Explore the Proven Power of QAD Enterprise Financials

Explore the Proven Power of QAD Enterprise Financials René Bergkamp, - Vice-President of R&D, Financials - QAD | Building the Effective Enterprise

Explore the Proven Power of QAD Enterprise Financials Safe Harbor Statement The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD. | Building the Effective Enterprise 2

Explore the Proven Power of QAD Enterprise Financials Agenda ■ ■ ■ Enterprise Financials New in 2013 QAD Internationalization update Demo Financial Shared Services What is being worked on Questions | Building the Effective Enterprise 3

Explore the Proven Power of QAD Enterprise Financials | Building the Effective Enterprise

Explore the Proven Power of QAD Enterprise Financials Financial Analytics Consolidations Enterprise Financials General Ledger Fixed Assets Management Reporting Allocations Multi Currency Accounts Receivable Internationalization | Building the Effective Enterprise Multi-GAAP Financial Shared Services Accounts Payable Enhanced Controls Budgeting Governance, Risk & Compliance Credit Management Banking/Cash Management Vertex Sales and Use Tax Interface Tax Management Cost Management Logistics Accounting 5

Explore the Proven Power of QAD Enterprise Financials ■ Key capabilities § § Multi GAAP/COA/Currency reporting Shared services support International regulatory compliance Internal controls ■ Examples of effective enterprise metrics affected: § § § Closing Time Days Sales Outstanding Days Payables Outstanding Operating Cash Flow / Sales Ratio Segregation of Duties Violations | Building the Effective Enterprise 6

Explore the Proven Power of QAD Enterprise Financials Enterprise Edition is now Mainstream | Building the Effective Enterprise 7

Explore the Proven Power of QAD Enterprise Financials Live Implementations March 2013 | Building the Effective Enterprise 8

Explore the Proven Power of QAD Enterprise Financials Planned 2013 | Building the Effective Enterprise 9

Explore the Proven Power of QAD Enterprise Financials Upgrading to Enterprise Edition ■ Multiple options § § Technical Re-alignment Hybrid Re-implementation ■ Session “Debunking the Upgrade Myth: It’s Easier than You Think” (watch recording) | Building the Effective Enterprise 10

Explore the Proven Power of QAD Enterprise Financials New in Enterprise Financials 2013 | Building the Effective Enterprise

Explore the Proven Power of QAD Enterprise Financials What’s New in 2013? ■ Enhancements to Financial Report Writer ■ Payment deductions in AR ■ Avatax Connector | Building the Effective Enterprise 12

Explore the Proven Power of QAD Enterprise Financials Financial Report Writer (FRW) enhancements | Building the Effective Enterprise

Explore the Proven Power of QAD Enterprise Financials FRW : Released in QAD 2012 EE Release Create financial reports : ■ With total flexibility in report setup and hierarchy ■ Locally and globally (even if multiple COA, currencies, and GAAP) ■ With drill down to source transactions | Building the Effective Enterprise 14

Explore the Proven Power of QAD Enterprise Financials FRW Enhancements in QAD 2013 EE Release ■ Include Budgets and Forecasts § Using the existing Enterprise Financials Budgets ■ Interactive drill-down § Dynamically explore reports : expand/collapse the level of detail to be presented in the report hierarchy ■ Streamlined screens for setup | Building the Effective Enterprise 15

Explore the Proven Power of QAD Enterprise Financials Eg. Income Statement Compared With Previous Quarter, Incl. Budget Comparison | Building the Effective Enterprise 16

Explore the Proven Power of QAD Enterprise Financials Eg. Interactive Income Statement With Drill-down | Building the Effective Enterprise

Explore the Proven Power of QAD Enterprise Financials Payment Deductions in AR | Building the Effective Enterprise

Explore the Proven Power of QAD Enterprise Financials Deductions ■ Handling of customer short payments ■ Allows creation of deductions that can be separately approved/rejected and further processed ■ Two kinds of deductions § Trade promotion related (linked to TPM module) § Standard deductions | Building the Effective Enterprise 19

Explore the Proven Power of QAD Enterprise Financials Processing a Deduction at Payment | Building the Effective Enterprise 20

Explore the Proven Power of QAD Enterprise Financials Deduction Review | Building the Effective Enterprise 21

Explore the Proven Power of QAD Enterprise Financials Deduction Processing Flow Deduction Creation at payment processing Deduction Category Standard Promotion Deductions Deduction Review TPM Processing Approved for Credit Deductions Add/Delete/Modify Details Normal Customer Invoices Reject Deduction write off on expense account Approved Write-Off | Building the Effective Enterprise Open Item Adjustment Deductions balanced with other open items 22

Explore the Proven Power of QAD Enterprise Financials Avatax Connector | Building the Effective Enterprise 23

Explore the Proven Power of QAD Enterprise Financials Avatax Connector ■ Avalare Avatax Connector to calculate US/Canadian taxes ■ Available for EE and SE ■ Ava. Tax Calc: ■ Cloud based sales tax service | Building the Effective Enterprise 24

Explore the Proven Power of QAD Enterprise Financials Avatax Connector ■ Avatax Calc: § Validates and corrects the address—including ZIP code +4 § Identifies product taxability § Applies the most current, up-to-date tax rules and regulations § Verifies tax holiday status § Applies sourcing rules (where taxable) § Automatically assigns correct jurisdiction § Provides sales tax calculation for the transaction ■ Avatax Certs: Exemption management ■ Avatax Returns: File Forms | Building the Effective Enterprise 25

Explore the Proven Power of QAD Enterprise Financials Avatax Connector | Building the Effective Enterprise 26

Explore the Proven Power of QAD Enterprise Financials Avatax | Building the Effective Enterprise 27

Explore the Proven Power of QAD Enterprise Financials QAD Internationalization Update | Building the Effective Enterprise 28

Explore the Proven Power of QAD Enterprise Financials Traditional Banking 1 Customer Supplier 3 | Building the Effective Enterprise 2 29

Explore the Proven Power of QAD Enterprise Financials Advanced Banking 1 3 2 Cash Collection Supplier 5 | Building the Effective Enterprise Customer 4 30

Explore the Proven Power of QAD Enterprise Financials Currency Enhancements ■ More support for statutory currency § More access and visibility of SC − SC stored in Operational AR invoices − Tax amounts in SC on Customer & Supplier Invoice tax tab § Exchange rate control − User control of SC exchange rates in Supplier Invoice − Defaulting from invoice date or invoice posting date (AP) − Based on fulfilment date (tax point date) or invoice posting date (AR) | Building the Effective Enterprise 31

Explore the Proven Power of QAD Enterprise Financials Legal Documents Integration ■ Legal document § Nota Fiscal (Brazil), Remito (Argentina), Guia de Despacho (Chile), Irsaliye (Turkey), Dokumenty Magazynowe (Poland), “Stock Card” (Thailand) ■ Additional enhancements § Fiscal Account Control of Legal Documents § Electronic Legal Document Inbound/Outbound ■ Also integrated with § § Logistics accounting inbound Periodic costing Trailer Expenses in Receiving Flow ERS | Building the Effective Enterprise 32

Explore the Proven Power of QAD Enterprise Financials Country specific features ■ Portugal § Portuguese Decree 363 (2010): All customer invoices require a digital signature § New requirement (2012): Digital signatures are also required on shipping documents | Building the Effective Enterprise 33

Explore the Proven Power of QAD Enterprise Financials Country specific features ■ Brazil § Interfacing − Fiscal interface SPED − Accounting interface SPED/FCONT § Mod 3 and Mod 7 legal reports § Taxes − New Tax Methods − Tax ID Federal , state and usage validations ■ Argentina § Withholding Tax (retenciones) − New calculation algorithms/legal Withholding Tax certificate prints § Interfaces − Fiscal data Interfaces : multiple electronic declarations − Electronic invoicing : export to third party application that handles the declaration to the fiscal authorities § Various legal reports in sales and purchasing | Building the Effective Enterprise 34

Explore the Proven Power of QAD Enterprise Financials Country specific features ■ Colombia § Legal reporting § Withholding tax certificates § Additional tax setup and validations ■ Spain § Modelo 340, also called the “Book of invoices” − Electronic declaration − Periodically provide the tax office with a detailed list of all the invoices issued and received § Modelo 349 − Electronic declaration − A VAT statement listing every transaction related to movements of goods within the EU (European Union), either supply of goods from Spain or purchase of goods from an EU country | Building the Effective Enterprise 35

Explore the Proven Power of QAD Enterprise Financials Country specific features ■ France § Déclaration des Echanges de Service (DES) − All European companies subject to VAT declarations have to declare the services delivered to companies in other member states of the European Community − In France this type of declaration has to be delivered in XML format ■ Hungary § Electronic declaration of Intrastat according to the legally required CSV or XLS format | Building the Effective Enterprise 36

Explore the Proven Power of QAD Enterprise Financials Country specific features ■ Italy § § Black List report: Lists transactions involving “black-listed” countries Withholding Tax report and Withholding Tax Certificate report Libro Giornale: GL transactions using a single numbering sequence Spesometro audit extract: Reporting of all transactions over 25, 000 Euros § Codice Identificativo Gara/Codice Unico Progetto (CIG/CUP): Use of a dedicated bank account for every financial transaction relating to certain government procurements ■ Germany § GDPd. U: Auditor can request access as a user of the application, on paper and electronically § E-Bilanz: Send Balance Sheet and Profit & Loss to the tax authorities in digital form in a prescribed XBRL format | Building the Effective Enterprise 37

Explore the Proven Power of QAD Enterprise Financials Certification for Germany ■ IDW Auditing Standard 880 (IDW Au. S 880) QAD EE 2012 Go. B Testat IDW PS 880 | Building the Effective Enterprise 38

Demonstration Shared Services | Building the Effective Enterprise 39

Explore the Proven Power of QAD Enterprise Financials What Is Being Worked On (under development, subject to change) | Building the Effective Enterprise 40

Explore the Proven Power of QAD Enterprise Financials Closing Masks and Entity Groups (under development, subject to change) | Building the Effective Enterprise

Explore the Proven Power of QAD Enterprise Financials Streamlining the Closing Process ■ Allowing a more granular closing process that is preconfigured § Closing masks define what daybooks to close ■ Quickly going through closing stages for multiple entities § Entity groups defining which sets of entities go through a joint closing process “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 42

Explore the Proven Power of QAD Enterprise Financials Daybook Closing Masks ■ Extension of the current process for closing entity GL periods in the application ■ Prevent postings using certain groups of daybooks or daybook groups ■ Daybook Closing Mask is assigned to an entity GL Period “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 43

Explore the Proven Power of QAD Enterprise Financials Daybook Closing Masks “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 44

Explore the Proven Power of QAD Enterprise Financials Example Closing Process AR ■ Definition of following daybook masks § Mask AR-001: customer invoices, credit notes, invoice corrections and credit note corrections § Mask AR-002: AR-001 PLUS customer adjustments § Mask AR-003: AR-002 PLUS banking entry/cash entry ■ The accounting manager applies Daybook Lock by Entity and GL Period § Last day of the GL period: mask code AR-001 § First day of the new GL period: mask code AR-002 § Second day of the new GL period: mask code AR-003 “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 45

Explore the Proven Power of QAD Enterprise Financials Daybook Lock by Entity and GL Period ■ Choose the closing mask to apply ■ Transactions belonging to daybooks referenced in closing mask will be blocked “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 46

Explore the Proven Power of QAD Enterprise Financials Entity Groups ■ List of entities for which a closing activity is to be performed § A single entity can belong to multiple entity groups “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 47

Explore the Proven Power of QAD Enterprise Financials Multi-entity Example “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 48

Explore the Proven Power of QAD Enterprise Financials Multi-entity Closing Function List ■ Run closing activities for a specific group of entities § § § Revaluation simulate Revaluation post Daybook lock by entity and GL Entity GL period lock Entity GL period report “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 49

Explore the Proven Power of QAD Enterprise Financials Monitoring the closing status “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 50

Explore the Proven Power of QAD Enterprise Financials Multi Currency Support In Fixed Assets (under development, subject to change) | Building the Effective Enterprise

Explore the Proven Power of QAD Enterprise Financials Objective ■ Enhance QAD Fixed Assets to allow valuations and depreciations in multiple currencies § Support of multiple GAAP’s for the same asset § Use of historical rates for asset acquisition in a different currency “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 52

Explore the Proven Power of QAD Enterprise Financials Solution ■ Define a currency for each fixed asset book ■ Support use of historical rates for asset acquisition in a different currency ■ Define salvage value by asset book ■ Display book currency values ■ Reports to show amounts on transaction currency, base currency and statutory currency “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 53

Explore the Proven Power of QAD Enterprise Financials Book Currency ■ Associate a book currency with each asset book “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 54

Explore the Proven Power of QAD Enterprise Financials Other enhancements (under development, subject to change) | Building the Effective Enterprise

Explore the Proven Power of QAD Enterprise Financials Multi Company Journal Entry ■ Enhanced Excel integration allowing posting of journal entries to multiple entities from a single function “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 56

Explore the Proven Power of QAD Enterprise Financials Financial Report Writer Enhancements ■ Further layout enhancements based on usage feedback “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 57

Explore the Proven Power of QAD Enterprise Financials Receiver Matching API ■ Receiver matching on existing invoices ■ Accept tax details ■ Extra posting lines “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 58

Explore the Proven Power of QAD Enterprise Financials AP Bank Charges: Japan ■ Facilitate agreement on bank charges ■ Charges dependent on § Amount § Bank § Branches “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 59

Explore the Proven Power of QAD Enterprise Financials Billing– Japan & Thailand ■ Detailed Statement of grouped AR Invoices ■ Periodically based on a predefined schedule ■ Unique ID and due date Automatic selection based on billing schedule Invoice Cred. Note Invoice Billing Period 1 Prepay. Invoice Customer Bill 1 • Invoice • Cred. Note • Invoice • Prepay. • Invoice Prepay. Invoice Billing Period 2 Cred. Note Invoice … Customer Bill 2 • Prepay. • Invoice • Cred. Note • Invoice “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 60

Explore the Proven Power of QAD Enterprise Financials SEPA (TSM, SDD, SCT) ■ Existing national euro credit transfer and direct debit schemes will be replaced by SEPA Credit Transfer (SCT) and SEPA Direct Debit (SDD) ■ Extending capabilities in AR and AP area of core financials “Roadmap Subject to change without notice. The above is intended for information purposes and should not be incorporated into a contract” | Building the Effective Enterprise 61

Financial Overview and Next Steps Summary ■ ■ ■ Enterprise Financials New in 2013 Internationalization update Demo Financial Shared Services What is being worked on | Building the Effective Enterprise 62

Explore the Proven Power of QAD Enterprise Financials Next Steps ■ Attend these related sessions: § Drive Your Financial Reporting with QAD Enterprise Financials (Breakout Session V) § Debunking the Upgrade Myth: It’s Easier than You Think (Breakout Session III, watch recording) § From Data to Intelligence (Breakout Session I, watch recording) | Building the Effective Enterprise 63

Explore the Proven Power of QAD Enterprise Financials Questions & Answers ■ René Bergkamp: rbe@qad. com | Building the Effective Enterprise 64

Explore the Proven Power of QAD Enterprise Financials www. qad. com ©QAD Inc. 2013 | Building the Effective Enterprise 65