Enterprise Edition Financials Why Should I Upgrade ?

1. Enterprise Edition FinancialsWhy Should I Upgrade ? Lance LaCross, CPA Solutions Consultant March 23, 2010

2. Why Upgrade?

3. Why Upgrade? By Harnessing The Power Of New Technology, You Can Achieve YOUR Competitive Advantage

4. Agenda Why Upgrade: The Benefits Benefits of QAD Enterprise Financials Components of QAD Enterprise Financials Demonstrate Live Scenarios Questions & Answers

5. Business Drivers of QAD Customers and Prospects: • Companies Need A Way To Make Sense Of All The Data Being Collected Within Their Organization – Need Increased Visibility. • Need To Be Able To Answer Strategic Business Questions. • They Are Now Being Held Accountable And Therefore Need To Control And Comply. • Companies Are Growing Worldwide And They Need A System That Will Allow Them To Benefit From Their Global Operations. • They Want A System That Is Easy To Use.

6. Periodic Application Refresh Proactive Application Management Regular Applications Value Reviews Competitive Opportunity Practical Competitive Optimum Status Quo Go Live Competitiveness Competitive Erosion Time By harnessing the power of new technology, you can achieve competitive advantage

7. Can customizations be reduced ? Can upgrade provide new business value? Productivity Cost Upgrade Cost Drivers Business Justification Examines The Overall Impact To Your Organization’s Performance

8. Benefits of Upgrading: Take Advantage Of New Functionality Reduce Customizations Reduce Operational Costs Respond To Globalization And Consolidation Needs Increase User Productivity Ensure Compliance Optimize Application And System Performance Drive Lean Principles Throughout The Organization

9. Business Benefits QAD EE Solution provides: • Efficiency - Complete access to financial data along with role-based processes • Globalization- An integrated financial solution across the entire enterprise including multi-company, multi-currency, multi-GAAP, and multi-country organizations • Compliance - Controls for data and processes – role-based security, segregation of duties • Leverage Technology – powerful integration tools and user-definability • Ease of Use & Standardization - An easy to use, scalable solution

10. First: Leverage Technology New powerful functionality to import/export data Bi-directional Excel Integration

11. New Enterprise Edition Concepts More, faster and better: Database and Shared Sets Multiple Accounting Layers allow for multi-GAAP reporting Dual Base Currency: Transaction amounts stored in multiples – Transaction, Base and Management Currency Multiple COA for reporting purposes

12. Database Sets • Database - Shared Set • Entity = “Balanced Set of Books” • Domain = Group of Entities w/ same Base Currency QAD 2010 System e.g. managementcurrency, users, … System-Wide Data e.g. COA, suppliers, customers, … Shared-Set Data Shared-Set Data Domain Data Domain Data Domain Data e.g. base currency, numbering, … e.g. taxes, numbering, … Entity Data Entity Data Entity Data Entity Data Entity Data Site Data Site Data Site Data Site Data Site Data e.g. inventory, cost, planning, … Location Location Location Location Location

13. QAD Financial Analytics • Align performance of business units to your overall company objectives • Analysis and reporting from C-level executives to business unit managers • Multi-layer accounting with support for simulations and what-if analysis • Extensive drill-down and analysis capabilities • Dashboards for customer and supplier information • Supplementary Analysis Fields (SAF) Ensures overall state of the business analysis as strategic options are analyzed for the CFO

14. QAD Management Reporting • Extensive set of reports • Graphical output that is easy to customize • Unlimited report variants can be created for any specific requirement • Reports in company reporting currency and company chart of accounts for comparison of business operations • Spreadsheet style browses that allow detailed selections and easily generate one-off reports Board reporting made simple, and decision making made black and white with flexible, graphical reporting for the CFO

15. Different Flavors of Information US GAAP Local GAAP IFRS

16. Enterprise Reporting Suite Reporting Framework .NetUI Browses Structured Reports Standard Reports Business Intelligence Reports Excel / PDF Metrics Dashboards Excel, PDF, Word, etc.

17. Report Variants – What, When, & Who

18. Workbenches, Browses, Collection Pre-set with user ability to change and create new

19. Reporting Framework • Create New, start with Browse, or modify Existing QAD reports • Add images, graphs and other controls • Additional Features • Windows Task Manager Schedules • Output documents, Excel, PDF • Release with QAD EA 2009 includes samples • Existing reports converted over time 19

20. See the Whole Picture

21. Now To The QAD Solution

22. QAD Multi-GAAP • Accounting Layers allow for multi-GAAP reporting • Multiple charts of accounts (COA) for reporting purposes • Ability to combine accounting layers in reporting • Simulate GAAP transformation transactions • Allocation module and Supplementary Analysis Fields to support IFRS segment reporting Accounting layers allow multi-GAAP reporting from a single set of books

23. Accounting Layers / Books Accounting layers (books) provide ways of segregating transactions within a single GL account. The posting of transactions is controlled by associating daybook types with one of three system-defined accounting layers: official, management, and transient:

24. Accounting Layers / Books Three Types Official Management Transient Unlimited Versions: Multi-GAAP reporting (Mgmt) IFRS Layer (Mgmt) Non US GAAP Layer (Transient) “What-If” Question (Transient) Audit Layer (Mgmt) Ability to combine accounting layers in reporting

25. Additional help with IFRS • IFRS 8 Segment Reporting – when a company has parts of the business operating in different business segments • In order to compare information with other businesses in same segment you can use: • SAF Codes to split info by segment • Use Allocation module if you need to reallocate costs and revenues into the appropriate segments • Accounting Layershelps support combination of local GAAP and IFRS as well as IFRS 1 (First-time Adoption) by using Adjustment Layers • This approach allows for separately recording and tracking of the differences between local GAAP and IFRS

26. Financial Shared Services • Sharingof chart of accounts and other key master data • Sharing of customers and supplier across business units • Workflow to move documents between business entities • Link to document management to store electronic versions of paper documents such as invoices • Cross-company AR and AP payments • More efficient use of resources – better management of cash Have economies of scale to save back-office costs and support growth

27. Shared Sets Example QAD 2009 System - USD (Mgmt Currency) Americas GL Account Set 1 Europe GL Account Set 2 Domain 3 REAL Domain 6 GBP Domain 2 CAD Domain 3 PESO Domain 4 CHF Domain 1 USD Domain 5 EURO Customer Set 2 Customer Set 1 Supplier Set 1 Exchange Rate Set 2 Exchange Rate Set 1

28. Back to live software… • Shared Services Example With: • Cross Domain Visibility • Multi-Currency • Inter-Company • Workflow - Messaging

29. QAD General Ledger • Multi-Entity, Multi-Currency, Multi-Layer • Support for recurring/reversing entries • Extensive drill-down capabilities • Flexible account structure with up to 5 optional Supplementary Analysis Fields per account combination • Posting templates • Multi-stage period closing process including period marks, closing validations and reporting • Separate period for year-end corrections • Bi-directional Microsoft Excel® integration for journal entries as well as for account setup Ensures all financial data is quickly accessible for drill down and corporate reporting

30. GL Analytical Coding SegmentsAdditional Analytical Detail Entity Yr/Pd Daybook Layer/Book header level Primary GAAP Acct Sub-Account Cost Center Project SAF’s SAF’s SAF’s SAF’s SAF’s Up to five ‘supplementary analysis fields’on a posting line line level • can automatically retrieve SAF data from Operational transactions • Site • Product Line • Region (Customer) • Customer Type • Supplier Type • Item Type • Item Group

31. SAF – Supplementary Analysis Field Provide additional analytical reporting To fine-tune transactions and reporting For example, IAS 14 (International Accounting Standards – Segment Reporting) (IFRS 8) requires that financial information be reported by line of business and geography. SAF’s allow the collection of this data without having to create additional General Ledger accounts

32. SAF – Supplementary Analysis Field Hierarchy Per Each Structure = Up to 5 Concepts Concepts Concepts Concepts Concepts Concepts Codes Codes Codes Codes Codes Codes Codes Codes Codes Codes Codes Codes Codes Codes Codes Codes Codes Code Codes Codes Code Codes Codes Codes Codes Codes Codes Codes Codes Code Codes Codes Code Codes Codes Codes Codes Code

33. SAF Structures SAF codes can be defaulted to make data entry easier

34. Demonstrate powerful example using SAF Codes The Scenario… • You need to reduce costs…pick on travel costs • But, you do not have a good handle on any detail for those costs! • If you could track more detail and then analyze that information…..you could make some informed decisions !

35. QAD Budgeting Quick, flexible, collaborative budgeting process for the finance manager • Supports multiple versions of budgets • Budget periods can be different from accounting periods • Recording of forecasts • On-line budget checking and warnings • Import budget data from Microsoft Excel® • Live modification of budgets using Microsoft Excel® • Supports multi-level budgeting and actuals coming from multiple companies

36. QAD Budgeting provides real value: • Integrated budgeting provides improved financial analysis and reduced IT involvement • Online collaboration with all involved improving accuracy and shortening turn around time • Automated transaction postings reducing errors, paper and manual processes

37. Now To The QAD Solution

38. Consolidations Provides quick & complete consolidation process for the Finance Manager • A subsidiary entity can be a part of multiple consolidation entities • Proportional Consolidation is supported • You can build up hierarchies of consolidation entities • Automatic tracking of intercompany transactions to support elimination • Consolidate separately by accounting layer • Support simulations

39. Management Example

40. Legal Example

41. Allocations • Distribute costs and revenues to appropriate accounts, sub-accounts, cost centers and projects • Supports recursive allocations • Reuse result of previous allocation run as input for the next • Validate results of allocation run before final posting • Supports different allocation methods, including proportional based on usage/activity • For instance distribute electricity costs to production centers/departments based on kWh Allocation provides control and consistency

42. Fraction Numerator Target Source * = Denominator Allocation Definition • Source can be a constant, a runtime entered value or a GL posted value (defined in Budget WBS [Work Breakdown Structure] as ‘topic’) • Numerator / Denominator can be constants, runtime entered values or GL posted values (defined in Budget WBS as ‘topic’) • Target is your allocation posting, based on a Journal Entry template

43. QAD Multiple Currency • Process, pay and receive money in any currency • Set up functional currencies by business unit • Multiple Currency Types • Dual Base Currency Plus • Transaction amounts always stored in transaction currency + in primary base (functional) currency and secondary base (statutory) currency • Extensive revaluation options, both for functional and statutory currency • Allows a global organization to conduct business any currency, and generate consolidated and management reporting in the mandated currency Do business in any currency

44. Multiple Base Currencies Dual Base Currency: Transaction amounts always stored in transaction currency, base currency and company management currency and (Statutory Currency 11-2009) For example: Customer invoices In CAD (transaction) In MXN (base) In USD (management) MXN For example, a Mexican company keeps its books in MXN, reports into a US mother company and sends a CAD invoice to a customer

45. Define Exchange rates per type Per type Per currency pair From validity date

46. QAD Accounts Receivable • Flexible aging reports • Retro Billing allows price changes on items after items shipped and invoiced • Self Billing • Sharing of customers and credit limits between business units • Automatic netting of invoices and credit notes • Netting between common customers and suppliers • Write-offs and open item adjustments • Dunning letters automatically generated • Customer activity dashboard Full control on the total process between billing and collecting

47. QAD Credit Management • Extensive and flexible credit check (Days & Dollars) • Based on percentage of sales • Fixed credit limit • Maximum days of overdue • Option to overrule • Share credit limit of shared customers across companies • Configurable warning level • Dashboard for customer activity and credit information • Multi level dunning letters Ensures visibility of customers with credit issues for the finance manager

48. QAD Accounts Payable Streamline the process from purchase order to supplier payments • Variances are generated based on 3-way match of PO, receipt and invoice • Flexible matching and approval process • Automate process of entering and approving supplier invoices with Scan daemon, document management and workflow routing • Evaluated Receipts Settlement (ERS) eliminates the need to enter supplier invoices • Netting between common customers and suppliers • Write-offs and open item adjustments • Supplier activity dashboard

49. Now To The QAD Solution

50. QAD Banking/Cash Management • Electronic import of bank statements • Supports US Lockbox processing • Extensive support for automated payments, including drafts and direct debit • Support for local payment and file formats using QAD Internationalization • Flexible mapping of payment formats using EDI eCommerce • Petty cash handling • Bank account validation according to local formats including IBAN Automatic monitoring of cash flows to quickly make key decisions based on the cash position of the business