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QAD Financials Concepts
Overview
In this section, you will learn about the underlying QAD Financials concepts, as well as the business data model. It is essential to understand these concepts, which form the basis for the topics described in this training course.
Business Model
When planning your financial implementation, the infrastructure of your business organization must be determined. Domains and entities represent business operations and specific business units that produce profit and loss statements, and financial reports.
There are four levels of data in the QAD Enterprise Edition business model.
Four Levels of Data
System wide
Some financial data is shared throughout the system such as currencies, country codes, and tax zones. This data never differs from one business unit (entity or domain) to another. Therefore, it makes sense to share this data across all business organizations.
Shared sets
Shared sets group data that can be shared across domains. A single domain can have an independent chart of accounts or several domains can share the same chart of accounts, streamlining setup and maintenance.
Domain
A domain represents the base unit of the system and comprises one or more entities. Each domain has its own base currency, and, optionally, statutory currency, which are then shared by the entities within the domain.
Entity
Entity-level data is limited to, for example, the organization’s own bank account number. Transactions are recorded at entity level.
Shared Sets
Shared sets provide great flexibility in how a system can be set up.
A default set of shared set codes is supplied with the system. However, you can create as many shared sets as are required by your financial structure.
The following types of data can be shared:
Customers
Suppliers
Accounts
Sub-accounts
Sub-account COA mask
Cost centers
Cost center COA masks
Projects
Project COA masks
Exchange rates
Daybooks
Example: Three US domains can use the same chart of accounts, while two other domains in Japan can use another accounts shared set.
Data Setup Scenario Example
You may need to connect data in one shared set to another. For example, if several domains use the same customer shared set, but use different chart of accounts, you must link two different customer control accounts, one from each chart of account, to a single customer.
Profiles
In a multiple domain environment, you can use profiles to build relationships between shared sets.
In the above example, instead of linking a control account to the customer record, you specify a profile code. The profile code is linked to two different chart of accounts. This ensures that the correct control account is used for the domain in which the transaction is recorded.
Business Relation
Business relations represent any organization or person that a company does business with, for example, customers, suppliers, employees, or an internal entity. A business relation address is a prerequisite for creating any of these records.
You can also create a business relation from within the customer or supplier creation menus.
Business relations can have different address types, as shown above.
Business Relation Hierarchy
This slide shows how customer, supplier, and company records can relate to each other.
Note: A business relation can be linked to both a customer and a supplier.
Example: ABC produces pens and pencils, and sells to Office Supply Co. ABC, in return, purchases office supplies, such as paper and filing material, from Office Supply Co. Therefore, Office Supply Co. is both a supplier and a customer of ABC.
You can link business relations together using a corporate group. This feature is useful for reporting purposes.