Settings button. You can choose
from three output formats when the report is run:
• Document: The report is displayed in the Report Viewer window.
• Excel: The report is generated in Microsoft Excel format. You can save the file and open it in
the Report Viewer window.
• PDF: The report is generated in PDF format.

You can also use the Report Settings option to customize how certain elements of data will be
displayed in the rendered report.
 Report Customization 197

Changing Component 1 Report Settings

Changing Component 1 Report Settings

QAD Proprietary 2008-MC-2.4-1-RV-053

In the Filter screen of a Component 1 report, click Settings on the toolbar to open the Report
Settings dialog box.

General Tab
Specify whether to display search criteria in the report, and if yes, whether to display this
information in the report header or footer.

Date Tab
Select a format for dates to be displayed in the report and specify a date separator. You can see a
sample of the date format you specify at the bottom of the dialog box.

Decimal Tab
Specify how numbers will be displayed in the report, including decimal separator, decimal digits,
grouping separator, and grouping format. A sample number is displayed at the bottom of the dialog
box.
198 Training Guide — Advanced Financials

Creating a New Filter

Creating a New Filter

Click the New Filter
button
All filters are reset

Modify the
filters

QAD Proprietary 2008-MC-2.4-1-RV-054

If a report always contains a certain range of data and is exported to a certain format, you do not
have to define the filter criteria and output settings every time you generate the report. You can
save the search conditions and output settings as a filter and open it to load the same set of
configurations when you run the report later.
A filter is a personalized set of search conditions and settings, which means that the filters you
created can only be accessed and managed by you and the administrator, and no one else.
1 In the Filter window, click New Filter on the toolbar.
All the search conditions are reset to the default values.
2 Change the filter criteria.
 Report Customization 199

Save the Filter

Save the Filter

Click Save As
button

QAD Proprietary 2008-MC-2.4-1-RV-055

3 On the toolbar, click Save As.

4 In the Save As dialog box, enter a unique filter name, and optionally, a brief description. Then
click OK.
The filter is created.
5 If you make further changes to the search conditions, click Save on the toolbar to save the
changes.
200 Training Guide — Advanced Financials

Loading an Existing Filter

Loading an Existing Filter

Click Open
button

Double-click the filter

you want to open
QAD Proprietary 2008-MC-2.4-1-RV-056

1 On the toolbar, click Open and then select an existing filter from the list.
2 If the list is too long, click More to choose the filter from a browse window.
After you select an existing filter, its search conditions and settings are loaded in the Filter
window.
3 If you want to save any changes to the loaded filter, click Save on the toolbar.
 Report Customization 201

Maintaining Filters

Maintaining Filters

Specify who can

access the filter

Set a filter as default

Modify report
parameters

QAD Proprietary 2008-MC-2.4-1-RV-057

Filters are user-specific, and you can use Personal User Filter Maintenance (36.4.21.14) to
maintain your own filters.
System. Specify whether or not the filter is system-defined.

User. View or enter the user for whom to define the filter. When the filter is system-defined,
this field is disabled.
Filter. Enter a filter name.

Description. Enter the description of the filter.

Default. Indicates whether this is the default filter in Report Viewer.

Param Name. Enter a parameter name in the filter criteria. If the parameter name already
exists, you can either create a new parameter with the same name or update the existing one.
202 Training Guide — Advanced Financials

Hands On Exercises

Exercise 1: Income Statement Report Variant

Create two variants of the Income Statement report (25.15.5.5), one with and one without GL
account numbers.
1 Log in to EMEA-DE.
2 Open the Income Statement report (25.15.5.5).
3 On the object toolbar, click Tools | Manage Filter Fields and the following initial values:
Field Data
Report Structure: Income Statement
Measure 1: Actual
Suppress Accounts: No (select this in the Initial Value
column)

4 Click Save.
5 On the object toolbar, click Variants, and select Save as.
6 Enter a name for the report variant, and select a level (System, Role, User).
7 Click Save.
8 Run the report twice; once with and once without suppressing GL accounts.

Exercise 2: SAF Code Report Variant

In this exercise, you will create two report variants for the SAF Code Transaction Detail report
(25.15.3.6). The first report should show four grouping levels by GL account, sub-account, SAF 1,
and SAF 2. The second report should show three grouping levels by SAF 1, SAF 2, and GL
account.
1 Log in to US-WEST or EMEA-DE.
2 Open SAF Code Trans Details report (25.15.3.6), and go to Tools | Manage Filter Fields.
3 Enter the following initial values:
Field Data
Grouping Level 1: GL
Grouping Level 2: Sub-Account
Grouping Level 3: SAF 1
Grouping Level 4: SAF 2

Note Ensure that you also select the Grouping Level 4 field in the Manage Filter Fields
window.
4 Click Save.
5 Save as report variant SAFdetV1.
 Report Customization 203

6 Enter the following initial values:

Field Data
Grouping Level 1: SAF 1
Grouping Level 2: SAF 2
Grouping Level 3: GL

7 Click Save.
8 Save as report variant SAFdetV2.

Exercise 3: Customer Account Summary Report Variant

Create a report variant for the Customer Account Summary (27.17.4) report for the period 1/2009
until 12/2009, with summary by daybook.
1 Log in to US-WEST or EMEA-DE.
2 Open the Customer Account Summary (27.17.4) report.
3 Click Tools | Manage Filter Fields.
4 Enter initial values as follows:
Field Data
GL Cal Year: 2009 / Second Initial Value 2009
Summary by: Daybook

5 Click Save.
6 Save as report variant CustsumV1.
7 Run the report.

Exercise 4: Supplier Open Item Extended Report Variant

Modify Supplier Open Item Extended report (28.17.5) to report on adjustments and prepayments
only, with invoice date 01/01/2009 until the end of the current period.
1 Log in to US-WEST or EMEA-DE.
2 Open the Supplier Open Item Extended report (28.17.5).
3 Click Tools | Manage Filter Fields
Enter the following initial value:
Field Data
Invoice Date: 01/01/2009 To Initial Value: end of current quarter
Include Invoices: No
Include Adjustments: Yes
Include Credit Note Corrections: No
Include Credit Notes: No
Include Prepayments: Yes
204 Training Guide — Advanced Financials

4 Save as report variant Supadj.

5 Run the report variant.

Exercise 5: GL Transactions Report Variant

Create report variants for the GL Transactions by Daybook (25.15.1.4) report, one with
transactions of the primary layer only, for period 2009/01 to 2009/12, the second one with a GL
transactions template for the period 2009/01 to current period.
1 Open the GL Transactions by Daybook (25.15.1.4) report.

Variant 1
2 Click on Tools | Manage Filter Fields. Enter the following initial/second initial values:
Field Data
Layer: Primary
GL Period: Initial Value 1, Second Initial Value 12
GL Cal Year: 2009

3 Click Save.
4 Save as report variant OffLayV1.
5 Run the report.

Variant 2
6 Click on Tools | Manage Filter Fields. Enter the following initial/second initial values:
Field Data
Layer: Trans-Template
GL Period: Initial Value 1, Second Initial Value: $Current Period
GL Year: Initial Value, 2009, Second Initial Value: &Current Year

7 Click Save.
8 Save as report variant Templates.
9 Run the report.
 Chapter 10

Alternate COA
206 Training Guide — Advanced Financials

Alternate COA - Objectives

Objectives
Understand the alternate chart of accounts
(COA) functionality, its benefits, and its use
Understand the COA cross-reference
functionality
– Used to create cross-references for use in alternate
COAs and in consolidation
Practice setting up an alternate COA

QAD Proprietary 2009-AF-AC-020

 Alternate COA 207

Overview

Overview
Alternate COA Benefits and Highlights
Process
Setup
Reports
Exercise

QAD Proprietary 2009-AF-AC-030

In this chapter, you will learn about the alternate chart of account (COA) functionality.
First, we will review its benefits, highlights and features. Then, you will learn how to set up an
alternate COA, and learn which reports can be used to report on alternate COAs.
208 Training Guide — Advanced Financials

Benefits and Highlights

Benefits and Highlights

Required in some countries, such as China,
France, and Russia
Reporting only, no posting
Multiple alternate COAs
Stored at system level
– Valid across domains
Alternate COA structures
– Copy function and Excel integration
Mapped to operational COA using
cross-references

QAD Proprietary 2009-AF-AC-040

An alternate chart of accounts (COA) is a secondary grouping of accounts that is generally used
for statutory reporting.
For example, due to legal requirements in other countries in which your company operates, such as
Russia, China, or France, you may have to report your accounting activity using a standardized
chart of accounts that has been provided by the legal authority. In this case, you will have a
primary, operational chart of accounts, and an alternate chart of accounts.
The postings always occur in the primary operational chart of accounts, which is cross-referenced
to the alternate chart of accounts.
You can set up as many alternate COA as you need. All are stored at system level, to be usable
across domains. The setup of an alternate COA occurs in two or three steps, and you can use the
copy function or Excel integration to facilitate the operation.
Alternate COA structures are the basis of an alternate COA. Any accounts, sub-accounts, cost
centers, and projects can be linked to the operational COA using COA cross-references.
 Alternate COA 209

Alternate COA Example

Example of Alternate COA - China

CAS GL Account 1002 Bank

1002-01 RMB 1002-02 USD

Only the lowest level

1002-01-01 Commercial Bank 1002-01-02 China Bank ... of each structure branch
is linked to the
1002-01-01-0001 HR 1002-01-01-0002 Sales ... operational COA

30001 Bank RMB 010 Commercial Bank 3001 HR

Account Sub-Account Cost Center

QAD Proprietary 2009-AF-AC-050

China Accounting Standards (CAS) regulations require that an account code be structural. The
first four digits are designated by the Chinese Financial Bureau, and then companies can define
their own structure based on their requirements. In addition, the GL code contains the sub-account
and cost center. In order to satisfy Chinese account code requirements, the Chinese subsidiary of a
US company creates a structural alternate COA, mapped to its operational COA.
The example above shows an alternate COA structure for bank accounts. The alternate COA
created for Chinese reporting contains four levels, and only accounts at the lowest level are
mapped to the company’s operational COA. Any account code that has no child is the lowest level
account.
Alternate account 1002-01-01-0001 HR is mapped to operational account 30001 Bank RMB, sub-
account 010, and cost center 3001 HR.
When running Chinese statutory reports, the statutory account code balances for parent accounts,
such as 1002 Bank, are summed from child statutory codes.
210 Training Guide — Advanced Financials

Alternate Chart of Accounts Process

Alternate Chart of Accounts Process

QAD Proprietary 2009-AF-AC-060

The above slide displays the process to set up and then use an alternate COA.
 Alternate COA 211

Alternate COA Setup

Alternate COA Setup

Create alternate COA groups (opt.)
Create an alternate COA structure
Create cross-references

QAD Proprietary 2009-AF-AC-070

To set up an alternate COA, three steps are involved; one of which is optional.
1 Create alternate COA groups (optional and recommended).
2 Create an alternate COA structure.
3 Map operational accounts to the structure using cross-references.
We will now review these steps in detail.
212 Training Guide — Advanced Financials

Alternate COA Groups

Alternate COA Groups

Assigned to alternate accounts
Avoid duplication of cross-reference
Use on Regional Balance Sheet and Income
Statement
Create manually or
with Excel integration

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An alternate COA group code functions in a similar way to a budget group code, and links level 1
alternate COA accounts. Lower level alternate COA accounts are then automatically mapped to
the group code also and all related operational COA can be linked through the alternate structure.
Alternate COA groups are used to group data in the Chinese structured reports, such as the
Chinese Income Statement and Balance Sheet.
Use Alternate COA Group Create (25.3.21.7) or Alternate COA Group Excel Integration
(25.3.21.11) to define groups to which you can assign alternate accounts.
 Alternate COA 213

Alternate COA Structure

Alternate COA Structure

One or more structures
Multiple levels
Link lowest structure level to operational COA
– Any combination of GL account and sub-account,
cost center, project
Many-to-one relationship

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An alternate COA consists of one or more account structures, each containing a group of unique
alternate accounts. Each alternate account is assigned an account code and account level indicator,
and, optionally, a description, a column label, and an alternate COA group code.
The structure can have an unlimited number of levels.
Only the lowest level alternate account can be mapped to a combination of GL account, sub-
account, cost center, and project, where any of sub-account, cost center, or project values can be
blank.
There is a many to one relationship between the source and the target COA, which means that one,
or a range of GL accounts, sub-accounts, cost centers, and projects can be linked to a unique
alternate account.
214 Training Guide — Advanced Financials

Creating Alternate COA Structures

Creating Alternate COA Structures

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Use Alternate COA Structure Create (25.3.21.1) to create new alternate COA structures. In the
grid, right click and select Insert a New Row, or Insert a Child Row.
Optionally, you can use Alternate COA Structure Copy (25.3.21.5) to create an alternate COA
structure based on an existing structure or define a structure using Excel and load it using Alternate
COA Excel Integration (25.3.21.6).
Once you have defined an alternate COA structure, you then map it to the operational COA. You
can do this from within the Alternate COA Structure Create (25.3.21.1) menu. After you define an
alternate COA structure, click the Create COA Cross Reference button. The alternate COA
structure is saved and COA Cross Reference Create (25.3.14.1) opens.
 Alternate COA 215

COA Cross-References

COA Cross-Reference
Create a COA cross reference record mapping
the alternate COA to the primary COA
– COA Cross Reference Type: Alternate COA
System validated
– Based on existing postings

Note: you can also create COA cross-refs of

types Combined COA Dimensions and Separate
COA Dimensions for use in consolidation
– Covered in Consolidation chapter of this training

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The COA Cross Reference Create function (25.3.14.1) lets you map operational GL accounts, sub-
accounts, cost centers, and projects to alternate COA structures. Initially, use COA Cross
Reference Create (25.3.14.1) or COA Cross Reference Excel Integration (25.3.14.6). You can also
use COA Cross Reference Copy (25.3.14.5) to facilitate the creation of additional cross-
references.
In addition to creating alternate COA mappings, you can also use the COA Cross Reference Create
function (25.3.14.1) to define mappings from GL combinations in source entities to GLs in
consolidation entities.
See Chapter 16, “Consolidation,” on page 349 and User Guide: QAD Financials A for a detailed
explanation of how this validation works.
Cross-references are validated against the existing posting history.
216 Training Guide — Advanced Financials

Creating COA Cross-References

Creating Cross-References for Alternate

COAs
Alt. COA mapping

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When creating an alternate COA mapping, select the Alternate COA type. You do not need to
specify a target domain; alternate COAs are created at system level.
 Alternate COA 217

Reports with Alternate COA

Reports with Alternate COA

Use Alt COA with any Chinese accounting
regional reports
– Chinese GL Transaction Reports

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You can run any Chinese accounting reports (25.15.7.1) using an alternate COA to group and
report the data.
To run a report using an alternate chart of accounts, select Yes in the Use Alternate COA field, and
specify a COA cross-reference mapping code in the COA Cross Reference field.
218 Training Guide — Advanced Financials

Chapter Review

Review
1. What are the benefits of the alternate COA
functionality?
2. At what level is the alternate COA data stored?
3. What are the three steps (one optional) to set
up an alternate COA?
4. What are the three cross-reference types?
What are they used for?
5. Which reports are available to use with
alternate COA?

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To test your understanding of the alternate COA functionality, try answering the above questions.
Answers are provided below.
1 It is a legal requirement in Russia, China, and France to provide statutory reporting with a
government-defined COA. Multiple alternate COAs can be created and used.
2 Alternate COAs are stored at system level so they can be used across domains.
3 Create alternate COA groups (optional), create an alternate COA structure, and create cross-
references.
4 The three cross-reference types are:
• Alternate COA cross-references, for creating alternate COAs.
• Combined dimensions cross-references, for creating consolidation mappings.
• separate dimensions cross-references, for creating consolidation mappings.

5 Currently, any Chinese GL report can use alternate COAs.

 Chapter 11

Allocations
220 Training Guide — Advanced Financials

Allocations - Objectives

Objectives
Learn about allocation capabilities in QAD
Financials
Learn how to set up and use allocations for your
business case

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 Allocations 221

Overview

Overview
Allocations in QAD Enterprise Applications
– Operational vs financial
– Direct vs indirect
Allocation setup
Allocation processing
Demo cases
– Housing costs
– Manufacturing costs to production sites

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In this section, you will learn about the two different types of allocations. You will learn in detail
how to set up financial allocations and how they are processed. Finally, you will review two
demonstration cases to illustrate what you have learned.
222 Training Guide — Advanced Financials

Allocations

Allocations
 Used to allocate fixed percentages of expenses to
different GL elements.
 Two types of allocation:
– Operational
– Financial

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The system supports two types of allocations:

• Operational allocation codes are used in operational transactions, such as sales and
purchasing.
• More complex allocations can be set up for use in GL transactions within financial modules.
 Allocations 223

Operational Allocations

Operational Allocations
 Used in operational transactions - sales and purchasing.
 Use allocation codes anywhere you enter an account in
operational transactions.
 Define nested allocation codes.

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To simplify data entry in operational transactions, use Operational Allocation Code Maintenance
(25.3.23) to define codes that allocate fixed percentages of expenses to different accounts,
sub-accounts, cost centers, and projects.
224 Training Guide — Advanced Financials

Op Allocation Code Maintenance

Op Allocation Code Maintenance

Allocation percentages
must equal 100%

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Create operational allocation codes using Op Allocation Code Maintenance (25.3.23). Define the
specific accounts, sub-accounts, cost centers, and projects that a transaction must be split amongst,
and the percentages to allocate to each. The percentages must total 100%.
You can define nested allocation codes so that one allocation code references another. When the
system calculates amounts, it explodes each level of allocation codes, multiplying the amount to be
apportioned by the percentages at each level.
 Allocations 225

Financial Allocations

Financial Allocations
 Allocate costs and revenue to accounts, sub-accounts,
cost centers, and projects.
 Setup:
– Define allocation source
– Define allocation structure
– Group allocations into batches

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Use the GL Allocation activities (25.3.22) to identify types of cost and automatically distribute
them to the correct cost targets. Configure allocations using the following sequence of steps:
1 Define the allocation structure. Allocation structures consist of a source, a target, and the
transfer algorithm between them.
2 Group allocations into batches.
3 Configure recursive allocations to reuse a previous allocation run as input for the next.
4 Interrupt and restart the execution of a batch.
5 Validate the results of the allocation run before final posting.
226 Training Guide — Advanced Financials

Types of Financial Allocations

Types of Financial Allocation

 Direct allocation
– Used when the source of the cost or revenue is clear.

 Indirect allocation
– Used when costs/revenues cannot be traced back immediately
to a specific department or activity.
– A distribution mechanism:
• Collects the data for a given time frame
• Calculates the distribution amounts
• Generates the resulting allocation postings

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A direct cost can be traced directly to the source. For example, when a department purchases office
furniture for its own use, the cost is a direct cost. Direct costs can be further subdivided into:
• Assignable costs are charged directly to the account or sub-account without allocation.
• Shared costs cannot be directly assigned to a cost objective, but are charged instead to an
intermediate cost pool.
An indirect cost cannot be traced directly to one source. For example, a company electricity bill
covers the electricity usage for all company departments. Initially, the bill is allocated to an
overhead cost center, and later re-allocated over all the departments. You use allocation to
distribute indirect costs to the various direct activities that benefited. For this, you must define a
cost allocation plan.
 Allocations 227

Allocation Structures

Defining Allocation Structures

Fraction
Fraction

Numerator
Source
Source * = Target
Target
Denominator
Target is the allocation
Source can be a
posting, based on a
constant, a runtime
Numerator/Denominator Journal Entry template
entered value or a GL
can be constants, runtime
posted value (defined
entered values, or GL
in the Budget Structure
posted values (defined in
as a topic)
the Budget Structure as a
topic)

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An allocation consists of the following elements:

Source. This is the base amount for the allocation.

Fraction. This is a factor applied to the source amount to calculate the amount to be posted to
the target.
Target. This consists of the COA elements, such as account, sub-account or cost center, to
which the fraction is to be posted.

Allocation Sources
• Constant Value
The source is a value that is entered in the allocation definition. The value can be entered in the
base currency or as a combination of base currency and quantity.
• Standard Charge
Standard charges are calculated by multiplying the quantity and unit price. Both values are
entered in the allocation definition. The per-unit cost for electricity is an example of a standard
cost.
• WBS Topic
Work Breakdown Structure (WBS) topics are used in budgets to provide analysis for budget
costs, and are also used in allocations as a source type.
228 Training Guide — Advanced Financials

Fractions
• Constant Factor
The fraction can be a constant multiplier that is entered in the allocation definition and which
can also be reviewed and changed during the execution of the allocation batch.
• Real Fraction
The fraction can be a real fraction defined by its numerator and denominator. Both the
numerator and denominator are WBS topics from which the value or quantity is retrieved.
When the allocation is run, the source value is multiplied by the constant value or the real
fraction.
• Proportional Fraction
A proportional fraction uses multiple fractions. Only the denominator is specified to calculate
the fractions. The denominator is a WBS topic. The numerators are defined based on the
denominator. There are as many numerators (and, thus, fractions) as composing elements in
the denominator.

Allocation Targets

You must define a posting template to specify how the amounts calculated by applying the
fractions to the source amounts are to be posted.
 Allocations 229

GL Allocation Create

GL Allocation Create

Use to create the

allocation structure

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Use GL Allocation Create (25.3.22.1) to set up your allocation structure.

230 Training Guide — Advanced Financials

Running Allocations

Allocation Transactions
Distribute costs and revenues to accounts, sub-
accounts, cost centers, and projects.
Identify types of cost, and automatically
distribute costs to the cost targets.

Use GL Allocation Batch Create (25.3.22.6) to

create batches of allocations.

Use Allocation Batch Run Execute (25.13.9) to

run the allocation batches.

The Budget daemon must be active.

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Allocation is the process of distributing costs and revenues to the appropriate accounts, sub-
accounts, cost centers, and projects. Once your allocation structures are set up, you need to run
them in batch.
The GL Allocation Batch Create (25.3.22.6) and Allocation Batch Run Execute (25.13.9)
activities let you create and run batches of allocations that you have previously defined.
The Budget daemon should be active when allocations are run because the allocation functionality
uses the same tables. The Budget daemon ensures that the most current values are available for an
allocation run.
 Allocations 231

Create Allocation Batches

Create Allocation Batches

JE Groups Allocation code

previously created in
Transaction groups
that contain GL Allocation Create.
allocations.

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Use Allocation Batch Run Execute (25.13.9) to run multiple allocations simultaneously. This
activity also runs allocations in sequence, using the result of one allocation as the source of the
next. An allocation batch can contain one or multiple allocation codes.
JE Group. JE group identifiers are used in allocation batch processing. If the allocation batch
run is canceled, only the current JE group is reversed or unprocessed. The JE groups that are
already processed remain processed.
Alloc Code. Specify an allocation code to include in the JE group.
232 Training Guide — Advanced Financials

Run Allocation Batch

Run Allocation Batch

 The Budget daemon
calculates the
allocation batch
figures.

Note: The Budget

daemon must be
running.

 The result of the

allocation run is
immediately posted.

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By default, the system runs all selected lines in the Allocation Batch Run Execute screen, except
when a batch has already run for the same target period. The system also keeps a log file of
previously run allocations.
An allocation batch is run correctly if the figures it uses from the Budget module are valid. These
figures are calculated by the Budget daemon.
The result of an allocation is immediately posted. By using a transient layer daybook as target—
the recommended approach—you can review the allocation postings, and correct or delete them as
necessary. You then assign them to the primary or the secondary layer.

Field Descriptions

Allocation Batch. Specify the allocation batch to run.

Processing Status. This field displays the status of the current allocation batch.

Source GL Period. Select the source data from this period only or cumulative data from the
start of the GL calendar year up to the end of this period.
Target GL Period, Posting Date. Specify the target period and posting date.

Number Of Groups. Specify the number of JE groups selected for execution.

To Be Processed. This field displays the number of JE groups still to process.

 Allocations 233

Processed. This field displays the number of JE groups already processed.

Click Apply to display the allocation batch details in the grid

The result of a JE group run is always a single journal entry
234 Training Guide — Advanced Financials

Allocation Batch Execution

Allocation Batch Execution

Allocation
Allocationbatch
batch
Posting group 1
Allocation A

Allocation B Budget
BudgetDeamon
Deamon
… recalculates
recalculates
source
sourcevalues
values

Posting group 2

Allocation X

Allocation Y
…
…
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The system runs all of the allocations in the JE group. This ensures that when an allocation batch
run is interrupted, the system does not stop the batch run until all allocations in the current group
have been run.
The system checks for unprocessed daemon records before running each allocation in the batch,
and displays a warning when unprocessed records exist.
When an allocation batch is interrupted, you can restart the batch for the same GL period. All
allocations already run are deselected to ensure that they are not re-run.
 Allocations 235

Demo Case 1

Demo 1: Allocate Housing Costs

Collect the electricity, water, and heating costs
for November 2007
Allocate the total costs to the company
departments, according to the following fixed
distribution:
• Adm: 10%
• Mfg: 40%
• R&D: 30%
• Sls: 20%
Post to a Transient layer
Review and final posting to the primary/official
layer
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Demo Case 1: Account Involved

Demo Case 1: Accounts Involved

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 Allocations 237

Demo Case 1: Source

Demo Case 1: Source

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238 Training Guide — Advanced Financials

Demo Case 1: Target Template

Demo Case 1: Target Template

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 Allocations 239

Demo Case 1: Allocation

Demo Case 1: Allocation

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240 Training Guide — Advanced Financials

Demo Case 1: Target Posting

Demo Case 1: Target Posting

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 Allocations 241

Demo Case 2

Demo 2: Allocate Manufacturing Costs

Allocate manufacturing costs to production sites
Allocate the cost proportional to the machine
hours run in each site

• WC01: 150 HRS

• WC02: 170 HRS
• WC03: 100 HRS

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242 Training Guide — Advanced Financials

Demo Case 2: Source and Fraction

Demo Case 2: Source and Fraction

Source

Fraction

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 Allocations 243

Demo Case 2: Target Template

Demo Case 2: Target Template

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244 Training Guide — Advanced Financials

Demo Case 2: Allocation

Demo Case 2: Allocation

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 Allocations 245

Demo Case 2: Batch Run

Demo Case 2: Batch Run

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246 Training Guide — Advanced Financials

Demo Case 2: Target Posting

Demo Case 2: Target Posting

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 Allocations 247

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248 Training Guide — Advanced Financials

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 Allocations 249

Hands On Exercises (US)

The recommended flow for these exercises is:
1 Create the WBS in Budget Create.
2 Check that the Budget daemon is running.
3 Create the allocation.
4 Enter transactions using Journal Entry Excel integration.
5 Run Allocation Batch Run Execute.

Exercise 1: Constant Value Source US

Case: Every month 10,000 USD of housing expenses must be allocated to the following cost
centers:
• Adm: 40%
• Log: 10%
• Mar: 20%
• Mfg: 30%

Create the corresponding allocation, create an allocation batch, and run it for the GL period prior
to the current period. There are two ways to do this.
Steps:
1 In GL Account Create (25.3.13.1), create account 7399.
Field Data
Account: 7399
Description: HC alloc offset
GL type: Standard Account
Budget Enabled: Yes
Category: Expense

Posting tab
Balance/P&L: Profit and Loss Account
Auto/Manual: Manual
Debit/Credit: Debit

Analysis tab
Analysis: None

2 In Journal Entry Create (25.13.1.1), create a template for the posting:

Let the year and posting date default.
250 Training Guide — Advanced Financials

Field Data
Daybook Code: Template
Save as Template: Yes
Description: CVS alloc template
Template Code: Templ 1

The following are the postings in US-WEST:

GL Account GL Desc. Sub-Account Cost Center BC Debit BC Credit
7399 HC alloc offset 100.00
7300 Housing Expense Gserv Adm 40.00
7300 Housing Expense Gserv Log 10.00
7300 Housing Expense Gserv Mar 20.00
7300 Housing Expense Gserv Mfg 30.00

Use as posting daybook: TRAJE

3 Save your changes.
4 In GL Allocation Create (25.3.22.1), create an allocation
Field Data
Allocation Code: CVS H01
Description: CVS H01
Source Type: Constant Value
From Layers: Primary
Quantity: 0
BC Amount: 10,000.00
Fraction type: Constant Factor
From Layers: Primary
Constant Fraction: 1.00
Daybook Code: TRAJE
Template Code: Templ 1
Layer Code: Trans-Approve

5 Save your allocation.

6 In GL Allocation Batch Create (25.3.22.6), create the following allocation batch:
Field Data
Allocation Batch Code: ConstVS
JE Group: GR1
Alloc Code: CVS H01

7 Save the allocation batch.

8 Run Allocation Batch Run Execute (25.13.9) in the previous period of the system date.
Field Data
Allocation Batch: ConstVS
Source Period: Enter the period previous to the current.
 Allocations 251

Field Data
Target GL Period: Specify the same period as the source.
Posting Date: The last day of the target GL period.

9 Click Search.
Field Data
Grid
Sequence: 1
JE Group: GR1
Execute: Yes
Allocation Code: CVS H01
BC Amount: 10,000.00
Posting Amount: 10,000.00
Posting Reference: 2008/TRAJE/nnn

10 Click Execute to run the allocation batch.

11 In Journal Entry View (25.13.1.3), search for transactions in daybook TRAJE with the same
posting date as the allocation batch posting date you entered.
12 Review the transaction.

13 The same result can be obtained using another QAD Financials functionality: how?

Exercise 2: Allocation using WBS Source US-WEST

In this exercise, you will create a GL allocation for housing costs using:
• Code: HC-1
• Batch code: HC
• JE group: GR1

In the Budget Periods tab, use the date 01/01/08 to 12/31/08

In the Version tab, set the reporting period to 01/2008. (Primary layer, balance, period, BC
amount)
Target: create a template with code HC-alloc-1
US-WEST:
7399 CR 1000
7300 Adm DR 250
7300 Mfg DR 450
7300 R&D DR 100
7300 Sls DR 200
Use daybook TRAJE for the allocation posting.
Post the actuals in daybook JE using a template (Excel worksheet Alloc HC act1).
Run the allocation batch HC.
252 Training Guide — Advanced Financials

Steps:
1 Using GL Account Create (25.3.13.1) or GL Account Excel Integration (25.3.13.5), create the
following accounts:
Acct Desc GL Type Cat. Analysis Bal/P&L DR/CR Auto/Manual
7301 HC1 Standard Acct Expense None P&L Debit Manual
7302 HC2 Standard Acct Expense None P&L Debit Manual
7303 HC3 Standard Acct Expense None P&L Debit Manual

2 In Journal Entry Create (25.13.1.1), create the following journal entry:

Field Data
Posting Date: 01/31/08
Daybook Code: Template
Description: Alloc H02
Template Code: HC-alloc-1
Save as Template: Yes

The postings are:

GL Account GL Desc. Sub-Account CC Debit Credit
7399 HC alloc offset 1000.00
7300 Housing Expense Gserv Adm 250.00
7300 Housing Expense Gserv Mfg 450.00
7300 Housing Expense Gserv R&D 100.00
7300 Housing Expense Gserv Sls 200.00

3 In Budget Create (25.5.1.1), create the following WBS structure.

Field Data
Budget Code: HC-1
Description: HC-1
Used for Allocatiion: Yes

Budget Period Tab

Period Code: Period
Start Date: 01/01/08
End Date: 12/31/08

4 In the Levels tab, right-click in the grid and select Insert a New Row.
Field Data
WB Level: 1
COA Element: General Ledger

5 In the Structure tab, insert a new row.

Topic: HC alloc HO2
6 Right-click on the topic and select Topic Properties.
 Allocations 253

The Topic Properties window opens.

7 In the Topic Properties window, select the COA Link tab.
• Budget Group: leave blank.
• Link by Level: use the lookup and select GL accounts 7301, 7302, 7303 (press Ctrl and
click).
8 Click OK to save.
9 Change the budget status to Operational and save.
10 In GL Allocation Create (25.3.22.1), create the following allocation:
Field Data
Allocation Code: HC-1
Description: HC-1

General tab
Source Type: WBS Topic
Source WBS: HC alloc H02
From Layers: Primary
From Amt: Balance
Amt By: GL Period
Value Of: BC Amount
Fraction Type: Constant Factor
Constant Factor: 1
Daybook Code: TRAJE
Template Code: HC-alloc-1

11 Save the allocation.

12 In GL Allocation Batch Create (25.3.22.6), create the following batch.

Field Data
Allocation Batch Code: HC
Description: HC
Right-click in the grid and insert
a row.
JE Group: GR-1
Alloc Code: HC-1

13 Save the allocation batch.

14 Use Journal Entry Excel Integration (25.13.1.6) to post the actuals.

15 In the xml docs directory on your Desktop, use Excel worksheet act1 USD.xls.
The result should be a transaction with posting date 04/30/08, description: Housing exp.
16 Open GL Allocation Batch Run Execute (25.13.9) and specify the following:
254 Training Guide — Advanced Financials

Field Data
Allocation Batch: HC
Source GL Period: 2008/4
Target GL Period: 2008/4
Posting Date: 04/29/08
Number of Groups: 1
To Be Processed: 1

17 Click Apply. The allocation batch details display in the grid.

Field Data
Sequence: 1
JE Group: GR1
Execute: Yes
Allocation Code: HC-1
Source WBS Topic
BC Amount: 4,850.00
Posting Amount: 4,850.00
Posting Reference: 2008/TRAJE/5

18 Run the allocation batch.

19 In Journal Entry View (25.13.1.3), review the newly-created journal entry.

Field Data
Posting Date: 04/29/08
Daybook Code: TRAJE

Exercise 3: Proportional Allocation US

Create a GL allocation for further allocation of housing costs allocated to cost center Mfg
Allocation Details
Allocation Code: MfghrsHC-1
Batch Code: MfgHC
JE Group GR1
Source Details
Source: WBS GL code: 7300
Cost Center: Mfg (Trans-Approve layer, balance, period, BC
amount)
Proportional Allocation Details
Proportional Allocation WBS GL code: Z9000 (create this account first)
Cost Centers: WC01, WC02, WC03 (Trans-Approve layer, period,
quantity)
Target Details
Target: Create a template with code MfgHC-alloc-1
 Allocations 255

US: 7300 EMEA: 43000 - Mfg CR 100

US: 7300 EMEA: 43000 - WC01 DR 100
Daybook: TRAJE

Post in daybook TRAJE the actuals using a template (Excel worksheet Alloc mfgHC act2 for the
US).
Run the allocation batch, MfgHC.

Steps:
1 In Journal Entry Create (25.13.1.1), create the template:
Field Data
Year: 2009/1
Posting Date: 01/31/09
Daybook Code: TEMPLATE
Save as Template: Yes
Description: Proportional Allocation Template
Template Code: Propalloc1

Description: Proportional allocation template

Template Code: Propalloc1
GL Acct GL Desc Sub-Acct CC Debit Credit
7300 Housing Expense GServ Mfg 100.00
7300 Housing Expense GServ WC01 100.00

2 In GL Account Create (25.3.31.1), create the following accounts. Ensure you select the
Quantity field and enter a unit of measure.
Budget
GL Acct Desc GL Type Cat. Enabled Budget Group
Z9000 Machine HRS Standard Account Expense Yes <blank>
Z9001 Offset Mach. HRS Standard Account Expense Yes <blank>

GL Acct Analysis Type

Bal./P&L DR/CR Auto/Manual Quantity UM (Analysis Tab)
P&L Debit Manual Yes HRS Cost Center
P&L Debit Manual Yes HRS None

3 In Budget Create (25.5.1.1), create the allocation basis structure, and ensure that the Use
Quantity Info field is selected.
Field Data
Budget Code: Propalloc1
Description: Propalloc1
Used for Allocation: Yes
256 Training Guide — Advanced Financials

Field Data
General tab
Use Quantity Info: Yes
Budget Period tab
Right-click in the grid and insert a row.
Period Code: Period
Start Date: 01/01/2008
End Date: 12/31/2009

4 In the Levels tab, right-click in the grid and select Insert a New Row.
WB Level COA Element Used for Proportional Allocation
1 General Ledger No (uncheck)
2 Cost Center Yes (check)

5 In the Structures tab, right-click in the grid and select Insert a New Row twice.
6 Specify topics 7300 and Z9000
7 Right-click on in the row and select Topic Properties. On the COA Link tab, link topic 7300 to
GL account 7300 and cost center Mfg.
8 Right-click and select Insert Child Row.
9 Give the row the Topic Name of MFG.
10 Link the second topic Z9000 to GL Z9000 and to cost centers WC01, WC02, and WC03.

11 Save and close the Topic Properties windows.

12 Change the budget status to Operational and save.

13 In GL Allocation Create (25.3.22.1), create the following allocation.

Ensure that you select the layers in which the data is posted.
Field Data
Allocation Code: MfghrsHC-1
Description: MfghrsHC-1
Source Type: WBS Topic
Source WBS: Mfg
From Layers: Trans-Approve
From Amt: Balance
Amt By: GL Period
Value Of: BC Amount
Fraction Type: Proportional Fraction
From Layers: Trans-Approve
Denominator WBS: WC0x
Amt By: GL Period
Value of: Qty
 Allocations 257

Field Data
Daybook Code: TRAJE
Template Code: Propalloc1

14 In the Proportional Allocation tab, create three lines—one for each cost center. Right-click to
insert a new row.
Field Data
Cost Center Code: WC01
Cost Center Code: WC02
Cost Center Code: WC03

15 Save the allocation.

16 In GL Allocation Batch Create (25.3.22.6), create the following allocation batch.

Field Data
Allocation Batch Code: MfgHC / MfgHC
JE Group: GR1
Alloc Code: MfghrsHC-1

17 Save your changes.

18 Go to Journal Entry Excel Integration to upload the actuals. Use the Excel worksheet Alloc
mfgHC act2 for US in the Financials Activities\Allocations directory on your
desktop.
The results should be a transaction with the posting date 04/30/08, and the description
“Machine Hours”.
The actual amount to allocate to the cost center Mfg is 1.940. This figure is the result of the
previous hands-on.
a Ensure that, for cost center Mfg, you have 1.940 on account 7300 (US).
b If you skipped the previous hands-on, post the 1.940 as follows:
Daybook: TRAJE
Period: 2008/4
GL 7300 (US) 1940 Debit USD
GL 2470 (US) 1940 Credit USD
If a sub-account is required, use Gserv.
19 In GL Allocation Batch Run Execute (25.13.9, run the following allocation batch:
Field Data
Allocation Batch: MfgHC
Source GL Period: 2008/4
Target GL Period: 2008/4
Number of Groups: 1
To Be Processed: 1
Click Apply:
258 Training Guide — Advanced Financials

20 Go to Journal Entry View (25.13.1.3) and verify the entry.

GL Acct Sub-Acct CC DR CR
7300 GServ Mfg 0 714.29
7300 Gserv WC01 714.29 0
7300 GServ Mfg 0 809.52
7300 GServ WC01 809.52 0
7300 GServ Mfg 476.19
7300 GServ WC01 476.19 0

Hands On Exercises (EMEA)

Exercise 1: Constant Value Source EMEA-DE

Case: Every month 10,000 Euros of housing expenses must be allocated to the following cost
centers:
• Adm: 40%
• Log: 10%
• Mar: 20%
• Mfg: 30%

Create the corresponding allocation, create an allocation batch, and run it for the GL period prior
to the current period.

Steps:
1 In Journal Entry Create (25.13.1.1), create a template for the posting:
Let the year and posting date default.
Field Data
Daybook Code: Template
Save as Template: Yes
Description: CVS alloc template
Template Code: Templ 1

The postings are:

GL Account GL Desc. Sub-Account Cost Center BC Debit BC Credit
43999 HC alloc offset 100.00
43000 Housing Expense Gserv Adm 40.00
43000 Housing Expense Gserv Log 10.00
43000 Housing Expense Gserv Mar 20.00
43000 Housing Expense Gserv Mfg 30.00

Use daybook TRAJE.

2 Save the template.
 Allocations 259

3 In GL Allocation Create (25.3.22.1), create an allocation

Field Data
Allocation Code: CVS H01
Description: CVS H01
Source Type: Constant Value
From Layers: Primary
Quantity: 0
BC Amount: 10,000.00
Fraction type: Constant Factor
From Layers: Primary
Constant Fraction: 1.00
Daybook Code: TRAJE
Template Code: Templ 1
Layer Code: Trans-Approve

4 In GL Allocation Batch Create (25.3.22.6), create the following allocation batch:

Field Data
Allocation Batch Code: ConstVS
JE Group: GR1
Alloc Code: CVS H01

5 Save the allocation batch.

6 Run Allocation Batch Run Execute (25.13.9) in the previous period of the system date.
Field Data
Allocation Batch: ConstVS
Source Period: Enter the period previous to the current.
Target GL Period: Enter the same period as the source.
Posting Date: Specify the last day of the period
previous to the current.

7 Click Search.
Field Data
Grid
Sequence: 1
JE Group: GR1
Execute: Yes (check)
Allocation Code: CVS H01
BC Amount: 10,000.00
Posting Amount: 10,000.00
Posting Reference: 2008/TRAJE/nnn

8 Click Execute to run the allocation batch.

9 In Journal Entry View (25.13.1.3), search for transactions in daybook TRAJE with the same
posting date as the allocation batch posting date you entered.
260 Training Guide — Advanced Financials

10 Review the transaction.

11 The same result can be obtained using another QAD Financials functionality: how?

Exercise 2: Allocation using WBS Source EMEA-DE

General Information
Create a GL allocation for housing costs
• Code: HC-1
• Batch code: HC
• JE group: GR1

In the Budget Periods tab, use the date 01/01/08 to 12/31/29.

In the Version tab, set the reporting period to 01/2008. (Primary layer, balance, period, BC
amount)
Target: create a template with code HC-alloc-1

EMEA-DE
43999 CR 1000
43000 Adm DR 250
43000 M0fg DR 450
43000 R&D DR 100
43000 Sls DR 200
Use daybook TRAJE for the allocation posting.
Post the actuals in daybook JE using a template (Excel worksheet Alloc HC act1).
Run the allocation batch HC.

Steps:
1 In Journal Entry Create (25.13.1.1), create the following journal entry:
Field Data
Posting Date: 01/31/08
Daybook Code: Template
Description: Alloc H02
Template Code: HC-alloc-1
Save as Template: Yes (check)

The postings are:

GL Account GL Desc. Sub-Account CC Debit Credit
43999 HC alloc offset 1000.00
43000 Housing Expense Gserv Adm 250.00
 Allocations 261

GL Account GL Desc. Sub-Account CC Debit Credit

43000 Housing Expense Gserv Mfg 450.00
43000 Housing Expense Gserv R&D 100.00
43000 Housing Expense Gserv Sls 200.00

2 In Budget Create (25.5.1.1), create the following WBS structure.

Field Data
Budget Code: HC-1
Description: HC-1
Used for Allocatiion: Yes

Budget Period tab

Period Code: Period
Start Date: 01/01/08
End Date: 12/31/09
Level Tab:

3 Right-click in the grid and select Insert a New Row.

Field Data
WB Level: 1
COA Element: General Ledger
Structure Tab:

4 Insert a new row.

Topic: HC alloc HO2
5 Right-click on the topic and select Topic Properties.
6 Select the COA Link tab.
• Budget Group: leave blank.
• Link by Level: use the lookup and select GL accounts 43000, 43100, 43200, and 43300.

7 Click OK to save.
8 Change the budget status to Operational and save.
9 In GL Allocation Create (25.3.22.1), create the following allocation:
Field Data
Allocation Code: HC-1
Description: HC-1

General tab
Source Type: WBS Topic
Source WBS: HC alloc H02
From Layers: Primary
From Amt: Balance
262 Training Guide — Advanced Financials

Field Data
Amt By: GL Period
Value of: BC Amount
Fraction Type: Constant Fraction
Constant Factor: 1
Daybook Code: TRAJE
Template Code: HC-alloc-1

10 In GL Allocation Batch Create (25.3.22.6), create the following batch.

Field Data
Allocation Batch Code: HC
Description: HC
Right-click in the grid and insert
a row.
JE Group: GR-1
Alloc Code: HC-1

11 Go to Journal Entry Excel Integration (25.13.1.6).

12 Post the actuals. In the xml docs directory on your Desktop, use Excel worksheet Alloc HC
act1.xls if logged in to EMEA-DE.
The result should be a transaction with posting date 04/30/08, description: Housing exp.
13 Go to GL Allocation Batch Run Execute (25.13.9)
Field Data
Allocation Batch: HC
Source GL Period: 2008/4
Target GL Period: 2008/4
Posting Date: 04/29/08
Number of Groups; 1
To Be Processed: 1

14 Click Search. The allocation batch details display in the grid.

Field Data
Sequence: 1
JE Group: GR1
Execute: Yes
Allocation Code: HC-1
Source WBS Topic
BC Amount: 4,850.00
Posting Amount: 4,850.00
Posting Reference: 2008/TRAJE/5

15 In Journal Entry View (25.13.1.3), review the newly-created journal entry.

 Allocations 263

Field Data
Posting Date: 04/29/08
Daybook Code: TRAJE

Exercise 3: Proportional Allocation EMEA-DE

Create a GL allocation for further allocation of housing costs allocated to cost center Mfg
Allocation Details
Allocation Code: MfghrsHC-1
Batch Code: MfgHC
JE Group GR1
Source Details
Source: WBS GL code: 43000
Cost Center: Mfg (Trans-Approve layer, balance, period, BC
amount)
Proportional Allocation Details
Proportional Allocation WBS GL code: Z90000
Cost Centers: WC01, WC02, WC03 (Trans-Approve layer, period,
quantity)
Target Details
Target: Create a template with code MfgHC-alloc-1
43000 - Mfg CR 100
43000 - WC01 DR 100
Daybook: TRAJE

Post in daybook TRAJE the actuals using a template (Excel worksheet mfgHC act2 for EMEA)
Run the allocation batch, MfgHC.

Steps:
1 In Journal Entry Create (25.13.1.1), create the template:
Field Data
Year: 2009/1
Posting Date: 01/31/09
Daybook Code: TEMPLATE
Save as Template: Yes (check)
Description: Proportional Allocation Template
Template Code: Propalloc1

Description: Proportional allocation template

Template Code: Propalloc1
GL Acct GL Desc Sub-Acct CC Debit Credit
7300 Housing Expense GServ Mfg 100.00
7300 Housing Expense GServ WC01 100.00
264 Training Guide — Advanced Financials

2 In Budget Create (25.5.1.1), create the allocation basis structure, and ensure that the Use
Quantity Info field is selected.
Field Data
Budget Code: Propalloc1
Description: Propalloc1
Used for Allocation: Yes

General tab
Use Quantity Info: Yes

Budget Period tab

Right-click in the grid and insert
a row.
Period Code: Period
Start Date: 01/01/2008
End Date: 12/31/2009

3 In the Levels tab, right-click in the grid and select Insert a New Row.
WB Level COA Element Used for Proportional Allocation
1 General Ledger No (uncheck)
2 Cost Center Yes (check)

4 In the Structures tab, right-click in the grid and select Insert a New Row twice.
5 Specify topics 7300 and Z9000
6 Right-click in the row and select Topic Properties. On the COA Link tab, link topic 7300 to
GL account 7300 and cost center Mfg.
7 Right-click and select Insert Child Row.
8 Give the row the Topic Name of MFG.
9 Link the second topic Z9000 to GL Z9000 and to cost centers WC01, WC02, and WC03.
10 Save and close the Topic Properties windows.

11 Change the budget status to Operational and save.

12 In GL Allocation Create (25.3.22.1), create the following allocation. Ensure that you select the
layers in which the data is posted.
Field Data
Allocation Code: MfghrsHC-1
Description: MfghrsHC-1
Source Type: WBS Topic
Source WBS: Mfg
From Layers: Trans-Approve
From Amt: Balance
Amt By: GL Period
 Allocations 265

Field Data
Value Of: BC Amount
Fraction Type: Proportional Fraction
From Layers: Trans-Approve
Denominator WBS: WC0x
Amt By: GL Period
Value of: Qty
Daybook Code: TRAJE
Template Code: Propalloc1

13 In the Proportional Allocation tab, create three lines—one for each cost center. Right-click to
insert a new row.
Field Data
Cost Center Code: WC01
Cost Center Code: WC02
Cost Center Code: WC03

14 In GL Allocation Batch Create (25.3.22.6), create the following allocation batch:

Field Data
Allocation Batch Code: MfgHC
JE Group: GR1
Alloc Code: MfghrsHC-1

15 Go to Journal Entry Excel Integration to upload the actuals. Use the Excel worksheet Alloc
mfgHC act2 in the Financials Activities\Allocations directory on your
desktop.
The results should be a transaction with the posting date 04/30/08, and the description
“Machine Hours.”
The actual amount to allocate to the cost center Mfg is 1.940. This figure is the result of the
previous hands-on.
a Ensure that, for cost center Mfg, you have 1.940 on account 43000 (EMEA).
b If you skipped the previous hands-on, post the 1.940 as follows:
Daybook: TRAJE
Period: 2008/4
43000 1940 Debit EUR
19100 1940 Credit EUR
If a sub-account is required, use Gserv.
16 In GL Allocation Batch Run Execute (25.13.9), run the allocation batch.
Field Data
Allocation Batch: MfgHC
Source GL Period: 2008/4
Target GL Period: 2008/4
266 Training Guide — Advanced Financials

Field Data
Number of Groups: 1
To Be Processed: 1
Click Search:

17 In Journal Entry View (25.13.1.3), verify the entry.

GL Acct Sub-Acct CC DR CR
7300 GServ Mfg 0 714.29
7300 Gserv WC01 714.29 0
7300 GServ Mfg 0 809.52
7300 GServ WC01 809.52 0
7300 GServ Mfg 476.19
7300 GServ WC01 476.19 0
 Chapter 12

COA Mask
268 Training Guide — Advanced Financials

COA Mask - Objectives

Objectives
Learn about the concept of COA masks
Learn how to activate, create, and assign COA
masks
Use the COA mask functionality to validate GL
account, sub-account, cost center, and project
combinations

QAD Proprietary 2008-MC-3.2-1-GLM-020

 COA Mask 269

Overview

Overview
Definition
Setup
– Domain level
– Creating COA masks
– Assigning COA masks
Exercise

QAD Proprietary 2008-MC-3.2-1-GLM-030

In this section, we will first define COA masks, and then learn how to set up and use them.
Finally, an exercise will let you practice your newly-acquired knowledge.
270 Training Guide — Advanced Financials

Definition

Definition
Matrix that defines the valid combinations of
COA elements
Three types of COA mask:
– Sub-account
– Cost center
– Project
Activated at domain level

QAD Proprietary 2008-MC-3.2-1-GLM-040

A COA mask is a matrix that defines the combinations of GL accounts, sub-accounts, cost centers,
and projects to which you can post transactions.
Three COA element types have COA mask maintenance functions:
• Sub-Account Mask Create (25.3.9.1.1)
You specify a sub-account COA mask code and list the ranges of GL accounts with which sub-
accounts assigned that COA mask can be combined.
• Cost Center Mask Create (25.3.9.2.1)
You specify a cost center COA mask code and list the ranges of GL accounts and sub-accounts
with which cost centers assigned that COA mask can be combined.
• Project Mask Create (25.3.9.3.1)
You specify a project COA mask code and list the ranges of GL accounts, sub-accounts, and
cost centers with which projects assigned that COA mask can be combined.
You assign a COA mask to an element using the COA Mask fields in Sub-Account Create/Modify,
Cost Center Create/Modify, and Project Create/Modify. The COA mask code you specify must be
of the same type as the COA element. One COA mask can be reused by many COA elements.
 COA Mask 271

COA masks are defined at domain level, and as part of a shared set. Three control fields in Domain
Create (36.1.1.1.1) indicate which COA mask types are active: Sub-Account Mask, Cost Center
Mask, and Project Mask. You can only define a COA mask if it has been activated in Domain
Create. Postings will be validated for each of the types marked as active.
The system will also use the COA masks you define to restrict lookup values wherever account
combinations are entered. For example, if sub-account COA masks are active and you create a
journal entry posting line and specify the GL account, the sub-account lookup will only let you
select from the sub-accounts that can be used with the GL account you specified.
272 Training Guide — Advanced Financials

Process Map

Process Map

QAD Proprietary 2008-MC-3.2-1-GLM-

The slide shows the process map for activating, creating, and assigning COA masks.
 COA Mask 273

Domain COA Mask Settings

Domain COA Mask Settings

Domain Modify (36.1.1.1.2)
– Valid for all entities in the current domain

 Use the check boxes to

activate combinations of
GL elements to validate
during posting.

– Sub-accounts
– Cost centers
– Projects

QAD Proprietary 2008-MC-3.2-1-GLM-050

The mask you define applies to all transactions posted for the current domain. You define the mask
on the domain level, and it is used by all entities in the domain.
When you select Sub-Account Mask, Cost Center Mask, or Project Mask, you define the
combinations of COA elements the system validates when you post a transaction.
.
274 Training Guide — Advanced Financials

COA Element without Mask

COA Element without Mask Setting

Specify how system will treat COA elements

not assigned a mask
- Exclude from Posting
- No Posting Restrictions
QAD Proprietary 2008-MC-3.2-1-GLM-

Three additional fields in Domain Create control how the system treats COA elements that are not
assigned a COA mask. The COA Element without Mask fields contain two options: No Posting
Restrictions and Exclude from Posting.
If, for example, you activate cost center masks and select No Posting Restrictions in the COA
Element without Mask field, cost centers that are not assigned a COA mask can be used in any
posting. Alternatively, if you select Exclude from Posting in the COA Element without Mask field,
cost centers that are not assigned a COA mask cannot be used in postings.
 COA Mask 275

COA Mask Shared Sets

COA Mask Shared Sets

Three COA mask shared sets:
– Sub-Account COA Mask
– Cost Center COA Mask
– Project COA Mask
You can modify the COA mask shared sets at
any point of time
– Even when Setup Complete is Yes in Domain Modify

QAD Proprietary 2008-MC-3.2-1-GLM-

COA masks can be shared by multiple domains, and are, therefore, stored at shared set level. You
can share a set of COA masks across domains using shared sets of the following types:
• Sub-Account Mask Shared Set
• Cost Center Mask Shared Set
• Project Mask Shared Set

The COA mask codes are stored in the shared sets, and you can share COA masks regardless of
how the COA elements are shared. The COA mask ranges are stored according to the COA shared
sets for the current domain.
Different domains that use the same chart of account can use different sets of COA masks. For
example, the same sub-account COA mask can be shared by Domain1 and Domain2, a particular
project COA mask can be used by Domain1 only, and a different project COA mask can be used
by Domain2.
When domain setup is complete, you can no longer modify the shared sets assigned to the domain.
However, this restriction does not apply to the three COA mask shared sets, which can be modified
at any time.
276 Training Guide — Advanced Financials

COA Masks and Account Analysis

COA Masks and Account Analysis

QAD Proprietary 2008-MC-3.2-1-GLM-

COA mask combinations are synchronized with the analysis you define for GL accounts. You
define the default sub-account, cost center, and project for an account on the account Analysis tab,
and these combinations must match those of the active COA masks.
When you have defined Both as the analysis type, and At Least One or None as the analysis
limitation in GL Account Create, the cost center and project analysis for the account does not have
to match the COA mask combination exactly. Instead, the system checks the COA mask for at
least one of the elements in the combination. If this is found, the posting is validated. If the COA
mask contains any cost center or project in combination with the account, you can choose to leave
the cost center or project fields blank for the account when generating a posting.
 COA Mask 277

Sub-Account Mask

Sub-Account COA Mask

From GL Account To GL Account

To GL Account
“100” - “1000”
“100” - “1000”
“1010” - “1099”
Sub-Account Type “1010” - “1099”
Sub-Account Type
COA Mask “SAMatrix1” “2001” - “2550”
COA Mask “SAMatrix1” “2001” - “2550”

….

QAD Proprietary 2008-MC-3.2-1-GLM-060

Use Sub-Account Mask Create (25.3.9.1.1) to define the ranges of GL accounts with which a sub-
account can be combined in postings. The sub-account mask is then assigned to the sub-account
using Sub-Account Create (25.3.17.1) or Sub-Account Modify (25.3.17.2). If you assign a COA
mask to a sub-account, the system will prevent it from being used with any GL account not
specified within the ranges defined in Sub-Account Mask Create.
Note You can use Sub-Account Mask Excel Integration (25.3.9.1.6) to import a sub-account
mask matrix. You can also create a sub-account mask based on an existing mask using Sub-
Account Mask Copy (25.3.9.1.5).
Use the grid to define the ranges of GL accounts that can be used with this sub-account. Each
range is defined for the COA shared sets that the current domain is using. A range can be shared at
COA shared set level.
You can define multiple ranges of GL accounts for which you can use the sub-account. Normal
ranges cannot overlap. However, disallowed ranges can overlap normal ranges.

Specifying Ranges in Grids

To define the range of values for which a COA mask applies, insert a new row into the rules grid.
Then, complete the From and To fields to define a range.
278 Training Guide — Advanced Financials

You must define at least one range in a COA mask grid. The ranges are stored according to the
COA shared sets of the current domain, and a COA mask code can include ranges for different
COA shared sets.

Blanks

If you specify a non-blank value in the From field and a blank in the To field, this indicates that
you want to map all values beginning with the non-blank value to the end of the range.
If you specify a blank in the From field and a non-blank value in the To field, this indicates that
you want to map all values from the beginning of the range up to the non-blank value.

Assigning Masks

You assign a COA mask code to a sub-account by specifying the mask in the Sub-Account Mask
Code field in Sub-Account Create or Sub-Account Modify. You can click the lookup to list all sub-
account masks for the assigned sub-account COA mask shared set.
You can also create a new sub-account mask as required by clicking the GoTo button to the right of
the Sub-Account Mask Code field. The GoTo opens Sub-Account Mask Create (25.3.9.1.1). If you
have already assigned a COA mask to the sub-account, the GoTo button displays Sub-Account
Mask View (25.3.9.1.3) and also lets you display a related view showing all sub-accounts linked to
that COA mask.
The COA Element without Mask field in Domain Create controls how the system treats sub-
accounts that are not assigned a sub-account COA mask. If sub-account COA masks are enabled
for the current domain and the COA Element without Mask field is set to Exclude from Posting,
the system prevents all sub-accounts without a sub-account COA mask from being used in
postings. If the COA Element without Mask field is set to No Posting Restrictions, you can use the
sub-account with any GL account.
If sub-account COA masks are not enabled for the current domain, the Sub-Account Mask Code
field is read-only.
 COA Mask 279

Cost Center COA Mask

Cost Center COA Mask

From GL Account To GL Account

To GL Account
“10” - “1999”
“10” - “1999”
“2010” - “2055”
“2010” - “2055”
Cost Center Type ….
Cost Center Type From Sub-Acct To Sub-Acct
COA Mask “CCMatrix1” To Sub-Acct
COA Mask “CCMatrix1”
“01” - “99”
“01” - “99”
“102” - “199”
“102” - “199”
QAD Proprietary …. 2008-MC-3.2-1-GLM-

Use Cost Center Mask Create (25.3.9.2.1) to specify the ranges of GL accounts and sub-accounts
that you can use in combination with a particular cost center.
Note You can use Cost Center Mask Excel Integration (25.3.9.2.6) to import a cost center mask
matrix. You can also create a cost center mask based on an existing mask using Cost Center Mask
Copy (25.3.9.2.5).
You then associate the COA mask with a cost center by specifying the cost center COA mask code
in the COA Mask field in the cost center record in Cost Center Create.
If you have activated cost center COA masks in Domain Create, you must specify ranges in at least
one of the two grids in Cost Center Mask Create.

Assigning Masks
You assign a COA mask code to a cost center by specifying it in the Cost Center Mask Code field
in Cost Center Create or Cost Center Modify. You can click the lookup to list all cost center masks
for the assigned cost center COA mask shared set.
280 Training Guide — Advanced Financials

You can also create a new cost center mask as required by clicking the GoTo button to the right of
the Cost Center Mask Code field. The GoTo opens Cost Center Mask Create (25.3.9.2.1). If you
have already assigned a COA mask to the cost center, the GoTo button displays Cost Center Mask
View (25.3.9.2.3) and also lets you display a related view showing all cost centers linked to that
COA mask.
The COA Element without Mask field in Domain Create controls how the system treats cost
centers that are not assigned a cost center COA mask. If cost center COA masks are enabled for
the current domain and the COA Element without Mask field is set to Exclude from Posting, the
system prevents all cost centers without a cost center COA mask from being used in postings. If
the COA Element without Mask field is set to No Posting Restrictions, you can use the cost center
in combination with any GL account or sub-account.
If cost center COA masks are not enabled for the current domain, the Cost Center Mask Code field
is read-only.
 COA Mask 281

Project COA Mask

Project COA Mask

From GL Account To GL Account

To GL Account
“001” - “999”
“001” - “999”
“1002” - “2999”
“1002” - “2999”
….
Project Type From Sub-Acct To Sub-Acct
Project Type To Sub-Acct
COA Mask “PrjMatrix1” “01 - “99”
COA Mask “PrjMatrix1” “01 - “99”
“101” - “150”
“101” - “150”
…. Center
From Cost To Cost Center
To Cost Center
“Dep1” - “Dep2”
“Dep1” - “Dep2”
QAD Proprietary “Dep6” - “Dep8” 2008-MC-3.2-1-GLM-
“Dep6” - “Dep8”

Use Project Mask Create (25.3.9.3.1) to specify the ranges of GL accounts, sub-accounts, and cost
centers that you can use in combination with a particular project when posting.
Note You can use Project Mask Excel Integration (25.3.9.3.6) to import a project mask matrix.
You can also create a project mask based on an existing mask using Project Mask Copy
(25.3.9.3.5).
You then associate the COA mask with a project by specifying the project COA mask code in the
COA Mask field in Project Create.
If you have activated project COA masks in Domain Create, you must specify ranges in at least
one of the three grids in Project Mask Code Create.

Assigning Masks
You assign a COA mask code to a project by specifying it in the Project Mask Code field in Project
Create or Project. Click the lookup to list all project masks for the assigned project COA mask
shared set.
You can also create a new project mask as required by clicking the GoTo button to the right of the
Project Mask Code field. The GoTo opens Project Mask Create (25.3.9.3.1). If you have already
assigned a COA mask to the project, the GoTo button displays Project Mask View (25.3.9.3.3) and
also lets you access a related view showing all projects linked to that COA mask.
282 Training Guide — Advanced Financials

The COA Element without Mask field in Domain Create controls how the system treats projects
that are not assigned a project COA mask. If project COA masks are enabled for the current
domain and the COA Element without Mask field is set to Exclude from Posting, the system
prevents all projects without a COA mask from being used in postings. If the COA Element
without Mask field is set to No Posting Restrictions, you can use the project in combination with
any GL account, sub-account, or cost center.
If project COA masks are not enabled for the current domain, the Project Mask Code field is read-
only.
 COA Mask 283

COA Mask Implementation Considerations

Consider before Implementing…

For COA masks and shared sets:
– Who will maintain both the COA element shared sets
and COA mask shared sets?
– Will the COA shared sets and COA mask shared sets
be administered:
• Locally
• Centrally
• A combination of both

QAD Proprietary 2008-MC-3.2-1-GLM-

Before implementing COA masks and shared sets, you must first determine who will be
responsible for maintaining both the COA element shared sets and COA mask shared sets. You
must also consider whether the COA shared sets and COA mask shared sets will be administered
locally or centrally, or a combination of both.
Both of these considerations greatly influence the setup of the COA masks and their shared sets, as
described in the following scenarios.
284 Training Guide — Advanced Financials

Scenario 1

Scenario 1: Complete Sharing

Domain 1 Domain 2 Domain 3

GL Shared Set 1

Sub-Account Shared Set 1

Sub-Account 100

Sub-Account Mask Shared Set 1

COA Mask Code S1

Ranges for GL Shared Set 1

From GL Account – To GL Account

“100000” – “199999”

“300000” – “349999”
… – …

QAD Proprietary 2008-MC-3.2-1-GLM-

In this scenario, the GL shared set, sub-account shared set, and sub-account mask shared sets are
administered centrally in the organization’s head office by corporate finance and accounting
personnel. The data is then shared across all domains.
 COA Mask 285

Scenario 2

Scenario 2: Complete Segregation

Domain 1 Domain 2 Domain 3

GL Shared Set 1 GL Shared Set 2 GL Shared Set 3

Sub-Account Shared Set 1 Sub-Account Shared Set 2 Sub-Account Shared Set 3

Sub-Account
Sub-Account 100 Sub-Account A02 Sub-Account 001

SA Mask Shared Set 1 SA Mask Shared Set 2 SA Mask Shared Set 3

COA Mask Code S1 COA Mask Code SMA2 COA Mask Code Mx

Ranges for GL Shared Set 1 Ranges for GL Shared Set 2 Ranges for GL Shared Set 3

Fr GL Account – To GL Account Fr GL Account – To GL Account Fr GL Account – To GL Account

“100000” – “199999” “600000” – “699999” “250000” – “299999”

“300000” – “349999” “700000” – “749999” “410000” – “419999”

… – … … – … … – …
QAD Proprietary 2008-MC-3.2-1-GLM-

In this scenario, the GL account, sub-account, and sub-account mask shared sets are maintained
locally by each site’s finance and accounting personnel. An organization may want to separate
shared sets due to varying levels of complexity within the COA and within the COA masks for
each domain.
286 Training Guide — Advanced Financials

Scenario 3

Scenario 3: Combination of Shared and Segregated

Domain 1 Domain 2

GL Shared Set 1 GL Shared Set 2

Sub-Account Shared Set 1

Sub-Account 100
Sub-Account 100

SA Mask Shared Set 1

COA Mask Code S1

Ranges for GL Shared Set 1 Ranges for GL Shared Set 2

Fr GL Account – To GL Account Fr GL Account – To GL Account

“100000” – “199999” “600000” – “699999”

“300000” – “349999” “700000” – “749999”

… – … … – …

QAD Proprietary 2008-MC-3.2-1-GLM-

In scenario 3, the GL shared sets are not shared across domains and are maintained locally by each
site’s finance and accounting personnel. The sub-account and sub-account mask shared sets are
shared across domains, and are maintained by one person centrally in the corporate head office.
 COA Mask 287

COA Mask Validation

COA Mask Validation

 If the sub-account is not blank, the system matches the
GL account using the sub-account COA mask.

 If the cost center is not blank, the system matches the

GL account and sub-account using the cost center COA
mask.

 If the project is not blank, the system matches the GL

account, sub-account, and cost center using the project
COA mask.

QAD Proprietary 2008-MC-3.2-1-GLM-

The system validates the COA mask for a given GL combination using the following method:
• If the sub-account in the GL combination is not blank, the system matches the GL account
using the sub-account COA mask.
• If the cost center in the GL combination is not blank, the system matches the GL account and
sub-account using the cost center COA mask.
• If the project in the GL combination is not blank, the system matches the GL account, sub-
account, and cost center using the project COA mask.
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Validation Example

Validation Example
Sub-Account Mask assigned to sub-account 28

GL Account From GL Account To Disallowed?

010 1999 No

2002 3000 No

2050 2055 Yes

Cost Center Mask assigned to cost center Dep2

GL Account GL Disallowed? Sub- Sub- Disallowed?

From Account Account Account To
To From

010 1999 No 01 99 No

2002 3000 No 102 199 No

2050 2055 Yes

QAD Proprietary 2008-MC-3.2-1-GLM-

Sub-Account 28 and cost center Dep2 are assigned the COA masks shown in the slide.
 COA Mask 289

Validation Example – Continued

Project Mask assigned to project Eng

GL From GL To Disallowed? S-A S-A Disallowed? CC CC Disallowed?

From To From To

001 999 No 01 99 No Dep1 Dep2 No

100 No 101 150 Yes Dep6 Dep8 Yes

Dep8 Dep9 No

QAD Proprietary 2008-MC-3.2-1-GLM-

Project Eng is assigned the COA mask shown in the slide.

When postings are validated all three masks are used in conjunction to form a validation matrix.
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Postings and Validation

Postings and Validation

GL Account Sub- Cost Center Project Validated?
Account

998 100 Dep1 Eng No

1004 28 Dep2 Eng Yes

2000 10 Dep8 Eng No

2997 123 Dep9 Eng No

QAD Proprietary 2008-MC-3.2-1-GLM-

The postings in the above slide are validated using the COA masks shown in the previous two
slides.
The posting with GL account 998, sub-account 100, and cost center Dep1 fails to validate because
sub-account 100 is not defined in the sub-account range for the project mask.
The posting with GL account 1004, sub-account 28, and cost center Dep2 is validated because:
• The sub-account mask assigned to sub-account 28 includes GL account 1004 within its valid
ranges
• The cost center mask assigned to Dep2 includes GL account 1004 and sub-account 28 within
its valid ranges
• The project mask assigned to project Engineering includes GL account 1004, sub-account 28,
and cost center Dep2 within its valid ranges
The posting with GL account 200, sub-account 10, and cost center Dep8 fails to validate because
Dep8 is part of a disallowed range.
The posting with GL account 2997, sub-account 123, and cost center Dep9 fails to validate
because sub-account 123 is part of a disallowed range.
 COA Mask 291

Hands On Exercise
Log in to US-WEST or EMEA-DE.
Enable the COA masks for Sub-Account and Cost Center.
Create masks for sub-accounts and cost centers. Assign the masks to the relevant sub-accounts and
cost centers.
Test the COA mask by creating journal entries with valid, and invalid COA mask combinations
After the exercise, disable the COA masks again in Domain Modify (36.1.1.1.2)

Steps
1 Open Domain Modify (36.1.1.1.2).
2 Enter the domain name that is relevant to your chosen entity (QMSUS or QMSEMEA).
3 On the General tab, enable sub-account and cost center COA masks by selecting the relevant
fields.
4 Set the COA Element without Mask fields to Exclude from Posting.
5 Log off the application and log in again
6 In Sub-Account Mask Create (25.3.9.1.1), create the sub-account mask SAMK1.
In the GL Account Rules grid, enter the following for US-WEST:
Row From To Disallowed Range
1 2470 2470 No
2 7000 7999 No
3 7500 7500 Yes

In the GL Account Rules grid, enter the following for EMEA-DE:

Row From To Disallowed Range
1 19100 19100 No
2 40000 49999 No
3 45000 45000 Yes

7 Save the mask.

8 In Sub-Account Modify (25.3.17.2), assign the mask to sub-accounts GServ, Mech, and Elec.
9 In Cost Center Mask Create (25.3.9.2.1), create the cost center mask CCMK1.
For US-West enter the following combinations:
GL Account Rules Sub-Account Rules
Row From To Disallowed Range Row From To Disallowed Range
1 2470 2470 No 1 Elec Mech No
2 7000 7999 No 2 Ho Ho Yes
3 7500 7500 Yes
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For EMEA-DE enter the following combinations:

GL Account Rules Sub-Account Rules
Row From To Disallowed Range Row From To Disallowed Range
1 19100 19100 No 1 Elec Mech No
2 40000 49999 No 2 Fin Fin Yes

10 Using Cost Center Modify (25.3.20.2), assign the CCMK1 mask to cost centers Adm and Mar.

11 Save your changes.

12 Go to Journal Entry Create (25.13.1.1).

13 Create two journal entries using daybook TRAJE:

• 1 journal entry with a valid combination of accounts
• 1 journal entry where all combinations are invalid

In US-West, enter the following journal entries:

JE1
Account Sub-Account Cost Center Debit Credit
7000 Gserv ADM 1000
7010 Gserv ADM 2000
2470 Gserv 3000

JE2
Account Sub-Account Cost Center Debit Credit
7500 Ho Fin 5000
2470 Ho 5000

In EMEA-DE, enter the following journal entries:

JE1
Account Sub-Account Cost Center Debit Credit
40000 Gserv ADM 1000
40100 Gserv ADM 2000
19100 Gserv 3000

JE2
Account Sub-Account Cost Center Debit Credit
45000 Ho Fin 5000
19100 Ho 5000

14 Verify that the system validates as intended.

15 Disable the masks again in Domain Modify (36.1.1.1.2).

16 Log off the application, and log in again.

 Chapter 13

User-Defined Fields
294 Training Guide — Advanced Financials

User-Defined Fields—Objective

Objective
Learn how to create and use user-defined fields
in QAD Enterprise Applications

QAD Proprietary 2008-MC-3.3 -1-UDF-020

 User-Defined Fields 295

Overview

Overview
Definitions
How to create and modify
Exercise

QAD Proprietary 2008-MC-3.3 -1-UDF-030

In this section, you will learn how to create and use user-defined fields.
We will first review some definitions, then learn the process.
Hands-on exercises are provided in the following chapter on screen customization.
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Definition

User-Defined Fields: Definition

Predefined fields in the database tables

Not used in the business logic
Can be customized to store additional
information

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User-Defined Fields (UDFs) are predefined fields in the database tables that are not used in the
business logic, and can be customized to store additional information specific to your business
requirements.
UDFs are available for all Enterprise Financials business components in the Financials module,
both on master data, such as business relations and suppliers, and for transactional components,
such as supplier invoices.
 User-Defined Fields 297

Create a User-Defined Field

Create Field
Value list
- Only for type combo
- Create your own list

Field name: type and validation

Combo: user-defined value list
Date : valid date
Decimal : valid decimal
Integer : valid integer
Short : free text (max 20 char)
Long : free text (max 255 char)
Note : free text (max 2000 char)

Lookup reference
- Only for type short or long
- Select a query from drop-
down list

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Use the User-Defined Field activities (36.4.12) to create, modify, view, and delete UDFs.
The following UDFs are available for each category of field:
Type Number Validation
Combo 10 User-defined value list.
Date 5 Valid date.
Decimal 5 Valid decimal.
Integer 5 Valid (signed) integer.
Short 10 Free text (maximum 20 characters) or value retrieved
through lookup.
Long 2 Free text (maximum 255 characters) or value retrieved
through lookup.
Note 1 Free text (maximum 2000 characters).

Lookup Reference. Click the lookup to select a query from the list of predefined queries. This
field lets you specify a standard lookup to associate with the user-defined field. Users can then
select a value from the lookup.
The Lookup Reference field is enabled when you select a field of type CustomShort or
CustomLong in the Field Name field.
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Value List Tab

Use the Value List tab to define the list of values for a drop-down list UDF. Right-click and choose
Insert a New Row to specify a value.
 User-Defined Fields 299

Adding a User-Defined Field to the UI

Add UDF to UI
From within the target
menu, access Design
Mode
Make field available to
all, or limit availability
to user or role

Drag and drop UDF to the

required position on the UI
QAD Proprietary 2008-MC-3.3-1-UDF-060

Use design mode to add UDFs to the appropriate screen. When you create a UDF for a component,
it is stored in the BusinessFieldLabel pane of the design window.
To add a UDF to a screen, select it and drag it from the Business Field Label section to its new
position on the screen.
When saving changes, you can choose to make the new field available to a user, a role, or all.
300 Training Guide — Advanced Financials

Using User-Defined Fields in Reports or Views

Add to Report or View

 Use Manage Filter Fields

 Add to report results grid

(right-click – Columns)

QAD Proprietary 2008-MC-3.3-1-UDF-070

When activated, a UDF can be designated as a filter field in the Search Criteria and can be added
to the Search Criteria Result Grid. UDFs are also available for Excel integration, if this
functionality is available for the component you have customized.
To include a UDF in the selection criteria for a report or in the report itself, you must adapt the
selection and the report logic.
 User-Defined Fields 301

Modifying User-Defined Fields

Modify User-Defined Fields

If the UDF is in use, you can modify:
– Description
– Side and column label
– Value list (only for combo type fields)
– Lookup reference

If the UDF is not in use, you can modify:

– Mandatory field
– Display length
– Decimal precision
– Can be deleted

QAD Proprietary 2008-MC-3.3-1-UDF-080

The range of UDF properties you can modify depends on whether the field has been used. A UDF
is considered used if it appears on the UI and at least one value has been stored for it in the
database.
If the UDF is used, you can modify the following properties:
• Description
• Side Label
• Column Label
• Value list (for Combo type UDFs only)
• Lookup Reference, Stored Search, Stored Search Return (for Short and Long type UDFs only)

If a UDF is not used, you can modify the following additional properties:
• Mandatory
• Display Length
• Decimal Precision (for decimal type UDFs only)

You can delete a UDF if it has not been used.

Go to User-Defined Field Delete (36.4.12.4). Select the field you want to delete. Click Delete.
302 Training Guide — Advanced Financials

If the UDF has been used, that is, if a value has been entered in the field and stored in a record, you
cannot delete the UDF. Instead, you can go to Design Mode and make the field invisible. in this
case, the field still exists, but it is not visible and not usable.
 Chapter 14

Screen Customization
304 Training Guide — Advanced Financials

Screen Customization—Objectives

Objectives
Understand the benefits of screen customization
Learn how to customize screens for your own
business case

QAD Proprietary 2008-MC-3.4-1-SC-020

 Screen Customization 305

Overview and Scope

Scope

UI customization using Design Mode feature

User-defined fields

QAD Proprietary 2008-MC-3.4-1-SC-030

The system supports many ways that users and administrators can tailor the user interface of
component-based functions including:
• Customizing the user interface using the Design Mode feature.
• Creating your own user-defined fields and add them to the user interface using the User-
Defined Fields feature.
In addition to the customization of component-based functions, you can modify other aspects of
the UI. The features a particular user can access depends on the system and user settings, and the
user’s permissions. See User Guide: QAD System Administration for a discussion of settings and
User Guide: QAD Security and Controls for more information on permissions.
306 Training Guide — Advanced Financials

Setup Prerequisites

Screen Customization Prerequisites

Setup
– Security settings
• Change System Settings (36.24.5.1)
• Change User Settings (36.24.5.2)

QAD Proprietary 2008-MC-3.4-1-SC-040

To use Design Mode, you must be assigned access to the Customization activity at either the user,
role, or general level. If none of these three activities is linked to any of your roles, the Design
Mode option is not available in the Tools menu.
Checking for the existence of a screen customization before displaying each screen requires
additional system resources and processing time. If you are not using customizations or some users
are not using them, this check can be disabled using a setting that can be defined at both the system
and user level.
• A system administrator can clear the User Interface Customization setting in Change System
Settings (36.24.5.1) to prevent the system from ever looking for existing UI customizations.
Users can still use Design Mode—if Design Mode activities are linked to their roles, but
customized screens will not be displayed.
• If User Interface Customization is enabled at the system level, each user can clear the User
Interface Customization setting in Change User Settings (36.24.5.2) to disable the check for
existing UI customizations for themselves. The user can still use Design Mode—if Design
Mode activities are linked to their role, but customized screens will not be displayed.
Note If customization is disabled at system level, individual users cannot enable it.

See User Guide: QAD Security and Controls for more information on setting up role permissions.
Important In order to perform the screen customizations described in this chapter, you must be
assigned the UI design role, which provides you with the relevant role permissions.
 Screen Customization 307

General Process Flow

General Process Flow

Design Mode

Customizations level
– General
– Role
– User

QAD Proprietary 2008-MC-3.4-1-SC-050

Design Mode lets you add, move, or remove fields, and modify field properties. In addition, you
can create predefined column views for screens that contain grids.
The customizations you create apply to either yourself, all users that belong to your default role, or
all users in the system. This is determined when you save the customization.
You access design mode by selecting Design Mode in the Tools menu in the screen that you want
to customize.
When you select Design Mode, the system prompts you to choose a customization level.
1 Choose the level for the customizations:
General. The customizations are effective for all users.
Role. The customizations are effective for all users with the same default role as you.
User. The customizations are effective for you only.
2 If you chose the Role customization level, select the role for which the customizations apply.
3 Select the component activity for which the customization applies; for example, Create,
Modify, or Delete.
308 Training Guide — Advanced Financials

General Process Flow – Continued

Highlight a field on the UI to:
– Change its properties – Move it to another position
– Remove it from the UI – Add a user-defined field

QAD Proprietary 2008-MC-3.4-1-SC-060

In Design Mode, a gray border is displayed around all fields. When you select a field, its border
color changes to red. By selecting the border, you can drag and drop a field or modify its
properties.
 Screen Customization 309

Moving Fields to Other Tabs

Moving Fields to Other Tabs

 Set to invisible by setting the Visible property to False
– The field now displays in the business field area of the Field list
window
 Select the target tab

Drag the
field from the
business field
area to its
new location

QAD Proprietary 2008-MC-3.4-1-SC-070

You can remove a field from the UI by clicking on the field to activate it and setting the Visible
property to False.
The field is then stored in the BusinessFieldLabel pane of the design fame. To return the field to
the UI, click on it and drag it from the BusinessFieldLabel pane to the screen.
You can move a field within the UI by dragging it to its new location or by modifying the position
properties. You cannot drag a field from one tab to another. To reposition a field to a new tab:
1 Set the Visible property to False. The field now displays in the business field area of the Field
List window.
2 Select the target tab to activate it.
3 Drag the field from the storage area to its new location.
310 Training Guide — Advanced Financials

Field Properties

Field Properties
If ScEnabled is False, the field is
visible on UI, but cannot be accessed
or copied

Default value

Field label on the UI

If ScReadOnly is True, the field is

visible on the UI, but not editable.

If Visible is False, the field is no

longer visible (but appears in the
business fields area.
QAD Proprietary 2008-MC-3.4-1-SC-080

The Field list/properties window displays the properties that control the appearance of the selected
field.

Field Descriptions

BackColor. Specify the color schema for the field. The system applies any color modifications
you make to the field border, and not the actual input zone.
Modify the numeric red, green, and blue properties of the field, or select a color from the drop-
down list.
Height. Specify the height of the field (label and input zone) in pixels.

Left. Specify the field position in pixels, relative to the left of the screen.

Max Length. Specify the maximum length of the field.

ScAppearanceName. Specify a user-defined setting from the Appearances.xml file to

apply to the field. The Appearances.xml file contains settings for color, shadowing, and
alignment.
ScEnabled. Specify True or False to enable or disable the field.
If you set the property to False, the field continues to display on the screen, but it is no longer
accessible in the UI. It cannot be tabbed to and its value cannot be copied.
 Screen Customization 311

ScInitialValue. Specify the initial value of the field. This field can be used for defaulting when
several possible values exist, for example, a daybook in Supplier Invoice Create.
ScLabelSize. Specify the amount of space in pixels (width and height) to allocate to the field
label.
ScLabelText. Specify the label text for the field.

ScReadOnly. Select True or False from the drop-down list to indicate whether the field is read-
only or editable. When set to True, the field cannot be updated, but can be tabbed to and its
contents can be selected and copied.
Top. Specify the field position in pixels, relative to the upper left corner of the screen.

Visible. Select True from the drop-down list to make the field visible on the UI. Select False to
hide the field (including the label).
Note Fields that are hidden from the UI are listed in the BusinessFieldLabel section of the
design window.
Width. Specify the width of the field (label and input zone) in pixels.

BusinessFieldLabel. This section of the design window lists fields that have been hidden on
the UI or user-defined fields that have been defined but not yet placed on the UI.
Use the two buttons as follows:
Reset to Initial Settings resets the properties of the field to the initial settings shipped with the
application. The system prompts you to confirm the reset operation.
Copy Settings copies the properties of the selected field to another customization level. You
can choose the level and the role or user, if applicable.
To apply your customizations to the UI, choose Tools and Design Mode.
The system prompts you to confirm the changes and lets you select other activities for the business
component to which to apply the customizations.
312 Training Guide — Advanced Financials

Field Descriptions

Customization Level. Select the level at which the customization applies.

Activity. The Save Customization screen lets you apply your customizations to other screens
related to the function you customized. This varies depending on the activities defined for each
component, but you can typically apply your customizations to the following screen types:
Create: Select to apply your layout customizations when the screen is used to create a new
record.
View: Select to apply your layout customizations when using the screen to view a record.
Modify: Select to include your layout customizations when using the screen to modify a
record.
Delete: Select to include your layout customizations when using the screen to delete a record.
Role Name. Select the roles for which the customizations apply. These fields are activated
when you select Role in the Customization Level field.
Click Yes to apply the changes to the selected activities. Click No to close the screen without
applying the changes.
 Screen Customization 313

Hands On Exercise

Exercise 1: Rearrange Fields in Customer Modify

On the Payment tab in Customer Modify, make the BLWI Group field invisible for all activities.
On the same tab, move the Print Reminder and Print Statement fields, and position them under the
Statement Cycle field.

Steps:
1 Log into US-WEST or EMEA-DE.
2 Go to Customer Modify (27.20.1.2) and select any customer in the grid to open the main
screen. Go to the Payment tab.
3 On the object menu bar, click on Tools and select Design Mode.
4 In the pop-up window, specify General in the Customization Level field and click OK.
5 Select the BLWI field.
It is now highlighted in red.
6 In the Field list / properties window, set the Visible property to False.
7 Select the Print Reminder field and move it under the Statement Cycle field (drag and drop).
8 Select the Print Statement field and move it under the Print Reminder field.
9 Close the Field list / properties window by clicking on the red X. In the Save Customization
window, select:
Customization Level: General
Activity: Select Save all
10 Click Yes to save.

11 Verify the end result on your screen.

Exercise 2: Make a Field Read-Only

In Supplier Invoice Create, make the Exchange Rate field read-only.
Apply the changes to the Create activity only.
Create a supplier invoice and test your customized screen.

Steps:
1 In Supplier Invoice Create (28.1.1.1), click Tools and select Design Mode. In the pop-up
window, select General in the Customization Level field and Create in the Activity field.
2 Click Continue.
314 Training Guide — Advanced Financials

3 Highlight the Exchange Rate field. In the Field list / properties window, change the
ScReadOnly property to True.
4 Close the Field list /properties window.
5 In the Save Customization screen, select only Save Create. Click Yes.
6 Verify the result on your screen.

Exercise 3: Create a User-Defined Field

Create a user-defined field for the GL Account business component, and create a value list for the
field. Position the UDF on the UI.
Log in to US-WEST or EMEA-DE.

Steps:
7 In User-Defined Field Create (36.4.12.1), create a field with the following parameters:
Field Data
Business Component: GL Account
Field Name: tGL.CustomCombo0
Description: Account Representative

General tab
Side Label: Account Representative
Column Label: Account Representative
Display Format: X(20)
Display Length: 20
Mandatory: No

8 In the Value List tab, right-click in the grid and select Add a New Row. Specify the following
custom values:
• Chief Accountant
• Jr. Accountant
• Sr. Accountant

9 Click Save.
10 In GL Account Modify (25.3.13.3), select any account to open the main window.

11 Click on Tools and select Design Mode. In the pop-up window, select the Customization Level
to General and click Continue.
12 In the Field List/Properties window, you will see the new field at the end of the
BusinessFieldLabel panel.
13 Drag the field and drop it in the GL Account - Modify screen next to the Active field.

14 Close the Field List/Properties window.

 Screen Customization 315

15 In the Save Customization window, select Save for all activities. Click Yes to save.
Your UDF should now display on your screen, with a drop-down list attached.
16 Return to the GL Account Browse for Modify window.

17 Click on a search criteria drop-down list (Account, for example). The new field should appear
on this list.
18 Right-click on the first row in the grid and select Columns. You can select your new UDF and
make it visible on the UI.

Exercise 4: Create a Second User-Defined Field

Create a user-defined field for the GL Account business component, and position the field on the
UI.
Save for all activities.
Update search criteria and columns in the grid.

Steps:
Log in to US-WEST or EMEA-DE.
1 In User-Defined Field Create (36.4.12.1), create a field using the following parameters:
Field Data
Business Component: GL Account
Field Name: tGL.CustomShort1
Description: User in Charge

General tab
Side Label: User in Charge
Column Label: User in Charge
Display Format: X(20)
Display Length: 20
Mandatory: No
Lookup Reference: BUser.SelectUser
Stored Search: FACTORYDEFAULT
Return Field from Stored Search: tUsr.UsrLogin

2 In GL Account Modify (25.3.13.3), select any account to open the main window. Click on
Tools and select Design Mode.
3 In the pop-up window, set the Customization Level to General and click Continue.
4 In the Field List/Properties window, you will see the new field at the end of the
BusinessFieldLabel panel.
5 Drag this field and drop it in the GL Account - Modify screen next to the Referenced field.
316 Training Guide — Advanced Financials

6 Close the Field List/Properties window.

7 In the Save Customization window, select Save for all activities. Click Yes to save.
Results: In the GL Account - Modify screen, the new field should display with your login as
default value.
 Chapter 15

Self-Billing
318 Training Guide — Advanced Financials

Self Billing - Objectives

Objectives
Understand the self-bill workflow
Learn what options are available for creating
self-bills
Learn how to create self-bills
Learn how to adjust self-bills
Practice your new knowledge by completing
exercises

QAD Proprietary 2009-MC-SB-005

 Self-Billing 319

Introduction to Self-Billing

Introduction to Self-Billing
 Used to process customer-initiated payments based on
the information remitted on a customer document.

 Commonly used in the automotive industry.

 Customer remittance document can contain different

details, depending on the specific industry.
– Customer bill-to, PO numbers, kanban numbers, RANs, shipper
numbers, invoice line-item numbers, sales order (SO) numbers,
and others

 Customer remittance document must include the

amount payable to you, the supplier.

QAD Proprietary 2009-MC-SB-010

Use the Self-Billing module to process customer-initiated payments by applying payment to

invoices based on line-item shipper details, including:
• Customer details
• Purchase order (PO) number
• Kanban number
• Release authorization number (RAN)
• Evaluated receipt settlement (ERS) payment references

In the automotive industry, suppliers often do not send invoices to their customers. Instead, the
customer remits a self-bill. This document details shipments received and the amount due to the
supplier for these shipments. The amount also reflects any deductions for defective or damaged
parts, and any other pertinent credits due. This document is called a self-bill because the customer
decides the payable amount instead of relying on an invoice from the supplier.
320 Training Guide — Advanced Financials

Self-Billing Work Flow

Self-Billing Work Flow

Supplier
Suppliermakes
makesshipments
shipmentstoto
customer.
customer.

Customer
Customerremits
remitsself-bill
self-billand
and
payment.
payment.
Shipments
Shipmentsare
arereceived
receivedby
by
customer.
customer.

Supplier
Supplierreceives
receivesandand
processes
processesself-bills
self-billsand
and
Customer payment.
Customercreates
createsself-bill
self-billfor
for payment.
new
newshipments.
shipments.

Supplier
Suppliercreates
createsdiscrepancy
discrepancy
notices
notices if self-billand
if self-bill andinvoice
invoice
Customer amounts
amountsdiffer.
Customeradds
addscorrections
correctionsfor
for differ.
other
otherself-bills.
self-bills.

QAD Proprietary 2009-MC-SB-020

The slide shows the traditional self-billing workflow.

The self-bill is remitted to the supplier, who then processes it and compares it with open invoices.
When the self-bill information is entered into the system, it is matched to invoices for that
customer.
If the supplier notes any discrepancy between the self-bill and their records, the customer must be
notified within a predefined period for corrections to be made. In some situations, a self-bill is
remitted and only later is the payment made. In other situations, payment may accompany the self-
bill.
The payment remitted reflects the self-bill and any agreed-upon corrections from previous self-
bills. Each supplier-customer relationship usually sets up specific rules for reconciling
discrepancies. Sometimes these must be written off as losses by either the supplier or the customer.

Non-Traditional Self-Bill Process

Many industries do not use the traditional self-billing methodology. In some situations, suppliers
do send invoices to their customers. However, customers disregard these and, as in the traditional
self-billing environment, send their own type of remittance advice document to their supplier. This
customer remittance document contains different details, based on the specific industry. These
details can include customer bill-to, PO numbers, kanban numbers, RANs, shipper numbers,
invoice line-item numbers, sales order (SO) numbers, and others.
 Self-Billing 321

The customer remittance document must always include an amount payable to the supplier. This
can also be in the form of an ERS payment. The amount can reflect any adjustments for defective
or damaged parts and any other pertinent credits due.
Unlike the traditional self-bill process, other industries do not necessarily rely on the customer-
remitted document number as reference to the original supplier invoice. Instead, the supplied
information must be used to reconcile the customer’s remittance document to the supplier’s
invoice records.
322 Training Guide — Advanced Financials

Self-Billing Process Map

Self-Billing Process Map

QAD Proprietary 2009-MC-SB-030

The slide shows the Self-Billing process map, which in part of the Accounts Receivable set of
process maps.
The process map shows the steps required to set up self-billing and to process customer remittance
information to create self-bills. The map also shows the self-billing reports you can run.
When using the Self-Billing process map in the system, you can click on the nodes to access the
screens that let you perform self-billing activities.
 Self-Billing 323

Self-Billing Options

Self-Billing Options
 Automatically enter customer remittance information
using Document Import (35.13).
 Automatically enter remittance information based on
hard-copy customer remittance advice using Self-Bill
Auto Create (27.6.12.4).
 Manually enter remittance information using Self-Bill
Maintenance (27.6.12.1).
 Apply under- or over-payment credit to accounts
receivable based on customer remittance
 Apply batch payments to invoices referenced on self-
bills.
QAD Proprietary 2009-MC-SB-035

A number of self-billing options are available to you. You can:

• Create new self-bills by automatically loading customer remittance information using EDI
Document Import (35.13).
• Use Self-Bill Auto Create (27.6.12.4) to automatically create self-bills by entering information
from hard-copy customer remittance advice.
• Use Self-Bill Maintenance (27.6.12.1) to manually create self-bills.

In addition, you can use self-bills as the basis to:

• Apply under- or over-payment credit to accounts receivable.
• Apply batch payments to invoice references on self-bills.
324 Training Guide — Advanced Financials

Self-Billing—Prerequisite Data

Self-Billing - Prerequisite Data

 Self-Billing uses processed shipping information to
match incoming customer-initiated payments.

 Shipment details are captured at the time a shipper is

confirmed.

 Invoice, tax, order-level discount, and trailer information

is captured at the time of invoice posting.

Note: Always use shippers. Sales Order

Shipments (7.9.15) does not generate self-
billing data.

QAD Proprietary 2009-MC-SB-050

AR Self-Billing uses processed shipping information to match incoming customer-initiated

payments. The system must first process shipping information for the incoming remittance.
Shipment details are captured at the time a shipper is confirmed. Invoice, tax, order-level discount,
and trailer information is captured at the time of invoice posting.
Note The Sales Order Shipments (7.9.15) does not capture self-billing information.
 Self-Billing 325

Activate Self-Billing

Activate Self-Billing

Assign Self Billing

prefix

Daybook for Self Billing

transactions

QAD Proprietary 2009-MC-SB-060

You activate self-billing using Self-Billing Control (27.6.12.24). The following describes the three
fields other than the Enable Self-Billing field:
Self-Bill Prefix. Define the three-character, self-bill numbering prefix according to your
requirements. In cases where the customer supplies the remittance prefix and number, you can
choose to leave this field blank.
Next Self-Bill. Enter the next self-bill number (maximum 22 characters). In cases where the
customer supplies the remittance number, you can choose to leave this field blank.
Self-Bill Daybook. Select a self-billing daybook to use for self-billing transactions. You must
define at least one daybook of type Self-Bill Invoices in the system.
326 Training Guide — Advanced Financials

Set Up Self-Billing for a Customer

Set Up Self-Billing for Customers

 Activate Self-Billing for a customer in Customer Data
Maintenance
 Select the Capture Self Billing Information field

 Note: this field only appears after you activate Self

Billing in Self-Billing Control

QAD Proprietary 2009-MC-SB-070

Configure the following self-billing fields in Customer Data Maintenance (2.1.1):

Capture Self-Billing Information. Select this field to capture self-billing information for this
customer bill-to address. When sales orders or schedules are used with shippers, this field
triggers the creation of shipment invoice cross-reference records for every line item of a
shipment. These cross-reference records are updated when the invoice is created, and can then
be retrieved by the Self-Billing program. The records do not include sales order shipment
postings.
This field is displayed only after you activate self-billing in Self-Billing Control.
 Self-Billing 327

Set Up Self Billing for Customers -

Continued
Activate creation of payments from Self-Billing
transactions

The customer payment will have status For

Collection or Paid
 Note: this field only appears after you activate Self
Billing in Self-Billing Control

QAD Proprietary 2009-MC-SB-080

Create Payments Automatically. Select this field to automatically create a customer payment
from the self-bill transaction. The customer payment is created with a status of For Collection,
or Paid. The default customer bank account to be used for the payment is selected on the
Banking tab of the Customer record, and you must also select a status for the payment from a
drop-down menu on this tab.
You can then process the payment using the standard customer payments flow. If you do not
select this field, you process the self-billing invoice using any of the other customer payment
processes or a banking entry.
This field is displayed only after you activate self-billing in Self-Billing Control.
328 Training Guide — Advanced Financials

Designate Customer Bank Account for Use with Self-Billing

Designate Customer Bank Account for Use

with Self-Billing

Indicate the default Specify the payment

bank account for self- status to use
billing

QAD Proprietary 2009-MC-SB-090

You must indicate the bank account to use for a customer’s self-bills by selecting the Self-Bill
Default field for the account in the Banking tab of Customer Create or Customer Modify.
As stated previously, the customer payment is created with a status of For Collection (if this status
is already defined for the customer), or Paid (if no status is defined for the customer). Therefore,
you must ensure that both these statuses are defined in Customer Payment Status Create for the
self-bill default customer bank GL account.
You must also specify a status for self-bill payments from the customer bank account using the
Payment Status drop-down list in the Banking tab of Customer Create or Customer Modify. Ensure
that you assign the status of Paid.
 Self-Billing 329

Self-Billing Data

Self-Billing Data
Can include:
– Adjustments and corrections from previous self-bills
– Partial payment for a shipment
– Full payment for a shipment
– Trailer charges for selected invoices (including freight
and handling charges)
– Tax charges on selected invoices

QAD Proprietary 2009-MC-SB-100

330 Training Guide — Advanced Financials

Self-Bill Auto Create

Self-Bill Auto Create

 Used to enter
customer
remittance data
 Associate
payment
information with
correct invoice

 Assign self-bill number or use system-generated

number
QAD Proprietary 2009-MC-SB-120

Self-Bill Auto Create (27.6.12.4) lets you enter customer remittance advice into your system.
Specify a range of selection criteria as shown on the customer’s remittance advice, and then
associate the payment information with the correct invoice. You can assign a self-bill number to
the document you are creating, or let the system auto-generate the self-bill number.
To create a self-bill:
1 Enter a previously-created self-bill number, or leave Self-Bill blank when creating a new self-
bill.
2 Enter any identifying information in the auto-create selection screen. Enter as much or as little
information as you have from the customer’s remittance advice you are re-creating.
Significant information you should enter is:
• Shipper number
• Sold-to
• Ship-to
• Item number
• Date of shipment
• Authorization number
Note The more selection criteria you provide, the narrower and more accurate your selection
becomes.
 Self-Billing 331

3 Specify whether to include shipment details, trailer charges, taxes, container charges, line
charges, or order discounts on the selection display screen.
When you click Next in the Self-Bill Auto Create main screen and if the system can locate
shipper data that matches your selection criteria, the Workbench frame displays.
See User Guide: QAD Financials A for more information on Self-Bill Auto Create.
332 Training Guide — Advanced Financials

Self-Bill Auto Create - Workbench

Self-Bill Auto Create – Workbench

Order
Item
Shipper

Order and Invoice details (from

QAD Proprietary shipper) 2009-MC-SB-135

The system analyzes your customer’s shipment data and displays a list of possible shipper
numbers that might be associated with the customer’s remittance advice document. This
information is displayed in the screen according to the sort order you previously indicated.
Use the workbench area to refine your selection by deselecting any lines that should not be
referenced by this self-bill. The item number is the customer’s item number, which was originally
used on the order.
• Use Next/Previous functions to navigate from entry to entry.
• Deselect any entry that does not belong on the self-bill. An asterisk (*) indicates selection.
 Self-Billing 333

Self-Bill Auto Create - Report

Self-Bill Auto Create - Report

Select to print the

self-bill details

QAD Proprietary 2009-MC-SB-136

You can print a report of the shipment details for which you created self-bills by selecting the Print
Selection field at the end of the Workbench frame. You then select the output type and click Next
to generate the report.
See User Guide: QAD Financials A for more information on Self-Bill Auto Create.
334 Training Guide — Advanced Financials

Importing Self-Bills

Importing Self-Bills
 Customers with EDI can use Supplier Self-Billing Export
to export payment information to you.

 Use Document Import (35.1) to import EDI self-bills into

the system with EDI eCommerce.

 During import, the system tries to associate incoming

electronic self-bill data with invoice data.

QAD Proprietary 2009-MC-SB-140

Use Document Import (35.1) to import EDI self-bills into the system with EDI eCommerce. This
function loads self-bill information from an EDI file and processes it to create a self-bill document
in your QAD database.
Note For more details on EDI eCommerce, see User Guide: QAD EDI eCommerce.

During import, the system tries to associate incoming electronic self-bill data with invoice data.
Once loaded into your database, the information can be manually modified using Self-Bill
Maintenance.
EDI self-bill lines should always be associated with a QAD invoice number. However, the system
may not be able to make this association for some self-bill lines due to incorrect or incomplete
information in the EDI file. These problems are reported in the EDI load report produced during
import.
Lines that the import process cannot associate are tagged as adjustment entry lines. You can
manually associate adjustment self-bill lines to the correct invoice in Self-Bill Maintenance.
 Self-Billing 335

Self-Bill Maintenance

Self-Bill Maintenance
 Manually enter
new self-bills
 Maintain existing
self-bills
 Delete self-bills

 Reconcile any adjustments that resulted from

processing in Self-Bill Auto Create or Document Import

QAD Proprietary 2009-MC-SB-150

Use Self-Bill Maintenance (27.6.12.1) to manually enter new self-bills and delete and maintain
existing self-bills. Use this function to reconcile any adjustment lines that result from processing a
self-bill using Self-Bill Auto Create (27.6.12.4) or Document Import (35.1).
In certain situations, you may not be able to associate some lines from a customer’s remittance
advice to the self-bill you are creating. These lines are labeled adjustment self-bill lines. You must
manually associate these lines with the corresponding invoice lines using Self-Bill Maintenance
(27.6.12.1).
336 Training Guide — Advanced Financials

Self-Bill Maintenance - New Self-Bill

Self-Bill Maintenance – New Self-Bill

Line Selection Frame

Right click in frame and

select Insert to insert
new line
The Line Edit
Frame then
opens…
QAD Proprietary 2009-MC-SB-152

You usually use Self-Bill Auto Create or Document Import to create a new self-bill. However,
under some circumstances you may have to use Self-Bill Maintenance to create a new self-bill.
Follow these steps to create a new self-bill using Self-Bill Maintenance. In the program header do
the following:
1 Enter a new self-bill number.
Leave blank for the system to create a new number from the information in the control
program.
2 Enter or select a customer bill-to address.
On a new self-bill, information defaults for Response Date and Currency.
3 Edit Transmission, Response Date, and Amt Control Total as needed. Press Next.
A self-bill line selection frame is displayed.
4 Right-click the blank self-bill line and choose Insert to insert a line.
The self-bill line edit frame is displayed.
 Self-Billing 337

Self-Bill Maintenance - Line Edit Frame

Self-Bill Maintenance – New Self-Bill

Line Edit Frame

Enter details to create a new self-bill

QAD Proprietary 2009-MC-SB-154

5 Enter the Self-Bill Item or Sold-To.

6 Enter any other identifying information available. If you enter an item number associated with
a customer item in Customer Item Maintenance (1.16), the customer item number is displayed
below the Self-Bill Item field.
When you press Next, the system matches shipment invoice records based on the information
in these fields.
For Type:
• Leave blank if entering a shipment line.
• Enter A for an adjustment line. Use this code when creating an adjustment line to
reference a write-off.
• Enter C for trailer charges line.
• Enter D for discount line.
• Enter T for tax line.
• Enter L for line charges line.
• Enter X for container charges line.

7 When the system finds multiple matches for the information you enter, a shipment selection
frame is displayed. Use this frame to select the correct line.
• Use the arrow keys to scroll from line to line.
338 Training Guide — Advanced Financials

• Press Enter to select the correct line.

If only one match is found, or after you select the correct shipment line from the line match
frame, the financial detail frame is displayed.
8 Enter or edit financial details and remarks for the line. Press Next.
Matching shipment information is displayed in the last frame.
See User Guide: QAD Financials A for more information on Self-Bill Maintenance.
 Self-Billing 339

Self-Bill Maintenance - Modifying an Existing Self-Bill

Self-Bill Maintenance – Modify Existing Self-

Bill
Line Selection Frame

Modify line

Line Edit Frame

Amount to pay

QAD Proprietary 2009-MC-SB-156

After using Document Import to process EDI self-bills or Self-Bill Auto Create to automatically
create self-bills, use Self-Bill Maintenance to make any adjustments.
Once the header information has been entered into the Self-Bill Maintenance header or you have
finished the initial auto-create procedure, the line selection frame is displayed. Use this frame to
edit, delete, or add new self-bill lines. Use this frame also to link adjustment self-bill lines to
shipments, which in effect changes self-bill adjustment lines to shipment self-bill lines.
When modifying an existing self-bill in the Self-Bill Maintenance, you cannot edit the Self-Bill,
Bill-To, or Currency fields in the header, which default from Self-Bill Auto Create.
Use the following steps to modify a self-bill:
1 In the header frame of Self-Bill Maintenance, enter the Bill-To and Self-Bill number of the
self-bill you want to modify.
2 Click Next twice.
3 In the Line Selection Frame, select the self-bill line that you want to edit and press Next.
The Line Edit Frame opens.
4 Adjust the quantity, price, or amount to pay as required.
The new amount is displayed at the end of the Line Edit frame (see the next slide).
340 Training Guide — Advanced Financials

Self-Bill Maintenance – Modify Existing Self-

Bill

System asks New payment

amount,
whether to
displayed in
override old
end frame of
amount
Line Edit

New,
updated
amount
displayed in
first frame

QAD Proprietary 2009-MC-SB-158

5 When you click Next, the system asks you whether you want to overwrite the original self-bill
amount.
6 When you click Next and eventually return to the first frame in Self-Bill Maintenance, the
frame displays the updated amount (720 Euros, the original amount was 679.04 Euros).
See User Guide: QAD Financials A for more information on Self-Bill Maintenance.
 Self-Billing 341

Deleting Self-Bills

Deleting Self-Bills

QAD Proprietary 2009-MC-SB-159

You can use Self-Bill Maintenance (27.6.12.1) to delete an entire self-bill or a specific self-bill
line. When a self-bill or a self-bill line is deleted, any shipment-invoice cross-reference records
associated with it are released and the invoice lines can be selected on another self-bill.
Note A self-bill or self-bill line cannot be deleted if payment has been applied to it.

To delete a self-bill line:

1 Select the self-bill that has the line you want to delete.
2 In the line selection frame, select the line to delete. Press Delete.
The self-bill line detail frame and a delete confirmation prompt appear.
342 Training Guide — Advanced Financials

Applying Payments to Self-Bills

Apply Payments to Self-Bills

 Use to credit payment
to the invoices
referenced by a self-
bill document
 Reconcile self-bills

QAD Proprietary 2009-MC-SB-160

Once a self-bill has been created and payment has been received, payment must be credited to the
appropriate QAD invoices. Use Self-Bill Confirm (27.6.12.7) to apply payment to all of the
invoices that are referenced by a self-bill document.
Important You cannot apply payment to a self-bill if the Amt Total does not equal the Amt
Control Total.
When you use this program to apply payment, the payment is applied to the invoice specified on
the self-bill detail line.
When a payment is applied, four different situations are possible:
• Payment is credited to the invoice.
• When no invoice is specified—the Invoice field is blank—the amount paid is applied to
unapplied cash with a reference to the self-bill and the self-bill line.
• When payment is greater than the amount open on the invoice, the overpayment amount is
applied to unapplied cash with a reference to the invoice.
• When payment is greater than the invoice line, the overpayment is applied to unapplied cash
with a reference to the self-bill and self-bill line.
See User Guide: QAD Financials A for more information on Self-Bill Confirm.
 Self-Billing 343

Payment Created by Confirming Self-Bill

Payment Created by Confirming Self-Bill

QAD Proprietary 2009-MC-SB-165

The slide displays the customer payment automatically created by confirming the payment in Self-
Bill Confirm (27.6.12.7).
344 Training Guide — Advanced Financials

Reversing Self-Bills

Reversing Self-Bills

Reverses
payments made in
Self-Bill Confirm

QAD Proprietary 2009-MC-SB-190

If you need to reverse a payment, use Self-Bill Unconfirm (27.6.12.8). This program reverses
payments made in Self-Bill Confirm (27.6.12.7).
Payments cannot be reversed if:
• Unapplied cash related to the self-bill has been used to pay another invoice.
• The payment period is not a valid, open GL period.

See User Guide: QAD Financials A for more information on Self-Bill Unconfirm.
 Self-Billing 345

Report and Inquiries

Reports and Inquiries

Self-Bill Report

Self-Bill Discrepancy Report

QAD Proprietary 2009-MC-SB-200

Use Self-Bill Report (27.6.12.13) to review self-bill detail information. Use the selection criteria
and sort options to sort and narrow down the information reported.
Use Self-Bill Discrepancy Report (27.6.12.10) to view discrepancy details associated with a self-
bill document. Use the details provided by this report to reconcile discrepancies in self-bills. This
report shows the three types of discrepancies that prevent you from applying payment to a self-bill.
• Discrepant Lines: Lines matched to invoice shipment data where the invoice shipment data
has an open quantity, an open amount, or a price difference.
• Adjustment Lines: Lines marked with a type A. These lines could not be matched when the
self-bill was originally created.
• Lines Not Matched: Lines that can be matched to invoice shipment data, but for some reason
were not. These are marked as type blank.
346 Training Guide — Advanced Financials

Reports and Inquiries – Continued

Invoice AR Balance Report

QAD Proprietary 2009-MC-SB-210

Use Invoice AR Balance Report (27.6.12.11) to determine what portion of invoices referenced by
the self-bill have been paid. Internally, the system maintains a map between every self-bill line and
an invoice. Applying payment to a self-bill means applying payment to the associated invoices.
 Self-Billing 347

Reports and Inquiries – Continued

Shipment-Invoice Crossref Report

QAD Proprietary 2009-MC-SB-220

The shipment-invoice cross-reference structure holds the map between shipment-related details
such as shipper number or authorization number and associated QAD invoice numbers.
Shipment-Invoice Crossref Report (27.6.12.15) facilitates inquiries into the self-bill cross-
reference structures in the system.
348 Training Guide — Advanced Financials
 Chapter 16

Consolidation
350 Training Guide — Advanced Financials

Consolidation—Objectives

Objectives
Understand the scope and capabilities of the
consolidation functionality in QAD Enterprise
Applications
Learn how to set up and run consolidation for a
specific business case

QAD Proprietary 2008-MC-4.1-1-CON-020

 Consolidation 351

Overview

Overview
Benefits
Current scope
Highlights
Process Flow
Setup
– Prerequisites
Processing
Exercise

QAD Proprietary 2008-MC-4.1-1-CON-030

This section reviews the highlights of the consolidation functionality in QAD Enterprise
Applications, including its benefits and current scope.
We will then study the consolidation process—from setup to processing—in more detail.
Finally, you will practice your newly-acquired knowledge with a hands-on exercise.
352 Training Guide — Advanced Financials

Benefits of Consolidation

Consolidation Benefits
Combine the financial records of many entities
into one consolidated set of financial statements
for legal/accounting purposes.
– Usually, a monthly process.

Perform a number of consolidations within the

organization to account for subsidiaries.

QAD Proprietary 2008-MC-4.1-1-CON-040

Consolidation is usually a monthly review process, giving an immediate financial summary of a

multi-entity organization.
You can perform a number of consolidations within the organization to account for subsidiaries
that have been taken over by the parent organization.
In order to consolidate, you must identify the entities with accounts you want to consolidate, and
set up a consolidation entity in which to store the consolidation data. All accounts in the source
entities are mapped to corresponding consolidation accounts in the consolidation entity.
The consolidation functionality responds to a legal and accounting requirement.
 Consolidation 353

Current Scope

Current Scope
Consolidate entities in different domains, but in
the same database.
Consolidate GL balances/movements with full
analytic detail.
The entities can use the same or different base
currencies.

QAD Proprietary 2008-MC-4.1-1-CON-050

The consolidation functionality requires that the entities to consolidate be in the same database,
but they can belong to different domains.
You can, optionally, include the full GL analytic detail in a consolidation, for example, sub-
account, cost center, project, and SAF structures, or only part of it.
The entities involved in consolidation do not need to have the same base currency.
354 Training Guide — Advanced Financials

Key Features

Key Features
Supports different consolidations within the
same organization
Mapping of GL calendar year and periods,
currencies, and COAs across entities
Consolidate one or more periods in a single run,
for example, quarterly processing
Supports proportional consolidation
Lets you build up hierarchies of consolidation
entities
QAD Proprietary 2008-MC-4.1-1-CON-060

The consolidation functionality in QAD Enterprise Applications lets you perform multiple
consolidations within one system, and is, therefore, of great benefit to large organizations,
Again, you can include all GL analytical elements in a consolidation.
Proportional consolidation is an option, and we will review this later in more detail.
The entities involved in a consolidation do not need to have to have the same GL calendar.
Additionally, a consolidation can be run for one or several periods at a time.
In a consolidation entity, the same reporting capabilities exist as for non-consolidation entities.
 Consolidation 355

Key Features—Continued

Key Features – Continued

Consolidate separately by accounting layer
Fast balance-level consolidation
Supports simulations
Automatic tracking of intercompany transactions
to support elimination
For multiple consolidations:
– Supports incremental elimination as well as full
elimination

QAD Proprietary 2008-MC-4.1-1-CON-065

356 Training Guide — Advanced Financials

Consolidation Process

Consolidation Process
 Transfers GL balances from the source companies to a
target (consolidation) company using journal entries
– Account, sub-account and intercompany codes
– 100% or partial consolidation
– Staged consolidation is possible, through different currencies

 Allows further manual postings after consolidation:

– Report based on intercompany codes is basis for intercompany
elimination
– Allows simulation postings or other postings in consolidation
company

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 Consolidation 357

Consolidation Hierarchies

Consolidation Hierarchy Example

Entity 1000 Entity 2000 Entity 3000 Entity 4000 Entity 5000 Entity 6000
Domain A Domain B Domain C Domain D Domain E Domain F
EUR CHF GBP MXP CAD USD

Consolidation Consolidation

Entity 9000 Entity 4002

Domain G Domain H
EUR USD

Consolidation
Entity 9999
Domain H
USD

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An organization has subsidiaries represented by entities 9000 and 4002. Entity 9000 in turn has
subsidiary entities 1000, 2000, and 3000, and 4002 has subsidiary entities 4000, 5000, and 6000.
The organization performs consolidations for subsidiary entities 1000, 2000, and 3000 in entity
9000, for entities 4000, 5000, and 6000 in entity 4002, and, finally, for entities 9000 and 4002 in
entity 9999.
358 Training Guide — Advanced Financials

Consolidation Process Flow

Consolidation Process Flow

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The system uses source and target entities in the consolidation process. Source entities are the
subsidiary entities whose accounts you want to consolidate. The target entity is the consolidation
entity in which you combine the source account balances.
From within the consolidation entity, you create a consolidation cycle, which identifies the source
entities, the daybooks to be used for balances in each entity, and the participation percentage to be
applied to each entity.
Consolidation is performed for specific GL periods, and you must align your consolidation entity
GL periods with those of the source entities. You must also map GL elements in your source
entities to the consolidation accounts in your consolidation entity.
Important After you have created the consolidation, you must perform an additional step to
eliminate intercompany postings. See “Intercompany Elimination Postings” on page 372.
 Consolidation 359

Consolidation Steps Detail

Consolidation Steps Detail

Define source and target entities and daybooks.
Define source and target entities and daybooks.

Create
CreateCOA
COAcross-references.
cross-references.

Create
Createconsolidation
consolidationcycle.
cycle. Delete
Deleteconsolidation.
consolidation.

Map
Mapsource
sourceand
andtarget
targetaccounting
accountingperiods.
periods. Unlock
UnlockGL
GLperiods
periodsininsource
sourceentities.
entities.

Lock
LockGL
GLperiods
periodsininthe
thesource
sourceentities.
entities. Recreate missing transactions.
Recreate missing transactions.

Create consolidation (optionally in transient layer). Yes

Create consolidation (optionally in transient layer).
Source
Source
Perform reporting. Transactions missing
Perform reporting.
Target
Target
Transfer to the official layer using
Transfer to the official layer using
Mass
MassLayer
LayerTransfer
Transfer(if(ifinintransient
transientlayer).
layer). No

Create
Createintercompany
intercompanyelimination
eliminationpostings
postings
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You set up and run consolidation in the following order:

1 Create the source and target entities and daybooks required for consolidation.
2 From within each of the source entities, map source and target GL accounts and, optionally,
sub-accounts, cost centers and projects, to create COA cross references for use in the
consolidation cycle. Each subsidiary entity and the COA cross reference it uses must belong to
the same domain.
3 From within the consolidation entity, create the consolidation cycle, which defines the source
entities and daybooks to use.
4 From within each of the source entities, define a range of GL periods to be mapped to the
consolidation GL calendar.
5 From within each of the source entities, lock the GL periods that are to be included in the
consolidation.
6 From within the consolidation entity, create the consolidation. In this step, you define source
and target accounting layers, set the GL period range, and run the consolidation.
7 Perform reporting.
8 Create elimination postings.
We will now review these steps in more detail.
360 Training Guide — Advanced Financials

Setup Prerequisites

Setup Prerequisites
Consolidation entity
– Set up separate entity
– Define rounding differences account
– Default cost center
– Default project
– Default tax code
– Consolidation daybook per subsidiary/source entity
and layer
– Create a separate management layer for elimination
postings
– Create a separate daybook for elimination postings
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Prior to creating a consolidation cycle, the following setup is required:

Consolidation (Target) Entity

You must set up a new, separate consolidation entity, including the business relation.
You must create a rounding difference account, default cost center, project codes, and tax code for
the consolidation entity.
Additionally, you must create a consolidation daybook for each source entity and layer.
 Consolidation 361

Source Entities

Setup Prerequisites – Continued

In each source entity:
– COA cross-references
• GL accounts, sub-accounts, cost centers, projects
– Period cross-references
– Exchange rate consolidation method
• For each GL account (only once per shared set):
• In currency tab

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In each source entity, use COA Cross Reference Create (25.3.14.1) to create mappings between the
GL dimensions in source and consolidation entities.
Special attention is required when mapping open item accounts, cross-company accounts and tax
accounts. When posting to any of these accounts, the system requires additional input that cannot
be given during consolidation posting. Therefore, all accounts of one of these three types should be
matched to standard accounts in the consolidation entity. For intercompany accounts, this results in
a zero balance, as expected.
Use Consolidation Period Cross-Reference Maintain (25.19.1.3) to create cross-references
between GL periods in a source entity and GL periods in consolidation entities.
Finally, for each GL account of a specific shared set, select the consolidation method in the
currency tab of GL Account Create (25.3.13.1) or GL Account Modify (25.3.13.2).
Consolidation can be performed between entities using the same or different base currencies.
When the entities are in domains with different base currencies, the system converts transactions in
the base currency of the source entity into the base currency of the consolidation entity using rates
in the exchange rate shared set of the consolidation entity. The exact rate used is determined for
each account based on the setting of the Consolidation Method field in the Currency tab of GL
Account Create. This field can have one of the following values:
• Actual Rate (accounting rate at period end, also known as current rate)
• Historical Rate
362 Training Guide — Advanced Financials

• Simple Average Rate

• User-Defined Rate (Own Method)
• Weighted Average Rate

These methods are described in detail in the User Guide: QAD Financials A.
When different methods are used, exchange rate differences may result. These are posted to the
Rounding Differences account specified in Consolidation Cycle Create (25.9.1.7).
 Consolidation 363

COA Cross Reference Creation

COA Cross-References Creation

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Use COA Cross Reference Create (25.3.14.1) to define mappings between the source and target
entity charts of accounts. You can choose between two different types of cross-references:
combined, or separate COA dimensions. The third available type is reserved for the setup of
alternate COAs. On the next slide, we will explain more about the two consolidation types.
You must create a cross-reference structure in the same domain as the source entity. The target
domain is the consolidation entity’s domain. Each cross reference should be valid. For details on
the validations performed, refer to the User Guide: QAD Financials A. Many-to-one combinations
are possible.
A Copy function, as well as Excel integration, are available when creating COA cross-references.
364 Training Guide — Advanced Financials

Combined vs Separate GL Dimensions Types

Validate?

combined
vs.
separate
dimensions

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When the cross reference type is Combined GL Dimensions, you specify cross-references from
source GL combinations (account, sub-account, cost center, project, SAF) to target GL
combinations. The system reads the GL combination from the source transaction, and looks for a
match in the cross-reference table of the consolidation entity’s domain, in the following order:
• Matching account, sub-account, cost center, and project
• Matching account, sub-account, cost center, and blank project
• Matching account, sub-account, blank cost center, and project
• Matching account, sub-account, blank cost center, and blank project
• Matching account, blank sub-account, blank cost center, and blank project

If no match is found, the transaction is posted to the same GL combination as the source
transaction.
When the cross reference type is Separate GL Dimensions, you can specify cross-references
from separate source GL COA elements to separate target GL COA elements (GL accounts to
target GL account, sub-accounts to target sub-accounts, and so on).
When creating separate COA cross-references, use the Columns field to indicate the type of
mapping to filter on—All, GL Account, Sub-Account, Cost Center, or Project. The filter lets you
focus on one element at a time, and you can change the filter type during input.
 Consolidation 365

By selecting the Validate option at the end of the COA Cross Reference Create, you can validate
the cross references that you have defined against posting history. If the cross reference type is
Separated GL Dimensions or Combined GL Dimensions, you can indicate whether or not to
validate the sub-account, cost center, or project.
If gaps exist in the cross reference mappings used in a report or consolidation, the system will
display an error. If there are any overlaps in the cross reference mappings you create, the system
will use the first mapping record it finds in the grid.
Note that the validation option does not prevent saving; it is only a means to verify and detect
conflicts with the current posting history.
Refer to the User Guide: QAD Financials A for a detailed explanation of validation in COA Cross
Reference Create (25.3.14.1).
366 Training Guide — Advanced Financials

Consolidation Cycle Create

Create a Consolidation Cycle Add source

entities to the
consolidation
cycle by inserting
a new row.

Configure default
SAF, Cost Center, or
Project analysis for
the consolidation

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When the prerequisites are set up for the source and target entities, a consolidation cycle can be
created.
Use Consolidation Cycle Create (25.19.1.7) to create a consolidation cycle in the consolidation
entity that defines the consolidation structure. You indicate the source and target entities; and
whether consolidation is full or proportional.
An entity can be a consolidation entity for several source entities in one consolidation cycle and a
source entity in another consolidation cycle. The consolidation process is started in the
consolidation entity for a range of periods or for one period.
You add source entities to the consolidation cycle by inserting a new row.
You also add the daybook codes for the consolidation transactions. You specify a daybook for each
source layer, and the system posts the consolidation transactions to the appropriate consolidation
daybook.
Indicate whether sub-accounts, cost centers, projects, and SAFs should be included in the
consolidation.
On each row, specify the COA cross-reference code used for each source entity in this
consolidation cycle. When a consolidation cycle’s status is changed to Valid or Operational, cross-
references are validated.
 Consolidation 367

Click the Default Analysis button to display a new window with multiple tabs where you can
configure default SAF, Cost Center, or Project analysis for the consolidation. When source
transactions use any of these, and the Sub-Accounts, Cost Center, Project, and SAF fields are not
selected, the system applies the defaults you define here to the consolidation transactions.
368 Training Guide — Advanced Financials

Set Up Intercompany Eliminations

Set Up Intercompany Eliminations in the

Consolidation Entity
Create a separate management layer for
elimination postings
Create a separate daybook for elimination
postings
– Daybook type: Journal Entries
– Controlled by: Financials
– Layer: Dedicated management layer for eliminations
– For each daybook shared set

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The slide describes the setup required before you can eliminate intercompany postings from your
consolidation.
1 Create a separate management layer in the consolidation entity for elimination postings.
2 Create a separate daybook for elimination postings in each consolidation entity. If you are
consolidating at several levels, it is recommended that you create a daybook for each shared
set.
a Set the daybook type to Journal Entries and the control type to Financials.
b In the Layer Code field, specify the dedicated management layer that you created for
intercompany eliminations.
 Consolidation 369

Creating a Consolidation

Execution
Lock status of periods to consolidate.
– Each source entity
Consolidation entity
– Consolidation Create (25.19.2.1):
• From/to GL period
• Target layer type:
– Primary
– Secondary
– Transient = RECOMMENDED
• Source layer type
– Primary
– Secondary

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You run the consolidation cycle you have defined using Consolidation Create (25.19.2.1) within
the consolidation entity. You can run the consolidation for primary or secondary layer transactions,
but not simultaneously. It is recommended that you first run a consolidation posting to the transient
layer, before posting it to the actual target layer.
Before creating a consolidation, you must ensure that:
• The GL periods in the source entities are locked.
• No unposted transactions exist in the source entities.
• You have mapped all new source accounts and sub-accounts.

You select source and target layers when configuring the consolidation. You can only select the
primary or secondary layers for source entities. When you select a secondary source layer, the
system retrieves all the secondary layers created in the source entity. For example, if you have
created secondary layers for different types of IFRS or GAAP reporting, the system retrieves all of
these layers and displays them on the Source Layers tab. You then choose which layers to include.
When the consolidation is completed, you can review the GL postings and generate reports.
As a result of the consolidation run:
• The daybooks in the consolidation entity are updated with the GL transactions in the source
transaction currency and in the target base or consolidation currency.
370 Training Guide — Advanced Financials

• The system locks the entity, period, and layer combination in order to avoid another run. If you
are running the consolidation in the transient layer, you have the option to review the postings,
and to delete this consolidation and create a new one, if necessary. Consolidations in the
primary layer cannot be deleted.
• The system keeps a history of all consolidation runs with the following attributes:
• Consolidation run number
• Date and time of the run
• Source entities
• Periods
• Layer type

Use the Consolidation activities to create, delete, and view consolidations:

• Create. Configure and run a new consolidation. You run the consolidation by clicking Save.
• View. Display all consolidation runs with all fields in read-only mode.
• Delete. Delete a consolidation run. You can only delete consolidations in the transient layer.
 Consolidation 371

Execution – Continued
Consolidation entity
– After validation, transfer the consolidation from the
transient to the primary (official) layer
– Identify the intercompany transactions and perform
the elimination postings

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372 Training Guide — Advanced Financials

Intercompany Elimination Postings

Intercompany Elimination Postings

Identify postings to eliminate.
Create offset journal entries.
Repeat the process at each level of the
consolidation.

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The section describes how to identify and eliminate intercompany postings in your consolidation.
1 Identify the postings to eliminate using one of the following methods:
• Use GL Transactions View Extended (25.15.2.10) or Trial Balance View (25.15.2.9), and
filter by intercompany code to display intercompany transactions.
• Run the GL Transactions by Intercompany Code report (25.15.1.5) to identify
intercompany transactions to eliminate.
2 In the consolidation entity, create and post a journal entry that offsets intercompany
transactions.
The elimination posting can consist of a single journal entry posted to one of the new journal
entries type daybooks you created in “Set Up Intercompany Eliminations” on page 368. For
ease of entry, you can use a posting template.
3 At each level of consolidation, repeat the process of identifying intercompany transactions and
creating netting postings to eliminate them.

Special Considerations for Staged Consolidations

For staged consolidations, where you consolidate the local entities first, followed by regional
entities, and then global entities, you can take one of two approaches to eliminating intercompany
postings from your consolidation:
 Consolidation 373

• Incremental eliminations
Consolidate the management layer containing the elimination postings to a higher level in the
consolidation. At the higher level, only create postings to eliminate the intercompany positions
at that level.
• Full elimination at each level
Do not consolidate the management layer that contains the elimination postings to a higher
level in the consolidation. At the higher level in the consolidation, create new, complete
journal entries that eliminate all intercompany positions up to that consolidation level.
374 Training Guide — Advanced Financials

Hands On Exercises - US

General Information
In this hands on exercise, you will create a new consolidation entity (GR-CONS). In GR-CONS,
you are going to consolidate the existing consolidation entity, CONS-US.
Before you can do that, you have to consolidate the operational entities (for QMS-US: US-WEST,
US-EAST) into CONS-US.

Exercise 1: Consolidation Setup US

In domain QMS-US create a new consolidation entity GR-CONS using the same address details as
CONS-US.
Create all consolidation settings in GR-CONS:
Daybooks for CONS-US both in transient and primary layer
Consolidation cycle: 100% CONS-US
Check all other settings as required.
Validate the consolidation setup in CONS-US.

Steps:
1 Log in to QMS-US domain, entity CONS-US.
2 In Business Relation Create (36.1.4.3.1), create the following business relation:
Field Data
Name: GRCONS

a On the Address Info tab, right-click and select Insert a New Row. Add the address details:
Field Data
Address: Specify an address.
Zip: Specify the zip.
City: Specify a city.
Country Code: US
Click OK

General Tab
Domain Restricted: No
Internal Entity: Yes
Intercompany: Yes
Intercompany Code: GRCONS
Customer/Supplier Compensation Allowed: No

b Click Save.
 Consolidation 375

3 In Entity Create (36.1.1.2.1), create the following entity:

Field Data
Entity Code: GR-CONS
Business Relation: GRCONS
Domain: QMSUS

General Tab
Reverse P&L Revaluation: Yes
Consolidation Entity: Yes

4 Let the other fields default.

5 Click Save.
6 In User Domain/Entity Access Maintain (36.3.4), specify the following details:
Field Data
User: QAD
Domain: QMSUS
Entity: GR-CONS

7 Click Search.
In the grid, the Link field is selected for the user, domain, and entity code indicated.
8 In Role Membership Maintain (36.3.6.6), specify the following:
Field Data
User: QAD
Domain: QMSUS
Role: SuperUser
Entity: GR-CONS

9 Click Search.
In the grid, the Link field is selected for the user, domain, and entity code indicated.
10 Log out, and log back in as:
User: QAD
Password: QAD
11 Change workspace to QMSUS-GR-CONS.

12 In Daybook Create (25.8.1.1), create the following daybook:

Field Data
Daybook Code: ConsUSof
Description: ConsUSof
Daybook Type: Consolidation
Layer Code: Primary
Daybook Control: Financial
Daybook Group: Blank
376 Training Guide — Advanced Financials

13 Click Save and create a second daybook with the following details:
Field Data
Daybook Code: ConsUStr
Description: ConsUStr
Daybook Type: Consolidation
Layer Code: Trans-Approve
Daybook Control: Financial
Daybook Group: Blank

14 In SAF Concept Create (25.3.7.1.1), create the following concept:

Field Data
SAF Concept Code: ConsDef
Description: Consolidation Default

15 In SAF Create (25.3.7.2.1), create the following value:

Field Data
SAF Code: SCD
Description: SAF Consolidation Default

16 In SAF Structure Create (25.3.7.4.1), create the following structure:

Field Data
SAF Structure Code: Consol
Description: SAF Consolidation
Default Value ConsDef: SCD

17 Change to workspace QMSUS-CONS-US.

18 In COA Cross-Reference Create (25.3.14.1), enter the following data:

Field Data
COA Cross Reference: GR-CONS-US-COA
Description: Consolidation cross reference
Active: Yes (Selected)
Type: Separate COA Dimension
Target Domain: QMSUS
Columns All

19 In the grid, right-click and select Retrieve Defaults.

20 If needed, map GL accounts in source of type tax, open item, and cross company to a standard
GL account in the consolidation/target COA.
21 Click Save.

22 Change Workspace to the source entity to be consolidated (GR-CONS).

23 In Consolidation Cycle Create (25.19.1.7), create the following cycle:

 Consolidation 377

Field Data
Entity Code: GR-CONS
Status: Initial
Rounding Diff Acc: 9890
Default Tax Code: 0000000

24 Click on Default Analysis, and specify the following details:

Field Data
SAF Tab
Structure Code: Consol
SAF Code: ConsolDef
SAF: SCD

Cost Center Tab

Cost Center Code: Adm

Project Tab
Project: DEFAULT

25 In the consolidation cycle grid, right click and select Insert a New Row.
Field Data
Percentage: 100
Subsidiary Entity: CONS-US
Official Daybook Code: consUSof
Transient Daybook Code: ConsUStr
COA Cross-Reference: GR-CONS-COA

26 Click Save.

27 Change Workspace to the source entity to be consolidated (CONS-US).

28 In Consolidation Period Cross-Ref Maintain (25.19.1.3), create the following period cross-
references:
Consolidation Entity: GR-CONS
Source GL
Cons Year Source Year Period Cons Period
2009 2009 01 1
2009 2009 02 2
2009 2009 03 3
....
2010 2010 01 1
2010 2010 02 2
Etc...

29 In CONS-US, open the consolidation cycle CONS-US in Consolidation Cycle Modify.

30 Add the GR-CONS-US-COA cross-reference created earlier, and set the status to Operational.
378 Training Guide — Advanced Financials

31 Save the consolidation cycle.

32 Change Workspace to subsidiary entity US-West.

33 In Consolidation Period Cross-Ref Maintain (25.19.1.3), ensure that period cross-references

exist for the periods you are consolidating.
34 In Entity GL Period Lock, lock the periods for which you are consolidating.

35 Change Workspace to subsidiary entity US-East, and repeat the previous two steps.

36 Change Workspace to the source entity to be consolidated (GR-CONS).

37 In Consolidation Cycle Modify (25.19.1.3), change the status to Operational and save.

Exercise 2: Consolidation Run US

Run a consolidation in CONS-US for the period 2009/01 to 2009/06 (if there are transactions.
Otherwise, use 2007/01 to 2007/06).
Create the consolidation in transient layer first and verify the postings.
Delete the transient posting.
Re-do the consolidation in the primary layer.
Repeat the process in GR-CONS to consolidate CONS-US into GR-CONS.
Ensure that there are transactions in the periods to consolidate. If needed, use periods 2007/1 to
2007/06.
Steps:
1 Log in to workspace QMSUS/CONS-US
2 In Consolidation Create (25.19.2.1), create a trial consolidation in the transient layer:
Field Data
From GL Period: 2009/1
To GL Period: 2009/6
Target Layer Type: Transient
Source Layer Type: Primary

Subsidiary Entities:
Field Data
Percentage: 100
Official Daybook: CONEAOF
Entity Code: US-EAST
Transient Daybook: CONEATR
Activation: Yes

3 Save the consolidation.

 Consolidation 379

Field Data
Percentage: 100
Primary Daybook: CONWEOF
Entity Code: US-WEST
Transient Daybook: CONWETR
Activation: Yes

4 In Journal Entry View (25.13.1.3), enter Year = 2009, Period = 6 and Daybook Code:
CONEATR.
5 Click Search to review the transaction in US-EAST.
6 Repeat the previous to steps with Daybook Code = CONWETR to review the transaction in
US-WEST.
7 Review the transactions. The results should look like those on the following screenshots:

Journal Entry - View

Journal Entry - View

Journal Entry - View (25.13.1.3)

QAD Proprietary 20 08-EX-4.1_ 2-010

380 Training Guide — Advanced Financials

Journal Entry - View

QAD Proprietary 20 08-EX-4.1_ 2-020

8 In Consolidation Delete (25.19.2.3), delete the trial consolidations:

Field Data
From GL Cal Year: 2009
To GL Cal Year: 2009
Entity Code: US-EAST

9 Click Search. Confirm in the new window.

Field Data
From GL Cal Year: 2009
To GL Cal Year: 2009
Entity Code: US-WEST

10 Click Search. Confirm in the new window.

11 In Consolidation Create (25.19.2.1), create the consolidation—again in the primary layer.

Field Data
From GL Period: 2009/1
To GL Period: 2009/6
Target Layer Type: Primary
Source Layer Type: Primary

Subsidiary Companies:
 Consolidation 381

Field Data
Percentage: 100
Primary Daybook: CONEAOF
Entity Code: US-EAST
Transient Daybook: CONEATR
Activation: Yes

Field Data
Percentage: 100
Primary Daybook: CONWEOF
Entity Code: US-WEST
Transient Daybook: CONEATR
Activation: Yes

12 Log in to the consolidation entity GR-CONS (change workspace) to create the second
consolidation.
13 In Consolidation Create (25.19.2.1), create the following:
Field Data
From GL Period: 2009/1
To GL Period: 2009/6
Target Layer: Transient
Source Layer: Primary

Subsidiary Entities:
Field Data
Percentage: 100
Primary Daybook: ConsUSof
Entity Code: CONS-US
Transient Daybook: ConsUStr
Activation: Yes

14 Go to Journal Entry View (25.13.1.3) to review the created transaction.

15 Enter GL calendar year 2009 and daybook code ConsUStr to search.

16 In Consolidation Delete (25.19.2.3), delete the trial consolidation you just created.

17 In Consolidation Create (25.19.2.1), recreate the same consolidation in the primary layer.

18 In Journal Entry View (25.13.1.3), review the transactions.

382 Training Guide — Advanced Financials

Hands On Exercises - EMEA

General Information
In this hands on exercise, you will create a new consolidation entity (GR-CONS). In GR-CONS,
you are going to consolidate the existing consolidation entity CONS-EMEA.
Before you can do that, you will have to consolidate the operational entities (for QMS-EMEA:
EMEA-DE, and EMEA-NL) into CONS-EMEA.

Exercise 1: Consolidation Setup EMEA

In domain QMS-EMEA create a new (consolidation) entity GR-CONS (use same address details
as CONS-EMEA).
Create all consolidation settings in GR-CONS:
Daybooks for CONS-EMEA both in transient and primary layer
Consolidation cycle: 100% CONS-EMEA
Check all other settings as required.
Validate the consolidation setup in CONS-EMEA
Steps:
1 Log in to QMS-US domain, entity CONS-EMEA.
2 In Business Relation Create (36.1.4.3.1), create the following business relation:
Field Data
Name: GRCONS

a On the Address Info tab, right-click and select Insert a New Row. Add the address details:
Field Data
Address: Address
Zip: Zip
City: City
Country Code: US
Click OK

General Tab
Domain Restricted: No
Internal Entity: Yes
Intercompany: Yes
Intercompany Code: GRCONS
Customer/Supplier Compensation Allowed: No

b Click Save.
3 In Entity Create (36.1.1.2.1), create the following entity:
 Consolidation 383

Field Data
Entity Code: GR-CONS
Business Relation: GRCONS
Domain: QMSEMEA

General Tab
Reverse P&L Revaluation: Yes
Consolidation Entity: Yes

4 Let the other fields default.

5 Click Save.
6 In User Domain/Entity Access Maintain (36.3.4), specify the following details:
Field Data
User: QAD
Domain: QMSEMEA
Entity: GR-CONS

7 Click Search.
In the grid, the Link field is selected for the user, domain, and entity code indicated.
8 In Role Membership Maintain (36.3.6.6), specify the following:
Field Data
User: QAD
Domain: QMSEMEA
Role: SuperUser
Entity: GR-CONS

9 Click Search.
In the grid, the Link field is selected for the user, domain, and entity code indicated.
10 Log out, and log back in as:
User: QAD
Password: QAD
11 Change workspace to QMSEMEA-GR-CONS.

12 In Daybook Create (25.8.1.1), create the following daybook:

Field Data
Daybook Code: ConsEMof
Description: ConsEMof
Daybook Type: Consolidation
Layer Code: Primary
Daybook Control: Financial
Daybook Group: <blank>

13 Click Save and create a second daybook with the following details:
384 Training Guide — Advanced Financials

Field Data
Daybook Code: ConsEMtr
Description: ConsEMtr
Daybook Type: Consolidation
Layer Code: Trans-Approve
Daybook Control: Financial
Daybook Group: <blank>

14 In SAF Concept Create (25.3.7.1.1), create the following concept:

Field Data
SAF Concept Code: ConsDef
Description: Consolidation Default

15 In SAF Create (25.3.7.2.1), create the following value:

Field Data
SAF Code: SCD
Description: SAF Consolidation Default

16 In SAF Structure Create (25.3.7.4.1), create the following structure:

Field Data
SAF Structure Code: Consol
Description: SAF Consolidation
Default Value ConsDef: SCD

17 Change to workspace QMSEMEA-CONS-EMEA.

18 In COA Cross-Reference Create (25.3.14.1), enter the following data:

Field Data
COA Cross Reference: GR-CONS-EMEA-COA
Description: Consolidation cross reference
Active: Yes (Selected)
Type: Separate COA Dimension
Target Domain: QMSEMEA
Columns All

19 In the grid, right-click and select Retrieve Defaults.

20 If needed, map GL accounts in source of type tax, open item, and cross company to a standard
GL account in the consolidation/target COA.
21 Click Save.

22 Change Workspace to the source entity to be consolidated (GR-CONS).

23 In Consolidation Cycle Create (25.19.1.7), create the following cycle:

Field Data
Entity Code: GR-CONS
Status: Initial
 Consolidation 385

Field Data
Rounding Diff Acc: 9890
Default Tax Code: 0000000

24 Click on Default Analysis, and specify the following details:

Field Data
SAF Tab
Structure Code: Consol
SAF Code ConsolDef
SAF SCD
Cost Center Tab
Cost Center Code: Adm
Project Tab
Project: DEFAULT

25 In the consolidation cycle grid, right click and select Insert a New Row
Field Data
Percentage: 100
Subsidiary Entity: CONS-EMEA
Primary Daybook Code: consEMof
Transient Daybook Code: ConsEMtr
COA Cross-Reference: GR-CONS-EMEA-COA

26 Click Save.

27 Change Workspace to the source entity to be consolidated (CONS-EMEA).

28 In Consolidation Period Cross-Ref Maintain (25.19.1.3), create the following period cross-
references:
Consolidation Entity: GR-CONS
Source GL
Cons Year Source Year Period Cons Period
2009 2009 01 1
2009 2009 02 2
2009 2009 03 3
....
2010 2010 01 1
2010 2010 02 2
Etc...

29 In CONS-EMEA, open the consolidation cycle CONS-EMEA in Consolidation Cycle Modify.

30 Add the GR-CONS-EMEA-COA cross-reference created earlier, and set the status to
Operational.
31 Save the consolidation cycle.

32 Change Workspace to subsidiary entity EMEA-DE.

386 Training Guide — Advanced Financials

33 In Consolidation Period Cross-Ref Maintain (25.19.1.3), ensure that period cross-references

exist for the periods you are consolidating.
34 In Entity GL Period Lock, lock the periods for which you are consolidating.

35 Change Workspace to subsidiary entity EMEA-NL, and repeat the previous two steps.

36 Change Workspace to the source entity to be consolidated (GR-CONS).

37 In Consolidation Cycle Modify (25.19.1.3), change the status to Operational and save.

Exercise 2: Consolidation Run EMEA

Run a consolidation in CONS-EMEA to consolidate EMEA-DE and EMEA-NL into CONS-
EMEA. The consolidation is run for the period 2009/01 to 2009/06 (if there are transactions.
Otherwise, use 2007/01 to 2007/06).
Create the consolidation in transient layer first and verify the postings.
Delete the transient posting.
Re-do the consolidation in the primary layer.
Repeat the process in GR-CONS to consolidate CONS-EMEA into GR-CONS.
Ensure that there are transactions in the periods to consolidate. If needed, use periods 2007/1 to
2007/06.
Steps:

1 Log in to workspace QMSEMEA/CONS-EMEA.

2 In Consolidation Create (25.19.2.1), create a trial consolidation in the transient layer:
Field Data
From GL Period: 2009/1
To GL Period: 2009/6
Target Layer Type: Transient
Source Layer Type: Primary

Subsidiary Entities:
Field Data
Percentage: 100
Primary Daybook: CONDEOF
Entity Code: EMEA-DE
Transient Daybook: CONDETR
Activation: Yes

3 Save the consolidation.

 Consolidation 387

Field Data
Percentage: 100
Primary Daybook: CONNLOF
Entity Code: EMEA-NL
Transient Daybook: CONNLTR
Activation: Yes

4 In Journal Entry View (25.13.1.3), enter Year = 2009, Period = 6 and Daybook Code:
CONDETR.
5 Click Search to review the transaction in EMEA-DE.
6 Repeat the previous to steps with Daybook Code = CONNLOF to review the transaction in
EMEA-NL.
7 Review the transactions.
388 Training Guide — Advanced Financials
 Chapter 17

Advanced Banking Setup

390 Training Guide — Advanced Financials

Advanced Banking Setup - Objectives

a

Objectives
Learn how to work with bank payment file
formats in QAD Enterprise Applications
– Technical setup
– Functional setup and use

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 Advanced Banking Setup 391

Business Case

Business Case
New bank account in The Netherlands.
This bank account works with a specific
electronic payment file format.
QAD provides a zip file with the electronic
payment file format for the Dutch bank account

How do I install this file in QAD Enterprise

Edition?

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This section describes how to install a preconfigured electronic payment format in QAD
Financials.
Payment formats are used in customer and supplier payments to define the layout of the payment
output. These codes ensure that each payment from your account is formatted according to the
requirements of the receiving customer or supplier bank. Each individual payment contains your
own bank account details, the required format, and the correct customer and supplier account
information.
Payment formats determine aspects of the payment such as:
• Whether the payment is for AR or AP
• Whether it is domestic, foreign, or both
• Which payment instrument to use, such as check, draft, or electronic transfer

Payment electronic formats are used with paper-based payments, such as checks or drafts, and
with electronic payments, such as direct debit or electronic transfer. Formats tend to be common to
certain regions. For example, US banks tend to deal with AP and AR checks, while AP electronic
transfers and AR direct debits are more commonly used by Northern European banks, and checks,
drafts, and transfers by Southern European banks. Payment formats are defined at system level in
Financials.
392 Training Guide — Advanced Financials

Preconfigured formats are available on the QAD Support Web site for download and can be loaded
in the system using standard EDI eCommerce functions. These formats are designed for specific
banking systems, and are used to create electronic payment files to be transferred to these banks.
During the EDI load, you specify configuration details, such as the location on the operating
system where generated payment files should be placed and the file name extension of the
electronic payment file produced using the bank format.
You ensure that supplier and customer payments automatically use the correct format by linking
the format to your bank account, and then associating the linked account number to the supplier or
customer bank account number. Once the account numbers are linked, the system selects the
correct format.
When you create a customer or supplier payment, the customer or supplier default bank is
automatically displayed in the payment screen. If you have defined multiple account numbers for a
supplier or customer, you can select another account number for the payment, but only if it has
been linked to a format.
Manual or paper payments and electronic payments are treated differently in the system, and
require different formats.
The system lets you change the default bank account and payment format within a supplier
payment selection, provided the status of the selection is Initial, and the bank account and linked
format have already been configured.
We will now learn how to install and set up a preconfigured payment format file based on a
business case.
A company opens a bank account in The Netherlands. This bank uses a specific electronic file
format that I need to use to process payments. QAD provides preconfigured format files. How do I
install this file, and set my system up to use it?
 Advanced Banking Setup 393

Overview

Overview
Technical setup
– Sequence Number Range
– Directories
– EDI settings
– Upload process
Functional setup
– Create new GL account (type Bank)
– Link bank GL to payment format
– Supplier payment status
– Supplier modify
• Update bank info
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You must define both technical and functional data before you can generate customer and supplier
payments.
We will now review each of these set up steps in detail.
394 Training Guide — Advanced Financials

Technical Setup

Technical Setup
Setup directories
– Read/write permissions for all users
EDI eCommerce settings
– EC Number Range Maintenance (35.21.1)
– Setup eCommerce Control (35.13.24)
– Transmission Group Maintenance (35.13.13)
– Setup Domain Cross Reference Maint (35.11.1)
Bank driver file
– Copy to the inbound (“in”) directory

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Setup Prerequisites
Before setting up EDI eCommerce for use with bank payment format files, the system
administrator should set up a data directory for eCommerce data files. Below that directory, there
must be several subdirectories for the following types of data:
• Error files
• Inbound files for import
• Archive files, which are inbound flat files that have completed processing
• Files from an external system that are imported directly into the document repository for
transformation and export to another external system
Future users should be given full access (read/write) to these directories.
All of these directories are specified in eCommerce Control (35.13.24), which needs to be set up
next, in addition to Domain Cross-Reference Maint (35.11.1). You also need to specify the file
name counter in Transmission Group Maintenance (35.13.13).
Once those steps are completed, copy the bank payment format file (or bank driver) to the inbound
directory specified in eCommerce Control (35.13.24).
EDI data, such as control settings, trading partner data, and other static data, are stored at domain
level.
 Advanced Banking Setup 395

EC Number Range Maintenance

EC Number Range Maintenance

Create 5 number range sequences

Type: Internal, disgarding and
voiding: yes

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Once the directories are created, create five sets of number range sequences that are needed for the
eCommerce Control setup. You perform this step in EC Number Range Maintenance (35.2.1.1).
The settings for these sequences are:
• Internal: Yes
• Allow Discarding: Yes
• Allow Voiding: Yes

Normally, you use a combination of a fixed element and a counter (integer).

396 Training Guide — Advanced Financials

eCommerce Control

eCommerce Control (35.13.24)

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Then, use eCommerce Control (35.13.24) to set default values for eCommerce processing.
• Use the initial frame to set domain-level control values, such as directories used during
document import and export.
• The second frame sets default values for error handling. This is also the place where you enter
the number range sequences (counters) created at the previous step.
• The third optional frame lets you set application-specific values for financials functions. Enter
the number range sequences here also (application: EDI).
Note For more details on completing the EDI activities, see User Guide: QAD EDI eCommerce.

Next, use Setup Domain Cross Reference Maint (35.11.1) to reference the eCommerce processing
domain — the domain in which repository records and business documents are stored —
associated with the user’s login domain.
 Advanced Banking Setup 397

Transmission Group Maintenance

Transmission Group Maintenance

Used to assign file

names to the
transmission
group

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In Transmission Group Maintenance (35.13.13), you must set the file name counter sequence ID
that is used to assign filenames to electronic banking output files. The file name counter must be a
valid sequence ID defined in EC Number Range Maintenance.
398 Training Guide — Advanced Financials

Upload Process

Upload Process
Trading Partner Library Load (35.17.7)
– Terminal mode
Payment Format Maintenance (25.11.1)
– Verify import of payment format

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Load the required payment formats using Trading Partner Library Load (35.17.7) (in character
mode). The input directory is the one you created earlier. During the load, specify the location for
generated payment files (output) and the file prefix.
You can also use Payment Format Excel Integration to create a template and load data. See
Chapter 3, “Excel Integration,” on page 39. However, this step is typically not required because
the EDI load provides this data for you.
Verify that payment formats have been imported correctly in Payment Format Maintenance
(25.11.1). Typically, no changes are required for these formats, but, if necessary, attributes and
values can be changed in this menu.
 Advanced Banking Setup 399

Functional Setup

Functional Setup Flow

Create own bank account
– GL Account Create (25.3.13.1)
Create payment format
– Payment Format Maintenance (25.11.1)
Link payment format to bank
– Bank Payment Format Link (25.11.2)
Define statuses for new payment format
– Supplier Payment Status Create (28.9.1.1.1)
Assign bank/payment format combination
– Supplier Modify (28.20.1.2)
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On the functional side, the following steps are required. The steps are described in detail in the
Financial Fundamentals Training Guide and User Guide: QAD Financials A.
1 Create an own bank account.
2 Create a new payment format.
Optionally, you can load predefined bank payment formats for use in electronic banking. See
“Bank File Format Import” on page 400. Payment formats are stored at system level.
3 Link the payment formats to your entity bank account.
4 Define payment statuses for the new format.
5 Associate your bank account and the correct linked format with the customer and supplier
bank account numbers specified on the Banking tab of the Customer or Supplier function.
400 Training Guide — Advanced Financials

Bank File Format Import

Bank File Format Import

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Use Bank File Format Import to import predefined bank format XML files for use with electronic
bank payments. Each imported format file is specific to an individual bank and contains the
payment information and attributes required for that bank. Once the file is imported, a payment
format with the same name is displayed in Payment Format Maintenance. You can then link this
format to the bank account you intend to use for electronic payments.
The format definition files are usually delivered by the bank in zipped XML format. You unzip the
files to a server directory and then load the files into the system using the Import function.
 Advanced Banking Setup 401

Transaction Flow

Transaction Flow
Create invoice
– Supplier Invoice Create (28.1.1.1)
Select invoice for payment
– Supplier Payment Selection Create (28.9.4.1)
 Confirm payment selection
– Supplier Payment Selection Confirm (28.9.4.5)
Process payment
– Supplier Payment Selection Execute (28.9.4.6)
 Opt. re-process
– Supplier Payment Selection Re-execute (28.9.4.7)

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When the setup is complete, you can create invoices using the payment information, combine the
formats in payment selections, and run the selections to generate payment files. These activities
are described in User Guide: QAD Financials A, and are described in the Financials
Fundamentals Training Guide also.
402 Training Guide — Advanced Financials

Change Own Bank Number

Change Own Bank Number

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When completing customer or supplier payments, you can decide for cash flow or other reasons to
change the bank account or account number into which the payment is made. The Change Own
Bank Number option lets you specify a different bank account and account number for selected
payments. This option exists in both Customer Payment Mass Change (27.6.4.5) and Supplier
Payment Mass Change (28.9.3.5).
You can specify a different account number for the same bank, or a different account number and
bank account. The new account number, account, and payment instrument combination must be
already defined in Bank Payment Format Link and must be defined for the same entity as the
original combination.
You must also have defined a payment status that uses the new bank account, payment account,
and payment instrument.
 Advanced Banking Setup 403

Transaction Results

Transaction Results
Check file in output (“out”) directory
Check log file in “log” directory
Check XML file in “outarchive” directory

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You can verify the results of a payment transaction in three locations:

• Check the output file in the “out” directory specified in eCommerce Control.
• Check the log file in the “log” directory.
• Check the output XML file in the “outarchive” directory.
404 Training Guide — Advanced Financials
 Chapter 18

Process Incoming Bank Files

406 Training Guide — Advanced Financials

Process Incoming Bank Files - Objective

Objective
Understand the benefits of using the Process
Incoming Bank Files function
Learn to set up and use the Process Incoming
Bank Files function
Understand the differences between US lockbox
processing and European SWIFT MT940

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This section describes how to set up and use the electronic banking functions in Financials.
You can import bank statements electronically from external systems, and convert transaction data
contained in electronic bank files into automatic customer and supplier payments.
This chapter describes two of the most common worldwide methods for transferring and
processing electronic bank files: lockbox processing, used in the US, and SWIFT MT940, more
commonly used in Europe.
Your instructor will then demonstrate the whole bank file import process.
 Process Incoming Bank Files 407

Prerequisites

Prerequisites
 Own bank account
– Combination own bank/entity must be unique

 Importing predefined bank format XML files for use with

electronic bank payments.
– Bank File Format Import (described in the previous chapter)

 Linking payment formats to bank accounts.

– Bank Payment Format Link (described in the previous chapter)

 Configuring bank payment formats for use with

automatic payments from bank payment files.
– Bank File Format Maintain

 Incoming bank file layout must exist in system

– EC Subsystem Definition Maint (35.13.1)
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This section lists the setup required before you can process transactions electronically.
The setup includes:
• Ensuring the combination of own bank account and entity is unique.
• Importing predefined bank format XML files for use with electronic bank payments using
Bank File Format Import. This setup step is described in “Bank File Format Import” on
page 400.
• Linking payment formats to bank accounts. This setup step is described in “Functional Setup”
on page 399.
• Configuring bank payment formats for use with automatic payments from bank payment files.
This is described in “Bank File Format Maintain” on page 408.
• Checking payment file extensions. See “EC Subsystem Definition” on page 409.
408 Training Guide — Advanced Financials

Bank File Format Maintain

Prerequisites: Bank File Format Maintain

Link transaction types to activities

US-specific Bank
Formats and
lockbox processing
are common in the
US

Swift MT 940 is more commonly

used in Europe
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In Bank File Format Maintenance (31.1.9), link the transaction codes to activities.
Bank payment files contain transaction codes, which identify the types of payment contained in
the file. These codes are mapped to the system actions Create Customer Payment, Pay Customer
Payment, or Pay Supplier Payment. This ensures that the correct type of automatic payment is
created for each transaction.
For example, Wells Fargo uses the code R12057 to identify supplier payment transaction messages
within payment files. This code is mapped to the system action Pay Supplier Payment. When you
import a Wells Fargo payment file, the system maps all supplier payment transaction messages to
the action Pay Supplier Payment. Once the messages are validated and processed, the system
performs the action to which the transaction code is mapped. In this instance, the system invokes
the Pay Supplier Payment action for all messages that are coded R057. It then retrieves the original
supplier payments for these transactions and changes their status from For Collection to Paid.
The system uses the payment format linked to your bank account to store the mapping
information. To enable auto-generated payments, you must link a payment format containing the
correct mappings to your bank account when initiating the customer or supplier payment process.
For example, to process Wells Fargo bank files, you must link the payment format containing the
Wells Fargo transaction mapping to your account as part of the initial setup for customer or
supplier payments. This ensures that when you import Wells Fargo payment files, the system can
automatically complete the payment cycle.
Bank File Format Maintain (31.1.9) lets you create and view the transaction code mappings.
 Process Incoming Bank Files 409

EC Subsystem Definition

Prerequisites: EC Subsystem Definition

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The system uses standard EDI eCommerce functions to select the external payment files from the
location on your network where they are stored, and to save them as Financials payment files for
processing.
Payment file extensions are mapped to their correct EC (Electronic Commerce) subsystem in EC
Subsystem Definition Maintenance (35.13.1). The subsystem in this case is the external banking
system in which the file originated. Defining the file extension here ensures that the system
associates the payment file with the correct external module. These mappings are preconfigured
and do not require user input.
410 Training Guide — Advanced Financials

Electronic Processing

Electronic Processing
Loading Files
– Load Files using EDI Document Import (35.1)
– Session Report (35.7)

File Transactions
– Process the bank files using Process Incoming Bank
Files (31.1.6)
– Generate resulting customer and supplier payments

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 Process Incoming Bank Files 411

Bank Files Process Flow

Bank Files Process Flow

Import bank file using EDI

Process valid transactions

Create
Createnew
newARAR Update
UpdateAR ARpayment
payment Update
UpdateAP APpayment
payment Create
Createbank
bankstatement
statement
payment
paymentininInitial
InitialororFor
For status
status toPaid.
to Paid. status
status toPaid
to Paid entry.
entry.
Collection
Collectionstatus
status

Invoices
Invoicesexist
exist No
Manual
Manualallocation
allocationtoto Manual
for Manualallocation
allocationinin
forthis
this invoice
invoice orprepayments
or bank
customer prepayments bankstatement
statement
customer??
Yes

Automatic
Automaticallocation
allocation

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The process for importing bank files can be summarized by the following steps:
The system validates the transactions contained in the payment file by matching customer or
supplier information in the transactions against customer or supplier records stored in the system.
When these records match, the automatic payment is generated and the transaction can be
allocated to an existing open item for the customer or supplier. If they do not match, you can
manually select a customer or supplier, and create an open item to which you can then allocate the
payment.
One payment file can contain multiple types of transaction messages, and you can filter the
messages by type, date, bank account, or action. For example, you can choose to process only new
customer payments, only existing supplier payments, or all payments within a range of dates.
Optionally, the system creates a bank statement line for each processed transaction message that
results in a posting on the bank account (for example, when a payment is paid) or for message
types that result in the creation of a bank statement line only. The system groups the lines by the
bank statement numbers provided by the bank.
412 Training Guide — Advanced Financials

Loading Files: Document Import

Loading Files: Document Import (35.1)

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Loading Bank Payment Files

The system uses standard EDI eCommerce functions to select the external payment files from the
location on your network where they are stored, and to save them as Financials payment files for
processing.
The system uses two EDI functions to complete the first stage of the import process:
• Payment file extensions are mapped to their correct EC (Electronic Commerce) subsystem in
EC Subsystem Definition Maintenance (35.13.1). The subsystem in this case is the external
banking system in which the file originated. Defining the file extension here ensures that the
system associates the payment file with the correct external module. These mappings are pre
configured and do not require user input.
• Select the files to be imported using Document Import (35.1). Document Import loads the files
into the Financials system, and stores the information in the database. An EDI transformation
converts the file layout to the database tables.
For details on completing the EDI activities, see User Guide: QAD EDI eCommerce.
 Process Incoming Bank Files 413

Loading Files: Session Report

Loading Files: Session Report (35.7)

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The Session report (35.7) shows the status of document imports or exports at each processing step.
Use the report to analyze where problems occurred, then resolve the problems at the source.
Use the Session report to verify that bank files have been properly loaded.
414 Training Guide — Advanced Financials

Transactions: Process Incoming Bank Files

Transactions: Process Incoming Bank Files

(31.1.6)

Selection criteria

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Processing Incoming Bank Files (31.1.6)

Use Process Incoming Bank Files (31.1.6) to select imported payment files, and to process the
transactions contained in the files.
Use the search criteria in the Filter area to select the transactions contained in the file by
transaction type, transaction date, upload date, or bank account number. The system loads these
transactions into the transaction grid.
Each transaction displays the following information:
• Customer or supplier details, including name, business relation, address, and bank accounts
• Bank format in use
• Transaction code
• Value date
• Payment amount in transaction currency, and exchange rates if the original payment currency
is different from the currency used by the bank
• Invoice details, if supplied by the bank
• Action to be performed on the processed transaction
• Processing status
 Process Incoming Bank Files 415

You then click Process to process these transactions and automatically generate the corresponding
customer or supplier payment activity.
When the system cannot match the payment information in the transactions with payment records
for the customer or supplier, an error message is displayed in the transaction line on the grid. You
can then manually specify a customer, supplier, or payment in order to complete the processing.
The Process Incoming Bank Files function includes the following options:

Create Customer Payment

When the message type from the bank indicates that a customer payment has been received, the
program that processes the bank file creates a customer payment.

Pay Customer Payment

When the message type from the bank indicates that a customer payment has been cleared—that
is, the payment was cashed on the bank account—the program that processes the bank file
searches for a customer payment with the status For Collection with a matching amount. If it finds
the payment, the system sets the payment status to Paid, the bank GL account is debited, and the
customer payment account is credited.

Bounce Customer Payment

When the message type from the bank indicates that a customer payment has been bounced
(payment refused), the program that processes the bank file searches for a customer payment with
the status For Collection and a matching amount. If it finds the payment, the system sets the
payment status to Bounced, and the linked invoices are reopened. The customer control account is
debited, and the customer payment account is credited.

Pay Supplier Payment

You issue payments to your supplier, which your supplier sends to their bank. The supplier’s bank
arranges a money transfer from your bank. When the message type from the bank indicates that a
supplier payment has been paid from your bank account, the program that processes the bank file
searches for a supplier payment with the status For Collection and with a matching amount. If it
finds the payment, the system sets the payment status to Paid and the bank GL account is credited.

Bounce Supplier Payment

When the message type from the bank indicates that a supplier payment has been Bounced
(payment refused), the program that processes the bank file searches for a supplier payment with
the status For Collection and with a matching amount. If it finds the payment, the system sets the
payment status to Bounced, and the linked invoices are reopened. The supplier control account is
credited, and the supplier payment account is debited.

Create Banking Entry

This message type allows you to create unallocated bank statement lines in the system, but is not
supported yet. In the current version of the software, there is an option to create allocated bank
statement lines if the bank account is used in either of the previously listed actions.
416 Training Guide — Advanced Financials

Other

The Other category refers to any other message type from the bank that has no equivalent
transaction in Financials.
 Process Incoming Bank Files 417

Process Incoming Bank Files - Selected files details

Transactions: Process Incoming Bank Files

(31.1.6)

Selected files details

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418 Training Guide — Advanced Financials

Process Incoming Bank Files - Files Processing

Transactions: Process Incoming Bank Files

(31.1.6)

Files processing…

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 Process Incoming Bank Files 419

Transaction Results

Transactions Results:
Processed Customer Payments

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Results: Processing Customer Payments

New AR Payments

You can create a new AR payment with either an Initial, For Collection, or Paid status for lockbox
checks.
Bank payment files sometimes contain the original invoice reference for the check. In this case,
when the transaction is validated and processed, the system retrieves the original invoice, allocates
the check, and creates a customer payment with either a For Collection or Paid status.
Note For Collection and Paid statuses must exist in the system for this type of automatic
payment.
When the customer is validated, but the payment file does not contain invoice references, the
system compares the amounts in all open items for this customer, retrieving the oldest open item
first. If one or a combination of open item amounts match the amount of the check, the system
allocates the check and creates a customer payment. You can, optionally, assign a For Collection or
Paid status to this payment.
When the customer is not validated and the payment file does not contain invoice references, you
can manually select a customer to complete the transaction process. The system creates a customer
payment with an Initial status, which you then process as normal.
420 Training Guide — Advanced Financials

Processing Existing AR Payments

The system uses the check number to retrieve the original customer payment and change its status
to Paid. When the check number is not available in the bank file (for example, the bank has not
included this value in the file), the system then identifies payments that have a status of For
Collection and are of the same amount as the check that has been paid. Once these conditions are
met, the For Collection payment is automatically updated to Paid.

Errors in Transaction Processing

The system processes transaction messages automatically when there is a complete match between
the bank file and the system records for the following data:
• Customer or supplier name
• Customer or supplier code
• Invoice payment reference. This is the original customer or supplier invoice.
• Customer or supplier bank account number.
• Currency. The transaction message currency must match that of the original payment.

When one of these values does not match, the transaction line is displayed in red on the grid and
the error is detailed.
You can use the customer, supplier, bank number, invoice, or payment number lookups on the grid
to manually select the correct value and so process the transaction message.
The system also displays errors for the following occurrences:
• The customer bank account number is not defined for this customer.
• Your bank account number has not been linked to this customer.
• Your bank account is not linked to the payment format that contains the mapping for this
transaction code.
• The correct payment status has not been defined for this customer.

The system does not process a transaction for which there is an error. However, you can manually
configure the missing or incorrect data, and load the file again for reprocessing.
 Process Incoming Bank Files 421

Examples

Examples of Worldwide Bank File

Processing
US
– Lockbox processing

Europe
– SWIFT MT 940

QAD Proprietary 2008-MC-4.2-1-LB-110

The following pages describe two worldwide examples of electronic bank file processing:
Lockbox (US) and SWIFT MT940 (Europe).
422 Training Guide — Advanced Financials

US Processing: Lockbox

US Processing: Lock-Box
Functionality to process incoming US bank files
Interface for incoming US Bank files containing
payment (check) information
Automatic creation of AR payments
Automatic change of status of AR payments to
Paid

QAD Proprietary 2008-MC-4.2-1-LB-120

In the US, customer check payments are often sent to a lockbox (postal address) at the bank. The
bank personnel empties the box daily, and registers the checks in the system. Then, the bank sends
a file to the company owning the lock box. In that file, all received checks are listed.
The lockbox functionality processes incoming payment files, automatically creating AR payments
and changing the payment status to Paid.
This functionality includes three business flows:
• Lock box for customer payments (checks)
• File from the bank that contains information on paid customer payments (checks)
• File from the bank that contains information on paid supplier payments (checks).
 Process Incoming Bank Files 423

Lockbox Checks Processing

Lockbox Checks Processing

Bank Enterprise
Enterprise
Bank Financials
Financials
Customer
Customer mail
mail File
File
Lock
Lockbox
box Payments
Payments

QAD Proprietary 2008-MC-4.2-1-LB-130

This section concentrates on the lockbox process.

Many banks use a lockbox address to handle incoming payments (check, drafts). The address is
checked daily and the customer checks are registered in the bank’s system before a payment file
listing the checks received is sent to your company. The Bank File Process is used to create new
customer payments in the system to correspond with the checks listed.
424 Training Guide — Advanced Financials

US Bank File: New AR Payments

US Bank File - New AR Payments

QAD Financials

Lock Box
2 (check by mail)

1 Customer 4 AR 3 (new payment

Customer Customer ARPayment
Payment Own Bank
Invoice
Invoice Link check,
check,draft
draft message)

QAD Proprietary 2008-MC-4.2-1-LB-140

1 A customer invoice is issued.

2 Customer payment:
a The customer pays by sending a check to the lock box address.
b The customer sends remittance advice.
3 The bank sends an electronic file with the new check received.
4 New payments are created in the system and linked to invoices.
 Process Incoming Bank Files 425

US Bank File: Collected AR Payments

US Bank File - Collected AR Payments

QAD Financials

AR 6 (collected
Customer ARPayment
Payment Own Bank
check,
check,draft
draft payment
messages)

Customer
Bank

Collecting 5
the money

QAD Proprietary 2008-MC-4.2-1-LB-150

The following steps are the logical continuation of the four steps on the previous page:
1 Customer payments are collected by the bank (in Standard Edition, this is called “Canceled”).
2 The bank sends a file containing collected check numbers. The payments can be set to Paid
using this information.
426 Training Guide — Advanced Financials

Benefits of Lockbox

Benefits of Lockbox
Streamline customer payment process
Process Automation
Reduce overhead
Reduce error rate

QAD Proprietary 2008-MC-4.2-1-LB-160

The obvious benefits of this functionality are a streamlined customer payment process, reduced
overhead costs due to process automation, and a decreased error rate.
 Process Incoming Bank Files 427

European Processing: SWIFT MT940

European Processing: SWIFT MT940

Commonly used throughout Europe
In Financials, use SWIFT MT940 to create bank
statement lines only
SWIFT MT940 file has a predefined structure
and contains account transaction data
Each file contains a header, a section with
transactions, and a footer

QAD Proprietary 2008-MC-4.2-1-LB-170

The majority of European interbank messaging transactions use the SWIFT network. The most
common files types used to import bank transaction data to Financials are SWIFT MT940 files.
The MT940 (MT = Message Type) electronic account statement is an international standard that
was developed by SWIFT in Brussels for the paperless transmission of account information. This
standard is used by banks all over the world. In particular, MT940 is used to provide bank
information to clients’ cash management, treasury systems, and accounting applications.
The SWIFT MT940 files imported to Financials typically contain customer statement messages
sent by banks at the end of the banking day. The file provides the account balance and detailed
information about all transactions booked to the account during the reported date.
428 Training Guide — Advanced Financials

Demo Scenario

Demo Scenario
Customer Roxy, US-WEST, three open invoices
Roxy sends three checks to lock box of our
bank (Wells Fargo)
Our bank sends us the data file with details of
received customer checks
Our bank sends us a second data file with the
details of the customer checks that have been
collected

QAD Proprietary 2008-MC-4.2-1-LB-180

Your instructor will now demonstrate a complete flow based on the scenario described on this
slide.