Fusion Accounting Hub

John KillenDirector Fusion FinancialsGlobal Sales Support

Fusion Accounting HubTwo Distinct Use Cases and Value Propositions

Fusion Accounting HubTwo Distinct Use Cases and Value Propositions

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Fusion Accounting HubAccounting and Reporting Platform Any SystemFusion Accounting HubCentralized AccountingReporting & AnalysisCorporateview

50,000 9,100

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Fusion Accounting HubIntegration with Enterprise Performance Management and BIHyperionBI AnalyticsPlanning/ BudgetingDisclosure MgmtFinancial Mgmt

Fusion Accounting Hub Financial Reporting and Analysis Platform

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Fusion Accounting Hub Reporting Demonstration

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Fusion Accounting HubElevator Pitch

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Accounting Integration What is the Business Challenge?

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Disparate Systems Feeding GLUsing Expensive and Ineffective Custom InterfacesNo Visibility or ControlDuplicate Custom LogicError Prone Processes

No AuditNo DrilldownManual Reconciliation

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Maintaining Custom Integrations Over TimeUpgrade or Accounting Change?!?!?Impact AnalysisStakeholder CoordinationSlow Implementation

Long Testing CyclesMore Manual Intervention

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Fusion Accounting Hub Accounting IntegrationElevator Pitch

External SystemsFusion Accounting Hub Accounting and Integration PlatformEBS GLJDE GLPSFT GLFusion GLFusion Accounting Hub

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EBS FAH or Fusion Accounting Hub?

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EBS FAH and Fusion Accounting Hub ComparisonEBS Financial Accounting HubWell Established, Reference StoriesFor EBS R12 Customers, Shared Setup and Hardware (IF customer would not set up different instance for FAH)

Fusion Accounting HubSignificant Functional ImprovementsMore Intuitive Setup and Improved UISpeed for High Volume Customers (230M / Hour)New Financial Reporting and AnalysisLatest Generation Technology and Support TimelineIncremental Path to Fusion (On Premise or On Demand)

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Fusion Accounting Hub Accounting Integration Demonstration

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Target Customer Profile for FY13 and Beyond

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Fusion Accounting Hub Sales PlayWhere are the OpportunitiesIndustries with Legacy Transactional Systems and/or More Complex System Environments Multiple GLs, Want Improved Corporate Fin Reporting Customers On EBS R12.1+ or PSFT 9.1+ Or Planning Upgrade Cycle EBS Accounting Hub Customers and Prospects

Other ConsiderationsFinancial Transformation ProjectsLooking for Incremental Path to Fusion (Investment)Hyperion, Essbase, or Fusion Middleware Experience

*Slide Transition: Weve talked about Fusion Accctg Hub as an accounting and integration platform as well as a reporting platform.

If we start at the bottom, we see that any ledger (representing your local ledgers) or any system can be fed into Fusion Accounting Hub. The local ledgers COAs and Calendars can be different from the corporate COA and Calendar, truly reflecting the business activity.

The data (ledgers or systems) goes through a transformation and aggregation process to integrate the data into the ledger architecture. An important advantage of embedding multi-dimensional technology (Essbase) natively into the ledger architecture, is that the accounting results from the various ledgers and systems are available for reporting and analysis immediately upon posting. Updates are instantaneous ensuring consistency.

Notes for presenter:Local ledgers' COAs and Calendars can be different than Corporate viewAny System can be replaced specific systems that are unique to a customer/audience*Slide Transition: We often get asked how does FAH fit in with Oracles EPM applications, and more specifically, when youre looking at a consolidation solution.Fusion Accounting Hub is typically used for period-end reporting if you have fairly simple consolidation requirements. For example, if you have simple legal entity structures, infrequent mergers and acquisitions, and homogeneous ledger systems on one or two instances, you can use the Fusion Accounting Hub for your consolidation needs. Enterprise Performance Management applications such as Oracle Hyperion Financial Management (HFM) can integrate data from the Fusion Accounting Hub and other sources for global financial consolidation and corporate reporting for legal and statutory purposes. An important distinction to make between the Fusion Accounting Hub and HFM is that the Fusion Accounting Hub deals with transactional details and is intended for day-to-day operational reporting and analytics. HFM deals with period-end balances, not transactional details, and is generally not used as an intra-period reporting system. HFM is a powerful consolidation solution that consolidates period-end balances from disparate general ledgers with the ability to collect other non-financial information used in quarterly and annual reports. For example, it can collect period-end headcount information from HR systems, inventory and operational metrics, as well as sustainability metrics to record an organizations energy and water usage, carbon footprint, and social metrics.Companies that have more sophisticated consolidation requirements, such as legal entity structures with partial ownerships, frequent acquisitions and mergers, heterogeneous ledger systems on multiple instances, cross-ownership (i.e., one company owning another within the same corporation), aggressive tax policies leading to cross-ownership or minority interests etc. should use Hyperion Financial Management, or Fusion Accounting Hub in conjunction with Hyperion Financial Management for their consolidation needs.

*Fusion Accounting Hub standardizes accounting and provides a revolutionary reporting platform

*****The challenges most companies face is that they have a number of disparate systems, supporting various parts of their business, such as policy and claims in insurance industries or perhaps custom systems built in-house to address needs unique to their business. Technical IT resources are usually involved to ensure that source systems have some built-in accounting logic and to ensure accounting data is interfaced to the General Ledger.

External systems: (for example, feeds from AMEX)Legacy: (for example, during phased implementations, as a result of an acquisition)Front office: in house or niche solutions (for example trading, insurance, billing etc.)

Varying degrees of journal intelligence from raw transactions with no accounting currencies; systems with limited or outdated capabilities to systems with fairly advanced accounting capabilities

Accounting policies are implemented by a mixture of source systems, interface programs, spreadsheets and manual adjustments.

Problems:Duplicated logic is many programs. Systems map has evolved over time. Each time a new source system is added, it is easier / less risky to duplicate the logic in a new program rather than modify an existing programError prone manual intervention: Some feeds are manual: journals are created in spreadsheets and uploaded. Other feeds are manually adjusted (i.e. corrected) manually. Both processes are prone to errors.No visibility: Since journal intelligence is hidden in source systems, interface programs or users via spreadsheets: there is little visibility of the accounting rules that are applied.No control: different departments, sometimes in different countries own the remote systems and interface programs. These are actually SOX type issues.Incomplete audit if something changed between source system accounting system then who made the change, and why?Manual reconciliation between source and financial systems; between multiple representations (IFRS and Local GAAP etc.). No drill downGL clogged with detailed journals. GL has the debits and credits but none or minimal information. There is no information about the source transaction that is necessary for the business to understand. The result is GL is clogged with millions of detailed journals in an attempt to provide transaction details (for example, a contract number or employee reference).

The lack of visibility of the accounting is a challenge, due to the fact that it is embedded in a technical interface program code in each source system. Reconciliation is also an issue trying to reconcile data such as:Between source and targetBetween the different GAAPSBetween Finance and Analytics/Risk

**It gets even worse when accounting policies must change for some reason Changes to accounting policies to address changes in business environmentNew finance regulationGlobal expansion and hence, incorporation of local systems etc.Acquisitions and hence, incorporation of new systems (eg Oracle buying a hardware company)

Problems Identification of impact: What has to change and where is it? Coordination and budget issues across many departments including source system owners, IT interface owners etc. Disjointed communication; slow implementation; long testing cycles. i.e. RISK Increased manual intervention: the result is often that some remote systems and feeds are not changed: manual adjustments are made

*Fusion Accounting Hub standardizes accounting and provides a revolutionary reporting platform

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