Evaluated Receipt Settlement (ERS) Set Up in QAD

Posted on: July 21, 2021 | By: David Kwo | QAD Financials, QAD Business Process

When handling intercompany orders and transactions, QAD’s Evaluated Receipt Settlement, or ERS, offers an efficient automated process for comparing receipts with purchase orders. ERS creates a low-risk system for ensuring accurate intercompany transactions while bypassing the wasted effort of matching receipts, invoices, and purchase orders. The specific benefits of QAD’s ERS include:

• Does not require any development
• Runs automatically, reducing risk of user error and increasing accuracy
• Supports fiscal receiving
  • Therefore, a good fit for any size of corporation, multi-national or domestic
• Supports price lists inside system
  • System honors designated pricing even as prices change over time

This blog details the step-by-step process of setting up ERS in QAD.

 

Step 1: Run ERS Conversion on existing open purchase orders (not necessary for ERS implementation in a new database)

a. Go to ERS Purchase Order Conversion under the Miscellaneous Utilities menu

1. 1. Enter “E” to enable ERS for all purchase orders – this automatically converts / updates existing open PO’s?
   2. Enter “D” to disable ERS for all purchase orders

Step 2: Set up ERS control

a. Go to the ERS Control program

b. Check the box next to “ERS Processing” to activate ERS

1. 1. You will then be asked to run ERS Conversion. Select Yes and allow the conversion to run completely for ERS to remain activated
   2. Enter a default value ERS Option field (leave blank, 0, or 1)
   3. Check the field “ERS Packing Slip Error” if you want ERS Processor to print an error on all relevant lines of a PO if a packing slip is blank
   4. Check “Update GL Average Cost” if you want to ERS to update the item cost at processing time
   5. Use ERS Invoice Date Option to choose how ERS calculates supplier invoice date
      • Enter 0 to use the receipt date of receiver
      • Enter 1 to use shipment date of receiver

Step 3: Set Up ERS for Suppliers, Sites, and Items in ERS Maintenance

a. Go to ERS Maintenance to select default ERS processing options

1. 1. Choose a default supplier
   2. Choose default site (necessary if you did not select default supplier)
   3. Enter item number (this makes ERS processing specific to some combination of an item and supplier combination, or supplier and site)
   4. Enter 1,2, or 3 into the ERS option field
      • 1: specifies ERS processing should not be enabled for the combination specified in the fields above
      • 2: specifies that ERS Processor should create initial invoice for specified combination
      • 3: specifies that ERS Processor should create confirmed invoice for specified combination
   5. Enter 1, 2, or 3 into ERS Price List Option field to choose which date relevant price list should be called from
      • 1: specifies receipt date
      • 2: specifies ship date
      • 3: specifies order date

Step 4: Purchase Order Maintenance

a. Go to Purchase Order Maintenance > Headers tab > ERS

b. Choose default for Fixed Price

c. Enter 0 or 1 into ERS Option field, or leave blank

• • • 0: Choose ERS option at time of ERS processing
    • 1: don’t enable ERS processing
    • Blank: Choose ERS option at creation of PO line

d. Enter 1, 2, or 3 into ERS Price List Option field to choose which date price list is called from

• • • 1: specifies receipt date
    • 2: specifies ship date
    • 3: Specifies order date

Next Steps

If you are interested in learning more about ERS and/or maximizing the use of your QAD system, contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8810.

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