KScope14 Configuring Hyperion Tax

Tax is the Future!

Configuring Hyperion Tax Provisioning

Michael Malandra

FocusServicesPeopleMethodologyCustomersPartnership

15 Years700+ clients

1000+ projects

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� What is Hyperion Tax Provisioning (HTP)?

� Implementing HTP

� What we learned

� Questions

Agenda

� HTP is software created by Oracle to support corporate tax provisioning process ● first release was 11.1.2.2 (2013), now 11.1.2.3.501 - 3rd release

� Architecture is based on HFM

� HTP is licensed separately

� Technically, HTP is an HFM application, preconfigured by Oracle Development team

What is HTP?

HFM is a mature product consistently maintained and improved in the last 14 years, providing many features relevant to tax provisioning process

● Flexible data collection tool● Calculation rules, and automated accounting

entries● Native aggregation, translation and consolidation

capabilities● Web architected solution (central and remote web

access)● Reporting capabilities

Why is HTP based on HFM?

� HTP is not “TurboTax”: ● HTP is not a “turn key” filing solution: HTP does not

automatically generate IRS tax forms.● HTP provides a framework for provisioning process● HTP requires configuration before enterprise tax

users can input their data.

What is HTP NOT?

� HTP application built for Tax● Metadata structures

● Chart of Accounts● Custom dimensions (5)● Currencies, sample of entities, etc.

● Rules dynamically linked to the metadata● Web forms (77) dynamically linked to the metadata● Reports (63) dynamically linked to the metadata● Tax automation module

HTP: what’s in the box?

� HTP rules are vbscript� HTP Metadata can be classic or EPMA� New features on Release 11.1.2.3.501 based on

customer feedback:●Opening Balances from different Scenarios●Data Entry and Tax Calculation at Parent Level●NIBT Translation (Override Translation Rate)

Technical Features

HTP Process (Oracle® Hyperion Tax Provision, User's Guide, Rele ase 11.1.2.3.501)

� Links book and tax data

� Defines relationship between Source and Tax accounts

Tax Automation

HTP provides an organized structure with multiple groups of accounts, for example:● “Book accounts” are configurable

TB accts● National and Regional tax

accounts● Tax Rates● Validation Accounts

HTP chart of accounts

HTP Custom dimensions

Oracle® Hyperion Tax Provision, Administrator's Guide Release 11.1.2.3.501

� Roll Forward (RF): ● Opening balance● Reclassification members● Tax movement activity● FX

Custom Dimension – Roll Forward

� Jurisdictions (JD):● National: country codes: CA, US● Regional: CA_AB, US_PA,

US_CA

Custom Dimensions - Jurisdictions

� Reporting standards (RS)● US_Gaap, UK_Gaap, IFRS

Custom Dimensions – Reporting Standards

� Data Category (DC):● Source data● Pre-tax● Tax (input and calculated)

Custom Dimension – Data Category

� Tax Type (TT)● National, Regional

Custom Dimension – Tax Type

Implementing HTP

Ranzal standard project implementation methodology was applied

Strategy

� Review current tax process

� Compare to HTP

� Identify HTP process “gaps”

Analyze

� The results of the analyze phase will determine the level of customization for:

● Metadata● Rules● Data forms● Reports

Design

� Create entity structure with corresponding attributes� Add accounts and correct User Defined Attributes� Add any necessary custom dimension details � Configure Tax Automation � Create additional rules, if needed.� Add web forms or Reports, if needed� Assign security access

Build

� UAT and Training was given

� Extensive testing for parallel process

� Resolve UAT and parallel issues

� HTP was migrated to Production

Test and Rollout

What we learned

� Upfront design and requirements – longer than anticipated ● The level of complexity and understanding of the tax

process before the project will help determine the time needed

� Understanding relationship dimensionality● Between Entities, Accounts and Customs ● Combination on User Defined fields determine tax

calculations

What we learned

� Focus on Tax Requirements● HFM – Org by Period – not necessary in HTP

� Data Sourcing is very important

� Ability to upgrade/patch● Metadata – keep current metadata and select the

Oracle metadata needed/wanted. ● Rules – Manually cut and paste custom code into the

new Oracle rules file.

What we learned

What we all know…

Michael Malandra mmalandra@ranzal.com

Pittsburgh, PAUSA

+1.724.759.8572www.ranzal.com