Electronic Banking

Demonstration Guide
May 14, 2015
EE2015

Overview
This demonstration focuses on one aspect of QAD Enterprise Financials Electronic
Banking and shows how this functionality supports the vision of the Effective Enterprise;
where every business process is working at peak efficiency and perfectly aligned to the
companys strategic goals.
QAD Enterprise Financials

Electronic Banking

Key Points

Enabling the Effective Enterprise

Related Metrics
Leveraging Electronic Banking to automate bank statement processing speeds up
processes and reduces errors, directly affecting the Financial Compliance KPI.
Typical measurements related to this KPI include Financial Close Cycle Time, Financial
Reporting Person-Days, Days Sales Outstanding. By automating the process and
providing a complete audit trail, it is simpler to process incoming bank files meaning
fewer delays and faster reporting.
Additional metrics and the relative importance of each one will depend on your
definition of the Effective Enterprise. You can monitor performance against your
defined metrics using a combination of Business Intelligence Dashboards, Operational
Metrics, Browses and Reports.
Electronic Banking

Related Metrics
Financial close cycle time
Financial reporting person-days
Days sales outstanding

Key Points

Financial Compliance KPI

Reduce financial close cycle time

Reduce financial reporting person days

Speed up payment processing (DSO, DPO)

Standard metrics

Importance varies by company

Enabling Solution
Electronic Banking supports improvements to these key metrics by automating
processing for incoming bank files optionally using a tool that virtually everyone is
familiar with: Excel.
In the past, bringing in banking information required Bank Drivers and EDI. Data setup
was complicated and required a significant amount of technical knowledge. With
Excel integration, you can quickly export an Excel template to use for formatting the
incoming data and then easily load this data using Excel import.
Automated incoming bank file processing is fast and error free, and includes detailed
messages and audit trail for easy issue resolution. You will increase the success rate of
processing customer payments by optionally creating unallocated banking entries or
customer prepayments rather than simply raising an error.
Complete visibility of processing results make it easy to review and reconcile banking
entries, speeding up cash reporting and reducing the amount of manual work required.
Electronic Banking

Enabling Solution
Excel integration
- Export template
- Import data

Automated processing
- Processing status
- Detailed message

Complete audit trail

Key Points

Simple, automated processing

Detailed messages and audit trail

Reduced manual labor

Demonstration Summary
In this demonstration, you will see how Electronic Banking simplifies bank statement
processing. You will start with a pre-formatted bank statement file and then process it
and review the results.
You will also see how you have the flexibility to adapt payment processing to how each
of your locations (domains) prefers to manage banking.
Finally you will take a look at the audit trail and processing logs generated by bank
statement processing maintaining complete records and making it easy to
troubleshoot any issues.
Electronic Banking

Demonstration Summary

Import Electronic Bank File

Process Electronic Bank File
Review Customer Payments
Review Processing Log

Key Points

Demonstrate simplicity and flexibility

How QAD simplifies accounting tasks

In this demonstration, you will be working with customer 10C1003 Pacific Healthcare
Systems. You will process a bank statement with several payments from this customer, so
start by looking at their open invoices.
Dashboards make it easy to see all the activity for a customer. Everything your
accounting clerk needs is gathered into one place credit information, invoices,
payments and address information.
The Invoices tab shows all of the open invoices. Note there are two one for $1000 and
one for $2000.
Demo
1. In Favorites, select Customer Activity Dashboard (27.18.1)
2. Double-click Customer 10C1003
3. Click Invoices tab

Key Points

Dashboards gather all information

How QAD simplifies banking

Process Incoming Bank Files (PIBF)
Now lets get a statement from the bank.
Banking functions help you manage banking entries and process statements, manually
or electronically, supporting US Lockbox or SWIFT MT940, commonly used in Europe.
QADs signature process maps help guide you through each step.
Electronic banking is typically managed using Electronic Data Interchange (EDI). You
will set up a Bank Driver for each of the banks you work with and then receive bank files
from each of them electronically via EDI / E-commerce.
Once received, you process these files using the Process Incoming Bank Files function,
converting transaction data contained in electronic bank files into customer and
supplier payments.
Demo
1. In Favorites (Process map): Use Banking

2. In Favorites, expand Banking Entry Maintenance menu

Key Points

Manual Banking Entries

Electronic Banking
o

US Lockbox

SWIFT MT940

Bank Drivers

EDI / E-commerce

How QAD integrates with Excel

Incoming Bank File Excel Integration
Another option is to use Excel to help create incoming bank files.
Excel integration lets you easily create an Excel template for a bank statement, preformatted with exactly the information you will require to import information into QAD.
Even if you plan to use EDI to import in your statements, this is still a very useful tool for
testing; letting you quickly create a bank statement in Excel integration format and
import it into the system.
Thats what you will see in this demonstration a simple bank statement entered into an
Excel file, ready for loading into QAD.
There are four lines on this bank statement, set up to demonstrate some key processing
options.

The first line references a valid invoice for customer 10C1003, but the amount
is $100 too much.

The second line exactly matches a valid invoice for customer 10C1003

The third line is for customer 10C1003, but does not match any outstanding
invoice

The last line does not reference a valid customer.

Demo
1. In Favorites, select Incoming Bank File Excel Integration (31.1.12)
2. Right-click

3. Select Import from Excel

4. Open
5. Expand lines

6. Save
7. Maximize Excel - Desktop > Electronic Bank File Example

8. Scroll right

9. Minimize
Key Points

Import from Excel

Pre-formatted file

Use for testing

How QAD provides flexibility

Payment Processing Configuration
You define what the system should do when an error occurs.
There are two basic actions that happen when you process customer payments in an
incoming bank file you Create a customer payment and Pay a customer payment.
There may be errors during either of these actions.
If there is an error in the customer number in the bank statement how do you want to
handle it? Do you want to simply raise an error and not process the payment? Or do
you want the system to create an unallocated banking entry that you can reconcile
manually?
If the customer number is correct but the amount doesnt match up, it might be faster
and easier for you to have the system try to match as much as it can and then post the
remainder as a prepayment.
Similarly if the customer number is correct but there is no matching invoice, or if the
customer or payment is not found, the system can create an unallocated banking
entry that you can go back and reconcile later.
You select what options work best for you, optionally different by bank and entity.
Demo
1. Maximize QAD Enterprise Applications
2. In Favorites, select Payment Processing Configuration Maint (31.1.13)

3. In Create Customer Payment, if customer not found, click drop-down

4. In Create Customer Payment, if no matching invoice found, click drop-down

5. In Pay Customer Payment, if customer or payment not found, click drop-down

6. Enter Own Bank Number 12345678

Key Points

Options set by bank and entity

How QAD automates processing

Process Incoming Bank Files
Now that you have defined how you want to handle errors, all you need to do is
process the incoming bank file.
You will notice two options:

New Payments as Paid - Checking this option lets you create and allocate
customer payments as they are brought in from the bank statement,
updating the status automatically to Paid. If you leave this unchecked, you
will require a further step to verify the payment and manually mark it as paid.

Create Banking Entry This option specifies whether you want to create
banking entries automatically to allocate the payment and set the payment
status to Paid, or do it manually.

Check both, then process. Notice how the status of each payment changes to
Processed OK. Any errors or warnings display right below each line. For example, on the
first line you see a message Please allocate prepayment later along with the year,
number and payment reference number so you can easily do this later.
Demo
1. In Favorites, select Process Incoming Bank Files (31.1.6)
2. In Bank File Name, click drop-down
3. Select Statement15010410

4. Click Search

5. Check New Payments as Paid, Create Banking Entry

6. Click Process

7. Expand line

Key Points

Processing options:
o

Set new payments as Paid

Create banking entry

Updates status
o

Processed OK

Processed with Error(s)

Customer Payment View

When you look at the customer payment information, now you see three payments for
customer 10C1003. The first two were the payments that matched up with open
invoices. The third had the right customer but didnt reference a valid open invoice so it
was recorded as an unallocated payment.
You can easily look at the payment detail for any of these. For example, on the first
payment the detail screen shows the payment is marked as Status Paid. This is because
you checked the New Payments as Paid option when you processed the incoming
bank file.
When you drill down into the allocation detail for this payment, you can see that $1000
was allocated to the open invoice for this customer and the remaining amount of the
payment ($100) was recorded as a prepayment.
Demo
1. In Favorites, select Customer Payment View (27.6.4.3)
2. Search Customer Code equals 10C1003, Bank Import Reference starts at
Statement

3. Double-click first line

4. Click Allocate

Key Points

Minimizes manual activities

Banking Entry View

Since you checked the Create Banking Entry option when you processed the
incoming bank file, the system automatically created banking entries for you.
In this example, there are four banking entries; three with status Allocated and one
Unallocated this one for the last payment that didnt match an existing customer.
Once again you can drill into the details for any entry. Select the payment for $1100.
Here you see all the posting and allocation information. Depending on your settings,
banking entries may be Allocated and Posted, Allocated or Unallocated.
Demo
1. In Favorites, select Banking Entry View (31.1.3)

2. Double-click line 2 ($1100)

Key Points

Allocated and Posted

Allocated

Unallocated

How QAD provides detailed audit trails

Imported Bank File Report
Finally lets look at the detailed audit trail that you can get for each imported bank file.
This report contains complete information about the import file including batch,
payment lines, status, allocations and results.
For example, look at the payment for $1,100 on the first line. You can see that $1000
was allocated to an open invoice and the remaining $100 was created as a
prepayment.
You can also see the processing log right on this report a very useful tool for
troubleshooting. It gives you details on every task done in this process and the exact
data values for each of the critical fields. When statements arent processing correctly,
this is an invaluable tool.
Demo
1. In Favorites, select Imported Bank File Report (31.1.11)
2. In Layout, click drop-down
3. Select Default
4. Enter Bank File Name Statement15010410, Show Payment Detail Yes, Show
Processing Info All Lines, Process Info Level Full Detail

5. Click Run

6. Scroll right

7. (Optional) Select 36.1.1.2 Domain Modify

8. Double-click 10USACO

Key Points

Processing log optional by domain

Closing
In closing, QAD Enterprise Financials Electronic Banking helps you automate bank
statement processing, reducing manual activities and errors while providing a complete
audit trail. The result: fewer delays, faster reporting and improved performance against
financial metrics like Close Cycle-Time and Days Sales Outstanding (DSO).
QAD: Enabling the Effective Enterprise!
Electronic Banking

Closing

Financial close cycle time

Financial reporting person-days
Days sales outstanding
Days payables outstanding

Enabling the Effective Enterprise!

Key Points

Enabling the Effective Enterprise!

Reduce financial close cycle time

Reduce financial reporting person days

Reduce days sales outstanding

Financial Compliance KPI