Best Practice: Automating Cash Flow in Hyperion Financial Management

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Automating the statement of cash flows in Hyperion Financial Management requires a number of design considerations. This presentation takes a consultant’s perspective of the design and implementation of cash flow automation including best practices. View the full presentation at the Emtec Event Archive.

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Best Practice: Automating Cash Flow in Hyperion Financial Management

  1. 1. Things to Consider- Designing Cash Flow Process in HFMHyperion Performance & Business Analytics Networking EventRussell Rogers & Jeff Pitts, EmtecMay 8, 2013
  2. 2. Emtec, Inc. All rights reserved 2013Purpose and Definitions• Purpose–Provide an overview of everything to consider when automating a statement of cash flows in HFM–Not teach you all detailed steps surrounding building of metadata, artifacts and business rules. Thiswould simply take too much time.–Provide some explanation and thought process behind the metadata, artifacts and rules included inthis presentation–There is no such thing as a statement of cash flows that is 100% automated. Some manualintervention will always be required–Highlight who we are, what we do and how to contact us• Definitions–Metadata – Members and structures defined in HFM Metadata Manager used for the purpose ofstoring data that is both submitted and calculated (i.e. – scenarios, years, accounts and customs 1-4–Business Rules – A form of Visual Basic defined in HFM Rules Editor used for the purpose ofcalculating results–Artifacts – Data Forms, Data Grids and Reports defined in HFM Web used for submission andvalidation of data and reporting of results2
  3. 3. Emtec, Inc. All rights reserved 2013Metadata Consideration – Create a Custom Dimension Structure forBalance Sheet• Custom Dimension–To be used for all Balance Sheet roll forward activity–Dimension members include: Beg Balance, Additions, Retirements, Transfers–Top member of Custom Dimension structure is assigned to all Balance Sheet accounts–Process creates a “valid intersection” of each Balance Sheet account with each roll forward member3
  4. 4. Emtec, Inc. All rights reserved 2013Process (Artifact) Consideration– Collect Supplemental Roll Forward Databy Location• Task List of Web Data Forms by Location–Data forms to capture supplemental information not included in source ERP system–Data forms include: Beg Balances (calculated), Additions, Retirements, Transfers–Data forms include: Validation Check (Scalc) to compare roll forward balances entered to GL Load4
  5. 5. Emtec, Inc. All rights reserved 2013Metadata Consideration– Create a Custom Dimension Structure to CaptureChanges• Custom Dimension–Includes members for changes in Beg Balances, changes in End Balances and changes in Activity for3 key levels of value dimension (<Entity Currency>, <Parent Currency>, [Elimination])–Assigned as top member for all “Changes in Balance Sheet” accounts–Can be in same Custom Dimension used to capture Balance Sheet roll forward activity–Top member assigned to all “CHT_” and “CH_” accounts5
  6. 6. Emtec, Inc. All rights reserved 2013Business Rule Consideration – Calculate Cash Flow Activity• Rule–Rule calculates on 3 levels of value dimension (<Entity Currency>, [Elimination], <Parent Currency>)–Rule uses conditional statements to populate ECCH activity, ELCH activity, and PCCH activity–Rule populates using proper signage based on previous business rule6
  7. 7. Emtec, Inc. All rights reserved 2013Metadata Consideration– Create Cash Flow Statement Reporting Accounts• Account Dimension–Accounts used for “presentation” andcalculation of each line item that appears onthe St. of Cash Flows–All accounts are defined as “Expense” type–The hierarchy of the account structuremodels how the report should be displayed(i.e. – Operating, Financing and Investingsections).7
  8. 8. Emtec, Inc. All rights reserved 2013Process (Artifact) Consideration– Create St. of Cash Flow Data Form• Data Form- St. of Cash Flows–Column 1 (CFS_Calc) represents the line item calculations (not yet discussed)–Column 2 (CFS_Input) represents the line item input (i.e. – manual input for off Balance Sheet items)–Colum 3 (CFS_Total) is the parent member that sums the calculations and inputs to the line items andis the member to be used for reporting8
  9. 9. Emtec, Inc. All rights reserved 2013Business Rule Consideration – Translate Cash Flow Reporting Accounts• Rules for Translation–Translate Cash Flow reporting accounts using EOM_YTDAVG exchange rate account–Calculated in the Sub Translate() subroutine–Uses HS.Trans function to override application default translation method used for expense typeaccounts, which includes cash flow “presentation” reporting accounts9
  10. 10. Emtec, Inc. All rights reserved 2013Business Rules Consideration –Prove FX Effect “Plug” on Cash• Rules to Prove FX Effect (Plug)–Create special translation rules to calculate total FX effect on beginning cash as well as each section(operating, investing, financing) on statement of cash flows.–FX effect on beginning cash is calculated as the difference between translating at current EOM ratevs. prior year P12 EOM rate.–FX effect on operating activities (in total) is calculated as the difference between translating at currentEOM rate vs. translated balances reported (due to different method used to translate Net Income).–FX effect on each line making up the investing and financing activities must either be calculated bytaking the difference between translating at EOM rate vs. EOM_YTDAVG rate or by taking thedifference between translating at EOM rate vs. translated balances reported (due to different methodused on items with dollar overrides).10
  11. 11. Emtec, Inc. All rights reserved 2013PREPARE THE HFM APPLICATION• Custom structure for BS to capture roll forward activity• Calculate Beg. Bal. on BS accounts rule• Data Forms to capture roll forwards by location• Traffic Light reports to validate supplemental data submitted• Account/Custom structure to capture changes in BS• Calculate beginning, ending and activity on changes in BS• Create Data Grids to validate “activity” rules for changes inBS for <Entity Currency>, [Elimination], <Parent Currency>BUILD THE CASH FLOW PRESENTATIONSummary of Considerations – Metadata, Bus. Rules, Process(Artifacts)11• Create Cash Flow Statement reporting accounts• Expand “Changes in BS” custom dimension for CFS_Total• Create St. of Cash Flow Data Form• Create rules to calculate St. of Cash Flow reportingaccounts for <Entity Currency>, [Elimination] and <ParentCurrency>BUILD CURRENCY TRANSLATION FOR CF• Create and calculate EOM YTD AVG rate account• Create translate rule to translate CF reporting accounts• Calculate beginning and ending cash for <Entity Currency>and <Parent Currency>• Calculate Cash Proof for <Entity Currency>• Calculate Total FX Effect on Cash for <Parent Currency>PROVE THE FX PLUG• Expand custom dimension cash flow structure to include FXcash flow rollup• Create FX Proof Account roll up• Create special translation rules to prove total FX effect on:Beginning Cash, Operating, Investing and Financingactivities• Update St. of Cash Flow Data Form to display computationof FX Proof (Check)
  12. 12. View the full presentation at the Emtec Event Archive.Interested in more?Our website has the fullpresentation, and others, fromthe 6th Annual Oracle HyperionPerformance Management &Business Analytics NetworkingEvent

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