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Oracle Hyperion Financial Management
Agenda
• Introduction – The BizTech Team• The Consolidation Process• What is Hyperion Financial Management?• Hyperion Financial Management Solutions• Summary
Introduction
Quality | Results From Many Completed Implementations
• Professional Services Firm– Professional Services firm focused on Oracle applications and
technology– Oracle Platinum Partner – Highest Level of certification– Specialized Pillar Partner in BI/EPM, EBS, CRM, and Core Technology– Over 400 successful Oracle implementations over the past 15 years – NY, PA, NJ, VA offices with Regional, Global, and International clients – 100+ Consulting Resources
• Centers of Excellence across key solutions and industries– Solutions: Oracle Applications, Technology, BI/EPM, and Managed
Services– Industries: Financial, Professional, Business Services; Communications
and Media; Manufacturing; Distribution; Public Sector, Government; Healthcare and Life Sciences
• BizTech Software Solutions : BizTech Data Integrators, BizTech Insight Accelerators, BizTech Reporting Foundation
• Oracle License Reseller
About BizTech
IDC and Oracle expert panel selected BizTech over Thousands of Oracle partners, based on service delivery excellence to our clients
Proven Oracle Experience with the full portfolio of Oracle Solutions
Global Implementation Partner
Oracle Titan Award
Award Winning Partner
OracleSoftwareProvider
Oracle Technology and Business Intelligence- End to end service offering in BI and EPM- Fully staffed team of Data Architects/DBAs- Solid experience in RAC, HA, and HS designs- Understand full Oracle technology stack
Clients
Oracle Applications- Full Portfolio of Oracle Applications Solutions- Implementation, Upgrade, Migration- Since 1990 MPL6 to R12 Experience- Over 400 successful implementations
Managed Services and IT Outsourcing- Remote or Onsite services- Full portfolio of Oracle Applications and
Technologies- World-Class Data Center with 24x7 Support- Instant capacity, operational focused model
Oracle Software Provider- Full Portfolio of Oracle License Resell- Helps Clients Optimize License models- BI Software for the agile enterprise
- BizTech Data Integrators- BizTech Insight Accelerators- BizTech Reporting Foundation
OracleApplications
ManagedServicesITO
OracleTechnologyBI/EPM
Client-Centric Practice Areas
The Consolidation Process
Pressure on Finance DepartmentsMore Stringent Regulations• What can I do to accelerate
reporting as required by statutory regulations?
• How do I improve transparency, accuracy, and auditability?
Mergers & Acquisitions• How can I ensure new acquisitions
are quicklyintegrated into my company?
• How can I simplify keeping my books in synch with re-orgs?
Demand for Growth• How can I improve visibility into overall enterprise performance?• How can I help my managers identify opportunities to improve profitability?
Collect Data Calculate & Adjust Report
Consolidation At-a-Glance
Collect Data Calculate & Adjust Report
• Gather from multiple & disparate applications
• Store data in a centralized repository
• Generate financial statements, managerial reports, and perform ad hoc analysis
• Apply FASB and IFRS consolidation rules
• Perform currency translation & aggregation
The Consolidation Process• What is Financial Consolidation?
– Consolidation in financial accounting is a technique that summarizes a group of companies' financial statements into one. This offers the benefit of viewing the whole group's financial information together to see how all companies are doing combined.
– Increasingly, global organizations need to integrate data from multiple transactional systems, transition to new international financial reporting standards, and improve their transparency and regulatory compliance procedures.
– Companies use a variety of tools (spreadsheets, emails, pivots and queries) to identify and summarize all business unit activity that interacting with other business units.
• This can often mean thousands of transactions, all of which must be identified, reconciled and eliminated!
• Elimination– Intercompany elimination refers to the process for removal of transactions between
companies included in a group in the preparation of consolidated accounts.– Intercompany transactions (sales, services, transfers) must be eliminated in the parent
financial statements otherwise a company could be “double-counting” activity.– However, the process involves a lot of reporting and paperwork for intercompany
relationships can be quite complicated. • Data must be reviewed, reconciled and approved before process is complete.
Percentage of Internal ControlIssues* by Major Category
3%
2%
7%
9%
11%
27%
1% 6%
34%
Internal Control Issuesby Major Category By Sub Type #
Documentation Policies/documentation Issues 141
Entity-Level & Anti-Fraud Controls
Anti-Fraud Controls 15
Compliance Monitoring 20
Control Environment 151
Financial Statement Close Process & Disclosure
Application of GAAP/accounting policies 256
Financial statement close process & consolidation 120
Intercompany accounts/reconciliation 93
Review of significant or unusual transactions 212
IT Controls
Change controls 25
Date protection 23
Infrastructure 27
Security/user access 52
Merger Issues Merger/predecessor issues 27
Multilocation Considerations International operations & subsidiaries 59
Other Other 32
Personnel IssuesSegregation of duties 76
Staffing issues (levels, expertise, training) 157
Significant Account Level
Accounts payable 26
Accounts receivable 30
Accruals/restructuring costs 50
Contracts/loans/third-party transactions 75
Employees’ benefits/pensions 38
Inventory management 55
Property, equipment, leases 83
Revenue & billing 79
Tax issues 112
Total # Internal Control Issues
2,034
* Source: The Ames Research Group (June 30, 2005); analysis by Ernst & Young Center for Business Knowledge
DocumentationEntity-level & Anti-Fraud ControlsFinancial Statement Close Process & DisclosureIT ControlsMerger IssuesMultilocation ConsiderationsOtherPersonnel IssuesSignificant Account Level
Financial Close & Consolidation
Process is Biggest Problem!!
Foreign Currency Translation• How is Consolidation impacted by various currencies?
– Businesses may enter into transactions (sales, payments, etc.) in multiple currencies. Each business unit translates these items to its functional currency at an appropriate exchange rate.
– The QBU then prepares periodic reports of its position (balance sheet) and activity (income and cash flow statements) in that functional currency.
– Per accounting standards, before results are consolidated into the parents GL, foreign currency amounts must be translated (“converted”) from the subsidiary currency into the parent currency.
– Different types of transactions must be translated at different rates.
• P&L activity (sales, COGs, expenses) must be converted at the AVERAGE monthly rate.
• Balance sheet activity (Cash, AR, AP) must be converted at the ENDING monthly rate.
– When an item is settled, the difference due to exchange rate movement in the amount accrued and the amount settled is treated as foreign exchange gain or loss in the financials.
Different Accounting Standards•How can different accounting standards worldwide impact foreign currency
transactions? •Currently, most US companies with international subsidiaries are required to
account for this activity per the standards of GAAP (Generally Accepted Accounting Standards).
•However, International Financial Accounting Standards (IFRS) will be required adoption by US Companies by 2014 unless the SEC decides to delay implementation.
Similarities
Approach(Some Examples)
IFRS US GAAP
Revenue Recognition Fair Market (e.g. AR or Inventory Valuation)
Detailed Disclosure Segment Reporting Chart of Accounts Not Mandated
Distinction Between Tax and External Reporting
DifferencesApproach(Some Examples)
IFRS US GAAP
Fair Market Revaluation
Fixed Assets & Investments
Only Certain Fixed
Assets
Extraordinary Items
None Rare
Consolidation Control 2 Models
Joint Ventures Proportional OK
Only Equity
“Development” Capitalized Expensed
Fixed Assets Components Unitary
Leasing Financing Cap vs. Op
Inventory No LIFO LIFO OK
Impairment 1 Step, Reversible
2 Step, No
Reversal
Adopting IFRS, leaving GAAPA function of your Dual Reporting Choices
1. Many subsidiaries will retain a GL and subsystems in compliance with either
• Statutory requirements (foreign subsidiaries)• Regulatory legislation (utilities, financial services, etc.)
2. Hyperion HFM will be the main go-between from legacy GL to financial reporting systems.
1. This is the most likely scenario for US companies.
3. Others will find that their existing GL is quite appropriate, but that they have a few subsystem areas that will require adjustment.
4. Others will require that they need to do something more substantial, for example restructuring their business, up to the point of reimplementing
Hyperion
ERP GL Multi-GAAP Features
ERP Subledgers
Complicated Consolidations• As you can see, intercompany accounting can be a VERY complicated process!
– Due to acquisitions, intercompany activity and foreign currency accounting, getting a real picture of the state of the total business (consolidation) can be challenging.
– Compliance with different accounting standards, various reporting and filing methods, disparate general ledgers and multiple currencies can be an accounting and reporting nightmare.
– Reviewing, matching, reconciling and accounting for multi-entity, multi-currency intercompany transactions can often slow the monthly close process down by days or even weeks.
• In fact, mid-size to larger companies often retain an entire team in the accounting department just to do consolidations!
• Using Excel for Intercompany accounting, consolidation and translation is not the answer.
– Excel is a great personal productivity tool but is not designed for complex calculations, accounting for multiple lines of business and/or entities or complicated consolidations.
– Additionally, Excel spreadsheets do not lend themselves to auditing, process management, version control and approvals.
– Companies with millions of dollars in revenue using Excel as their consolidation tool are exposing themselves for errors, deficiencies, or material weakness in internal control.
What is Hyperion Financial Management?
HFM - Simply the Best
• Multi-Currency Capability• Multi- Dimensionality Features• Automates Intercompany
Accounting• Integrates Data from Most GL
Systems.• Excel Integration• Enterprise Collaboration#1
Financial Reporting Consolidation and Analysis Tool in the World
Web interface Speed & accuracy Finance owned Align entities and divisions Increased Visibility and Accountability Out of the box features improved ROI
BENEFITS
FEATURES
Hyperion Financial Management• Oracle Hyperion Financial Management (HFM) is a comprehensive, Web-based
application that delivers global financial consolidation, reporting and analysis in a single, highly scalable software solution.
• HFM utilizes today's most advanced technology, yet is built to be owned and maintained by the enterprise's finance team.
• HFM has financial controls, workflow and best-practices built into the platform to support:
– US GAAP and IFRS Reporting ― Sarbanes Oxley (SOX) Compliance– Audit Trails and Activity Logs ― Intercompany Eliminations – Foreign Exchange Translations ― XBRL Capabilities
• In addition to the powerful features provided "out of the box", HFM is also highly configurable to support the complex elimination and allocation requirements specific to your organization.
• HFM is a finance-owned, IT-supported system that allows your organization to quickly make changes as conditions warrant but tracks those changes to provide transparency and visibility for auditability.
• While HFM is a web software application, it also has an add-in with Microsoft Office (called Smartview) which allows users to forecast or budget in Microsoft Excel, an environment comfortable to most finance users.
Expanded Dimensionality
20
CategoryScenario
Year
View
Entity
Account
View
Period Period
Entity
Value
Custom 2
Account
Custom 3
ICP
Custom 1
Custom 4
Hyp
erio
n E
nter
pris
e
Hyp
erio
n Fi
nanc
ial M
anag
emen
t
HFM Benefits• Enable a More Efficient Process, controlled by Finance
– IT not needed for most, if any, aspects of HFM. A tool used for Finance and owned by Finance.
– Ensures that all data is integrated and validated prior to review by management. • Automate and improve the timing and efficiency of the month end close.
– Increased Dimensionality and Intercompany Process eliminates much of the manual matching and reconciliation process.
– Reduce consolidation and reporting cycles by days—or even weeks—simply by eliminating redundant data entry and the need to check and double-check actual results.
• Reduced data entry, risk of error and risk of key files located in hard drives or spreadsheets.
– Modeling or tracking such a business via linked spreadsheets might work if conditions remained stable, but they don’t.
– Constantly modifying a collection of spreadsheets is a particularly complicated, time-consuming process full of workarounds and compromises—the opposite of what’s needed.
• Easier financial consolidation – no need for manual uploads, email of files or transferring of files.
• Fast calculation performance – most calculations performed in 4 seconds or less• Workflow feature ensures timeliness or user preparation and management review
– Email alerts to remind user of deadlines.
Key CapabilitiesIntegrate, Validate, Translate, Consolidate
• Use the Financial Data Quality Management (FDM) tool to map and integrate from various GL’s.
• Using FDM (formerly known as Upstream), follow the Fish upstream to consolidate and validate data
• Manage the workflow and approval of the consolidation process.
• Import Foreign Currency rates from established sites to save time and improve accuracy.
• Drill through and Drill back into your source data and create journal entries into HFM.
• Create control questions manage sections 302 and 404 of SOX
HFM Benefits (Cont.)• Improve transparency and compliance while reducing costs.
– Helps reduce the cost of compliance (as stipulated by the Sarbanes-Oxley Act, electronic filing, and other regulatory requirements) and support disclosure requirements.
– Enables companies to automatically generate SEC, XBRL friendly documents.
• Perform strategic analysis– Spend less time on processing and more time on value-added analysis of the business including
review of performance metrics and other KPI’s.
• Deliver a single version of the truth. – Provide a single version of the truth to support financial management and statutory reporting. – No separate versions on different folders, networks or computers.– Topside or adjusting entries are made in HFM.
• Easily integrates. – HFM integrates not only with Hyperion products but also with your existing infrastructure.
• Quick implementation time maximizes a Company’s Return On Investment – With numerous out of the box features, HFM can often be implemented and utilized in a matter of in
weeks
• Reduced Administration and stricter security. – Owned by Finance, the Administrator is usually responsible for granting or restricting access.
HFM Platform
Financial Data Quality Management
SOURCESYSTEMS
• Data cleansing and transformation
• Task scheduling• Text and
document archive
• Audit review• Data staging
• Prepackaged integration• Data loading including
supplemental data, line item detail
• Dimensional mapping verification
• Process management
• Excel• ERP• G/L• Flat files• ETL • Oracle eBus
• Hyperion Financial Management
• Hyperion Planning• Hyperion Essbase• Hyperion Enterprise• Data Marts
DATA PREPARATION
SERVER
EPM SYSTEMS
GUIDED WORKFLOW USER INTERFACE
EPM Adapters
Source Systems
HFM ArchitectureThe basic FDM process includes six steps:1. Import source data2. Validate source data against mapping tables3. Export source data to a target system4. Consolidate target system data5. Validate target system data6. Review and validate internal financial control
Hyperion Financial Management Solutions
Hyperion Financial Management
Oracle Account Analysis and Drill-Down for both
Actual and Budget
Hyperion FDMOracle EBS
Drill-through/Drill back to GL
Hyperion Smart View• Accounts love their Excel and
Oracle Understands this!• HFM features Ad-Hoc Analytics
via Excel via reports or Drill through/back
• Use MS Office to enter, analyze and report on subsidiary data
• MS Excel add-in allowing access on or off-line
• Users download forms to Excel• Manipulate data just like
the full web client• Synchronizes to server
when ready to be updated.
Flexible Reporting OptionsFinancial Reports•Web-based production report writer for producing highly formatted reports such as Financial Statements.
•Reports are easily developed and maintained by business•Reports can combine data, graphs, text, and images .•Flexible output options: HTML, PDF, and hardcopy.•Reports can be batched into books and automated to meet monthly, quarterly, and yearly reporting requirements.
Dashboards•Web-based, interactive reporting and analysis tool.•Easy to create via drag and drop – no help needed from IT.•Useful for Execs and Analysts alike•Flexible “slice & dice”, Traffic lighting, Ranking/Sorting capabilities.•Can display non-financial metrics with financial data.
Smart View·Enables business users to quickly and easily connect to Hyperion Planning using Microsoft Office® tools (Excel, Power Point, Word, Outlook) for analysis and reporting.
·Allows users to view, import, manipulate, distribute and share data in Microsoft Excel, Word, and PowerPoint interfaces
·Reports and Dashboards can be easily incorporated into PowerPoint presentations and Word documents. Create once and quickly refresh to review the latest information.
Smart Space•The first gadget-based user interface designed specifically for Enterprise Performance Management
•Consists of a set of configurable gadgets that run on the desktop providing continuous access to financial, operational and performance related information.
• Includes a secure instant messaging system for shared decision making.
HFM, Fusion Edition New Features
• New Equity Pick-up Module• Phased Submissions
Enhancements• Intercompany Transaction
Enhancements• Oracle BI Publisher Templates for
System Reports• Extended Analytics Creation of
Flat Files• Extended 64 Bit Platform Support• Drill-through to Oracle EBS
Financials via FDM• Oracle Data Integrator Support
Addressing Compliance NeedsSARBANES-OXLEY REQUIREMENT FINANCIAL MANAGEMENTSection 302 – CEO/CFO must certify Submissions contain audit trailSection 404 – Internal control report Mandatory review/approval proceduresSection 401 – Conditions for useof non-GAAP financial measures
Multiple organization hierarchies andchart of accounts
U.S. auditing standards Autonomy from transaction systems
Accelerated reporting Web solution, I/C reconciliation, journals
IAS/IFRS REQUIREMENT FINANCIAL MANAGEMENTGlobal Standard, Convergence IFRS, Multi-GAAP, and local statutoryRecognition and measurement Custom dimensions; financial
intelligence, journals with audit trail
Consolidation and reporting Segment reporting, specialized currency, inter-company, disclosures
Summary
SummaryWhy Choose Oracle Hyperion Financial Management?• Improve
– The Financial Close Process by days or even weeks– Consolidation and Acquisition Accounting best practices– Turnaround time for providing Financial Results to Chief Decision Makers
• Enhance– ROI with quick implementation time and numerous out of the box features.– Visibility into subsidiary operating results– Ability to analyze and gauge results through improved performance metrics
• Reduce– Audit and compliance costs through improved transparency– Manual Controls, processing times and data reconciliation – Errors, data entry, control risk, reporting times, departmental overload
• Refine– Intercompany accounting and reconciliation process– Foreign currency transactions and translation process– Financial Consolidation and reporting features
“Every company claims they deliver quality at a good price, why is BizTech the superior choice…”
• Oracle Platinum Partner• Client First Philosophy• Focused Mission• Proven Methodology and Process Orientation• Simple to engage and do business together• Encompassing Ethics and Integrity• Balanced Leadership Team• Focused on YOUR industry area for over a decade
Why Choose BizTech
Choose | The Right Approach BizTech RapidApp Methodology
BizTech leverages our proven methodology, RapidApp, on every engagement– Phases
Break the project into smaller, more manageable, sections of work Allow for “planned pauses” & overlap
– Tasks & Actions Areas of concentration within a phase Not all will be performed on every project
– Deliverables Formal work products requiring review and acceptance “Controlling” documents
– Policies & Procedures Project planning, progress tracking Status reporting Project scope definition and management Formal acceptance of deliverables
RapidApp Methodology
The two most critical concerns for a successful implementation:
PROVEN APPROACH
EXPERIENCED PRACTITIONERS
Prepare Test DeployConfigure
Initial Planning
Prepare Environment
Define ProjectLaunch Project
Accelerator Prep
Accelerator Magic
Conference RoomPilots
Superuser Training
Go/No Go Decision
Setup Test/System Testing
End User Training
Setup Production
Go Live!User Acceptance
Testing
Project Mgmt, Quality Assurance, Knowledge Transfer
Prepare Test Scripts
Prepare CRP Scripts
Post-Go LiveSupport
D
D
D
RapidApp Methodology
RapidApp (cont.)Phase 1: Prepare• In the Prepare phase, our objective is to build your project mission and definition.
We will build a roadmap and framework for the entire project. • We define the scope and terms; identify people and resources, milestones and
targets. • We work with your project team to establish and communicate expectations for
the project and perform baseline Oracle training. – All implementation strategies are explored and decided upon during this phase.
• We will establish the base line technical infrastructure that will be necessary to complete the project.
– All of these elements are the basis for developing your project plan.
At the end of the prepare phase, the deliverables include:• A definition of Scope, Objectives & Approach that will guide the
project.• A RapidApp WBS that outlines all tasks as well as a resource plan.• A Quality Plan for all phases and deliverables.
RapidApp (cont.)Phase 2: Configure• In the Configure phase, you’ll establish the boundaries of your project. • We will work with your team to capture your functional requirements and
translate those requirements into a technical design. The technical design becomes the foundation against which we develop the data warehouse, ETL and dashboards.
• The conference room pilot at the end of the Configure phase will be the point at which we validate that the develop solution matches the defined requirements.
At the conclusion of the configure phase, you will have:A definition of Scope, Objectives & Approach that will guide the project.• Application Functional Design specification document(s)• Application Technical Design specification document(s)• Conference Room Pilot Scripts that were used to validate the
system• A working non-production environment (data warehouse, ETL,
dashboards and reports)
RapidApp (cont.)Phase 3: Test• You’re going live soon, and we’re helping you prepare. We’re with you to update
and configure the final system configuration. • We’ll help you conduct system testing to ensure a smooth transition into
production. • We’ll also help you determine a training approach for your end users, design
training material and a training environment, and conduct the training, if requested.
At the end of the test phase, the deliverables include:• Documented Test Scripts that you used to test the system• A complete end user training approach ready for rollout including
Training Guides• A fully tested, production-ready system.
.
RapidApp (cont.)Phase 4: Deploy• Your Oracle solution is live. As you make the transition, we can remain with you in
a support role, helping to troubleshoot, teaching you how to maximize the value of your new system, and identifying any new opportunities to continue with the transformation to an e-business company.
At the end of this phase, you will have:• A System Configuration Document• A Production Software Infrastructure Summary• A Deployment Plan• Stopped doing your business processes in your legacy system.• Moved all project support activities to your production support
team.• Trained your end users.
RapidApp: The Value Proposition• Allows organizations to realize immediate cost savings through an
accelerated implementation.• Establishes a budget conscious methodology that deploys functionality to
satisfy core functional requirements. • Promotes the selection, inclusion, and customization of additional
functionality through additional discovery after your product is implemented.
• Facilitates a phased approach in which knowledge transfer is conducted whereby clients assume ownership of future project phases; reducing dependency on external services and associated costs.
• Utilizes pre-built, customizable templates (models, forms, reports and business logic) reducing development cycles and project cost.
Architect
Lead
Associate
The Architect designs the solution, and is interacting with the work stream leads to ensure implementation approach is optimal.
The Leads are Subject Matter Experts, responsible for client interactions, requirements, ensuring Associates execute the work plan tasks and validates solution.
The Associate may be on-site or remote, executes the work plan tasks, unit test, and provides completed work to Lead for testing. Adds 3rd shift productivity to team.
• Maximizes value over traditional team approach• Minimizes risk of single threaded SME approach
Leveraging the Architect – Lead – Associate model yields higher productivity at lower cost, which:
ALA Delivery Resource Model
Contact InformationStephen Goldsmith
BI Practice Director
(610)592-0600
Timothy Simkiss, CPA, MBA
Hyperion Project Manager Practice Director
(610)592-0600
