Financials Enhancements

QAD Enterprise Applications 2017 – Enterprise Edition includes financial product changes for two releases of QAD Financials. This document contains only those financial product changes that took place between March 11 and August 24, 2017. These changes form part of Financials 2017.1.

Financial product changes between February 25, 2016, and March 10, 2017, were released as Financials 2017. These changes are described in QAD Financials 2017 Release Notes.

Rebuilding budgets can be time-consuming, especially when transaction volumes are large. The Budget Rebuild (25.5.1.7) activity now enables you to rebuild only those periods that need to be rebuilt. There is no setup required, but the start and end dates specified when rebuilding must correspond to start and end dates for both budget periods and entity GL periods. This enhancement makes budget rebuilds faster because only the necessary transactions are passed to the budget daemon.

Revenue recognition is increasingly becoming an important requirement. This is especially true with the introduction of new accounting standards like ASC 606 and IFRS 15 that aim to provide a more robust framework for addressing revenue issues. A new revenue module provides functionality that enables you to:

• Define and work with accrued and deferred revenue accounts. You can create deferred revenue daybooks to enable you to track journal entries and postings to handle the deferral and recognition of revenue.

• Define revenue recognition rules and link them to the performance obligations attached to revenue contracts. You can use the following recognition rules:

• Time-based - A performance obligation can be marked as fulfilled after a set time period after goods or services have been delivered or invoiced.

• Percentage Complete - Revenue is recognized based on the difference between the amount of the contract invoiced and the amount of work done on the contract.

• Custom Periodic - Revenue recognition is subject to special considerations. For example, revenue amounts might be split unevenly across financial periods.

• Record revenue recognition data against the performance obligations of a revenue contract and mark performance obligations according to their completeness.

• Run revenue calculations on contracts, and then display the effects of the revenue calculations on the relevant contracts in an audit report.

It has always been possible to report by sub-account within the general ledger. It is now possible to associate a sub-account with a site and to set the sub-account for postings against Customer and Supplier Control accounts based on the header site on sales and purchase orders. The AR/AP Sub-Account field in Site Maintenance enables you to specify a sub-account that is used to represent the site on invoices created for the site concerned.

In manual and automated flows, the sub-account in Site Maintenance overrides the sub-account defaulted from the supplier or the customer. This enables you to report based on site on the balance sheet and income statement. In customer and supplier invoices, the defaulted sub-account is displayed, based on the sales order or purchase order site.

This enhancement does not cover all site-specific balance sheet reporting. There are some tax and expense items receipts where defaulting does not occur. However, there are workarounds for these scenarios.

Supplier invoice approval workflow allows you to implement a workflow to approve supplier invoices. You can implement supplier invoice approval workflow for invoices submitted for approval after creating the invoice or later after receiver matching when the status is no longer initial.

In this release, a Submit for Approval field has been added in Supplier Invoice Create. It is only visible when supplier invoice approval workflow is enabled at entity level. When the invoice status is defined as Invoice Status Before Approval in Invoice Approval Transitions, you can select the Submit for Approval field to submit the invoice for approval. If the invoice has another status, the field is disabled. You must select the field manually for the invoice to be submitted for approval.

When supplier invoice approval workflow is activated, you cannot create an invoice with the status Approved. After you submit a supplier invoice for approval, you can no longer modify any supplier invoice fields.

To support the handling of temporary prices on purchase orders and the associated price adjustments, the ERS Processor grid has been updated to contain a Transaction Type field with two possible values. It displays the value PO Receipt for purchase order receipt pending vouchers. It displays the value Price Adjustment for price adjustment pending vouchers. The field is hidden by default. For Price Adjustment pending vouchers, the Reference field on the ERS Processor grid now contains a unique two-digit number appended at the end. This two-digit number indicates the adjustment reference.

The ERS audit report has also been enhanced to reflect the changes in the ERS Processor.

In Receiver Matching, there is also a new Transaction Type field available when searching for Pending Invoices. This field enables you to search for Purchase Order Receipt pending vouchers, Price Adjustment pending vouchers, or both. The Receiver Matching grid also displays three additional fields that are hidden by default.

• The Transaction Type field displays whether the pending voucher is a Purchase Order Receipt or a Price Adjustment.

• The Adjustment Ref field contains the receiver number of the original PO receipt number plus a unique two digit number indicating the adjustment number of the related price adjustment pending voucher,