Chinese financials statements have specific formatting requirements. For example, reports at the transactional level are categorized by cash and bank transactions, foreign currency transactions, and account transfer transactions. Reports must also be printed on blank standard forms that are issued under the governance of Chinese financial authorities; while in some areas of the country it is also possible to format and print the reports on blank paper.

Use Chinese GL Transaction Reports (25.15.7.1) to print financial reports that meet these requirements. You must perform the following functions before printing:

The following reports are available for use with this program:

These reporting functions are described in User Guide: QAD Financials.

It is a requirement by tax Authorities that electronic data to be provided by the company as a source of information for tax auditing. The main source of this data are ERP systems. The scope of data that are subject to this electronic auditing is:

 

Use Accounting Data Export (25.13.23.1) to export files of accounting data in standard format and file types that are required by Chinese financial authorities.

Each export file corresponds to one type of accounting data, and the data elements and file formats are strictly defined. The export files can be in plain text, and include the following:

Accounting Data Export is described in
User Guide: QAD Financials.

In China, GL transactions are verified and approved in order to prevent fraud. This bookkeeping practice ensures that every transaction of a business is recorded, checked, and approved by authorized signatories. Accordingly, a transaction has its creator, verifier, and approver; these each must be different individuals in the business to ensure that the transactions information is accurate.

The functions on Status Transition Menu (25.3.12) are used in combination with the Verify and Approve activities in the Journal Entry function to define and implement the process to verify and approve transactions.

A status transition defines how the status of a transaction can be changed from one status to the other. You can select from the following verification and approval statuses to customize the flow of status transitions to fit your business requirements.

Verification Statuses:

Approval Statuses

The Journal Entry Verify (25.13.1.7) and Journal Entry Approve (25.13.1.8) functions assign a verifier and approver to each transaction so that their names appear in Chinese regional reports.

These options are described in User Guide: QAD Financials.

The Golden Tax system (called “Jingshui”) is a legal information system in China for processing value added tax (VAT) invoices. The system was established by the Chinese government to prevent tax fraud. When a company doing business in China needs to send VAT invoices to domestic customers, they must first obtain pre-printed blank invoices from Chinese tax bureaus. A unique VAT invoice number appears on each blank invoice to identify its legality.

To support these requirements, the Golden Tax Invoice Process menu (7.13.20.1) provides functions that let you export invoice information from your QAD database into a file. This file is then imported into the Golden Tax system for invoice print. After invoices are printed, printed data is loaded back into your QAD database.

This option is described in User Guide: QAD Financials.

In some countries, bank charges apply to payment transfers that you make to your supplier to pay for goods or services. You agree with your supplier who pays these. It must be possible to configure the system to take these charges into account during the AP payment process.

Banks keep a list of the charges that they apply to payments made. These charges are dependent on the bank that you are making the payment to, the amount of money that you are paying, the payment format, and the date of the payment. If your supplier pays for these charges, you can configure the system so that the charges are automatically deducted from the payment that you make to the supplier.

There are a number of steps to complete so that the system is configured to calculate bank charges on payments to suppliers:

When paying an invoice using Supplier Payment Create (28.9.3.1), the payment posting date is used to find the valid bank charge rate. The bank charge appears in the Bank Charge Amount field. You can use Journal Entry View to display the details of the accounts that the bank charge and net payment were posted to.

See User Guide: QAD Financials for more information.