A Facilitated Approach to the QAD Unvouchered Receipts Conversion

Posted on: September 15, 2017 | By: Tim Lovely | QAD Manufacturing, QAD Business Process, QAD Distribution, QAD Financials, QAD Practice News

In QAD and other ERP systems, one of the key tasks on cutover weekend is the conversion and tie out of Unvouchered (Uninvoiced) PO Receipts. In a recent conversion, the client had the following components:

  1. Negative PO receipts – Use by the client for correcting receiving mistakes

  2. Purchase Order Returns – Although similar to negative receipts, a different data set is created through this transaction so the client wanted the actual returns transaction used

  3. Subcontract Purchase Order Receipts – these receipts would drive the WIP value also required as part of the cutover. Some of these receipts would be invoiced/vouchered while others contributed to open Work Order value in WIP, but may already be vouchered.

  4. Accuracy of Accrued Tax – tax environments and settings in a conversion can change, meaning an old unvouchered receipt from one year ago could be converted with a new accrued tax amount, making the reconciliation more difficult.

For any unvouchered receipt to occur as part of the conversion, an open PO line must be created to support the transaction. Logan Consulting often utilizes a simple and understandable approach to this process.

  1. Create all Open PO lines with their actual line numbers. This step accounts for the conversion of Open PO’s converted from the legacy ERP. These lines will continue to be open after cutover to support receipt processing. The key data components of this step are using the same PO number, line number, item, cost and dates associated with the legacy PO.

  2. Create all vouchered subcontract PO lines in an 800+ series of line numbers. These may or may not overlap with the Open PO’s in step 1. The key data components of this step are using the same PO number, line number in the 800 series (ie 801, 802, etc…), item, subcontract cost, work order ID and operation, and dates associated with the legacy PO.

  3. Create all unvouchered PO lines in an 900+ series of line numbers. These may or may not overlap with the Open PO’s in step 1 as well. The key data components of this step are using the same PO number, line number in the 900 series (ie 901, 902, etc…), item, subcontract or PO cost, work order ID and operation if subcontract, and dates associated with the legacy PO. Note that open lines must also be created to allow for negative returns and Purchase returns.

  4. Process all PO receipts, positive and negative, against the line items above. The process the Purchase Returns for those specific cases.

  5. After all transactions are complete and you have tied out the chosen Unvouchered Receipts Report in both systems, close all 800 and 900 series lines.

Logan Consulting recommends reviewing the tax environment with the client team to agree that tax settings will not change, and therefore the accrued tax amount; or that the tax settings may change, resulting in a reconciling item for the conversion between the legacy accrued tax amount the accrued tax amount created at conversion.

Using the approach above help segregate the purpose of the line numbering and makes it easy to explain the conversion the users. AP understands that 800 and 900 series receipts still hold the original line number in AP with a 9 or 90 prefix (ie 901, 902, etc..) and purchasing understands the purpose of the closed 800 and 900 series lines, which should not affect their open order reporting.

 About Logan Consulting

Logan Consulting is a leading consulting firm with strengths in strategy, project management, business process design, ERP and CRM implementation, recruitment and training.  Since 1992, our business process-based delivery techniques and tools have helped our clients build a solid business process and information technology foundation to support their business.  Our clients count on us for objective, unbiased analysis, recommendations and project work.  To learn more and hear what our customers are saying about us, please visit our website (www.logan-consulting.com).

Logan Consulting is headquartered in Chicago, IL with global services reach.