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  •     QAD Glossary

  • Internationalization Enhancements
    In QAD 2013 EE, a number of changes have been made to Evaluated Receipts Settlement (ERS) to accommodate changes made to logistics accounting and periodic costing to support Brazilian business practices. As a result, you can now use ERS to create supplier invoices for legal documents that include logistics charges and trailer expenses for both domestic purchases and imported goods.
    Important: The ability to process legal documents for logistics charges in ERS is only available in QAD Enterprise Applications if you have also installed the QAD Internationalization Extensions package for Brazil.
    When you run the ERS Processor for legal documents that include logistics charges, you must always use ERS option 3 where the system creates a confirmed supplier invoice and receiver matching record for pending invoices. You cannot use option 1 (disallow ERS Processing) or option 2 (create an initial invoice and receiver matching record).
    Logistics Charges for Domestic Goods
    If you purchase goods domestically that have associated logistics charges, the supplier issues a legal document in base currency that includes the logistics charge lines. Alternatively, the supplier can issue a combined legal document that includes both material and logistics charge lines.
    When you use Fiscal Receiving to fiscally receive the carrier’s legal document and confirm the receipt, the system creates a pending invoice based on the legal document.
    When you run the ERS Processor to process the pending invoice, the system creates a matched supplier invoice for the legal document logistics charges and updates the relevant accounts and taxes.
    If the legal document includes both material and logistics charge lines, the ERS Processor creates a matched supplier invoice for the combined material and logistics charges if the material supplier is named as the logistics supplier in the purchase order. Otherwise, the system creates separate material and logistics charge invoices.
    Logistics Charges for Imported Goods
    When importing goods, an import agent may handle the import process and incur certain logistics charges on behalf of the customer. The import agent charges the customer for managing the import and for acting as an intermediary between the customer and the foreign material supplier.
    If the legal document contains logistics charge lines only, the ERS Processor creates supplier invoices for the logistics charges and updates AP in the name of the import agent. ERS also creates the associated AP, matching, and tax postings.
    If the purchase order is in a foreign currency, ERS creates a foreign currency supplier invoice, but the legal document is in base currency. The system uses the exchange rate from the legal document and not from the pending invoice.
    If the legal document for the imported goods contains combined materials and logistics charge lines, the ERS Processor:
    Creates supplier invoices for the material lines in the name of the material supplier
    Creates supplier invoices for the logistics lines in the name of the import agent
    Creates the relevant AP, matching, and tax postings
    ERS and Reversing Legal Documents
    If you use ERS to process legal documents, you can subsequently reverse the invoices created by ERS.
    If you reverse an invoice created by ERS from a legal document, you cannot directly replace the reversed invoice in Accounts Payable. For supplier invoices created by ERS where Fiscal Confirm Required is activated in Purchasing Control, the Create Replacement field will be unavailable if you go to reverse the invoice in Supplier Invoice Reverse.
    To reverse and replace an ERS invoice created from a legal document, reverse the invoice using Supplier Invoice Reverse, unconfirm the associated legal document, and then make the required corrections. You must then reconfirm the legal document and generate a replacement supplier invoice using ERS.
    For legal documents that reference multiple supplier invoices, you must reverse all the supplier invoices before you can unconfirm the legal document.
    ERS and PO Returns for Legal Documents
    Use Purchase Order Returns (5.13.7) to process supplier returns for legal documents, including items for which logistics charges apply.
    When purchase order line items with associated logistics charges are returned using Purchase Order Returns, the system does not reverse the accrued value of the logistics charges. This is because some logistics charges, like freight or insurance, could be payable to a third-party supplier regardless of whether the items are returned.
    When you process a return for purchase order line items with associated logistics charges in Purchase Order Returns, the system creates the following GL transactions:
    Debit the inbound expense account for the accrual value.
    Credit inventory for the same amount.
    When the purchase order return is processed, the system generates a separate legal document for the returned materials. The legal document for the material return is linked to the original legal document.
    You then run the ERS Processor by legal document to generate a supplier credit note for the returned materials; ERS does not create a credit note for the logistics charges associated with the returned materials.
    Modified Program

    Modified Program for ERS
    ERS Processor