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  •     QAD Glossary

  • Enterprise Financials Enhancements
    Deductions
    Deductions, sometimes referred to as short pays, occur when a customer pays less than the amount owed. Reasons for deductions can include rounding differences, reductions due to quality issues, perceived entitlements based on commercial agreements, damaged goods, spoilage, improper packaging or labeling, or any other reason for which a customer may pay less.
    You can record two types of deductions in Financials: standard deductions and promotional deductions. Standard deductions are processed entirely in the Financials module. However, it is recommended that you do not process deductions relating to promotions and claims in Financials, but in a dedicated trade promotion management module. Promotions are agreements with customers to provide discounts for a specified period of time and allocate funds for promotional activities or offer free goods and services.
    Deductions are processed at several different points in QAD Enterprise Applications:
    Record deductions using Customer Payment Create (27.6.4.1), Banking Entry Create (31.1.1), or Petty Cash Create (31.2.1).
    Review deductions using Deduction Review (27.6.16.6), where you can approve or reject deductions. Finding and rejecting invalid or unearned deductions can result in significant savings.
    Manually create credit notes for deductions that are Approved for Credit.
    Adjust credit notes against approved deductions using Open Item Adjustment Create.
    When you record deductions using Customer Payment Create, Banking Entry Create, or Petty Cash Create, you assign characteristics to a deduction using a deduction category. This designates the type of deduction (standard or promotional), the expense account to which the deduction is posted when approved, and whether or not low-value deduction amounts can be written off without review and approval.
    During the deduction review process, you can approve or reject a pending deduction. You can perform two types of approvals on pending deductions. You can approve a deduction for expense, where the system writes off the deduction to the account associated with the deduction category. You can also approve a deduction by making it available for adjustment against a credit note. If you reject a deduction, the deduction becomes a due open item on the customer’s account.
    Deduction Profiles
    In order to use deductions, you must define two types of profile: a customer account profile for deductions and a customer deduction daybook profile.
    You specify the customer account profile for deductions in the customer record in Customer Create (27.20.1.1) or Customer Modify (27.20.1.2). You associate the customer deduction daybook profile with the entity bank account used for deductions. The system posts deductions you create in Customer Payment Create and Banking Entry Create to the daybook indicated by the profile.
    Deduction Suspense Account
    When setting up deductions, you must define a Deduction Suspense system account, which is a new type of system account. The Deduction Suspense account is used to transfer the balance from the payment posting to the deduction posting.
    Deduction Categories
    Use Deduction Category Create (27.6.16.1) to create deduction categories that enable you to assign characteristics to a deduction. The deduction category designates the type of deduction (standard or promotional), the expense account to which the deduction is posted when approved, and whether or not low-value deduction amounts can be written off without review and approval.
    You can also use Deduction Category Excel Integration (27.6.16.5) to load deduction categories stored in an Excel spreadsheet.
    Deduction and Prepayment Credit Terms
    You must set up deduction credit terms by domain using the new Credit Terms Deduction field in the Domain record. When deductions are created, the domain-level deduction credit terms are used instead of the customer’s default credit terms. The due date of the deduction is then calculated using the domain credit terms. The credit term you specify for the domain cannot be a staged credit term and cannot include discounts.
    Similarly, you can now create prepayment credit terms by domain. When prepayments are created, the domain-level prepayment credit terms are used instead of the customer’s default credit terms.
    Creating Deductions in Customer Payment Create
    Use Customer Payment Create to record deductions using the Customer Payment–Deduction pop-up screen. The process is similar to that for creating prepayments. However, unlike prepayments, you can enter many deductions for a single payment transaction.
    When you add a deduction to a payment, the system creates two postings when the payment is saved. One posting is recorded in the customer payments daybook and the second posting is recorded in the customer deductions daybook. A customer invoice of type Deduction is created after you save the payment.
    The system uses the Deduction Suspense system type account to transfer the balance from the payment posting to the deduction posting.
    If the deduction category allows automatic write-offs, the system automatically writes off any standard deduction within the specified deduction limits to the account associated with the deduction category.
    When you save the customer payment, a new open item is created in the entity associated with the GL bank account. Using Deduction Review, you can manually allocate the deduction invoice to one or more entities.
    Creating Deductions in Banking Entry Create
    You can use Banking Entry Create to create deductions for payments from customers. You create deductions using the same process described in Creating Deductions in Customer Payment Create. You can also record deductions in Petty Cash Create.
    Recording Deduction Invoice Open Balances
    Use Customer Opening Balance Create (27.1.10) to manually create a deduction invoice open item in the sales sub-ledger and generate postings for customer control accounts. The activity lets you transfer the outstanding open items for a specific customer in detail from an external system to your QAD application.
    Deductions and Consistency Checks
    When Consistency Checks Execute (25.21.3.1) is run, the balances of the deductions are checked and compared with the deduction control accounts.
    Reviewing Deductions
    Use Deduction Review to review both standard and promotional deductions. Standard deductions are editable; promotional deductions are read-only.
    During the deduction review process, you can approve standard deductions, subsequently writing off the deduction to the expense account associated with the deduction category.
    In Deduction Review, you can also change the status of a Pending deduction to Approved for Credit. Changing a line to Approved for Credit has no accounting impact. This status indicates that a credit note must be manually created for the deduction amount. When the credit note is created, you can use Open Item Adjustment Create to adjust the credit note against the deduction balance. When the deduction open item is adjusted in Open Item Adjustment Create, the deduction status is automatically updated to Credited.
    Note: If a deduction does not have the Approved for Credit status, you cannot adjust it in Open Item Adjustment Create.
    In Deduction Review, you can change the status of a Pending or Approved for Credit line to Rejected. The rejected deduction becomes a due open item on the customer’s account and is treated as a normal customer invoice. The rejected deduction invoice can be included in transactions in Customer Payment Create, Customer Payment Selection Create, Banking Entry Create, Petty Cash Create, and Open Item Adjustment Create.
    You can also change the deduction category associated with the deduction during the review process.
    Deductions in Reports and Views
    Pending deduction invoices are included in the Customer Open Item report (27.17.1), the Customer Open Item Basic report (27.17.15), the Customer Statement of Account report (27.17.19), the Customer Aging reports, and the Reminder Letter report (27.17.10).
    You can view deduction invoices in the Activity tab, Invoices tab, and Payments tab of the Customer Activity Dashboard (27.18.1).
    New Programs for Deductions

    New Programs for Deductions
     
    Menu
    Label
    Program
    27.6.16.1
    Deduction Category Create
    BDeductionCat.Create
    27.6.16.2
    Deduction Category Modify
    BDeductionCat.Modify
    27.6.16.3
    Deduction Category Delete
    BDeductionCat.Delete
    27.6.16.4
    Deduction Category View
    BDeductionCat.View
    27.6.16.5
    Deduction Category Excel Integration
    BDeductionCat.ExcelIntegration
    27.6.16.6
    Deduction Review
    BDInvoice.ChangeDeduction
    Modified Programs for Deductions

    Modified Programs for Deductions
     
    Menu
    Label
    Program
    25.3.13.1
    GL Account Create
    BGL.Create
    25.3.13.2
    GL Account Modify
    BGL.Modify
    25.3.13.3
    GL Account View
    BGL.View
    25.3.13.4
    GL Account Delete
    BGL.Delete
    25.3.13.5
    GL Account Excel Integration
    BGL.ExcelIntegration
    25.13.5
    Open Item Adjustment Create
    BOpenItemAdjustment.Create
    25.21.3.1
    Consistency Checks Execute
    BConCheck.Create
    27.1.10
    Customer Opening Balance Create
    BDebtorOpenBalance.Create
    27.6.4.1
    Customer Payment Create
    BDDocument.Create
    27.6.4.2
    Customer Payment Modify
    BDDocument.Modify
    27.6.4.3
    Customer Payment View
    BDDocument.View
    27.17.1
    Customer Open Item Report
    BDebtorReport.DebtorOpenItems
    27.17.6
    Customer Aging Analysis Current
    BDebtorReport.DebtorAgeingAnalysisCurrent
    27.17.7
    Customer Aging Analysis History
    BDebtorReport.DebtorAgeingAnalysisBackwards
    27.17.8
    Customer Aging Analysis by Grp Current
    BDebtorReport.DebtorAACGroup
    27.17.9
    Customer Aging Analysis by Grp History
    BDebtorReport.DebtorAABGroup
    27.17.10
    Reminder Letter Report
    BDebtorReport.DebtorReminders
    27.17.15
    Customer Open Item Basic Report
    BDebtorReport.DebtorOpenItemsQuick
    27.17.19
    Customer Statement of Account Report
    BDebtorReport.DebtorAccountState
    27.18.1
    Customer Activity Dashboard
    BDebtor.DebtorCreditInfo
    27.20.1.1
    Customer Create
    BDebtor.Create
    27.20.1.2
    Customer Modify
    BDebtor.Modify
    27.20.1.3
    Customer View
    BDebtor.View
    27.20.1.4
    Customer Delete
    BDebtor.Delete
    31.1.1
    Banking Entry Create
    BBankEntry.Create
    31.2.1
    Petty Cash Create
    BCashBox.Create
    36.1.1.1.1
    Domain Create
    BDomain.Create
    36.1.1.1.2
    Domain Modify
    BDomain.Modify
    36.1.1.1.3
    Domain View
    BDomain.View
    36.1.1.4.1
    Profile Create
    BProfile.Create
    36.1.1.4.2
    Profile Modify
    BProfile.Modify
    36.1.1.4.3
    Profile View
    BProfile.View
    36.1.1.4.4
    Profile Delete
    BProfile.Delete