oraclehyperionfinancialmanagement-121026093852-phpapp02

7/29/2019 oraclehyperionfinancialmanagement-121026093852-phpapp02

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Oracle Hyperion

FinancialManagement


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Agenda

Introduction The BizTech Team The Consolidation Process What is Hyperion Financial Management?

Hyperion Financial Management Solutions Summary


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Introduction


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Quality | ResultsFrom Many Completed Implementations


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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 InsightAccelerators, BizTech Reporting Foundation

Oracle License Reseller

About BizTech


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IDC and Oracle expert panel selected BizTech over Thousands of Oracle

partners, based on service delivery excellence to our clientsProven Oracle Experience with the full portfolio of Oracle Solutions

Global Implementation Partner

Oracle Titan Award

Award Winning Partner


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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


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The Consolidation Process


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Pressure on Finance DepartmentsMore Stringent Regulations

What can I do to acceleratereporting as required by statutoryregulations?

How do I improve transparency,accuracy, and auditability?

Mergers & Acquisitions

How can I ensure new acquisitionsare quicklyintegrated into my company?

How can I simplify keeping mybooks 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


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Consolidation At-a-Glance

Collect Data Calculate & Adjust Report

Gather from multiple &disparate applications

Store data in a centralizedrepository

Generate financialstatements, managerial

reports, and perform adhoc analysis

Apply FASB and IFRSconsolidation rules

Perform currency translation &aggregation


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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 wholegroup's financial information together to see how all companies are doing combined.

Increasingly, global organizations need to integrate data from multiple transactionalsystems, transition to new international financial reporting standards, and improve theirtransparency and regulatory compliance procedures.

Companies use a variety of tools (spreadsheets, emails, pivots and queries) to identifyand 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 parentfinancial statements otherwise a company could be double -counting activity.

However, the process involves a lot of reporting and paperwork for intercompanyrelationships can be quite complicated.

Data must be reviewed, reconciled and approved before process is complete.


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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-FraudControls

Anti-Fraud Controls 15

Compliance Monitoring 20

Control Environment 151

Financial Statement CloseProcess & 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 ControlIssues

2,034* Source: The Ames Research Group (June 30, 2005);analysis by Ernst & Young Center for Business Knowledge

Documentation

Entity-level & Anti-Fraud Controls

Financial Statement Close Process & Disclosure

IT Controls

Merger Issues

Multilocation Considerations

Other

Personnel Issues

Significant Account Level


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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 itemsto its functional currency at an appropriate exchange rate.

The QBU then prepares periodic reports of its position (balancesheet) and activity (income and cash flow statements) in thatfunctional currency.

Per accounting standards, before results are consolidated intothe parents GL, foreign currency amounts must be translated(converted) from the subsidiary currency into the parentcurrency.

Different types of transactions must be translated at differentrates.

P&L activity (sales, COGs, expenses) must be converted at theAVERAGE monthly rate.

Balance sheet activity (Cash, AR, AP) must be converted at theENDING monthly rate.

When an item is settled, the difference due to exchange ratemovement in the amount accrued and the amount settled istreated as foreign exchange gain or loss in the financials.


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Different Accounting Standards How can different accounting standards worldwide impact foreign currency

transactions? Currently, most US companies with international subsidiaries are required toaccount for this activity per the standards of GAAP (Generally Accepted AccountingStandards). However, International Financial Accounting Standards (IFRS) will be requiredadoption by US Companies by 2014 unless the SEC decides to delay

implementation.Similarities

Approach(SomeExamples)

IFRS USGAAP

RevenueRecognition

Fair Market(e.g. AR or Inventory

Valuation)

DetailedDisclosure

SegmentReporting

Chart of Accounts NotMandated

DistinctionBetween Taxand E xternalReporting

DifferencesApproach(Some Examples)

IFRS USGAAP

Fair MarketRevaluation

Fixed Assets& Investments

OnlyCertain

FixedAssets

Extraordinary

Items

None Rare

Consolidation Control 2 Models

Joint Ventures ProportionalOK

OnlyEquity

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


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Adopting IFRS, leaving GAAPA function of your Dual Reporting Choices

1. Many subsidiaries will retain a GL and subsystems in compliancewith either

Statutory requirements (foreign subsidiaries)

Regulatory legislation (utilities, financial services, etc.)

2. Hyperion HFM will be the main go-between from legacy GL tofinancial reporting systems.

1. This is the most likely scenario for US companies.

3. Others will find that their existing GL is quite appropriate, but thatthey have a few subsystem areas that will require adjustment.

4. Others will require that they need to do something moresubstantial, for example restructuring their business, up to thepoint of reimplementing

Hyperion

ERP GL Multi-GAAP Features

ERPSubledgers


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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 reportingnightmare.

Reviewing, matching, reconciling and accounting for multi-entity, multi-currencyintercompany transactions can often slow the monthly close process down by days or evenweeks.

In fact, mid-size to larger companies often retain an entire team in the accounting department justto do consolidations!

Using Excel for Intercompany accounting, consolidation and translation is not theanswer. 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 areexposing themselves for errors, deficiencies, or material weakness in internal control.


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What is Hyperion Financial Management?


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HFM - Simply the Best

Multi-Currency Capability Multi- Dimensionality Features Automates Intercompany

Accounting Integrates Data from Most GL

Systems. Excel Integration Enterprise Collaboration

Financial ReportingConsolidation andAnalysis Tool in theWorld

Web interfaceSpeed & accuracyFinance ownedAlign entities and divisionsIncreased Visibility and AccountabilityOut of the box features improved ROI

BENEFITS

FEATURES


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Hyperion Financial Management Oracle Hyperion Financial Management (HFM) is a comprehensive, Web-based

application that delivers global financial consolidation, reporting and analysis in asingle, highly scalable software solution.

HFM utilizes today's most advanced technology, yet is built to be owned andmaintained by the enterprise's finance team.

HFM has financial controls, workflow and best-practices built into the platform tosupport:

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 highlyconfigurable to support the complex elimination and allocation requirementsspecific to your organization.

HFM is a finance-owned, IT-supported system that allows your organization toquickly make changes as conditions warrant but tracks those changes to providetransparency and visibility for auditability.

While HFM is a web software application, it also has an add-in with MicrosoftOffice (called Smartview) which allows users to forecast or budget in Microsoft

Excel, an environment comfortable to most finance users.


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Expanded Dimensionality

20

CategoryScenario

Year

View

Entity

Account

View

Period Period

Entity

Value

Custom 2

Account

Custom 3

ICP

Custom 1

Custom 4

H y p e r i o n

E n

t e r p r i s e

H

y p e r i o n F

i n a n c

i a l M a n a g e m e n

t


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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 byFinance. 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 eliminatingredundant 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 orspreadsheets. Modeling or tracking such a business via linked spreadsheets might work if conditions remained

stable, but they dont.

Constantly modifying a collection of spreadsheets is a particularly complicated, time-consumingprocess full of workarounds and compromises the opposite of whats needed.

Easier financial consolidation no need for manual uploads, email of files ortransferring 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.


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Key Capabilities Integrate, Validate, Translate, Consolidate

Use the Financial Data Quality

Management (FDM) tool to mapand integrate from various GLs.

Using FDM (formerly known asUpstream), follow the Fishupstream to consolidate andvalidate data

Manage the workflow andapproval of the consolidationprocess.

Import Foreign Currency ratesfrom 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 managesections 302 and 404 of SOX


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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 KPIs.

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 Companys 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.


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HFM Platform


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Financial Data Quality Management

SOURCESYSTEMS

Data cleansingandtransformation

Task scheduling Text and

documentarchive

Audit review Data staging

Prepackaged integration

Data loading includingsupplemental data, lineitem detail

Dimensional mapping

verification Process management

Excel ERP

G/L Flat files

ETL Oracle eBus

Hyperion FinancialManagement

Hyperion Planning Hyperion Essbase

Hyperion Enterprise Data Marts

DATAPREPARATION

SERVER

EPMSYSTEMS

GUIDED WORKFLOW USER INTERFACE

EPM Adapters


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SourceSystems

HFM ArchitectureThe basic FDM process includes six steps:1. Import source data

2. 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


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Hyperion Financial Management Solutions


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Hyperion Financial Management

Oracle Account Analysisand Drill-Down for both

Actual and Budget

Hyperion FDMOracle EBS

Drill-through/Drill back to GL


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Hyperion Smart View Accounts love their Excel and

Oracle Understands this!

HFM features Ad-Hoc Analyticsvia Excel via reports or Drillthrough/back

Use MS Office to enter,analyze and report onsubsidiary data

MS Excel add-in allowingaccess on or off-line

Users download forms to Excel Manipulate data just like

the full web client

Synchronizes to serverwhen ready to be updated.


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Flexible Reporting OptionsFinancial Reports Web-based production report writer for producing highly formattedreports 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 ViewEnables business users to quickly and easily connect to HyperionPlanning using Microsoft Office tools (Excel, Power Point, Word,Outlook) for analysis and reporting.

Allows users to view, import, manipulate, distribute and share data inMicrosoft Excel, Word, and PowerPoint interfaces

Reports and Dashboards can be easily incorporated into PowerPointpresentations and Word documents. Create once and quickly refresh toreview 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 performancerelated information.

Includes a secure instant messaging system for shared decision making.


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HFM, Fusion EditionNew Features

New Equity Pick-up Module Phased Submissions

Enhancements Intercompany Transaction

Enhancements

Oracle BI Publisher Templates forSystem Reports

Extended Analytics Creation of Flat Files

Extended 64 Bit Platform Support

Drill-through to Oracle EBSFinancials via FDM Oracle Data Integrator Support


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Addressing Compliance NeedsSARBANES-OXLEY REQUIREMENT FINANCIAL MANAGEMENT

Section 302 CEO/CFO must certify Submissions contain audit trailSection 404 Internal control report Mandatory review/approval procedures

Section 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 statutory

Recognition and measurement Custom dimensions; financialintelligence, journals with audit trail

Consolidation and reporting Segment reporting, specialized currency,inter-company, disclosures


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Summary


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Summary

Why 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


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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


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Choose | The Right ApproachBizTech RapidApp Methodology


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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 phaseNot all will be performed on every project

DeliverablesFormal work products requiring review and acceptanceControlling documents

Policies & ProceduresProject planning, progress trackingStatus reportingProject scope definition and management

Formal acceptance of deliverables

RapidApp Methodology


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The two most critical concerns for asuccessful implementation:

PROVEN APPROACH

EXPERIENCEDPRACTITIONERS

Prepare Test DeployConfigure

Initial Planning

PrepareEnvironment

Define ProjectLaunch Project

Accelerator Prep

Accelerator Magic

Conference RoomPilots

Superuser Training

Go/No GoDecision

Setup Test/System Testing

End User Training

Setup Production

Go Live!User Acceptance

Testing

Project Mgmt, Quality Assurance, Knowledge Transfer

PrepareTest Scripts

PrepareCRP Scripts

Post-Go LiveSupport

D

D

D

RapidApp Methodology


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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 andtargets.

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 tocomplete 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.


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RapidApp (cont.)

Phase 2: Configure

In the Configure phase, youll 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 designbecomes the foundation against which we develop the data warehouse, ETL anddashboards.

The conference room pilot at the end of the Configure phase will be the point atwhich 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, dashboardsand reports)


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RapidApp (cont.)

Phase 3: Test

Youre going live soon, and were helping you prepare. Were with you to updateand configure the final system configuration.

Well help you conduct system testing to ensure a smooth transition intoproduction.

Well 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.

.


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RapidApp (cont.)

Phase 4: Deploy

Your Oracle solution is live. As you make the transition, we can remain with you ina support role, helping to troubleshoot, teaching you how to maximize the value of your new system, and identifying any new opportunities to continue with thetransformation 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.


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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 additionalfunctionality 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; reducingdependency on external services and associated costs.

Utilizes pre-built, customizable templates (models, forms, reports andbusiness logic) reducing development cycles and project cost.


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Architect

Lead

Associate

The Architect designs the solution, and isinteracting with the work stream leads toensure implementation approach is optimal.

The Leads are Subject Matter Experts, responsible forclient interactions, requirements, ensuring Associatesexecute the work plan tasks and validates solution.

The Associate may be on-site or remote,executes the work plan tasks, unit test, andprovides completed work to Lead for testing.Adds 3 rd 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


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Contact InformationStephen Goldsmith

BI Practice Director (610)592-0600

[email protected]

Timothy Simkiss, CPA, MBA

Hyperion Project Manager Practice

Director (610)592-0600

[email protected]

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