Peoples Republic of China Financials and QAD Enterprise Applications

Posted on: June 30, 2020 | By: Andy Vitullo | QAD Financials

The Peoples Republic of China (PRC) require monthly filings of statutory compliant income statements and balance sheets for each China operating entity.  QAD has constructed a solution enabling companies to meet this requirement.   The Regional Balance Sheet and Regional Income Statement menu programs will generate these statements.

To enable this functionality in your China domain or domains, several configurations must be completed.  They include:

1. Creation of an alternate chart of accounts. The Alternate COA Group and Alternate COA Structure programs enable the creation of the alternate or PRC Statutory accounts.
2. Creation of a Chart of Account Cross Reference. COA Cross Reference builds a relationship from your company’s chart of accounts, to the PRC statutory accounts.  Finally:
3. Create a Report Structure for the Balance Sheet and a Report Structure for the Income Statement. Using Budgets (Budget Create), a report structure builds out the format of those financial statements to be levered in the report generation programs.

Additional journal entries must be recorded in a separate entity or layer to make the general ledger PRC GAAP compliant for reporting.

Once Steps 1 through 3 are completed and PRC GAAP entries are book, Regional Financials can be generated.   These embedded tools allow your China enterprise to use QAD solely for statutory reporting.

---

---