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Moving Data within a Planning Application at Avago Technologies
Audrey HolifieldProject Manager, FP&AAvago Technologies
Patrick LouieDirectorHackett Technology Solutions
Leading global manufacturer of optoelectronics and analog interface components
Former semiconductor business of Agilent Technologies
$1.6B in annual revenue
Primary Locations: California and Singapore
• Primary Finance Locations: California, Singapore and Malaysia
About Avago Technologies
Provide Professional Consulting Services for all of Oracle’s Hyperion suite of products
Publicly traded on the NASDAQ (symbol: ANSR)
Formerly known as Answerthink
#1 Hyperion Americas Reseller Award at Solutions 2006 and 2007
About Hackett Technology Solutions
Agenda Introduction Main Considerations for Design Issue 1 – Workforce Inputs Concerns Solution Issue 2 – Functional Reporting Concerns Solution Closing Q&A
Introduction
Avago Technologies decided to implement a Hyperion Planning application to enhance the efficiency of its budgeting, forecasting, and financial reporting cycles for both the Income Statement and Balance Sheet.
Three databases deployed at Avago:•Workforce (Employee level planning)
•FINSTMT (Annual Operating Plan at account, department and country level)
•FCST (Forecast and monthly reporting at summary level)
Main Considerations for Design
Performance
Simple for users
Supports user analysis and reporting needs
Issue 1: Workforce Inputs
Finance users making salary and benefits entries to the Workforce database
Need to see the effects on the Income Statement in the FINSTMT database
Waiting for scheduled batches to transfer data from Workforce to FINSTMT would slow down the planning process
Concerns
Scheduled batches would have to be broad in scope and would affect performance while the batch was in process
Run-time prompts could lead to human error
Users could forget to run scripts to transfer data, leading to expenses not populating in FINSTMT as expected
Solutions
Hyperion Business Rule that utilized the @XREF function to transfer data from Workforce to FINSTMT
Using Variables in the HBR that could take the POV from the form so that only the members that were being written to were transferred; the changes were then aggregated up in FINSTMT with the @ANCESTORS function
HBR was set to ‘run on save’ in the input form
Workforce Input form with Business Rules
Issue 2: Functional Reporting
Operating expense accounts jointly used by all functions at Avago (i.e. people and project expense account numbers)
Functions appear at in different sections of the Income Statement (i.e. R&D is function 2, Marketing is function 4)
Previous application used by Avago was set up for a unique account and function combinations, which created 5x number of expenses accounts (i.e. 800001 – FN1, 800001 – FN2, etc.)
Need an intuitive solution so users can easily enter expenses and have them appear in the correct section of the Income Statement without complicating the account structure
Function breakout on Income Statement
Concerns
Having same accounts appear at different points on an Income Statement hierarchy could create duplicate data
Relying on all users to use Account and Function combinations in reporting and analysis is cumbersome and risky
Need database to correctly calculate the various subtotal values of the Income Statement (i.e. Cost of Sales, R&D, Admin)
Solution
Create custom accounts dedicated to each function that could be placed at different points in the Income Statement hierarchy
• Create People Expenses, Project Expense and Absorption accounts specifically for each function
Custom Functional Accounts
Solution
Create custom accounts dedicated to each function that could be placed at different points in the Income Statement hierarchy
• Create People Expenses, Project Expense and Absorption accounts specifically for each function
Use member formulas to copy level 0 data for department and geography from each of the specific functions
Custom Functional Account Member Formulas
Solution
Create custom accounts dedicated to each function that could be placed at different points in the Income Statement hierarchy
• Create People Expenses, Project Expense and Absorption accounts specifically for each function
Use member formulas to copy level 0 data for department and geography from each of the specific functions
As a maintenance and scaling compromise, detailed analysis on those expense accounts would be done at an Account/Function level
Shared Accounts
Closing
Solutions were efficient to not slow down the planning process
Users were not required to use a complex process to enter data
Structure supports reporting requirements
Q&A