Post on 17-Dec-2015
From Planning to Compliance
René Bergkamp – Director, Research and Development, QAD
QAD Enterprise Financials
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The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.
Safe Harbor Statement
QAD Enterprise Financials – From Planning to Compliance
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• CFO challenges- IFRS- XBRL- Global Roll-out while meeting local
requirements
• QAD Enterprise Financials
Agenda
QAD Enterprise Financials – From Planning to Compliance
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• Duke's Fuqua School of Business / CFO Magazine Business Outlook March 2011 (472 US Firms)
- 34% of CFOs say that convergence to IFRS accounting is one of their biggest accounting concerns
- 83% of firms have not started to convert to IFRS or are far from ready to convert
IFRS U.S.
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February 24, 2010
SEC issues Work Plan
2011
Proposed SEC decision on IFRS
2010 2011 2012 2013 2014 2015 2016 2017 2018
*Staggered adoption possible based on earliest adoption in 2015 or 2016
January 31, 2017
Possible first IFRS 10K
FY15 - FY16
Earliest comparative information required
End of 2011
Target date for completion of FASB/IASB convergence agenda
2015 – 2018
Possible staggered adoption period*
2012 – 2014
Possible effective dates of converged standards
February 1, 2016
Possible beginning adoption date
February 1,2014 Date of transition
• 2011 important year- Completion IFRS/US GAAP convergence program- SEC plan to make a decision whether U.S. companies are
required to use IFRS rather than U.S. GAAP- Canada and Mexico requiring use of IFRS
• Earliest US implementation 2015/2016
IFRS U.S.
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• Both Standard and Enterprise Edition fully support implementation of IFRS
• Enterprise Edition is designed for Multi-GAAP and embeds IFRS compliance in the core accounting processes- Accounting layers, allocation module, ….
• Start preparation early- www.qad.com/IFRS- QAD IFRS Q-Scan !
IFRS U.S.
QAD Enterprise Financials – CFO Challenges
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• XBRL: What is it?- eXtensible Business Reporting Language- Language for electronic communication of
business and financial data- Common language: XBRL provides identifying
electronic readable tags for each individual item of data
Reporting in XBRL format
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• Tag- Machine readable label that
gives a standard definition for topic in a document.
• Taxonomy - A dictionary of tags for
• Specific accounting standards(US GAAP, IFRS)
• Industry segments • Company specific tags
• Instance Document- Collection of tags that is the
building block to viewing and analyzing data
XBRL – Key terms to know
QAD Enterprise Financials – CFO Challenges
<Asset>1000</Asset>
<element name=”Assets” id=”Assets” periodType=”instant” balance=”debit” abstract=”false” substitutionGroup=”item” type=”monetaryItemType”/>
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• Regulatory reasons- SEC requires public companies to use XBRL
(US)- Mandatory for filing company accounts (UK)- Format within its e-Tax filing system (Japan)
• Business reasons- Facilitates paper-less financial reporting- Conforms to industry-accepted methods- Cuts time required for accounting tasks- Easily compare company information
XBRL – Why?
QAD Enterprise Financials – CFO Challenges
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XBRL – Why?
QAD Enterprise Financials – CFO Challenges
Business Operations
Internal Financial Reporting
ExternalFinancial Reporting
Investment Lending
Regulation
Economic PolicymakingProcesses
XBRL XBRL XBRL XBRL
Participants Companies
Financial Publishers &
Data Aggregators
Investors Central Banks
RegulatorsTrading Partners
Management Accountants
Auditors
Software Vendors
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• SEC requires public companies to submit financial statements in XBRL - Large filers, all remaining public companies for their first
quarter ending after June 15, 2011• Phase 1 detailed tagging of financials, block tagging of notes and
schedules
• June 30, 2012 detailed tagging of notes and schedules
• Options- Outsourcing to an EDGAR filing agency
- Perform tagging process in-house using XBRL tagging tool
- Embedding XBRL tags in consolidation tool
- Embedding XBRL tags in financial reporting process in ERP software
XBRL U.S.
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• Discuss practical implementation of XBRL• Learn from other companies• Help define QAD’s roadmap for XBRL• Join by contacting QAD: xbrl@qad.com
XBRL Customer Work Group
QAD Enterprise Financials – CFO Challenges
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• How to centralize and still meet local requirements?
• How to keep up to date with new legislation and new business practices across the world?
• How to run a shared services center supporting multiple countries?
Global Roll-out, Local Requirements
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• QAD Internationalization offers generic solutions for country specific requirements- Enterprise Edition solution replacing prior
localizations
• Advantages- Single code base to support the world- Supports shared services- Global benefit from specific capabilities- Keep up to date with downloadable content
Global Roll-out, Local requirements
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• Cost method for inventory valuation that calculates periodic item unit costs based on inventory and shop floor transactions.
• Supports Weighted Average, FIFO and LIFO• Required for
- Legal requirements (IFRS, Brazil, Turkey, Italy)- Business practices in certain corporations
Periodic Costing
Recently Released QAD Internationalization Functionality
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• Some countries require inventory movements to be accompanied with a legally required shipping document
Legal Documents
Recently Released QAD Internationalization Functionality
Brazil : Nota FiscalArgentina: RemitoChile: Guia de Despacho
Turkey: IrsaliyePoland: Dokumenty magazynoweThailand: “Stock Card”
Argentina BrazilChile
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• Suspended Tax on Customers Invoices (Mexico, France, Thailand)
• Delayed Tax on Supplier Invoices (Mexico, France)
• Withholding Tax on Accounts Payable (US, Columbia, Venezuela, Italy, Thailand)
• Tax calculation extended to non-sales inventory transactions (Brazil)
• Golden Tax On Customer Invoices (China)• Gross Income Accounting (Brazil)
Taxation
Recently Released QAD Internationalization Functionality
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• New Financial solution introduced with QAD Enterprise Edition- Multi-Layer, Multi-GAAP, Multi-Currency- Additional accounting dimensions- Allocation module- Great for financial shared services- From single site to very large global
manufacturing company- State of the art technology- Extensive support for Excel
Refresher
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• Backwards Compatibility• Customer requested enhancements• Internationalization• Group Reporting• Automation of Consolidation
Planned Developments
QAD Enterprise Financials – Planned Developments
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• Ability to implement newer versions of Enterprise Financials without having to upgrade the complete QAD application suite- For example implement QAD 2011.1 Enterprise
Financials while running QAD 2009.1 Enterprise Edition
• Available for customers QAD 2009.1 EE and upwards
Backwards Compatibility
QAD Enterprise Financials – Planned Developments
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• Advantages- Allows companies to benefit from new
Enterprise Financials capabilities without doing a full upgrade
- Delivery mechanism for Internationalization updates that require new business logic
- Benefit from experiences and support fixes of other implementations
- Remain current and on a supported version
• Starting roll-out middle of this year
Backwards Compatibility
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• Selection of enhancement requests• Example of enhancements added in QAD
2011- Add description field to Open Item Adjustment- Usability enhancements Customer/Supplier Payment Mass
Change- Creation of end-users for existing addresses or inactive
customers in Invoice Post/Print- Implement validation for duplicates earlier in Supplier Invoice
Create activity- In Supplier Invoice Create add Supplier Name and PO cost to
the lookup on PO Number- Print aging report by sales person or payment group
Customer Requested Enhancements
QAD Enterprise Financials – Planned Developments
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• Invoice Certification (Portugal)- Decree 363/2010: Software certification for
invoice program- QAD is certifying QAD Enterprise Financials
2011.1
• Electronic Invoice (Brazil)
• Invoice Print converted to Report Framework
• Advanced Banking System (Brazil)• Delayed Taxes Exchange Rate (Mexico)
- Government issued exchange rates
Internationalization
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• Domain and Group level financial statements
• XBRL support• Source for BI Financial data
Group Reporting Objectives
QAD Enterprise Financials – Planned Developments
ReportCube
Common Report Chart -GL -Sub-Account -Cost Center -Project -SAF
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Group Reporting Overview
QAD Enterprise Financials – Planned Developments
Cube Generate
SourceDomains
AccountSub-AccountCost CenterProjectSAFIntercompany
Base CurrencyGL Calendar
COA Cross Reference
Chart translation
Report Chart
EntitiesGLSub-AccountCost CenterProject
Presentation Currency
Report Calendar
Report CubeDefinition
CurrencyCalendarEntities
ReportHierarchy
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Group Reporting - Financial Report Writer
QAD Enterprise Financials – Planned Developments
ReportCube
Common Report Chart -GL -Sub-Account -Cost Center -Project -SAF
Presentation Currency
Report Calendar
Rows
Colu
mns
Tree
ReportAnalysis Codes
EuropeSales
Automotive
Americas
Asia
Sales Packaging
Report Analysis codes are the building blocks of the Report Hierarchy Tree
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• Tree structure- Represent the hierarchy of the report- Nodes build with Report Analysis Codes- Tree structures are reusable in multiple layouts
• Build recursively from smaller trees
Report Tree
QAD Enterprise Financials – Planned Developments
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• Ability to process multiple consolidation levels in a single run
• Automatic eliminations• Multi-database consolidations• Consolidation dashboard
Automation of Consolidation
QAD Enterprise Financials – Planned developments
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• CFO challenges- IFRS- XBRL- Global Roll-out while meeting local
requirements
• QAD Enterprise Financials- Backwards Compatibility- Customer requested enhancements- Internationalization- Group Reporting- Automation of Consolidation
Summary
QAD Enterprise Financials – From Planning to Compliance
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Metrics Affected
QAD Enterprise Financials – From Planning to Compliance
Process Benefit Value
Period/Year end reporting
• Faster closure and reporting to market
• By automating translations to other COA/GAAP fewer errors and more reliable results
• Improved compliance to corporate governance standards such as Sarbanes-Oxley
•Improved compliance at lower costs
Meeting local legal and business requirements
• Single solution for global compliance
• Keep up to date by downloading Internationalization updates
•Improved compliance at lower costs
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• Attend Architecting and Managing a Global Enterprise Solution - Thursday at 11:00 am- Speakers:
• Trevor Steel, Solutions Consultant, QAD• Cliff Markell, Director of IT, Watts Water Technologies
• Stop by the EXPO and learn what Enterprise Financials can do for your organization
Next Steps
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• René Bergkamp: rbe@qad.com
Questions & Answers
QAD Enterprise Financials – From Planning to Compliance